IMPINJ INC, 10-K filed on 2/10/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Jan. 31, 2025
Jun. 30, 2024
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2024    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Trading Symbol PI    
Entity Registrant Name IMPINJ, INC.    
Entity Central Index Key 0001114995    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Shell Company false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Small Business false    
Entity Common Stock, Shares Outstanding   28,538,125  
Entity Public Float     $ 3.7
Entity Interactive Data Current Yes    
Title of 12(b) Security Common Stock, $0.001 par value per share    
Security Exchange Name NASDAQ    
Entity File Number 001-37824    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 91-2041398    
Entity Address, Address Line One 400 Fairview Avenue North    
Entity Address, Address Line Two Suite 1200    
Entity Address, City or Town Seattle    
Entity Address, State or Province WA    
Entity Address, Postal Zip Code 98109    
City Area Code 206    
Local Phone Number 517-5300    
Document Annual Report true    
Document Transition Report false    
Auditor Name Ernst & Young LLP    
Auditor Firm ID 42    
Auditor Location Seattle, Washington    
Auditor Opinion

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Impinj, Inc. (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity (deficit) and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 10, 2025 expressed an unqualified opinion thereon.

    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

The information required by Part III of this report, to the extent not set forth herein, is incorporated in this report by reference to the registrant’s definitive proxy statement relating to its 2025 annual meeting of stockholders. The definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2024.

    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 46,053 $ 94,793
Short-term investments 118,661 18,440
Accounts receivable, net 56,802 54,919
Inventory 99,346 97,172
Prepaid expenses and other current assets 5,536 4,372
Total current assets 326,398 269,696
Long-term investments 74,871  
Property and equipment, net 50,610 44,891
Intangible assets, net 10,291 13,913
Operating lease right-of-use assets 7,142 9,735
Other non-current assets 1,045 1,478
Goodwill 18,723 19,696
Total assets 489,080 359,409
Current liabilities:    
Accounts payable 17,254 8,661
Accrued compensation and employee related benefits 22,309 8,519
Accrued and other current liabilities 2,684 8,614
Current portion of operating lease liabilities 3,589 3,373
Current portion of long-term debt 283,493  
Current portion of deferred revenue 1,848 1,713
Total current liabilities 331,177 30,880
Long-term debt   281,855
Operating lease liabilities, net of current portion 5,719 9,360
Deferred tax liabilities, net 2,200 2,911
Deferred revenue, net of current portion 120 272
Total liabilities 339,216 325,278
Commitments and contingencies (Note 12)
Stockholders' equity:    
Preferred stock, $0.001 par value - 5,000 shares authorized, no shares issued and outstanding at December 31, 2024 and 2023
Common stock, $0.001 par value - 495,000 shares authorized, 28,504 and 27,166 shares issued and outstanding at December 31, 2024 and 2023, respectively 29 27
Additional paid-in capital 541,090 463,900
Accumulated other comprehensive income (loss) (1,942) 355
Accumulated deficit (389,313) (430,151)
Total stockholders' equity 149,864 34,131
Total liabilities and stockholders' equity $ 489,080 $ 359,409
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 495,000,000 495,000,000
Common stock, shares issued 28,504,000 27,166,000
Common stock, shares outstanding 28,504,000 27,166,000
v3.25.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Revenue $ 366,087 $ 307,539 $ 257,800
Cost of revenue 177,232 155,557 119,916
Gross profit 188,855 151,982 137,884
Operating expenses:      
Research and development 98,829 88,562 74,106
Sales and marketing 40,579 41,123 37,894
General and administrative 51,802 60,828 45,465
Amortization of intangibles 2,902 4,953  
Restructuring costs 1,812   (102)
Total operating expenses 195,924 195,466 157,363
Loss from operations (7,069) (43,484) (19,479)
Other income, net 7,937 4,644 2,517
Income from settlement of litigation 45,000    
Induced conversion expense     (2,232)
Interest expense (4,873) (4,848) (4,923)
Income (loss) before income taxes 40,995 (43,688) (24,117)
Income tax benefit (expense) (157) 322 (184)
Net income (loss) $ 40,838 $ (43,366) $ (24,301)
Net income (loss) per share - basic $ 1.46 $ (1.62) $ (0.95)
Net income (loss) per share - diluted $ 1.39 $ (1.62) $ (0.95)
Weighted-average shares outstanding - basic 27,953 26,752 25,539
Weighted-average shares outstanding - diluted 29,471 26,752 25,539
v3.25.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 40,838 $ (43,366) $ (24,301)
Other comprehensive income (loss), net of tax:      
Unrealized gain (loss) on investments (515) 1,198 (1,210)
Foreign currency translation adjustment (1,782) 406  
Total other comprehensive income (loss) (2,297) 1,604 (1,210)
Comprehensive income (loss) $ 38,541 $ (41,762) $ (25,511)
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive Income (loss)
Beginning balance at Dec. 31, 2021 $ (11,076) $ 25 $ 351,422 $ (362,484) $ (39)
Beginning balance, shares at Dec. 31, 2021   24,737      
Issuance of common stock 15,416 $ 1 15,415    
Issuance of common stock, shares   1,361      
Stock-based compensation 42,443   42,443    
Induced conversion on 2019 Notes (Note 8) (5,681)   (5,681)    
Net income (loss) (24,301)     (24,301)  
Other comprehensive income (loss) (1,210)       (1,210)
Ending balance at Dec. 31, 2022 15,591 $ 26 403,599 (386,785) (1,249)
Ending balance, shares at Dec. 31, 2022   26,098      
Issuance of common stock 8,737 $ 1 8,736    
Issuance of common stock, shares   1,041      
Stock-based compensation 47,986   47,986    
Net income (loss) (43,366)     (43,366)  
Equity issuance for Voyantic acquisition 3,579   3,579    
Equity issuance for Voyantic acquisition, shares   27      
Other comprehensive income (loss) 1,604       1,604
Ending balance at Dec. 31, 2023 34,131 $ 27 463,900 (430,151) 355
Ending balance, shares at Dec. 31, 2023   27,166      
Issuance of common stock 20,280 $ 2 20,278    
Issuance of common stock, shares   1,338      
Stock-based compensation 56,546   56,546    
Restructuring equity modification expense 366   366    
Net income (loss) 40,838     40,838  
Other comprehensive income (loss) (2,297)       (2,297)
Ending balance at Dec. 31, 2024 $ 149,864 $ 29 $ 541,090 $ (389,313) $ (1,942)
Ending balance, shares at Dec. 31, 2024   28,504      
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities:      
Net income (loss) $ 40,838 $ (43,366) $ (24,301)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 13,588 13,623 6,044
Stock-based compensation 56,546 47,986 42,443
Restructuring equity modification expense 366    
Accretion of discount or amortization of premium on investments (1,122) (1,637) (233)
Amortization of debt issuance costs 1,638 1,611 1,601
Loss on fixed asset disposal     57
Induced conversion expense related to convertible notes     2,232
Deferred tax expense (567) (931) 6
Revaluation of acquisition-related contingent consideration liability 986 1,570  
Changes in operating assets and liabilities, net of amounts acquired:      
Accounts receivable (1,999) (3,713) (14,547)
Inventory (2,220) (49,577) (24,439)
Prepaid expenses and other assets 227 1,625 852
Accounts payable 9,270 (12,303) 7,371
Accrued compensation and employee related benefits 13,855 (1,119) 2,683
Accrued and other liabilities 244 (591) (215)
Acquisition-related contingent consideration liability (2,556)    
Operating lease right-of-use assets 2,560 2,607 3,414
Operating lease liabilities (3,392) (3,308) (4,126)
Deferred revenue 48 (1,859) 1,805
Net cash provided by (used in) operating activities 128,310 (49,382) 641
Investing activities:      
Purchases of investments (202,063)   (205,749)
Proceeds from sales of investments   13,372  
Proceeds from maturities of investments 26,605 144,401 114,750
Proceeds from sale of property and equipment   234 279
Purchases of intangible assets   (250)  
Purchases of property and equipment (17,112) (18,592) (12,079)
Business acquisitions, net of cash acquired   (23,357)  
Net cash provided by (used in) investing activities (192,570) 115,808 (102,799)
Financing activities:      
Proceeds from exercise of stock options and employee stock purchase plan 20,281 8,736 15,416
Payment of 2019 Notes     (17,564)
Payment of acquisition-related contingent consideration (4,602)    
Net cash provided by (used in) financing activities 15,679 8,736 (2,148)
Effect of exchange rate changes on cash and cash equivalents (159) 34  
Net increase (decrease) in cash and cash equivalents (48,740) 75,196 (104,306)
Cash and cash equivalents      
Beginning of period 94,793 19,597 123,903
End of period 46,053 94,793 19,597
Supplemental disclosure of cashflow information:      
Cash paid for interest 3,234 3,234 3,420
Purchases of property and equipment not yet paid $ 763 1,417 $ 6,245
Operating lease liabilities arising from obtaining ROU assets   979  
Lease liabilities arising from remeasurement of ROU assets   159  
26,396 shares of common stock issued for Voyantic Oy acquisition   3,579  
Acquisition-related contingent consideration liability   $ 6,172  
v3.25.0.1
Consolidated Statements of Cash Flows (Parenthetical)
Dec. 31, 2024
shares
Common stock, shares issued 28,504,000
Voyantic Oy  
Common stock, shares issued 26,396
v3.25.0.1
Cybersecurity Risk Management, Strategy, and Governance
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

Risk Management and Strategy

We have established policies and processes for assessing, identifying and managing material cybersecurity risks, and have integrated these processes into our overall risk-management processes. We have also established policies and processes for managing and responding to material cybersecurity incidents.

We routinely assess material cybersecurity risks, including potential unauthorized occurrences on, or conducted through, our information systems that may compromise the confidentiality, integrity or availability of those systems or information maintained in them. We conduct periodic risk assessments to identify cybersecurity threats, as well as assessments when there is a material change in our business practices that we believe could affect information systems that are vulnerable to cybersecurity threats. These risk assessments include identifying reasonably foreseeable internal and external risks and the potential harm if the risks were to materialize. We conduct these risk assessments directly and also engage third parties to support these processes.

Following these risk assessments, we evaluate how to appropriately implement and maintain reasonable safeguards to mitigate identified risks; reasonably address any identified gaps in existing safeguards; and regularly monitor the effectiveness of our safeguards. We devote significant resources and designate members of our management, including our VP, IT and Facilities, or VP IT, who reports to

our Chief Financial Officer, and our Senior Information Security Manager, or Senior ISM, to manage the risk assessment and mitigation process. We also engage third parties to help us design and implement our cybersecurity systems, as well as monitor and test our safeguards. As part of our overall risk management, we collaborate cross-functionally to monitor and test our safeguards and to train our employees on cybersecurity risks and safeguards. We include employees at all levels and departments, and all contractors, in our cybersecurity training programs.

We require appropriate third-party service providers to certify that they can implement and maintain appropriate security measures, consistent with all applicable laws, in connection with their work for us, and to promptly report any suspected breach of their security measures that may affect our company. We oversee and identify risks from cybersecurity threats associated with our use of service providers through an onboarding vendor risk management program, including an inherent risk assessment.

We have not, to date, experienced a cybersecurity incident which was determined to be material, although, like any technology provider, we have experienced incidents in the past. For additional information regarding whether any risks from cybersecurity threats are reasonably likely to materially affect our company, including our business strategy, results of operations, or financial condition, please refer to Item 1A, “Risk Factors,” in this annual report on Form 10-K, including the risk factors under the heading entitled “Risks Relating to Privacy and Cybersecurity.”

 

Cybersecurity Governance

One of the key functions of our board of directors is informed oversight of our risk management process, including risks from cybersecurity threats. Our board of directors is responsible for monitoring and assessing our strategic risk exposure, and our executive officers are responsible for day-to-day management of the material risks we face. Our board of directors administers its cybersecurity risk-oversight function as a whole, as well as through the audit committee.

Our Vice President Information Technology, or VP IT, and Senior Information Security Manager, or Senior ISM, are responsible for assessing and managing material risks from cybersecurity threats, as well as managing and responding to material cyber incidents if any occur. Our VP IT has a bachelor’s degree in management information systems and more than 25 years experience managing enterprise information-technology systems and resources. Our Senior ISM has an undergraduate degree in management information systems, an MBA and multiple professional cybersecurity certifications, has specialized in cybersecurity for more than a decade and is focused primarily on cybersecurity.

Our VP IT and Senior ISM provide periodic briefings to the audit committee and to the board of directors about our cybersecurity risks and activities, including cybersecurity incidents and responses, cybersecurity systems testing, third-party activities and related topics. In addition, our policies for managing and responding to cybersecurity incidents include procedures for appropriate escalations to our Chief Compliance Officer and to our audit committee chair.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

We have established policies and processes for assessing, identifying and managing material cybersecurity risks, and have integrated these processes into our overall risk-management processes. We have also established policies and processes for managing and responding to material cybersecurity incidents.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

One of the key functions of our board of directors is informed oversight of our risk management process, including risks from cybersecurity threats. Our board of directors is responsible for monitoring and assessing our strategic risk exposure, and our executive officers are responsible for day-to-day management of the material risks we face. Our board of directors administers its cybersecurity risk-oversight function as a whole, as well as through the audit committee.

Our Vice President Information Technology, or VP IT, and Senior Information Security Manager, or Senior ISM, are responsible for assessing and managing material risks from cybersecurity threats, as well as managing and responding to material cyber incidents if any occur. Our VP IT has a bachelor’s degree in management information systems and more than 25 years experience managing enterprise information-technology systems and resources. Our Senior ISM has an undergraduate degree in management information systems, an MBA and multiple professional cybersecurity certifications, has specialized in cybersecurity for more than a decade and is focused primarily on cybersecurity.

Our VP IT and Senior ISM provide periodic briefings to the audit committee and to the board of directors about our cybersecurity risks and activities, including cybersecurity incidents and responses, cybersecurity systems testing, third-party activities and related topics. In addition, our policies for managing and responding to cybersecurity incidents include procedures for appropriate escalations to our Chief Compliance Officer and to our audit committee chair.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our board of directors administers its cybersecurity risk-oversight function as a whole, as well as through the audit committee.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our VP IT and Senior ISM provide periodic briefings to the audit committee and to the board of directors about our cybersecurity risks and activities, including cybersecurity incidents and responses, cybersecurity systems testing, third-party activities and related topics.
Cybersecurity Risk Role of Management [Text Block] We devote significant resources and designate members of our management, including our VP, IT and Facilities, or VP IT, who reports to our Chief Financial Officer, and our Senior Information Security Manager, or Senior ISM, to manage the risk assessment and mitigation process.

Our Vice President Information Technology, or VP IT, and Senior Information Security Manager, or Senior ISM, are responsible for assessing and managing material risks from cybersecurity threats, as well as managing and responding to material cyber incidents if any occur. Our VP IT has a bachelor’s degree in management information systems and more than 25 years experience managing enterprise information-technology systems and resources. Our Senior ISM has an undergraduate degree in management information systems, an MBA and multiple professional cybersecurity certifications, has specialized in cybersecurity for more than a decade and is focused primarily on cybersecurity.

Our VP IT and Senior ISM provide periodic briefings to the audit committee and to the board of directors about our cybersecurity risks and activities, including cybersecurity incidents and responses, cybersecurity systems testing, third-party activities and related topics. In addition, our policies for managing and responding to cybersecurity incidents include procedures for appropriate escalations to our Chief Compliance Officer and to our audit committee chair.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our board of directors administers its cybersecurity risk-oversight function as a whole, as well as through the audit committee.Our Vice President Information Technology, or VP IT, and Senior Information Security Manager, or Senior ISM, are responsible for assessing and managing material risks from cybersecurity threats, as well as managing and responding to material cyber incidents if any occur.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our VP IT has a bachelor’s degree in management information systems and more than 25 years experience managing enterprise information-technology systems and resources. Our Senior ISM has an undergraduate degree in management information systems, an MBA and multiple professional cybersecurity certifications, has specialized in cybersecurity for more than a decade and is focused primarily on cybersecurity.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] In addition, our policies for managing and responding to cybersecurity incidents include procedures for appropriate escalations to our Chief Compliance Officer and to our audit committee chair.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 40,838 $ (43,366) $ (24,301)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

During our last fiscal quarter, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Item 408 of Regulation S-K, except as follows:

Name and Title

 

Character of Trading Arrangement (1)

 

Date Adopted

 

Date Terminated

 

Duration (2)

 

Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement

Jeff Dossett, Chief Revenue Officer

 

Rule 10b5-1 Trading Arrangement

 

November 19, 2024

 

-

 

August 28, 2025

 

Up to 15,000

(1) Except as indicated by footnote, each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended, or the “Rule”.

(2) Except as indicated by footnote, each trading arrangement permits transactions through and including the earlier of (a) the execution or expiration of all trades specified under the trading arrangement or (b) the date listed in the table. Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule.
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Jeff Dossett [Member]  
Trading Arrangements, by Individual  
Name Jeff Dossett
Title Chief Revenue Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 19, 2024
Expiration Date August 28, 2025
Aggregate Available 15,000
v3.25.0.1
Insider Trading Policies and Procedures
 3 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Description of Business
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business

Note 1. Description of Business

Impinj, Inc., a Delaware corporation, is headquartered in Seattle, Washington. The Impinj platform wirelessly connects items and delivers data about the connected items to business and consumer applications. Impinj generates revenue from enterprise solutions that use our platform's constituent elements — endpoint ICs, reader ICs, readers gateways, and test and measurement solutions — as well as from development, service and license agreements.

v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP.

All numbers in the consolidated financial statements are rounded to the nearest thousand, except for per share data, and numbers in the notes to the consolidated financial statements are rounded to the nearest million.
 

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. We evaluate our estimates on an ongoing basis, including those related to revenue recognition, sales incentives, the fair value of assets acquired, liabilities assumed, contingent consideration in business combinations, inventory excess and obsolescence and income taxes. To the extent there are material differences between our estimates, judgments or assumptions and actual results, our financial statements will be affected.

Concentrations of Credit Risk

Financial instruments, which potentially subject us to credit-risk concentration, comprise primarily cash equivalents, investments and accounts receivable. We place our cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, to limit our investment exposure. We extend credit to customers based on our evaluation of the customer’s financial condition and generally do not require collateral. The following tables present total revenue and accounts receivable concentration for the indicated periods as of the dates presented:

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

Customer A

 

 

28

%

 

 

33

%

 

 

28

%

Customer B

 

 

17

 

 

 

11

 

 

 

10

 

Customer C

 

 

15

 

 

*

 

 

*

 

 

 

60

%

 

 

44

%

 

 

38

%

 

* Customer accounted for less than 10% of total revenue in the period.

 

 

As of December 31,

 

 

2024

 

 

2023

 

Accounts Receivable:

 

 

 

 

Customer A

 

 

22

%

 

 

39

%

Customer B

 

 

17

 

 

 

11

 

Customer C

 

 

22

 

 

*

 

 

 

61

%

 

 

50

%

* Customer accounted for less than 10% of total accounts receivable in the period.

Concentration of Supplier Risk

We outsource the manufacturing and production of our hardware products to a small number of suppliers. We believe other suppliers could provide similar products on comparable terms if needed. However, a supplier change could delay manufacturing and cause a sales loss, which would adversely affect our operating results.

Cash and Cash Equivalents

Cash includes demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present minimal risk of changes in value with changes in interest rates. Our cash equivalents are solely investments with an original or remaining maturity of three months or less at the date of purchase. We regularly maintain cash amounts exceeding federally insured limits at financial institutions.

Investments

Our investments comprise fixed income securities, including U.S. government securities, corporate notes and bonds, commercial paper and asset-backed securities. The contractual maturities of some of our available-for-sale, or AFS, debt securities exceed a year and are classified as long-term investments on our balance sheet. We carry AFS debt securities at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss). Our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in fair value of an investment below the cost basis is determined to be other-than-temporary. Factors we consider in determining whether a loss is temporary include the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, our intent to sell the security and whether or not we will be required to sell the security prior to the expected recovery of the investment's amortized cost basis. No such impairment changes were recorded during the years ended December 31, 2024, 2023 and 2022. See Note 3 tables for the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of December 31, 2024 and 2023.

Fair Value Measurement

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.
•
Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which are internally developed, and considers risk premiums that a market participant would require.

We do not have any financial assets or liabilities in Level 3 as of December 31, 2024, and only had the liability for the earnout consideration related to the Voyantic Oy acquisition as of December 31, 2023. We classified this liability as such because we determined the fair value using significant unobservable inputs. See Note 3: Fair Value Measurements and Note 6: Goodwill and Intangible Assets.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets.

Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means.

Long-term Debt —See Note 8 for the carrying amount and estimated fair value of the Notes.

Contingent Consideration — The contingent consideration liability is related to our acquisition of Voyantic Oy (see Note 6: Goodwill and Intangible Assets). We paid the contingent consideration amount of $7.2 million in second-quarter 2024.

Accounts Receivable and Allowances

Accounts receivable comprises amounts billed and currently due from customers, net of allowances for doubtful accounts, sales returns and price exceptions.

The allowance for doubtful accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. We record changes in our estimate of the allowance for doubtful accounts through bad debt expense and write off the receivable and corresponding allowance when accounts are ultimately determined to be uncollectible. We include bad debt expense in general and administrative expenses. For the periods presented in this report, bad debt expense and the allowance for doubtful accounts were not material.

We derive most of our accounts receivable from sales to original equipment manufacturers, or OEMs, original design manufacturers, ODMs, solution providers and distributors who are large, well-established companies. We do not have customers that represent a significant credit risk based on current economic conditions and past collection experience. Also, we have not had material past-due balances on our accounts receivable as of December 31, 2024 or 2023.

The allowance for sales returns and price exceptions is our best estimate based on our historical experience and currently available evidence. We record changes in our estimate of the allowance for sales returns and price exceptions through revenue, and relieve the allowance when we receive product returns or process claims for price exceptions. The following table summarizes our allowance for sales returns (in thousands):

 

 

Balance at Beginning of Year

 

 

Additional Reserve

 

 

Applied Sales Return

 

 

Balance at End of Year

 

Allowance for sales returns and price exceptions:

 

 

 

 

 

 

 

 

During year ended December 31, 2024

 

$

677

 

 

$

2,248

 

 

$

(2,155

)

 

$

770

 

During year ended December 31, 2023

 

 

605

 

 

 

2,912

 

 

 

(2,840

)

 

 

677

 

During year ended December 31, 2022

 

 

947

 

 

 

1,899

 

 

 

(2,241

)

 

 

605

 

 

Inventory

We state inventories at the lower of cost or estimated net realizable value using the average costing method, which approximates a first-in, first-out method. Inventories comprise raw materials, work-in-process and finished goods. We continuously assess our inventory value and write down its value for estimated excess and obsolete inventory. This evaluation includes an analysis of inventory on hand, current and forecasted demand, product development plans and market conditions. If future demand or market conditions are less favorable than our projections, or our product development plans change from current expectations, then a write-down of excess or obsolete inventory may be required and is reflected in cost of goods sold in the period the updated information is known.

Excess and obsolescence charges had an immaterial impact on our 2024, 2023 and 2022 gross margin.

Property and Equipment

We record property and equipment at cost and depreciate it using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows:

Category

 

Useful Life

 

 

Machinery and equipment

 

1 to 10 years

 

 

Computer equipment and software

 

3 to 5 years

 

 

Furniture and fixtures

 

3 to 7 years

 

 

Equipment acquired under finance leases

 

3 to 7 years

 

 

Leasehold improvements

 

Shorter of remaining lease term or expected useful life

We charge maintenance and repair costs to expense when incurred. We capitalize major improvements, which extend the useful life of the related asset. Upon disposal of a fixed asset, we record a gain or loss based on the differences between the proceeds received and the net book value of the disposed asset.

Other Assets

Other assets comprise primarily capitalized implementation costs from cloud computing arrangements and security deposits. We capitalize eligible costs associated with cloud computing arrangements over the term of the arrangement, plus reasonably certain renewals, and recognize those costs on a straight-line basis in the same line item in the consolidated statement of operations as the expense for fees associated with the cloud computing arrangement. Cloud computing arrangement costs, included in prepaid expenses and other current assets, were $0.4 million and $0.4 million, and other non-current assets were $1.0 million and $1.4 million, as of December 31, 2024 and 2023, respectively. Amortization expense associated with the cloud computing arrangements was $0.4 million for 2024, $0.5 million for 2023, and $0.4 million for 2022. We present cash flows related to capitalized implementation costs in cash flows used in operating activities.

Business Combinations and Intangible Assets Including Goodwill

We account for business combinations using the acquisition method which involves allocating the purchase price paid to assets acquired and liabilities assumed at their acquisition-date fair values. The excess of the fair value of purchase consideration over the fair value of the identifiable assets and liabilities is recorded as goodwill. While we use our best estimates and assumptions to accurately estimate the fair value of assets acquired, liabilities assumed and the contingent consideration liability, our estimates are inherently uncertain. These estimates include, but are not limited to, estimates of future revenue, revenue growth rates, discount rates, underlying product or technology life cycles and expenses necessary to support the acquired technology, and estimated sales cycle for customer relationships. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill.

We review assumptions related to the fair value of the contingent consideration each reporting period until the contingency is satisfied. We recognize the change in fair value of the contingent

consideration liability in “General and administrative” expense on the consolidated statements of operations for the period in which the fair value changes.

We assess the impairment of goodwill on an annual basis, during the fourth quarter, or otherwise when events or changes in circumstances indicate that goodwill may be impaired.

We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis.

We expense acquisition-related costs, including advisory, legal, accounting, valuation and other similar costs in the periods in which the costs are incurred.

Revenue Recognition

We generate revenue primarily from sales of hardware products. We also generate revenue from software, extended warranties, enhanced maintenance, support services and nonrecurring engineering, or NRE, development services, none of which are material.

We recognize revenue when we transfer control of the promised goods or services to our customers, which for hardware sales is generally at the time of product shipment as determined by agreed-upon shipping terms. We measure revenue based on the amount of consideration we expect to be entitled-to in exchange for those goods or services. We expect the period between when we transfer control of promised goods or services and when we receive payment to be one year or less, and that expectation is consistent with our historical experience. As such, we do not adjust our revenue for the effects of a significant financing component. We recognize any variable consideration, which comprises primarily sales incentives, as revenue reduction at the time of revenue recognition. We estimate sales incentives based on our historical experience and current expectations at the time of revenue recognition and update them at the end of each reporting period as additional information becomes available.

Our reader and gateway products are highly dependent on embedded software and cannot function without this embedded software. We account for the hardware and embedded software as a single performance obligation and recognize revenue when control is transferred.

Our customer contracts with multiple performance obligations generally include a combination of hardware products, extended warranty, enhanced maintenance and support services. For these contracts, we account for individual performance obligations separately if they are distinct. We allocate the transaction price to the separate performance obligations on a relative standalone selling-price basis. In instances where the standalone selling price is not directly observable, such as when we do not sell the product or service separately, we determine the standalone selling price using one, or a combination of, the adjusted market assessment or expected cost-plus margin. We defer amounts allocated to extended warranty and enhanced maintenance sold with our reader and gateway products and recognize them on a straight-line basis over the term of the arrangement, which is typically from one to three years. We defer amounts allocated to support services sold with our reader and gateway products and recognize them when we transfer control of the promised services to our customers.

Revenue generated from licensing our intellectual property is governed by licensing agreements. We recognize revenue from licensing the right to use functional intellectual property at the point in time the control of the license transfers to the customer, which is generally upon delivery, or as usage occurs.

If a customer pays consideration before we transfer a good or service under the contract, then we classify those amounts as contract liabilities or deferred revenue. We recognize contract liabilities as revenue when we transfer control of the promised goods or services to our customers.

Payment terms typically range from 30 to 120 days. We present revenue net of sales tax in our consolidated statements of operations. We include shipping charges billed to customers in revenue and the related shipping costs in cost of revenue.

Practical Expedients and Exemptions: We expense sales commissions when incurred because we expect the amortization period to be one year or less. We record these costs within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (1) contracts with an

original expected length of one year or less and (2) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

Product Warranties

We provide limited warranty coverage for most products, generally ranging from a period of 90 days to one year from the date of shipment. We record a liability for the estimated cost of these warranties based on historical claims, product failure rates and other factors when we recognize the related revenue. We review these estimates periodically and adjust our warranty reserves when actual experience differs from historical estimates or when other information becomes available. The warranty liability primarily includes the anticipated cost of materials, labor and shipping necessary to repair or replace the product. Accrued warranty costs in 2024, 2023 and 2022 were not material.

Leases

We determine, at inception, whether an arrangement is or contains a lease. Right-of-use, or ROU, assets represent our right to use an identified asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease ROU assets and liabilities at commencement date based on the present value of future lease payments over the lease term. We use an incremental borrowing rate in determining the present value of future lease payments because our operating leases do not provide an implicit rate. Our incremental borrowing rate is based on a credit-adjusted risk-free rate, which best approximates a secured rate over a similar term of lease. We recognize lease expense for lease payments on a straight-line basis over the lease term. Our lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. We expense variable lease costs on the consolidated statements of operations as incurred. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.

We have various noncancellable operating lease agreements for office, warehouse and research and development space in the United States, China and Finland, with expiration dates from 2025 to 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal and termination clauses that we factor into the classification and measurement of the lease when appropriate. These lease agreements typically include lease and non-lease components and are generally accounted for as a single lease component. We consider variable CAM expenses for real estate leases as non-lease components.

We do not record leases with an initial term of 12 months or less on our consolidated balance sheet; we instead recognize lease expense for these leases on a straight-line basis over the lease term.

Research and Development Costs

Research and development expense comprises primarily personnel expenses (salaries, benefits and other employee related costs) and stock-based compensation expense for our product-development personnel; external consulting and service costs; prototype materials; other new-product development costs; and an allocated portion of infrastructure costs which include occupancy, depreciation and software costs.

Foreign Currency

We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiary into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for this subsidiary are translated using rates that approximate those in effect during the period. We recognize gains and losses from these translations as a component of accumulated other comprehensive income (loss) in stockholders' equity. Our subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and non-monetary assets and liabilities at historical rates. We have included the gains or losses from foreign currency remeasurement in earnings.

Income Taxes

We use the asset and liability approach for accounting, which requires recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to be in effect when the assets and liabilities are recovered or settled. We recognize the effects of a change in tax rates on deferred tax assets and liabilities in the year of the enactment date. We determine deferred tax assets, including historical net operating losses and deferred tax liabilities, based on temporary differences between the book and tax bases of the assets and liabilities. We believe that it is currently more likely than not that our deferred tax assets will not be realized and, as such, we have recorded a full valuation allowance for these assets. We evaluate the likelihood of our ability to realize deferred tax assets in future periods on a quarterly basis, and if evidence indicates we will be able to realize some or all of our deferred tax assets then we will revise our valuation allowance accordingly.

We use a two-step approach for evaluating uncertain tax positions. First, we evaluate recognition, which requires us to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes. If we consider a tax position more likely than not to be unsustained, then no benefits of the position are recognized. Second, we measure the uncertain tax position based on the largest amount of benefit which is more likely than not to be realized on effective settlement. This process involves estimating our actual current tax exposure, including assessing the risks associated with tax audits, together with assessing temporary differences resulting from the different treatment of items for tax and financial reporting purposes. If actual results differ from our estimates, then our net operating loss and credit carryforwards could be materially impacted.

Us realizing the benefits of the NOLs and credit carryforwards depends on sufficient taxable income in future years. We have established a valuation allowance against the carrying value of our deferred tax assets, as it is currently more likely than not we will be unable to realize these deferred tax assets. In addition, using NOLs and credits to offset future income subject to taxes may be subject to substantial annual limitations due to the “change in ownership” provisions of the Code and similar state provisions. Events that cause limitations in the amount of NOLs that we may use in any one year include, but are not limited to, a cumulative ownership change of more than 50%, as defined by Code Sections 382 and 383, over a three-year period. Using our NOLs and tax credit carryforwards could be significantly reduced if a cumulative ownership change of more than 50% has occurred in our past or occurs in our future.

Stock-Based Compensation

We have various equity award plans or Plans for granting share-based awards to employees, consultants and non-employee Company directors. The Plans provide for granting several available forms of stock compensation such as restricted stock units, or RSUs, RSUs with performance conditions, or PSUs, and RSUs with market and service conditions, or MSUs and an employee stock purchase plan, or ESPP.

We measure stock-based compensation costs for all share-based awards at fair value on the measurement date, which is typically the grant date. We determine the fair value of RSUs and PSUs based on the closing price of our common stock at grant date. Additionally, for awards with a market condition, we use a Monte Carlo simulation model to estimate grant date fair value, which takes into consideration the range of possible stock price of total stockholder return outcomes.

Net Earnings (Loss) per Share

We compute net earnings (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. We have outstanding stock options, RSUs, PSUs, MSUs and an ESPP, each of which we include in our calculation of diluted net loss per share if their effect would be dilutive. We compute diluted net loss per share by considering all potential dilutive common stock equivalents outstanding for the period.

Recently Adopted Accounting Standards

In November 2023, the FASB released ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which amends reportable segment requirements, primarily through enhanced disclosures about significant segment expenses, including for public entities that have a single reportable segment. The standard is effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 31, 2024. We adopted ASU 2023-07 on January 1, 2024 and have made the necessary reportable segment disclosures (See Note 14—Segment Disclosures).

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB released ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends income tax disclosure requirements to enhance the transparency and decision usefulness for users of the financial statements. The standard is effective for fiscal years beginning after December 31, 2024. We are currently evaluating any impact of this standard on our financial statement disclosures.

In November 2024, the FASB released ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which amends disclosure requirements related to the disaggregation of income statement expenses in the notes to financial statements. The standard is effective for fiscal years beginning after December 31, 2026. We are currently evaluating any impact of this standard on our financial statement disclosures.

In November 2024, the FASB released ASU 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20), which improves the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt - Debt with Conversion and Other Options. The standard is effective for fiscal years beginning after December 31, 2025. We are currently evaluating any impact of this standard on our financial statement disclosures.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 3. Fair Value Measurements

The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,097

 

 

$

—

 

 

$

—

 

 

$

1,097

 

 

$

78,661

 

 

$

—

 

 

$

—

 

 

$

78,661

 

Total cash equivalents

 

 

1,097

 

 

 

—

 

 

 

—

 

 

 

1,097

 

 

 

78,661

 

 

 

—

 

 

 

—

 

 

 

78,661

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency securities

 

 

—

 

 

 

3,929

 

 

 

—

 

 

 

3,929

 

 

 

—

 

 

 

11,893

 

 

 

—

 

 

 

11,893

 

U.S. Treasury securities

 

 

—

 

 

 

63,634

 

 

 

—

 

 

 

63,634

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Yankee bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,951

 

 

 

—

 

 

 

1,951

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,994

 

 

 

—

 

 

 

2,994

 

Asset-backed securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,602

 

 

 

—

 

 

 

1,602

 

Corporate notes and bonds

 

 

—

 

 

 

32,305

 

 

 

—

 

 

 

32,305

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial paper

 

 

—

 

 

 

18,793

 

 

 

—

 

 

 

18,793

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total short-term investments

 

 

—

 

 

 

118,661

 

 

 

—

 

 

 

118,661

 

 

 

—

 

 

 

18,440

 

 

 

—

 

 

 

18,440

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency securities

 

 

—

 

 

 

5,989

 

 

 

—

 

 

 

5,989

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

U.S. Treasury securities

 

 

—

 

 

 

2,492

 

 

 

—

 

 

 

2,492

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate notes and bonds

 

 

—

 

 

 

66,390

 

 

 

—

 

 

 

66,390

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total long-term investments

 

 

—

 

 

 

74,871

 

 

 

—

 

 

 

74,871

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,097

 

 

$

193,532

 

 

$

—

 

 

$

194,629

 

 

$

78,661

 

 

$

18,440

 

 

$

—

 

 

$

97,101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition related contingent consideration liability

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,180

 

 

 

6,180

 

Total liabilities at fair value

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,180

 

 

$

6,180

 

The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value as of December 31, 2023 and during fiscal year 2024:

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Balance as of January 1

 

$

6,180

 

 

$

—

 

Addition of contingent consideration liability due to acquisition

 

 

986

 

 

 

4,602

 

Change in fair value of contingent consideration liability due to remeasurement

 

 

—

 

 

 

1,578

 

Contingent consideration payment made

 

 

(7,166

)

 

 

—

 

Balance as of December 31

 

$

—

 

 

$

6,180

 

We recorded the contingent consideration related to the Voyantic Oy acquisition at its fair value using unobservable inputs and used the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates and volatility of forecasted revenue and gross margins. A decrease in estimated revenue and gross margins or an increase in the discount rate would decrease the fair value of the contingent consideration liability. The estimated revenue and gross margins are not interrelated inputs. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations is management's responsibility with the assistance of a third-party valuation specialist. During the year ended December

31, 2023, and 2024 we remeasured the fair value of the contingent consideration liability based on updated inputs related to actual performance results and recorded an additional expense of $1.6 million and $1.0 million, respectively, in general and administrative expense on the consolidated statement of operations. During second-quarter 2024, we paid the contingent consideration and as of December 31, 2024, the contingent consideration is $0. As of December 31, 2023, the contingent consideration liability of $6.2 million is included in "Accrued expenses and other current liabilities" on the consolidated balance sheet.

We expect short-term investments to mature within 1 year of the reporting date. We expect long-term investments to mature between 1 and 2 years from the reporting date. See Note 8 for the carrying amount and estimated fair value of our convertible senior notes due 2027.

The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands):

 

December 31, 2024

 

 

Cost or

 

 

Gross

 

 

Gross

 

 

Total Estimated

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Description:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

1,097

 

 

$

—

 

 

$

—

 

 

$

1,097

 

U.S. Government agency securities

 

9,933

 

 

 

1

 

 

 

(16

)

 

 

9,918

 

U.S. Treasury securities

 

66,146

 

 

 

17

 

 

 

(37

)

 

 

66,126

 

Corporate notes and bonds

 

99,215

 

 

 

—

 

 

 

(520

)

 

 

98,695

 

Commercial paper

 

18,805

 

 

 

—

 

 

 

(12

)

 

 

18,793

 

Total

$

195,196

 

 

$

18

 

 

$

(585

)

 

$

194,629

 

 

 

December 31, 2023

 

 

Cost or

 

 

Gross

 

 

Gross

 

 

Total Estimated

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Description:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

78,661

 

 

$

—

 

 

$

—

 

 

$

78,661

 

U.S. Government agency securities

 

11,932

 

 

 

—

 

 

 

(39

)

 

 

11,893

 

Yankee bonds

 

1,956

 

 

 

—

 

 

 

(5

)

 

 

1,951

 

Agency bond

 

2,998

 

 

 

—

 

 

 

(4

)

 

 

2,994

 

Asset-backed securities

 

1,604

 

 

 

—

 

 

 

(2

)

 

 

1,602

 

Total

$

97,151

 

 

$

—

 

 

$

(50

)

 

$

97,101

 

Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $142.8 million and unrealized losses of $0.6 million as of December 31, 2024. Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $10.2 million and unrealized losses of $0.02 million as of December 31, 2023. We did not have any marketable securities in a continuous loss position for greater than 12 months as of December 31, 2024. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $8.2 million and unrealized losses of $0.03 million as of December 31, 2023.

Unrealized losses from our fixed-income securities are primarily attributable to changes in interest rates and not to lower credit ratings of the issuers. In determining whether an unrealized loss is

other-than-temporary, for the periods presented, we determined we do not have plans to sell the securities nor is it more likely than not that we would be required to sell the securities before their anticipated recovery.
v3.25.0.1
Inventory
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Inventory

Note 4. Inventory

The following table presents the detail of inventories as of the dates presented (in thousands):

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Raw materials

 

$

14,040

 

 

$

21,773

 

Work-in-process

 

 

52,028

 

 

 

42,217

 

Finished goods

 

 

33,278

 

 

 

33,182

 

Total inventory

 

$

99,346

 

 

$

97,172

 
v3.25.0.1
Property and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 5. Property and Equipment

 

The following table presents property and equipment details as of the dates presented (in thousands):

 

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Machinery and equipment

 

$

72,439

 

 

$

57,511

 

Computer equipment and software

 

 

3,335

 

 

 

3,012

 

Furniture and fixtures

 

 

1,369

 

 

 

1,333

 

Equipment acquired under finance leases

 

 

1,727

 

 

 

1,728

 

Leasehold improvements

 

 

13,690

 

 

 

12,966

 

Total property and equipment, gross

 

 

92,560

 

 

 

76,550

 

Less: Accumulated depreciation

 

 

(41,950

)

 

 

(31,659

)

Total property and equipment, net

 

$

50,610

 

 

$

44,891

 

 

Depreciation expense, which includes amortization of finance lease assets, was $10.7 million, $8.7 million and $6.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. We did not acquire any property and equipment under finance leases for the years ended December 31, 2024 or 2023.
v3.25.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

 

On April 3, 2023, we acquired all of the outstanding equity of Voyantic Oy for an aggregate purchase price of $32.7 million. Our acquisition of Voyantic Oy adds label design, manufacturing and testing to our systems offerings, to advance the quality, reliability and readability of partner inlays. The consideration comprised (i) $3.6 million in shares of our common stock valued using the market price on the date of the acquisition, (ii) $4.6 million in deferred payments contingent upon revenue and gross margin performance over a one-year period from the acquisition date, and (iii) the remainder in cash paid at closing.

We recorded the assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. We recorded the excess of the purchase price over the assets acquired and liabilities assumed as goodwill. The fair value of net assets acquired, goodwill, intangible assets and deferred tax liability were $2.4 million, $15.6 million, $18.4 million and $3.7 million, respectively. The goodwill amount represents synergies we expect to realize from the business combination and assembled

workforce. We allocated the goodwill to our one reporting unit and reportable segment. The acquired goodwill and intangible assets were not deductible for tax purposes.

The transaction-related costs for the acquisition were $1.0 million and $1.7 million for the years ended December 31, 2024 and 2023, respectively. Transaction expenses and contingent consideration expense are included in general and administrative expense in the consolidated statements of operations.

This acquisition did not have a material impact on our reported revenue or net loss amounts for any period presented; therefore, we have not presented historical and pro forma disclosures.

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. The following table presents goodwill as of December 31, 2024 and 2023 (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Balance at beginning of period

 

$

19,696

 

 

$

3,881

 

Additions from acquisition

 

 

—

 

 

 

15,590

 

Foreign currency translation adjustment

 

 

(973

)

 

 

225

 

   Total

 

$

18,723

 

 

$

19,696

 

 

As of December 31, 2024, intangible assets comprised of the following (in thousands):

 

 

 

Estimated Useful Life in Years

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

Definite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

   Backlog

 

0.25

 

$

725

 

 

$

(725

)

 

$

—

 

   Customer Relationships

 

1

 

 

3,470

 

 

 

(3,470

)

 

 

—

 

   Developed Technology

 

7.25

 

 

12,223

 

 

 

(2,950

)

 

 

9,273

 

   Patent

 

3

 

 

250

 

 

 

(122

)

 

 

128

 

   Tradename

 

8

 

 

1,139

 

 

 

(249

)

 

 

890

 

   Total definite-lived intangible assets (1)

 

 

 

$

17,807

 

 

$

(7,516

)

 

$

10,291

 

(1) Foreign intangible asset carrying amounts are affected by foreign currency translation

 

 

We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis. The weighted-average life of our intangible assets is approximately six years. Amortization expense of intangible assets was $2.9 million and $5.0 million for the years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the estimated intangible asset amortization expense for the next five years and thereafter is as follows:

 

Estimated Amortization

 

 

 

(in thousands)

 

2025

 

 

1,912

 

2026

 

 

1,873

 

2027

 

 

1,828

 

2028

 

 

1,828

 

2028

 

 

1,828

 

Thereafter

 

 

1,022

 

Total

 

$

10,291

 
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 7. Income Taxes

We are subject to federal and state income taxes in the United States and foreign jurisdictions.

The following table presents U.S. and foreign components of income (loss) before income taxes (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

U.S.

 

$

41,729

 

 

$

(40,349

)

 

$

(24,508

)

Foreign

 

 

(734

)

 

 

(3,339

)

 

 

391

 

Loss before income taxes

 

$

40,995

 

 

$

(43,688

)

 

$

(24,117

)

The following table presents the detail of income tax benefit (expense) for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

U.S. - Federal

 

$

—

 

 

$

—

 

 

$

—

 

U.S. - State

 

 

(212

)

 

 

(163

)

 

 

(68

)

Foreign

 

 

(512

)

 

 

(446

)

 

 

(110

)

 

 

(724

)

 

 

(609

)

 

 

(178

)

Deferred:

 

 

 

 

 

 

 

 

 

U.S. - Federal

 

 

—

 

 

 

(53

)

 

 

5

 

U.S. - State

 

 

3

 

 

 

—

 

 

 

(11

)

Foreign

 

 

564

 

 

 

984

 

 

 

—

 

 

 

567

 

 

 

931

 

 

 

(6

)

Total income tax expense

 

$

(157

)

 

$

322

 

 

$

(184

)

We have not recorded a liability for U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2024 because we intend to permanently reinvest the earnings outside the United States. We expect the amount of the unrecognized deferred tax liability, if incurred, to be immaterial.

The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented:

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

U.S. Statutory Rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

Change in valuation allowance

 

 

29.4

 

 

 

(42.0

)

 

 

(54.7

)

State taxes (net of federal benefit)

 

 

0.2

 

 

 

0.1

 

 

 

0.4

 

Federal research and development credit

 

 

(20.1

)

 

 

18.6

 

 

 

16.5

 

Stock-based compensation

 

 

(37.8

)

 

 

10.4

 

 

 

16.1

 

Inducement premium

 

 

—

 

 

 

—

 

 

 

5.0

 

Unrecognized tax benefits

 

 

5.0

 

 

 

(4.7

)

 

 

(4.1

)

Other, net

 

 

2.7

 

 

 

(2.8

)

 

 

(1.0

)

Effective income tax rate

 

 

0.4

%

 

 

0.7

%

 

 

(0.8

%)

We continue to maintain a full valuation allowance against our net deferred tax assets in the U.S. but recognize deferred income tax expense (benefit) due to the change in the indefinite deferred tax liability related to goodwill, which is partially offset by indefinite tax attributes.

Deferred federal, state and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for tax

purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands):

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Net operating loss carryforwards

 

$

40,760

 

 

$

49,228

 

Credit carryforwards

 

 

29,123

 

 

 

22,971

 

Capitalized research and development

 

 

46,318

 

 

 

32,988

 

Operating lease liabilities

 

 

1,873

 

 

 

2,569

 

Allowances

 

 

4,323

 

 

 

1,624

 

Deferred revenue

 

 

15

 

 

 

48

 

Stock-based compensation

 

 

5,753

 

 

 

6,351

 

Disallowed interest expense

 

 

—

 

 

 

—

 

Inventory cost capitalization

 

 

1,655

 

 

 

1,433

 

Deferred tax assets

 

 

129,820

 

 

 

117,211

 

Less: Valuation allowance

 

 

(126,102

)

 

 

(114,040

)

Net deferred tax assets

 

 

3,718

 

 

 

3,171

 

Deferred tax liability:

 

 

 

 

 

 

Goodwill

 

 

(820

)

 

 

(823

)

Depreciation and amortization

 

 

(3,683

)

 

 

(3,326

)

Operating lease ROU assets

 

 

(1,415

)

 

 

(1,933

)

Deferred tax liabilities

 

 

(5,918

)

 

 

(6,082

)

Net deferred tax liability

 

$

(2,200

)

 

$

(2,911

)

 

Realizing deferred tax assets depends on us generating future taxable income, the timing and amount of which are uncertain. We have provided a full valuation allowance against the net deferred tax assets as of December 31, 2024 and 2023 because, based on the weight of available evidence, it is more likely than not we will be unable to realize the deferred tax assets.

We acquired Voyantic Oy, a Finnish company on April 3, 2023. As a result of the transaction, we recorded a $3.7 million deferred tax liability associated with intangibles, with an offset to goodwill.

We have accumulated federal tax losses of approximately $190.3 million and $230.5 million, respectively, as of December 31, 2024 and 2023, which are available to reduce future taxable income. The Tax Cuts and Jobs Act, or TCJA, enacted on December 22, 2017 altered the carryforward period for federal net operating losses and as a result, all net operating losses generated in 2018 and forward have an indefinite life. Of the net operating losses reported, we have accumulated $141.8 million with an indefinite life as of December 31, 2024. We have accumulated state tax losses of approximately $18.8 million and $21.3 million as of December 31, 2024 and 2023, respectively. We also have net research and development credit carryforwards of $38.7 million and $30.5 million as of December 31, 2024 and 2023, respectively, which are available to reduce future tax liabilities. We began to capitalize research and development expenses in the year ended December 31, 2022 under Section 174. The net impact of this provision resulted in a deferred tax asset of approximately $46.3 million and $32.9 million as of December 31, 2024 and 2023, respectively.

The pre-2018 federal and state tax losses and federal research and development credit carryforwards began expiring in 2020. Under Sections 382 and 383 of the Internal Revenue Code, if a corporation undergoes an ownership change, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes, such as research tax credits, to offset its post-change income or income tax liability may be limited. We have completed a formal IRC Section 382 study through December 31, 2024 and the attributes disclosed in this footnote reflect the conclusion of that study. However, subsequent ownership changes may affect the limitation in future years.

We are currently not under audit in any tax jurisdiction. Tax years from 2005 through 2024 are currently open for audit by federal and state taxing authorities.

We establish reserves for tax positions based on estimates of whether, and the extent to which, additional taxes will be due. We establish the reserves when we believe that our tax-return positions

might be challenged by taxing authorities, despite our belief that our tax return positions are fully supportable.

The following table presents the total balance of unrecognized tax benefits as of the dates presented (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

7,640

 

 

$

5,606

 

 

$

4,609

 

Gross increase to tax positions in current periods

 

 

2,056

 

 

 

2,034

 

 

 

997

 

Balance at end of period

 

$

9,696

 

 

$

7,640

 

 

$

5,606

 

As of December 31, 2024, we recorded a total amount of unrecognized tax benefit of $9.7 million as a reduction to the deferred tax asset. If recognized, this tax benefit would have no impact to our effective tax rate because we have a full valuation allowance. We do not anticipate that the amount of existing unrecognized tax benefit will significantly increase or decrease within the next 12 months. We record accrued interest and penalties related to unrecognized tax benefits as income tax expense and their value is zero.
v3.25.0.1
Long-term Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Long-term Debt

Note 8. Long-term debt

In December 2019, we issued $86.3 million aggregate principal amount of the 2019 Notes and in November 2021, we issued $287.5 million aggregate principal amount of convertible promissory notes due May 15, 2027, referred to as the 2021 Notes (collectively, the Notes). The 2019 Notes were repurchased in 2021 and 2022. See further information on the 2019 Note Repurchase under "Repurchase of the Convertible Senior Notes - 2019" section below.

The following table presents the outstanding principal amount and carrying value of the 2021 Notes as of the dates indicated (in thousands):

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Principal Amount

 

 

Unamortized debt issuance costs

 

 

Net Carrying Amount

 

 

Principal Amount

 

 

Unamortized debt issuance costs

 

 

Net Carrying Amount

 

 

2021 Notes

 

287,500

 

 

 

(4,007

)

 

 

283,493

 

 

 

287,500

 

 

 

(5,645

)

 

 

281,855

 

 

Further details of the 2021 Notes are as follows:

 

Issuance

 

Maturity Date

 

Interest Rate

 

First Interest Payment Date

 

Effective Interest Rate

 

Semi-Annual Interest Payment Dates

 

Initial Conversion Rate per $1,000 Principal

 

Initial Conversion Price

 

 

Number of Shares (in millions)

2021 Notes

 

May 15, 2027

 

1.125%

 

May 15, 2022

 

1.72%

 

May 15; November 15

 

9.0061

 

$

111.04

 

 

2.6

 

The 2021 Notes are senior unsecured obligations, do not contain any financial covenants and are governed by indentures (the Indentures). The total net proceeds from the 2021 Notes, after deducting initial debt issuance costs, fees and expenses, was $278.4 million. We used approximately $183.6 million of the 2021 Notes net proceeds, excluding accrued interest, to repurchase approximately $76.4 million aggregate principal amount of the 2019 Notes through individual privately negotiated transactions concurrent with us offering the 2021 Notes. We used approximately $17.6 million, excluding accrued interest, to repurchase the remaining $9.9 million aggregate principal amount of the 2019 Notes in June 2022. We will use the remainder of the net proceeds from the 2021 Notes for general corporate purposes.

Terms of the 2021 Notes

The holders of the 2021 Notes may convert their respective 2021 Notes at their option at any time prior to the close of business on the business day immediately preceding the respective conversion dates under the following circumstances:

•
during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2022 (and only during such fiscal quarter), if the last reported sale price of our common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
•
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2021 Notes for each trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day;
•
prior to the close of business on the second scheduled trading day immediately preceding the redemption date if we call the 2021 Notes for redemption; or
•
upon the occurrence of specified corporate events, as described in the indenture.

Regardless of the foregoing circumstances, holders may convert all or any portion of the 2021 Notes, in increments of $1,000 principal amount, on or after February 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date.

We may redeem all or a portion of the 2021 Notes for cash, at our option, on or after November 20, 2024, if the last reported sale price of our common stock has been at least 130% of the conversion price at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period at a redemption price equal to 100% of the principal amount of the 2021 Notes being redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date.

Holders who convert their 2021 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally in the event of a corporate event constituting a fundamental change (as defined in the indenture), holders of the 2021 Notes may require us to repurchase all or a portion of their 2021 Notes at a repurchase price equal to 100% of the principal amount of the 2021 Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date.

Our common stock exceeded 130% of the conversion price of the 2021 Notes for more than 20 trading days during the 30 consecutive trading days ended December 31, 2024. Accordingly, the 2021 Notes are convertible at the option of the holders as of December 31, 2024 and therefore, are classified as current portion of long-term debt on the consolidated balance sheet as of December 31, 2024. The “if-converted value” exceeded the principal amounts by $88.6 million based on the closing price of our common stock of $145.26 as of December 31, 2024.

 

Accounting for the Notes

Effective January 1, 2021, we early adopted ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20), using the modified retrospective approach. We accounted for the 2021 Notes issuance as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. We presented the 2021 Notes total issuance costs of $9.1 million as a direct deduction from the face amount of the 2021 Notes. We amortized the issuance costs to interest expense over the respective term of the 2021 Notes using the effective interest rate method.

Interest expense related to the Notes was as follows (in thousands):

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

2021 Notes

 

 

2021 Notes

 

 

2021 Notes

 

 

2019 Notes

 

 

Total

 

Amortization of debt issuance costs

 

1,639

 

 

 

1,612

 

 

 

19

 

 

 

1,583

 

 

 

1,602

 

Cash interest expense

 

3,234

 

 

 

3,236

 

 

 

87

 

 

 

3,234

 

 

 

3,321

 

Total interest expense

$

4,873

 

 

$

4,848

 

 

$

106

 

 

$

4,817

 

 

$

4,923

 

 

Accrued interest related to the 2021 Notes as of December 31, 2024 and 2023 was $0.4 million and $0.4 million, respectively. We record accrued interest in accrued liabilities in our consolidated balance sheet.

Our estimated fair value of the 2021 Notes was $408.7 million and $314.0 million as of December 31, 2024 and 2023, respectively, which we determined through consideration of quoted market prices. The fair value for the 2021 Notes is classified as Level 2, as defined in Note 2.

Capped Calls

In connection with the issuance of the 2019 Notes, we entered into privately negotiated capped-call transactions with certain financial counterparties. The capped call transactions are generally designed to reduce the potential dilution to our common stock upon any conversion or settlement of the 2019 Notes, or to offset any cash payments we are required to make in excess of the principal amount upon conversion of the 2019 Notes, as the case may be, with the reduction or offset subject to a cap based on the cap price. If, however, the market price per share of our common stock exceeds the cap price of the capped-call transactions, then our stock would experience some dilution and/or the capped call would not fully offset the potential cash payments, in each case, to the extent then-market price per share of our common stock exceeds the cap price. The capped call remains outstanding even though we have repurchased the 2019 Notes, to reduce the potential dilution of the 2021 Notes. The initial cap price of the capped call transactions is $54.20 per share, subject to certain adjustments under the terms of the capped call transactions. The capped call transactions expire over 40 consecutive scheduled trading days ending on December 11, 2026. The capped call transactions meet the criteria for classification in equity, are not accounted for as derivatives and are not remeasured each reporting period.

Repurchase of the Convertible Senior Notes – 2019

In November 2021 and June 2022, we completed a privately negotiated induced conversion of $76.4 million and $9.9 million principal amount, respectively of the 2019 Notes. We accounted for the 2019 Notes Repurchase transactions as induced conversions in accordance with Accounting Standards Codification 470-20, Debt with Conversion and Other Options (ASC 470-20). In connection with the induced conversions, we paid approximately $183.6 million in cash in November 2021 and $17.6 million in cash in June 2022, and also paid accrued and unpaid interest thereon. As a result of the induced conversion, we recorded $11.3 million in November 2021 and $2.2 million in June 2022 in induced conversion expense which is included in the Consolidated Statements of Operations. The induced conversion expense represents the fair value of the consideration issued upon conversion in excess of the fair value of the securities issuable under the original terms of the 2019 Notes. We accounted for the remaining cash consideration under the original terms of the 2019 Notes under the general conversion accounting guidance, where the difference between the carrying amount of the 2019 Notes retired, including unamortized debt issuance costs of $1.8 million in November 2021 and $0.2 million in June 2022, and the cash consideration paid, was recorded in additional paid-in capital.
v3.25.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2024
Statement of Stockholders' Equity [Abstract]  
Stockholders' Equity

Note 9. Stockholders’ Equity

Preferred Stock

Our board of directors has the authority to fix the designations, powers, preferences and rights and the qualifications, limitations or restrictions thereof, of any wholly unissued series of preferred stock, and to increase or decrease the number of shares in any series of preferred stock, subject to limitations prescribed by law and by our certificate of incorporation. We had no preferred stock issued and outstanding as of December 31, 2024 or 2023.

Common Stock

As of December 31, 2024, we had authorized 495,000,000 shares of voting $0.001 par value common stock. Each holder of the common stock is entitled to one vote per common share. At its discretion, the board of directors may declare dividends on shares of common stock, subject to the prior rights of our preferred stockholders, if any. Upon liquidation or dissolution, holders of common stock will receive distributions only after preferred stock preferences have been satisfied.
v3.25.0.1
Stock-Based Awards
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Awards

Note 10. Stock-Based Awards

Stock-Based Compensation Expense

The following table presents the detail of stock-based compensation expense amounts included in our consolidated statements of operations for the periods presented (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Cost of revenue

$

2,034

 

 

$

1,869

 

 

$

1,522

 

Research and development expense

 

25,666

 

 

 

21,307

 

 

 

17,961

 

Sales and marketing expense

 

10,774

 

 

 

10,240

 

 

 

9,447

 

General and administrative expense

 

18,072

 

 

 

14,570

 

 

 

13,513

 

Total stock-based compensation expense

$

56,546

 

 

$

47,986

 

 

$

42,443

 

2016 Equity Incentive Plan

In June 2016, our board of directors adopted and our stockholders approved our 2016 Equity Incentive Plan, or the 2016 Plan, which became effective in July 2016 at which time the 2010 Equity Incentive Plan, or the 2010 Plan, was terminated. The number of shares of common stock reserved for issuance under the 2016 Plan may increase on January 1 of each year, beginning on January 1, 2017 and ending on and including January 1, 2026, by the lesser of (1) 1,825,000 shares; (2) 5% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year; and (3) a lesser number of shares determined by our board of directors. The 2016 Plan provides for granting incentive or non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights and performance shares or performance units to employees, non-employee directors and consultants. We have not issued options under the 2016 Plan since the year ended December 31, 2021.

All options historically granted under the 2010 Plan and the 2016 Plan have a maximum 10-year term and generally vest and become exercisable over four years of continued employment or service as defined in each option agreement. As allowed under the 2016 Plan, there are a few exceptions to this vesting schedule, which permit vesting at different rates or based on achieving performance targets. We use newly issued shares to satisfy option exercises. As of December 31, 2024, we had approximately 3.6 million shares of common stock available for future grants.

Stock Options

The following table summarizes option award activity for the year ended December 31, 2024 (in thousands, except per share data and years):

 

 

Number of
Underlying Shares

 

 

Weighted-Average
Exercise Price
Per Share

 

 

Weighted-Average
Remaining
Contractual
Life (Years)

 

 

Total Intrinsic
Value

 

Outstanding at December 31, 2023

 

 

1,466

 

 

$

25.48

 

 

 

4.97

 

 

$

94,650

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(677

)

 

 

24.52

 

 

 

 

 

 

 

Forfeited or expired

 

 

(2

)

 

 

29.98

 

 

 

 

 

 

 

Outstanding at December 31, 2024

 

 

787

 

 

 

26.28

 

 

 

4.24

 

 

 

93,654

 

Vested and exercisable at December 31, 2024

 

 

787

 

 

$

26.27

 

 

 

4.24

 

 

$

93,622

 

The total intrinsic value of options exercised during 2024, 2023 and 2022 was $85.1 million, $19.1 million and $31.9 million, respectively. The total grant date fair value of options vested was $1.0 million, $3.3 million and $7.0 million during 2024, 2023 and 2022, respectively.

As of December 31, 2024, our unrecognized stock-based compensation cost related to unvested stock options was immaterial.

Restricted Stock Units

The following table summarizes activity for restricted stock units, or RSUs and MSUs for the year ended December 31, 2024 (in thousands, except per share data):

 

 

Number of Underlying Shares

Weighted-Average Grant Date Fair Value

 

 

 

RSUs

 

 

MSUs

 

 

RSUs

 

 

MSUs

 

Outstanding at December 31, 2023

 

 

 

1,078

 

 

 

174

 

 

$

84.18

 

 

$

138.77

 

Granted

 

 

 

461

 

 

 

165

 

 

 

134.76

 

 

 

160.32

 

Vested

 

 

 

(502

)

 

 

(98

)

 

 

79.15

 

 

 

44.32

 

Forfeited

 

 

 

(117

)

 

 

(2

)

 

 

90.01

 

 

 

185.49

 

Outstanding at December 31, 2024

 

 

 

920

 

 

 

239

 

 

$

111.50

 

 

$

192.06

 

We record stock-based compensation expense for RSUs and MSUs on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are recognized as they occur.

In 2022, we granted PSUs under our annual bonus program to our senior executives and other bonus-eligible employees. The number of annual PSUs that ultimately vest depends on us attaining certain financial metrics for the fiscal year as well as on the employee’s continued employment through the vesting date. In fiscal year 2022, we transitioned to a bonus plan that was half cash and half PSUs. In fiscal years 2023 and 2024, we transitioned to an all cash bonus plan.

The following table summarizes information related to granted and vested RSUs, PSUs and MSUs (in thousands, except per share data):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

RSU weighted-average grant date fair value

$

134.76

 

 

$

119.12

 

 

$

65.81

 

MSU weighted-average grant date fair value

 

160.32

 

 

 

145.51

 

 

 

81.22

 

PSU weighted-average grant date fair value

$

—

 

 

$

—

 

 

$

64.07

 

 

 

 

 

 

 

 

 

 

Fair market value of RSUs vested

$

74,358

 

 

$

64,417

 

 

$

32,871

 

Fair market value of MSUs vested

 

9,829

 

 

 

7,219

 

 

 

—

 

Fair market value of PSUs vested

$

—

 

 

$

7,261

 

 

$

18,873

 

As of December 31, 2024, our total unrecognized stock-based compensation cost related to unvested MSUs was $25.8 million, which we will recognize over the weighted-average period of 1.5

years. As of December 31, 2024, there was $89.4 million of total unrecognized compensation cost related to unvested RSUs, which we expect to recognize over a weighted-average period of 2.4 years.

Employee Stock Purchase Plan

Effective July 2016, we adopted the 2016 Employee Stock Purchase Plan, or the ESPP, allowing eligible employees to authorize payroll deductions of up to 15% of their eligible compensation. An ESPP participant may purchase a maximum of 4,000 shares, or a lesser number as determined by the IRS rules, each six-month period. The offering periods generally start on the first trading day on or after February 20 and August 20 of each year. Participants in an offering period are granted the right to purchase common shares at a price per share that is 85% of the lesser of the fair market value of the shares on (1) the first day of the offering period or (2) the end of the purchase period. The number of shares reserved for the ESPP may increase each year, beginning on January 1, 2017 and continuing through and including January 1, 2036, by the lesser of: (1) 1% of the total number of shares of common stock outstanding on the first day of each year; (2) 365,411 shares of common stock; and (3) an amount determined by our board of directors.

As of December 31, 2024, the total unrecognized stock-based compensation from the ESPP was $0.2 million, which we will recognize on a straight-line basis over the weighted-average remaining service period of less than one year.

We estimate the fair value of the ESPP grant at the start of the offering period using the Black-Scholes option-pricing model with the following assumptions for the periods presented:

 

 

Year Ended December 31,

 

2024

 

2023

 

2022

Risk-free interest rate

 

5.0% - 5.3%

 

5.1% - 5.6%

 

0.7% - 3.2%

Expected term

 

0.5 Years

 

0.5 Years

 

0.5 Years

Expected volatility

 

59.9% - 61.6%

 

64.7% - 85.9%

 

71.9% - 76.3%

 
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

Note 11. Leases

The following table presents the components of lease expense in our consolidated statements of operations for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Operating lease costs(1)

 

 

 

 

 

 

 

 

Single lease costs

$

3,394

 

 

$

3,486

 

 

$

4,299

 

Variable lease costs

 

1,367

 

 

 

1,280

 

 

 

2,159

 

Sublease income(2)

 

—

 

 

 

(165

)

 

 

(1,976

)

Total operating lease costs

$

4,761

 

 

$

4,601

 

 

$

4,482

 

(1) Includes short-term lease costs, which are immaterial.

 

(2) Sublease income is related to unused office space that we sublet as part of the fiscal 2018 restructuring where we continue to have the primary obligations.

 

 

The following table presents supplemental cash flow information related to operating leases for the periods presented (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows used

$

4,060

 

 

$

4,233

 

 

$

5,097

 

Lease liabilities arising from remeasurement of right-of-use assets

 

 

 

 

 

 

 

 

Operating leases

$

—

 

 

$

159

 

 

$

—

 

Lease liabilities arising from obtaining ROU assets

 

 

 

 

 

 

 

 

Operating leases

$

—

 

 

$

1,690

 

 

$

2,237

 

 

 

The following table presents weighted-average remaining lease term and weighted-average discount rate related to operating leases as of:

 

2024

 

 

2023

 

Weighted-average remaining lease term (years)

 

2.8

 

 

 

3.7

 

Weighted-average discount rate

 

6.9

%

 

 

6.9

%

 

The following table presents future lease payments under operating leases as of December 31, 2024 (in thousands):

 

 

Operating Leases

 

 

 

Lease Payments

 

2025

 

$

4,101

 

2026

 

 

4,190

 

2027

 

 

766

 

2028

 

 

642

 

2029

 

 

549

 

Thereafter

 

 

—

 

Total lease payments

 

$

10,248

 

Less: Imputed interest

 

 

(940

)

Present value of lease liabilities

 

 

9,308

 

Less: Current portion of lease liabilities

 

 

3,589

 

Lease liabilities, net of current portion

 

$

5,719

 
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 12. Commitments and Contingencies

Indemnification

In the normal course of business, we may enter into agreements that require us to indemnify either customers or suppliers for certain risks. Although we cannot estimate our maximum exposure under these agreements, to date indemnification claims have not had a material impact on our consolidated results of operations or financial condition.

Litigation

From time to time, we are subject to various legal proceedings or claims that arise in the ordinary course of business. We accrue a liability when management believes that it is both probable that we have incurred a liability and we can reasonably estimate the amount of loss. As of December 31, 2024 and 2023, we did not have accrued contingency liabilities. The following is a description of our significant legal proceedings. Although we believe that resolving these claims, individually or in aggregate, will not have a material adverse impact on our financial statements, these matters are subject to inherent uncertainties.

Patent Infringement Claims and Counterclaims

Impinj Patent Infringement Claims Against NXP

From 2019 to 2023, we engaged in active patent litigation against our primary endpoint IC competitor, NXP Semiconductors N.V., or NXP. During this time, we filed three patent infringement lawsuits against subsidiaries of NXP in federal courts in California and Texas. Our complaints alleged that certain NXP endpoint ICs infringed a number of our U.S. patents. In response, NXP filed a suit against us in federal court in Delaware, later transferred to Washington, countersued us in Texas, and filed three lawsuits against our subsidiary in China. NXP’s complaints alleged that certain of our endpoint ICs infringed a number of their own U.S. or Chinese patents or U.S. patents that they exclusively licensed from a third-party to assert against us.

Through 2023, we prevailed in these lawsuits. In three U.S. trials held in 2023, juries in California and Texas returned verdicts that NXP endpoint ICs infringed five of our patents that made it to trial, and juries in Washington and Texas ruled that we did not infringe any of the three patents NXP accused us in court of infringing. Also in 2023, NXP withdrew all three cases it filed against us in China.

On March 13, 2024, while additional trials were pending in China and Texas, and post-trial motions and appeals were pending in China and the U.S., we and NXP entered into the Settlement Agreement. Under the agreement we and NXP agreed to terminate and withdraw all pending proceedings and release one another for all patent infringement claims preceding March 31, 2024 and grant to each other non-exclusive, worldwide patent licenses to make, have made, import, use, offer for sale and sell their respective products and services, subject to the terms of the agreement. The Settlement Agreement will remain in force until all the valid claims of a specified set of Impinj patents, or the Indicator Patents, expire in about ten years. Either party can terminate the Settlement Agreement if the other party materially breaches the terms of the Agreement and NXP can terminate the Settlement Agreement if it successfully designs out all valid claims of the Indicator Patents.

Under the Settlement Agreement, NXP paid us a one-time amount of $45 million and agreed to make annual license fee payments, if the specified set of Indicator Patents are still in use, on April 1 of each year, effective April 1, 2024. The annual license fee will increase by a fixed percentage each year after 2024 for the remaining term of the Settlement Agreement. We have no obligation to pay NXP under the Settlement Agreement.

We allocated the consideration from the Settlement Agreement to the components of the Settlement Agreement. We recorded the $45 million payment in income from settlement of litigation in the condensed consolidated statements of operations in first-quarter 2024, upon receipt. Licensing of our intellectual property is part of our ongoing operations and therefore, we will recognize the license fee, which relates to annual usage of the license from April 1 to March 31 of each applicable year, as revenue in the second quarter of each year until the Settlement Agreement terminates. We recognized the first annual license fee of $15 million in revenue in second-quarter 2024.

Obligations with Third-Party Manufacturers

We manufacture products with third-party manufacturers. We are committed to purchase $24.6 million of inventory as of December 31, 2024.
v3.25.0.1
Deferred Revenue
 12 Months Ended
Dec. 31, 2024
Deferred Revenue Disclosure [Abstract]  
Deferred Revenue

Note 13. Deferred Revenue

Deferred revenue, comprising individually immaterial amounts for extended warranties, enhanced product maintenance and advance payments on NRE services contracts, represents contracted revenue that we have not yet recognized.

The following table presents the changes in deferred revenue for the indicated periods (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Balance at beginning of period

$

1,985

 

 

$

2,599

 

Opening balance from Voyantic acquisition

 

—

 

 

 

1,233

 

Deferral of revenue

 

2,930

 

 

 

2,920

 

Recognition of deferred revenue

 

(2,947

)

 

 

(4,767

)

Balance at end of period

$

1,968

 

 

$

1,985

 

 

 

During 2024, we recognized $1.4 million revenue which we included in deferred revenue as of December 31, 2023. During 2023, we recognized $2.2 million revenue which we included in deferred revenue as of December 31, 2022.
v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

Note 14. Segment Reporting

We have one reportable and operating segment: the development and sale of our products and services. We identified our reportable segment based on how our chief operating decision-maker, or CODM, manages our business, makes operating decisions and evaluates our operating performance. Our chief executive officer acts as the CODM and reviews financial and operational information on an entity-wide basis. We have one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components. Accordingly, we have determined that we have a single reporting segment and operating unit structure.

Information by Revenue Categories

Our chief executive officer reviews information about our revenue categories, endpoint ICs and systems, the latter defined as reader ICs, readers, gateways, test and measurement systems and software. The following table presents our revenue categories for the indicated periods (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Endpoint ICs

 

$

305,915

 

 

$

234,426

 

 

$

191,532

 

Systems

 

 

60,172

 

 

 

73,113

 

 

 

66,268

 

Total revenue

 

$

366,087

 

 

$

307,539

 

 

$

257,800

 

Information by Geography

The following table summarizes our long-lived assets, comprising property and equipment, less accumulated depreciation (in thousands):

 

December 31, 2024

 

 

December 31, 2023

 

United States

 

$

13,255

 

 

$

14,110

 

Malaysia

 

 

9,221

 

 

 

11,749

 

Taiwan

 

 

20,541

 

 

 

13,396

 

Others

 

 

7,593

 

 

 

5,636

 

Total

 

$

50,610

 

 

$

44,891

 

Our geographic revenue in the following table is based on the location of the VARs, inlay manufacturers, reader OEMs, distributors or end users who purchased products and services directly from us. For sales to our resellers and distributors, their location may be different from the locations of the ultimate end users. The following table presents our sales by geography for the indicated periods (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Americas

 

$

110,155

 

 

$

96,418

 

 

$

57,129

 

Asia Pacific

 

 

209,538

 

 

 

176,409

 

 

 

168,249

 

Europe, Middle East and Africa

 

 

46,394

 

 

 

34,712

 

 

 

32,422

 

Total revenue

 

$

366,087

 

 

$

307,539

 

 

$

257,800

 

 

Total revenue in the United States, which is included in the Americas, was $82.9 million, $86.2 million and $43.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. Total revenue in China (and Hong Kong), which is included in Asia Pacific, was $162.7 million, $128.3 million and $109.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. While total revenue in Malaysia, which is included in Asia Pacific, was less than 10% of revenue for the years ended December 31, 2024 and 2023, it was $41.0 million for the year ended December 31, 2022. No sales to

countries other than the United States, China and Malaysia accounted for more than 10% of revenue for the years ended December 31, 2024, 2023 and 2022.

Significant Segment Expenses

We adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures on December 31, 2024. As our CODM manages operations on a consolidated basis, consolidated net income as reported in our Statement of Operations is the US GAAP measure that is used to make operating decisions and evaluate operating performance. The significant expense categories which are used to manage operations are those reflected in our consolidated Statement of Operations.
v3.25.0.1
Net Earnings (Loss) per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Earnings (Loss) per Share

Note 15. Net Earnings (Loss) per Share

For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (in thousands, except for per-share amounts):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

40,838

 

 

$

(43,366

)

 

$

(24,301

)

Interest add back

 

 

—

 

 

 

—

 

 

 

—

 

Net income (loss) attributable to common stock holders

 

$

40,838

 

 

$

(43,366

)

 

$

(24,301

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

27,953

 

 

 

26,752

 

 

 

25,539

 

Dilutive effect of:

 

 

 

 

 

 

 

 

 

Stock plans

 

 

1,518

 

 

 

—

 

 

 

—

 

2021 Notes

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average common shares outstanding, diluted

 

 

29,471

 

 

 

26,752

 

 

 

25,539

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share — basic

 

$

1.46

 

 

$

(1.62

)

 

$

(0.95

)

Net earnings (loss) per share — diluted

 

$

1.39

 

 

$

(1.62

)

 

$

(0.95

)

 

The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net loss per share as of the dates presented because their effect would have been antidilutive (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Stock options

 

 

—

 

 

 

1,466

 

 

 

1,712

 

RSUs, MSUs and PSUs

 

 

349

 

 

 

1,252

 

 

 

1,494

 

Employee stock purchase plan shares

 

 

—

 

 

 

51

 

 

 

26

 

2021 Notes

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 
v3.25.0.1
Related-Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related-Party Transactions

Note 16. Related-Party Transactions

We have been party to a consulting agreement with a limited liability company owned by Cathal Phelan, a member of our board of directors, pursuant to which Mr. Phelan provided advisory and consulting services to us. We recognized and paid $0.5 million in consulting fees to the limited liability company owned by Mr. Phelan for the year ended December 31, 2022. No consulting fees were recognized and paid in the years ended December 31, 2024 or 2023y. Additionally, we granted 60,000 shares of stock options to Mr. Phelan on September 21, 2020 in connection with these consulting services, with 1/24th of the shares subject to the option vesting on October 21, 2020 and 1/24th of the shares subject to the option vesting on each month thereafter, subject to Mr. Phelan remaining a service provider. Further, in connection with these consulting services, we granted 8,000 RSUs to Mr. Phelan on October 1, 2022 with ¼th of the RSUs vesting on January 1, April 1, July 1 and October 1, 2023, subject to Mr. Phelan remaining a service provider. On January 1, 2023, Mr. Phelan joined our company as Chief Innovation Officer and ceased to provide us with consulting services. Mr. Phelan remains on our board of directors as a non-independent director.

On June 23, 2023, we acquired a patent from a related party in which a member of our board of directors holds an executive leadership position. The patent pertains to our endpoint IC products and the acquisition price was $0.3 million. The patent expires on July 17, 2026 and does not have renewal rights. This patent is included in our intangible assets on our consolidated balance sheet as of December 31, 2024.
v3.25.0.1
Retirement Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Retirement Plans

Note 17. Retirement Plans

In 2001, we adopted a salary deferral 401(k) plan for our employees. The plan allows employees to contribute a percentage of their pretax earnings annually, subject to limitations imposed by the Internal Revenue Service, and allows a matching contribution, subject to certain limitations. We contributed $1.7 million and $1.8 million as matching contributions for the years ended December 31, 2024 and 2023, respectively.
v3.25.0.1
Restructuring
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring

Note 18. Restructuring

On February 7, 2024, we initiated a strategic restructuring to align financial, business and research and development objectives for long-term growth, including a reduction-in-force affecting approximately 10% of our employees. We incurred restructuring charges of $1.8 million for employee terminations benefits, including equity modification expense in first-quarter 2024. Restructuring payments were complete in second-quarter 2024.

A summary of accrued restructuring costs as of December 31, 2024 is shown in the table below (in thousands):

 

 

 

Year Ended December 31, 2024

 

Restructuring costs

 

$

1,812

 

Non cash payments

 

 

(366

)

Cash payments

 

 

(1,446

)

Accrued restructuring costs as of December 31, 2024

 

$

—

 
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP.

All numbers in the consolidated financial statements are rounded to the nearest thousand, except for per share data, and numbers in the notes to the consolidated financial statements are rounded to the nearest million.
 
Use of Estimates

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. We evaluate our estimates on an ongoing basis, including those related to revenue recognition, sales incentives, the fair value of assets acquired, liabilities assumed, contingent consideration in business combinations, inventory excess and obsolescence and income taxes. To the extent there are material differences between our estimates, judgments or assumptions and actual results, our financial statements will be affected.

Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments, which potentially subject us to credit-risk concentration, comprise primarily cash equivalents, investments and accounts receivable. We place our cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, to limit our investment exposure. We extend credit to customers based on our evaluation of the customer’s financial condition and generally do not require collateral. The following tables present total revenue and accounts receivable concentration for the indicated periods as of the dates presented:

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

Customer A

 

 

28

%

 

 

33

%

 

 

28

%

Customer B

 

 

17

 

 

 

11

 

 

 

10

 

Customer C

 

 

15

 

 

*

 

 

*

 

 

 

60

%

 

 

44

%

 

 

38

%

 

* Customer accounted for less than 10% of total revenue in the period.

 

 

As of December 31,

 

 

2024

 

 

2023

 

Accounts Receivable:

 

 

 

 

Customer A

 

 

22

%

 

 

39

%

Customer B

 

 

17

 

 

 

11

 

Customer C

 

 

22

 

 

*

 

 

 

61

%

 

 

50

%

* Customer accounted for less than 10% of total accounts receivable in the period.
Concentration of Supplier Risk

Concentration of Supplier Risk

We outsource the manufacturing and production of our hardware products to a small number of suppliers. We believe other suppliers could provide similar products on comparable terms if needed. However, a supplier change could delay manufacturing and cause a sales loss, which would adversely affect our operating results.
Cash and Cash Equivalents

Cash and Cash Equivalents

Cash includes demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present minimal risk of changes in value with changes in interest rates. Our cash equivalents are solely investments with an original or remaining maturity of three months or less at the date of purchase. We regularly maintain cash amounts exceeding federally insured limits at financial institutions.
Investments

Investments

Our investments comprise fixed income securities, including U.S. government securities, corporate notes and bonds, commercial paper and asset-backed securities. The contractual maturities of some of our available-for-sale, or AFS, debt securities exceed a year and are classified as long-term investments on our balance sheet. We carry AFS debt securities at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss). Our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in fair value of an investment below the cost basis is determined to be other-than-temporary. Factors we consider in determining whether a loss is temporary include the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, our intent to sell the security and whether or not we will be required to sell the security prior to the expected recovery of the investment's amortized cost basis. No such impairment changes were recorded during the years ended December 31, 2024, 2023 and 2022. See Note 3 tables for the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of December 31, 2024 and 2023.
Fair Value Measurement

Fair Value Measurement

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.
•
Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which are internally developed, and considers risk premiums that a market participant would require.

We do not have any financial assets or liabilities in Level 3 as of December 31, 2024, and only had the liability for the earnout consideration related to the Voyantic Oy acquisition as of December 31, 2023. We classified this liability as such because we determined the fair value using significant unobservable inputs. See Note 3: Fair Value Measurements and Note 6: Goodwill and Intangible Assets.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets.

Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means.

Long-term Debt —See Note 8 for the carrying amount and estimated fair value of the Notes.

Contingent Consideration — The contingent consideration liability is related to our acquisition of Voyantic Oy (see Note 6: Goodwill and Intangible Assets). We paid the contingent consideration amount of $7.2 million in second-quarter 2024.

Accounts Receivable and Allowances

Accounts Receivable and Allowances

Accounts receivable comprises amounts billed and currently due from customers, net of allowances for doubtful accounts, sales returns and price exceptions.

The allowance for doubtful accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. We record changes in our estimate of the allowance for doubtful accounts through bad debt expense and write off the receivable and corresponding allowance when accounts are ultimately determined to be uncollectible. We include bad debt expense in general and administrative expenses. For the periods presented in this report, bad debt expense and the allowance for doubtful accounts were not material.

We derive most of our accounts receivable from sales to original equipment manufacturers, or OEMs, original design manufacturers, ODMs, solution providers and distributors who are large, well-established companies. We do not have customers that represent a significant credit risk based on current economic conditions and past collection experience. Also, we have not had material past-due balances on our accounts receivable as of December 31, 2024 or 2023.

The allowance for sales returns and price exceptions is our best estimate based on our historical experience and currently available evidence. We record changes in our estimate of the allowance for sales returns and price exceptions through revenue, and relieve the allowance when we receive product returns or process claims for price exceptions. The following table summarizes our allowance for sales returns (in thousands):

 

 

Balance at Beginning of Year

 

 

Additional Reserve

 

 

Applied Sales Return

 

 

Balance at End of Year

 

Allowance for sales returns and price exceptions:

 

 

 

 

 

 

 

 

During year ended December 31, 2024

 

$

677

 

 

$

2,248

 

 

$

(2,155

)

 

$

770

 

During year ended December 31, 2023

 

 

605

 

 

 

2,912

 

 

 

(2,840

)

 

 

677

 

During year ended December 31, 2022

 

 

947

 

 

 

1,899

 

 

 

(2,241

)

 

 

605

 
Inventory

Inventory

We state inventories at the lower of cost or estimated net realizable value using the average costing method, which approximates a first-in, first-out method. Inventories comprise raw materials, work-in-process and finished goods. We continuously assess our inventory value and write down its value for estimated excess and obsolete inventory. This evaluation includes an analysis of inventory on hand, current and forecasted demand, product development plans and market conditions. If future demand or market conditions are less favorable than our projections, or our product development plans change from current expectations, then a write-down of excess or obsolete inventory may be required and is reflected in cost of goods sold in the period the updated information is known.

Excess and obsolescence charges had an immaterial impact on our 2024, 2023 and 2022 gross margin.

Property and Equipment

Property and Equipment

We record property and equipment at cost and depreciate it using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows:

Category

 

Useful Life

 

 

Machinery and equipment

 

1 to 10 years

 

 

Computer equipment and software

 

3 to 5 years

 

 

Furniture and fixtures

 

3 to 7 years

 

 

Equipment acquired under finance leases

 

3 to 7 years

 

 

Leasehold improvements

 

Shorter of remaining lease term or expected useful life
We charge maintenance and repair costs to expense when incurred. We capitalize major improvements, which extend the useful life of the related asset. Upon disposal of a fixed asset, we record a gain or loss based on the differences between the proceeds received and the net book value of the disposed asset.
Other Assets

Other Assets

Other assets comprise primarily capitalized implementation costs from cloud computing arrangements and security deposits. We capitalize eligible costs associated with cloud computing arrangements over the term of the arrangement, plus reasonably certain renewals, and recognize those costs on a straight-line basis in the same line item in the consolidated statement of operations as the expense for fees associated with the cloud computing arrangement. Cloud computing arrangement costs, included in prepaid expenses and other current assets, were $0.4 million and $0.4 million, and other non-current assets were $1.0 million and $1.4 million, as of December 31, 2024 and 2023, respectively. Amortization expense associated with the cloud computing arrangements was $0.4 million for 2024, $0.5 million for 2023, and $0.4 million for 2022. We present cash flows related to capitalized implementation costs in cash flows used in operating activities.

Business Combinations and Intangible Assets Including Goodwill

Business Combinations and Intangible Assets Including Goodwill

We account for business combinations using the acquisition method which involves allocating the purchase price paid to assets acquired and liabilities assumed at their acquisition-date fair values. The excess of the fair value of purchase consideration over the fair value of the identifiable assets and liabilities is recorded as goodwill. While we use our best estimates and assumptions to accurately estimate the fair value of assets acquired, liabilities assumed and the contingent consideration liability, our estimates are inherently uncertain. These estimates include, but are not limited to, estimates of future revenue, revenue growth rates, discount rates, underlying product or technology life cycles and expenses necessary to support the acquired technology, and estimated sales cycle for customer relationships. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill.

We review assumptions related to the fair value of the contingent consideration each reporting period until the contingency is satisfied. We recognize the change in fair value of the contingent

consideration liability in “General and administrative” expense on the consolidated statements of operations for the period in which the fair value changes.

We assess the impairment of goodwill on an annual basis, during the fourth quarter, or otherwise when events or changes in circumstances indicate that goodwill may be impaired.

We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis.

We expense acquisition-related costs, including advisory, legal, accounting, valuation and other similar costs in the periods in which the costs are incurred.

Revenue Recognition

Revenue Recognition

We generate revenue primarily from sales of hardware products. We also generate revenue from software, extended warranties, enhanced maintenance, support services and nonrecurring engineering, or NRE, development services, none of which are material.

We recognize revenue when we transfer control of the promised goods or services to our customers, which for hardware sales is generally at the time of product shipment as determined by agreed-upon shipping terms. We measure revenue based on the amount of consideration we expect to be entitled-to in exchange for those goods or services. We expect the period between when we transfer control of promised goods or services and when we receive payment to be one year or less, and that expectation is consistent with our historical experience. As such, we do not adjust our revenue for the effects of a significant financing component. We recognize any variable consideration, which comprises primarily sales incentives, as revenue reduction at the time of revenue recognition. We estimate sales incentives based on our historical experience and current expectations at the time of revenue recognition and update them at the end of each reporting period as additional information becomes available.

Our reader and gateway products are highly dependent on embedded software and cannot function without this embedded software. We account for the hardware and embedded software as a single performance obligation and recognize revenue when control is transferred.

Our customer contracts with multiple performance obligations generally include a combination of hardware products, extended warranty, enhanced maintenance and support services. For these contracts, we account for individual performance obligations separately if they are distinct. We allocate the transaction price to the separate performance obligations on a relative standalone selling-price basis. In instances where the standalone selling price is not directly observable, such as when we do not sell the product or service separately, we determine the standalone selling price using one, or a combination of, the adjusted market assessment or expected cost-plus margin. We defer amounts allocated to extended warranty and enhanced maintenance sold with our reader and gateway products and recognize them on a straight-line basis over the term of the arrangement, which is typically from one to three years. We defer amounts allocated to support services sold with our reader and gateway products and recognize them when we transfer control of the promised services to our customers.

Revenue generated from licensing our intellectual property is governed by licensing agreements. We recognize revenue from licensing the right to use functional intellectual property at the point in time the control of the license transfers to the customer, which is generally upon delivery, or as usage occurs.

If a customer pays consideration before we transfer a good or service under the contract, then we classify those amounts as contract liabilities or deferred revenue. We recognize contract liabilities as revenue when we transfer control of the promised goods or services to our customers.

Payment terms typically range from 30 to 120 days. We present revenue net of sales tax in our consolidated statements of operations. We include shipping charges billed to customers in revenue and the related shipping costs in cost of revenue.

Practical Expedients and Exemptions: We expense sales commissions when incurred because we expect the amortization period to be one year or less. We record these costs within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (1) contracts with an

original expected length of one year or less and (2) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

Product Warranties

Product Warranties

We provide limited warranty coverage for most products, generally ranging from a period of 90 days to one year from the date of shipment. We record a liability for the estimated cost of these warranties based on historical claims, product failure rates and other factors when we recognize the related revenue. We review these estimates periodically and adjust our warranty reserves when actual experience differs from historical estimates or when other information becomes available. The warranty liability primarily includes the anticipated cost of materials, labor and shipping necessary to repair or replace the product. Accrued warranty costs in 2024, 2023 and 2022 were not material.
Leases

Leases

We determine, at inception, whether an arrangement is or contains a lease. Right-of-use, or ROU, assets represent our right to use an identified asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease ROU assets and liabilities at commencement date based on the present value of future lease payments over the lease term. We use an incremental borrowing rate in determining the present value of future lease payments because our operating leases do not provide an implicit rate. Our incremental borrowing rate is based on a credit-adjusted risk-free rate, which best approximates a secured rate over a similar term of lease. We recognize lease expense for lease payments on a straight-line basis over the lease term. Our lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. We expense variable lease costs on the consolidated statements of operations as incurred. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.

We have various noncancellable operating lease agreements for office, warehouse and research and development space in the United States, China and Finland, with expiration dates from 2025 to 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal and termination clauses that we factor into the classification and measurement of the lease when appropriate. These lease agreements typically include lease and non-lease components and are generally accounted for as a single lease component. We consider variable CAM expenses for real estate leases as non-lease components.

We do not record leases with an initial term of 12 months or less on our consolidated balance sheet; we instead recognize lease expense for these leases on a straight-line basis over the lease term.
Research and Development Costs

Research and Development Costs

Research and development expense comprises primarily personnel expenses (salaries, benefits and other employee related costs) and stock-based compensation expense for our product-development personnel; external consulting and service costs; prototype materials; other new-product development costs; and an allocated portion of infrastructure costs which include occupancy, depreciation and software costs.
Foreign Currency

Foreign Currency

We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiary into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for this subsidiary are translated using rates that approximate those in effect during the period. We recognize gains and losses from these translations as a component of accumulated other comprehensive income (loss) in stockholders' equity. Our subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and non-monetary assets and liabilities at historical rates. We have included the gains or losses from foreign currency remeasurement in earnings.

Income Taxes

Income Taxes

We use the asset and liability approach for accounting, which requires recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to be in effect when the assets and liabilities are recovered or settled. We recognize the effects of a change in tax rates on deferred tax assets and liabilities in the year of the enactment date. We determine deferred tax assets, including historical net operating losses and deferred tax liabilities, based on temporary differences between the book and tax bases of the assets and liabilities. We believe that it is currently more likely than not that our deferred tax assets will not be realized and, as such, we have recorded a full valuation allowance for these assets. We evaluate the likelihood of our ability to realize deferred tax assets in future periods on a quarterly basis, and if evidence indicates we will be able to realize some or all of our deferred tax assets then we will revise our valuation allowance accordingly.

We use a two-step approach for evaluating uncertain tax positions. First, we evaluate recognition, which requires us to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes. If we consider a tax position more likely than not to be unsustained, then no benefits of the position are recognized. Second, we measure the uncertain tax position based on the largest amount of benefit which is more likely than not to be realized on effective settlement. This process involves estimating our actual current tax exposure, including assessing the risks associated with tax audits, together with assessing temporary differences resulting from the different treatment of items for tax and financial reporting purposes. If actual results differ from our estimates, then our net operating loss and credit carryforwards could be materially impacted.

Us realizing the benefits of the NOLs and credit carryforwards depends on sufficient taxable income in future years. We have established a valuation allowance against the carrying value of our deferred tax assets, as it is currently more likely than not we will be unable to realize these deferred tax assets. In addition, using NOLs and credits to offset future income subject to taxes may be subject to substantial annual limitations due to the “change in ownership” provisions of the Code and similar state provisions. Events that cause limitations in the amount of NOLs that we may use in any one year include, but are not limited to, a cumulative ownership change of more than 50%, as defined by Code Sections 382 and 383, over a three-year period. Using our NOLs and tax credit carryforwards could be significantly reduced if a cumulative ownership change of more than 50% has occurred in our past or occurs in our future.
Stock-Based Compensation

Stock-Based Compensation

We have various equity award plans or Plans for granting share-based awards to employees, consultants and non-employee Company directors. The Plans provide for granting several available forms of stock compensation such as restricted stock units, or RSUs, RSUs with performance conditions, or PSUs, and RSUs with market and service conditions, or MSUs and an employee stock purchase plan, or ESPP.

We measure stock-based compensation costs for all share-based awards at fair value on the measurement date, which is typically the grant date. We determine the fair value of RSUs and PSUs based on the closing price of our common stock at grant date. Additionally, for awards with a market condition, we use a Monte Carlo simulation model to estimate grant date fair value, which takes into consideration the range of possible stock price of total stockholder return outcomes.

Net Loss per Share

Net Earnings (Loss) per Share

We compute net earnings (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. We have outstanding stock options, RSUs, PSUs, MSUs and an ESPP, each of which we include in our calculation of diluted net loss per share if their effect would be dilutive. We compute diluted net loss per share by considering all potential dilutive common stock equivalents outstanding for the period.
Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In November 2023, the FASB released ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which amends reportable segment requirements, primarily through enhanced disclosures about significant segment expenses, including for public entities that have a single reportable segment. The standard is effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 31, 2024. We adopted ASU 2023-07 on January 1, 2024 and have made the necessary reportable segment disclosures (See Note 14—Segment Disclosures).
Recently Issued Accounting Standards Not Yet Adopted

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB released ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends income tax disclosure requirements to enhance the transparency and decision usefulness for users of the financial statements. The standard is effective for fiscal years beginning after December 31, 2024. We are currently evaluating any impact of this standard on our financial statement disclosures.

In November 2024, the FASB released ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which amends disclosure requirements related to the disaggregation of income statement expenses in the notes to financial statements. The standard is effective for fiscal years beginning after December 31, 2026. We are currently evaluating any impact of this standard on our financial statement disclosures.

In November 2024, the FASB released ASU 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20), which improves the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt - Debt with Conversion and Other Options. The standard is effective for fiscal years beginning after December 31, 2025. We are currently evaluating any impact of this standard on our financial statement disclosures.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Revenue and Accounts Receivable Concentration The following tables present total revenue and accounts receivable concentration for the indicated periods as of the dates presented:

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

Customer A

 

 

28

%

 

 

33

%

 

 

28

%

Customer B

 

 

17

 

 

 

11

 

 

 

10

 

Customer C

 

 

15

 

 

*

 

 

*

 

 

 

60

%

 

 

44

%

 

 

38

%

 

* Customer accounted for less than 10% of total revenue in the period.

 

 

As of December 31,

 

 

2024

 

 

2023

 

Accounts Receivable:

 

 

 

 

Customer A

 

 

22

%

 

 

39

%

Customer B

 

 

17

 

 

 

11

 

Customer C

 

 

22

 

 

*

 

 

 

61

%

 

 

50

%

* Customer accounted for less than 10% of total accounts receivable in the period.
Summary of Allowance for Sales Returns The following table summarizes our allowance for sales returns (in thousands):

 

 

Balance at Beginning of Year

 

 

Additional Reserve

 

 

Applied Sales Return

 

 

Balance at End of Year

 

Allowance for sales returns and price exceptions:

 

 

 

 

 

 

 

 

During year ended December 31, 2024

 

$

677

 

 

$

2,248

 

 

$

(2,155

)

 

$

770

 

During year ended December 31, 2023

 

 

605

 

 

 

2,912

 

 

 

(2,840

)

 

 

677

 

During year ended December 31, 2022

 

 

947

 

 

 

1,899

 

 

 

(2,241

)

 

 

605

 
Schedule of Property and Equipment Estimated Useful Lives

We record property and equipment at cost and depreciate it using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows:

Category

 

Useful Life

 

 

Machinery and equipment

 

1 to 10 years

 

 

Computer equipment and software

 

3 to 5 years

 

 

Furniture and fixtures

 

3 to 7 years

 

 

Equipment acquired under finance leases

 

3 to 7 years

 

 

Leasehold improvements

 

Shorter of remaining lease term or expected useful life
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of Assets Measured at Fair Value on Recurring Basis

The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,097

 

 

$

—

 

 

$

—

 

 

$

1,097

 

 

$

78,661

 

 

$

—

 

 

$

—

 

 

$

78,661

 

Total cash equivalents

 

 

1,097

 

 

 

—

 

 

 

—

 

 

 

1,097

 

 

 

78,661

 

 

 

—

 

 

 

—

 

 

 

78,661

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency securities

 

 

—

 

 

 

3,929

 

 

 

—

 

 

 

3,929

 

 

 

—

 

 

 

11,893

 

 

 

—

 

 

 

11,893

 

U.S. Treasury securities

 

 

—

 

 

 

63,634

 

 

 

—

 

 

 

63,634

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Yankee bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,951

 

 

 

—

 

 

 

1,951

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,994

 

 

 

—

 

 

 

2,994

 

Asset-backed securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,602

 

 

 

—

 

 

 

1,602

 

Corporate notes and bonds

 

 

—

 

 

 

32,305

 

 

 

—

 

 

 

32,305

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial paper

 

 

—

 

 

 

18,793

 

 

 

—

 

 

 

18,793

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total short-term investments

 

 

—

 

 

 

118,661

 

 

 

—

 

 

 

118,661

 

 

 

—

 

 

 

18,440

 

 

 

—

 

 

 

18,440

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency securities

 

 

—

 

 

 

5,989

 

 

 

—

 

 

 

5,989

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

U.S. Treasury securities

 

 

—

 

 

 

2,492

 

 

 

—

 

 

 

2,492

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate notes and bonds

 

 

—

 

 

 

66,390

 

 

 

—

 

 

 

66,390

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total long-term investments

 

 

—

 

 

 

74,871

 

 

 

—

 

 

 

74,871

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,097

 

 

$

193,532

 

 

$

—

 

 

$

194,629

 

 

$

78,661

 

 

$

18,440

 

 

$

—

 

 

$

97,101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition related contingent consideration liability

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,180

 

 

 

6,180

 

Total liabilities at fair value

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,180

 

 

$

6,180

 
Schedule of Additional Information of Liabilities Measured at Fair Value for Company Utilizes Level 3 Inputs to Determine Fair Value

The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value as of December 31, 2023 and during fiscal year 2024:

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Balance as of January 1

 

$

6,180

 

 

$

—

 

Addition of contingent consideration liability due to acquisition

 

 

986

 

 

 

4,602

 

Change in fair value of contingent consideration liability due to remeasurement

 

 

—

 

 

 

1,578

 

Contingent consideration payment made

 

 

(7,166

)

 

 

—

 

Balance as of December 31

 

$

—

 

 

$

6,180

 
Schedule of Cost Or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, And Total Estimated Fair Value Of Financial Assets

The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands):

 

December 31, 2024

 

 

Cost or

 

 

Gross

 

 

Gross

 

 

Total Estimated

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Description:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

1,097

 

 

$

—

 

 

$

—

 

 

$

1,097

 

U.S. Government agency securities

 

9,933

 

 

 

1

 

 

 

(16

)

 

 

9,918

 

U.S. Treasury securities

 

66,146

 

 

 

17

 

 

 

(37

)

 

 

66,126

 

Corporate notes and bonds

 

99,215

 

 

 

—

 

 

 

(520

)

 

 

98,695

 

Commercial paper

 

18,805

 

 

 

—

 

 

 

(12

)

 

 

18,793

 

Total

$

195,196

 

 

$

18

 

 

$

(585

)

 

$

194,629

 

 

 

December 31, 2023

 

 

Cost or

 

 

Gross

 

 

Gross

 

 

Total Estimated

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Description:

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

78,661

 

 

$

—

 

 

$

—

 

 

$

78,661

 

U.S. Government agency securities

 

11,932

 

 

 

—

 

 

 

(39

)

 

 

11,893

 

Yankee bonds

 

1,956

 

 

 

—

 

 

 

(5

)

 

 

1,951

 

Agency bond

 

2,998

 

 

 

—

 

 

 

(4

)

 

 

2,994

 

Asset-backed securities

 

1,604

 

 

 

—

 

 

 

(2

)

 

 

1,602

 

Total

$

97,151

 

 

$

—

 

 

$

(50

)

 

$

97,101

 
v3.25.0.1
Inventory (Tables)
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories

The following table presents the detail of inventories as of the dates presented (in thousands):

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Raw materials

 

$

14,040

 

 

$

21,773

 

Work-in-process

 

 

52,028

 

 

 

42,217

 

Finished goods

 

 

33,278

 

 

 

33,182

 

Total inventory

 

$

99,346

 

 

$

97,172

 
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment

The following table presents property and equipment details as of the dates presented (in thousands):

 

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Machinery and equipment

 

$

72,439

 

 

$

57,511

 

Computer equipment and software

 

 

3,335

 

 

 

3,012

 

Furniture and fixtures

 

 

1,369

 

 

 

1,333

 

Equipment acquired under finance leases

 

 

1,727

 

 

 

1,728

 

Leasehold improvements

 

 

13,690

 

 

 

12,966

 

Total property and equipment, gross

 

 

92,560

 

 

 

76,550

 

Less: Accumulated depreciation

 

 

(41,950

)

 

 

(31,659

)

Total property and equipment, net

 

$

50,610

 

 

$

44,891

 
v3.25.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill The following table presents goodwill as of December 31, 2024 and 2023 (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Balance at beginning of period

 

$

19,696

 

 

$

3,881

 

Additions from acquisition

 

 

—

 

 

 

15,590

 

Foreign currency translation adjustment

 

 

(973

)

 

 

225

 

   Total

 

$

18,723

 

 

$

19,696

 
Schedule of Intangible Assets

As of December 31, 2024, intangible assets comprised of the following (in thousands):

 

 

 

Estimated Useful Life in Years

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

Definite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

   Backlog

 

0.25

 

$

725

 

 

$

(725

)

 

$

—

 

   Customer Relationships

 

1

 

 

3,470

 

 

 

(3,470

)

 

 

—

 

   Developed Technology

 

7.25

 

 

12,223

 

 

 

(2,950

)

 

 

9,273

 

   Patent

 

3

 

 

250

 

 

 

(122

)

 

 

128

 

   Tradename

 

8

 

 

1,139

 

 

 

(249

)

 

 

890

 

   Total definite-lived intangible assets (1)

 

 

 

$

17,807

 

 

$

(7,516

)

 

$

10,291

 

(1) Foreign intangible asset carrying amounts are affected by foreign currency translation

 
Schedule of Estimated Intangible Asset Amortization Expense

As of December 31, 2024, the estimated intangible asset amortization expense for the next five years and thereafter is as follows:

 

Estimated Amortization

 

 

 

(in thousands)

 

2025

 

 

1,912

 

2026

 

 

1,873

 

2027

 

 

1,828

 

2028

 

 

1,828

 

2028

 

 

1,828

 

Thereafter

 

 

1,022

 

Total

 

$

10,291

 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Components of Income (Loss) before Income Taxes

The following table presents U.S. and foreign components of income (loss) before income taxes (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

U.S.

 

$

41,729

 

 

$

(40,349

)

 

$

(24,508

)

Foreign

 

 

(734

)

 

 

(3,339

)

 

 

391

 

Loss before income taxes

 

$

40,995

 

 

$

(43,688

)

 

$

(24,117

)
Summary of Income Tax Expense

The following table presents the detail of income tax benefit (expense) for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

U.S. - Federal

 

$

—

 

 

$

—

 

 

$

—

 

U.S. - State

 

 

(212

)

 

 

(163

)

 

 

(68

)

Foreign

 

 

(512

)

 

 

(446

)

 

 

(110

)

 

 

(724

)

 

 

(609

)

 

 

(178

)

Deferred:

 

 

 

 

 

 

 

 

 

U.S. - Federal

 

 

—

 

 

 

(53

)

 

 

5

 

U.S. - State

 

 

3

 

 

 

—

 

 

 

(11

)

Foreign

 

 

564

 

 

 

984

 

 

 

—

 

 

 

567

 

 

 

931

 

 

 

(6

)

Total income tax expense

 

$

(157

)

 

$

322

 

 

$

(184

)
Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate

The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented:

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

U.S. Statutory Rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

Change in valuation allowance

 

 

29.4

 

 

 

(42.0

)

 

 

(54.7

)

State taxes (net of federal benefit)

 

 

0.2

 

 

 

0.1

 

 

 

0.4

 

Federal research and development credit

 

 

(20.1

)

 

 

18.6

 

 

 

16.5

 

Stock-based compensation

 

 

(37.8

)

 

 

10.4

 

 

 

16.1

 

Inducement premium

 

 

—

 

 

 

—

 

 

 

5.0

 

Unrecognized tax benefits

 

 

5.0

 

 

 

(4.7

)

 

 

(4.1

)

Other, net

 

 

2.7

 

 

 

(2.8

)

 

 

(1.0

)

Effective income tax rate

 

 

0.4

%

 

 

0.7

%

 

 

(0.8

%)
Summary of Significant Components Deferred Tax Assets and Liabilities

Deferred federal, state and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for tax

purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands):

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Net operating loss carryforwards

 

$

40,760

 

 

$

49,228

 

Credit carryforwards

 

 

29,123

 

 

 

22,971

 

Capitalized research and development

 

 

46,318

 

 

 

32,988

 

Operating lease liabilities

 

 

1,873

 

 

 

2,569

 

Allowances

 

 

4,323

 

 

 

1,624

 

Deferred revenue

 

 

15

 

 

 

48

 

Stock-based compensation

 

 

5,753

 

 

 

6,351

 

Disallowed interest expense

 

 

—

 

 

 

—

 

Inventory cost capitalization

 

 

1,655

 

 

 

1,433

 

Deferred tax assets

 

 

129,820

 

 

 

117,211

 

Less: Valuation allowance

 

 

(126,102

)

 

 

(114,040

)

Net deferred tax assets

 

 

3,718

 

 

 

3,171

 

Deferred tax liability:

 

 

 

 

 

 

Goodwill

 

 

(820

)

 

 

(823

)

Depreciation and amortization

 

 

(3,683

)

 

 

(3,326

)

Operating lease ROU assets

 

 

(1,415

)

 

 

(1,933

)

Deferred tax liabilities

 

 

(5,918

)

 

 

(6,082

)

Net deferred tax liability

 

$

(2,200

)

 

$

(2,911

)
Total Balance of Unrecognized Tax Benefits

The following table presents the total balance of unrecognized tax benefits as of the dates presented (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

7,640

 

 

$

5,606

 

 

$

4,609

 

Gross increase to tax positions in current periods

 

 

2,056

 

 

 

2,034

 

 

 

997

 

Balance at end of period

 

$

9,696

 

 

$

7,640

 

 

$

5,606

 
v3.25.0.1
Long-term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Summary of Outstanding Principal Amount and Carrying Value

The following table presents the outstanding principal amount and carrying value of the 2021 Notes as of the dates indicated (in thousands):

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Principal Amount

 

 

Unamortized debt issuance costs

 

 

Net Carrying Amount

 

 

Principal Amount

 

 

Unamortized debt issuance costs

 

 

Net Carrying Amount

 

 

2021 Notes

 

287,500

 

 

 

(4,007

)

 

 

283,493

 

 

 

287,500

 

 

 

(5,645

)

 

 

281,855

 

 
Schedule of Notes

Further details of the 2021 Notes are as follows:

 

Issuance

 

Maturity Date

 

Interest Rate

 

First Interest Payment Date

 

Effective Interest Rate

 

Semi-Annual Interest Payment Dates

 

Initial Conversion Rate per $1,000 Principal

 

Initial Conversion Price

 

 

Number of Shares (in millions)

2021 Notes

 

May 15, 2027

 

1.125%

 

May 15, 2022

 

1.72%

 

May 15; November 15

 

9.0061

 

$

111.04

 

 

2.6

 
Schedule of Interest Expense

Interest expense related to the Notes was as follows (in thousands):

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

2021 Notes

 

 

2021 Notes

 

 

2021 Notes

 

 

2019 Notes

 

 

Total

 

Amortization of debt issuance costs

 

1,639

 

 

 

1,612

 

 

 

19

 

 

 

1,583

 

 

 

1,602

 

Cash interest expense

 

3,234

 

 

 

3,236

 

 

 

87

 

 

 

3,234

 

 

 

3,321

 

Total interest expense

$

4,873

 

 

$

4,848

 

 

$

106

 

 

$

4,817

 

 

$

4,923

 

 
v3.25.0.1
Stock-Based Awards (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-Based Compensation Expense

The following table presents the detail of stock-based compensation expense amounts included in our consolidated statements of operations for the periods presented (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Cost of revenue

$

2,034

 

 

$

1,869

 

 

$

1,522

 

Research and development expense

 

25,666

 

 

 

21,307

 

 

 

17,961

 

Sales and marketing expense

 

10,774

 

 

 

10,240

 

 

 

9,447

 

General and administrative expense

 

18,072

 

 

 

14,570

 

 

 

13,513

 

Total stock-based compensation expense

$

56,546

 

 

$

47,986

 

 

$

42,443

 
Summary of Stock Options Activity

The following table summarizes option award activity for the year ended December 31, 2024 (in thousands, except per share data and years):

 

 

Number of
Underlying Shares

 

 

Weighted-Average
Exercise Price
Per Share

 

 

Weighted-Average
Remaining
Contractual
Life (Years)

 

 

Total Intrinsic
Value

 

Outstanding at December 31, 2023

 

 

1,466

 

 

$

25.48

 

 

 

4.97

 

 

$

94,650

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(677

)

 

 

24.52

 

 

 

 

 

 

 

Forfeited or expired

 

 

(2

)

 

 

29.98

 

 

 

 

 

 

 

Outstanding at December 31, 2024

 

 

787

 

 

 

26.28

 

 

 

4.24

 

 

 

93,654

 

Vested and exercisable at December 31, 2024

 

 

787

 

 

$

26.27

 

 

 

4.24

 

 

$

93,622

 
Summary of Restricted Stock Units

The following table summarizes activity for restricted stock units, or RSUs and MSUs for the year ended December 31, 2024 (in thousands, except per share data):

 

 

Number of Underlying Shares

Weighted-Average Grant Date Fair Value

 

 

 

RSUs

 

 

MSUs

 

 

RSUs

 

 

MSUs

 

Outstanding at December 31, 2023

 

 

 

1,078

 

 

 

174

 

 

$

84.18

 

 

$

138.77

 

Granted

 

 

 

461

 

 

 

165

 

 

 

134.76

 

 

 

160.32

 

Vested

 

 

 

(502

)

 

 

(98

)

 

 

79.15

 

 

 

44.32

 

Forfeited

 

 

 

(117

)

 

 

(2

)

 

 

90.01

 

 

 

185.49

 

Outstanding at December 31, 2024

 

 

 

920

 

 

 

239

 

 

$

111.50

 

 

$

192.06

 

We record stock-based compensation expense for RSUs and MSUs on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures are recognized as they occur.

In 2022, w
Summary of Information Related to Granted and Vested RSUs, PSUs and MSUs

The following table summarizes information related to granted and vested RSUs, PSUs and MSUs (in thousands, except per share data):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

RSU weighted-average grant date fair value

$

134.76

 

 

$

119.12

 

 

$

65.81

 

MSU weighted-average grant date fair value

 

160.32

 

 

 

145.51

 

 

 

81.22

 

PSU weighted-average grant date fair value

$

—

 

 

$

—

 

 

$

64.07

 

 

 

 

 

 

 

 

 

 

Fair market value of RSUs vested

$

74,358

 

 

$

64,417

 

 

$

32,871

 

Fair market value of MSUs vested

 

9,829

 

 

 

7,219

 

 

 

—

 

Fair market value of PSUs vested

$

—

 

 

$

7,261

 

 

$

18,873

 
Schedule of Employee Stock Purchase Plan Valuation Assumptions

We estimate the fair value of the ESPP grant at the start of the offering period using the Black-Scholes option-pricing model with the following assumptions for the periods presented:

 

 

Year Ended December 31,

 

2024

 

2023

 

2022

Risk-free interest rate

 

5.0% - 5.3%

 

5.1% - 5.6%

 

0.7% - 3.2%

Expected term

 

0.5 Years

 

0.5 Years

 

0.5 Years

Expected volatility

 

59.9% - 61.6%

 

64.7% - 85.9%

 

71.9% - 76.3%
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Components of Lease Expense

The following table presents the components of lease expense in our consolidated statements of operations for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Operating lease costs(1)

 

 

 

 

 

 

 

 

Single lease costs

$

3,394

 

 

$

3,486

 

 

$

4,299

 

Variable lease costs

 

1,367

 

 

 

1,280

 

 

 

2,159

 

Sublease income(2)

 

—

 

 

 

(165

)

 

 

(1,976

)

Total operating lease costs

$

4,761

 

 

$

4,601

 

 

$

4,482

 

(1) Includes short-term lease costs, which are immaterial.

 

(2) Sublease income is related to unused office space that we sublet as part of the fiscal 2018 restructuring where we continue to have the primary obligations.

 
Supplemental Cash Flow Information Related to Operating Leases

The following table presents supplemental cash flow information related to operating leases for the periods presented (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows used

$

4,060

 

 

$

4,233

 

 

$

5,097

 

Lease liabilities arising from remeasurement of right-of-use assets

 

 

 

 

 

 

 

 

Operating leases

$

—

 

 

$

159

 

 

$

—

 

Lease liabilities arising from obtaining ROU assets

 

 

 

 

 

 

 

 

Operating leases

$

—

 

 

$

1,690

 

 

$

2,237

 

 
Schedule of Weighted-Average Remaining Lease Terms and Weighted-Average Discount Rate Related to Operating Leases

The following table presents weighted-average remaining lease term and weighted-average discount rate related to operating leases as of:

 

2024

 

 

2023

 

Weighted-average remaining lease term (years)

 

2.8

 

 

 

3.7

 

Weighted-average discount rate

 

6.9

%

 

 

6.9

%
Schedule of Future Lease Payments under Operating Leases

The following table presents future lease payments under operating leases as of December 31, 2024 (in thousands):

 

 

Operating Leases

 

 

 

Lease Payments

 

2025

 

$

4,101

 

2026

 

 

4,190

 

2027

 

 

766

 

2028

 

 

642

 

2029

 

 

549

 

Thereafter

 

 

—

 

Total lease payments

 

$

10,248

 

Less: Imputed interest

 

 

(940

)

Present value of lease liabilities

 

 

9,308

 

Less: Current portion of lease liabilities

 

 

3,589

 

Lease liabilities, net of current portion

 

$

5,719

 
v3.25.0.1
Deferred Revenue (Tables)
 12 Months Ended
Dec. 31, 2024
Deferred Revenue Disclosure [Abstract]  
Summary of Changes in Deferred Revenue

The following table presents the changes in deferred revenue for the indicated periods (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Balance at beginning of period

$

1,985

 

 

$

2,599

 

Opening balance from Voyantic acquisition

 

—

 

 

 

1,233

 

Deferral of revenue

 

2,930

 

 

 

2,920

 

Recognition of deferred revenue

 

(2,947

)

 

 

(4,767

)

Balance at end of period

$

1,968

 

 

$

1,985

 

 
v3.25.0.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Summary of Revenue Categories The following table presents our revenue categories for the indicated periods (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Endpoint ICs

 

$

305,915

 

 

$

234,426

 

 

$

191,532

 

Systems

 

 

60,172

 

 

 

73,113

 

 

 

66,268

 

Total revenue

 

$

366,087

 

 

$

307,539

 

 

$

257,800

 
Summary of Long-lived Assets by Geography

The following table summarizes our long-lived assets, comprising property and equipment, less accumulated depreciation (in thousands):

 

December 31, 2024

 

 

December 31, 2023

 

United States

 

$

13,255

 

 

$

14,110

 

Malaysia

 

 

9,221

 

 

 

11,749

 

Taiwan

 

 

20,541

 

 

 

13,396

 

Others

 

 

7,593

 

 

 

5,636

 

Total

 

$

50,610

 

 

$

44,891

 
Summary of Sales by Geography The following table presents our sales by geography for the indicated periods (in thousands):

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Americas

 

$

110,155

 

 

$

96,418

 

 

$

57,129

 

Asia Pacific

 

 

209,538

 

 

 

176,409

 

 

 

168,249

 

Europe, Middle East and Africa

 

 

46,394

 

 

 

34,712

 

 

 

32,422

 

Total revenue

 

$

366,087

 

 

$

307,539

 

 

$

257,800

 
v3.25.0.1
Net Earnings (Loss) per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share

For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (in thousands, except for per-share amounts):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

40,838

 

 

$

(43,366

)

 

$

(24,301

)

Interest add back

 

 

—

 

 

 

—

 

 

 

—

 

Net income (loss) attributable to common stock holders

 

$

40,838

 

 

$

(43,366

)

 

$

(24,301

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

27,953

 

 

 

26,752

 

 

 

25,539

 

Dilutive effect of:

 

 

 

 

 

 

 

 

 

Stock plans

 

 

1,518

 

 

 

—

 

 

 

—

 

2021 Notes

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average common shares outstanding, diluted

 

 

29,471

 

 

 

26,752

 

 

 

25,539

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share — basic

 

$

1.46

 

 

$

(1.62

)

 

$

(0.95

)

Net earnings (loss) per share — diluted

 

$

1.39

 

 

$

(1.62

)

 

$

(0.95

)

 
Computation of Diluted Net Loss Per Share Effect in Antidilutive

The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net loss per share as of the dates presented because their effect would have been antidilutive (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Stock options

 

 

—

 

 

 

1,466

 

 

 

1,712

 

RSUs, MSUs and PSUs

 

 

349

 

 

 

1,252

 

 

 

1,494

 

Employee stock purchase plan shares

 

 

—

 

 

 

51

 

 

 

26

 

2021 Notes

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 
v3.25.0.1
Restructuring (Tables)
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Summary of Accrued Restructuring Costs

A summary of accrued restructuring costs as of December 31, 2024 is shown in the table below (in thousands):

 

 

 

Year Ended December 31, 2024

 

Restructuring costs

 

$

1,812

 

Non cash payments

 

 

(366

)

Cash payments

 

 

(1,446

)

Accrued restructuring costs as of December 31, 2024

 

$

—

 
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable Concentration (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Customer Concentration Risk | Revenue | Customer A      
Concentration Risk [Line Items]      
Concentration risk percentage 28.00% 33.00% 28.00%
Customer Concentration Risk | Revenue | Customer B      
Concentration Risk [Line Items]      
Concentration risk percentage 17.00% 11.00% 10.00%
Customer Concentration Risk | Revenue | Customer C      
Concentration Risk [Line Items]      
Concentration risk percentage 15.00%    
Customer Concentration Risk | Revenue | Top Three Customers      
Concentration Risk [Line Items]      
Concentration risk percentage 60.00% 44.00% 38.00%
Credit Concentration Risk | Accounts Receivable | Customer A      
Concentration Risk [Line Items]      
Concentration risk percentage 22.00% 39.00%  
Credit Concentration Risk | Accounts Receivable | Customer B      
Concentration Risk [Line Items]      
Concentration risk percentage 17.00% 11.00%  
Credit Concentration Risk | Accounts Receivable | Customer C      
Concentration Risk [Line Items]      
Concentration risk percentage 22.00%    
Credit Concentration Risk | Accounts Receivable | Top Three Customers      
Concentration Risk [Line Items]      
Concentration risk percentage 61.00% 50.00%  
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable Concentration (Parenthetical) (Details) - Maximum
 12 Months Ended
Dec. 31, 2024
Customer Concentration Risk | Revenue  
Concentration Risk [Line Items]  
Concentration risk percentage 10.00%
Credit Concentration Risk | Accounts Receivable  
Concentration Risk [Line Items]  
Concentration risk percentage 10.00%
v3.25.0.1
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Significant Accounting Policies [Line Items]      
Contingent consideration amount paid $ 4,602,000    
Amortization expense associated with cloud computing arrangements $ 400,000 $ 500,000 $ 400,000
Sales commissions maximum amortization period 1 year    
Sales contracts with original expected length one year or less    
Cumulative ownership change percentage 50.00%    
Cumulative change in ownership period 3 years    
Investment impairment charges $ 0 0 $ 0
ASU 2023-07      
Significant Accounting Policies [Line Items]      
Change in accounting principle, accounting standards update, adopted true    
Change in accounting principle, accounting standards update, adoption date Jan. 01, 2024    
Voyantic Oy      
Significant Accounting Policies [Line Items]      
Contingent consideration amount paid $ 7,200,000    
Level 3      
Significant Accounting Policies [Line Items]      
Assets measured at fair value 0 0  
Financial liabilities, fair value $ 0 0  
Maximum      
Significant Accounting Policies [Line Items]      
Expected revenue recognition term 1 year    
Extended warranty and enhanced maintenance term 3 years    
Payment Terms 120 days    
Product warranty coverage period 1 year    
Lease expiration year 2029    
Minimum      
Significant Accounting Policies [Line Items]      
Extended warranty and enhanced maintenance term 1 year    
Payment Terms 30 days    
Product warranty coverage period 90 days    
Lease expiration year 2025    
Prepaid Expenses and Other Current Assets      
Significant Accounting Policies [Line Items]      
Cloud computing arrangement costs $ 400,000 400,000  
Other Non-current Assets      
Significant Accounting Policies [Line Items]      
Cloud computing arrangement costs $ 1,000,000 $ 1,400,000  
v3.25.0.1
Summary of Significant Accounting Policies - Summary of Allowance for Sales Returns (Details) - Allowance for Sales Returns and Price Exceptions - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Valuation And Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Year $ 677 $ 605 $ 947
Additional Reserve 2,248 2,912 1,899
Applied Sales Return (2,155) (2,840) (2,241)
Balance at End of Year $ 770 $ 677 $ 605
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details)
Dec. 31, 2024
Leasehold Improvements  
Property Plant And Equipment [Line Items]  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
Minimum | Machinery and Equipment  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 1 year
Minimum | Computer Equipment and Software  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 3 years
Minimum | Furniture and Fixtures  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 3 years
Minimum | Equipment Acquired Under Finance Leases  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 3 years
Maximum | Machinery and Equipment  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 10 years
Maximum | Computer Equipment and Software  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 5 years
Maximum | Furniture and Fixtures  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 7 years
Maximum | Equipment Acquired Under Finance Leases  
Property Plant And Equipment [Line Items]  
Property and equipment, estimated useful lives (Years) 7 years
v3.25.0.1
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value $ 194,629,000 $ 97,101,000
Acquisition-related contingent consideration liability   6,180,000
Total liabilities at fair value   6,180,000
Cash Equivalents | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 1,097,000 78,661,000
Cash Equivalents | Money Market Funds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 1,097,000 78,661,000
Short-term Investments | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 118,661,000 18,440,000
Short-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 3,929,000 11,893,000
Short-term Investments | U.S. Treasury Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 63,634,000  
Short-term Investments | Corporate Notes and Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 32,305,000  
Short-term Investments | Commercial Paper | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 18,793,000  
Long-term Investments | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 74,871,000  
Long-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 5,989,000  
Long-term Investments | U.S. Treasury Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 2,492,000  
Long-term Investments | Yankee Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value   1,951,000
Long-term Investments | Agency Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value   2,994,000
Long-term Investments | Asset-Backed Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value   1,602,000
Long-term Investments | Corporate Notes and Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 66,390,000  
Level 1 | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 1,097,000 78,661,000
Level 1 | Cash Equivalents | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 1,097,000 78,661,000
Level 1 | Cash Equivalents | Money Market Funds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 1,097,000 78,661,000
Level 2 | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 193,532,000 18,440,000
Level 2 | Short-term Investments | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 118,661,000 18,440,000
Level 2 | Short-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 3,929,000 11,893,000
Level 2 | Short-term Investments | U.S. Treasury Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 63,634,000  
Level 2 | Short-term Investments | Corporate Notes and Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 32,305,000  
Level 2 | Short-term Investments | Commercial Paper | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 18,793,000  
Level 2 | Long-term Investments | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 74,871,000  
Level 2 | Long-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 5,989,000  
Level 2 | Long-term Investments | U.S. Treasury Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 2,492,000  
Level 2 | Long-term Investments | Yankee Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value   1,951,000
Level 2 | Long-term Investments | Agency Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value   2,994,000
Level 2 | Long-term Investments | Asset-Backed Securities | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value   1,602,000
Level 2 | Long-term Investments | Corporate Notes and Bonds | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 66,390,000  
Level 3    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value $ 0 0
Level 3 | Fair Value Measurements Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Acquisition-related contingent consideration liability   6,180,000
Total liabilities at fair value   $ 6,180,000
v3.25.0.1
Fair Value Measurements - Schedule of Additional Information of Liabilities Measured at Fair Value for Company Utilizes Level 3 Inputs to Determine Fair Value (Details) - Contingent Consideration Liability - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Beginning balance $ 6,180  
Addition of contingent consideration liability due to acquisition 986 $ 4,602
Change in fair value of contingent consideration liability due to remeasurement   1,578
Contingent consideration payment made $ (7,166)  
Ending balance   $ 6,180
v3.25.0.1
Fair Value Measurements - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Marketable securities continuous loss position for less than 12 months, estimated fair value $ 142,800,000 $ 10,200,000
Marketable securities continuous loss position for less than 12 months, unrealized losses 600,000 20,000.00
Marketable securities continuous loss position for greater than 12 months, estimated fair value $ 0 8,200,000
Marketable securities continuous loss position for greater than 12 months, unrealized losses   30,000.00
2021 Convertible Senior Notes due 2027    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Debt instrument, maturity year 2027  
Accrued Expenses And Other Current Liabilities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Contingent consideration liability $ 0 6,200,000
General and Administrative Expense    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair value of the contingent consideration liability measurement additional expense $ 1,000,000 $ 1,600,000
v3.25.0.1
Fair Value Measurements - Schedule of Cost Or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, And Total Estimated Fair Value Of Financial Assets (Details) - Fair Value Measurements Recurring - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost $ 195,196 $ 97,151
Gross Unrealized Gains 18  
Gross Unrealized Losses (585) (50)
Total Estimated Fair Value 194,629 97,101
Money Market Funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost 1,097 78,661
Total Estimated Fair Value 1,097 78,661
U.S. Government Agency Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost 9,933 11,932
Gross Unrealized Gains 1  
Gross Unrealized Losses (16) (39)
Total Estimated Fair Value 9,918 11,893
U.S. Treasury Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost 66,146  
Gross Unrealized Gains 17  
Gross Unrealized Losses (37)  
Total Estimated Fair Value 66,126  
Corporate Notes and Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost 99,215  
Gross Unrealized Losses (520)  
Total Estimated Fair Value 98,695  
Yankee Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost   1,956
Gross Unrealized Losses   (5)
Total Estimated Fair Value   1,951
Commercial Paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost 18,805  
Gross Unrealized Losses (12)  
Total Estimated Fair Value $ 18,793  
Agency Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost   2,998
Gross Unrealized Losses   (4)
Total Estimated Fair Value   2,994
Asset-Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cost or Amortized Cost   1,604
Gross Unrealized Losses   (2)
Total Estimated Fair Value   $ 1,602
v3.25.0.1
Inventory - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 14,040 $ 21,773
Work-in-process 52,028 42,217
Finished goods 33,278 33,182
Total inventory $ 99,346 $ 97,172
v3.25.0.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property Plant And Equipment [Line Items]    
Total property and equipment, gross $ 92,560 $ 76,550
Less: Accumulated depreciation (41,950) (31,659)
Total property and equipment, net 50,610 44,891
Machinery and Equipment    
Property Plant And Equipment [Line Items]    
Total property and equipment, gross 72,439 57,511
Computer Equipment and Software    
Property Plant And Equipment [Line Items]    
Total property and equipment, gross 3,335 3,012
Furniture and Fixtures    
Property Plant And Equipment [Line Items]    
Total property and equipment, gross 1,369 1,333
Equipment Acquired Under Finance Leases    
Property Plant And Equipment [Line Items]    
Total property and equipment, gross 1,727 1,728
Leasehold Improvements    
Property Plant And Equipment [Line Items]    
Total property and equipment, gross $ 13,690 $ 12,966
v3.25.0.1
Property and Equipment - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property Plant And Equipment [Line Items]      
Depreciation $ 10,700,000 $ 8,700,000 $ 6,000,000
Property and equipment, net 50,610,000 44,891,000  
Property and Equipment Acquired Under Finance Leases      
Property Plant And Equipment [Line Items]      
Property and equipment, net $ 0 $ 0  
v3.25.0.1
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Apr. 03, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]        
Goodwill   $ 18,723 $ 19,696 $ 3,881
Weighted average life of intangible assets   6 years    
Amortization expense of intangible assets   $ 2,902 4,953  
Deferred tax liability $ 3,700      
Voyantic Oy        
Goodwill [Line Items]        
Purchase price 32,700      
Consideration value of common stock 3,600      
Fair value of net assets acquired 2,400      
Deferred payments 4,600      
Goodwill 15,600      
Intangible assets 18,400      
Deferred tax liability $ 3,700      
Voyantic Oy | General and Administrative Expense        
Goodwill [Line Items]        
Transaction-related costs for acquisition   $ 1,000 $ 1,700  
v3.25.0.1
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Balance at beginning of period $ 19,696 $ 3,881
Additions from acquisition   15,590
Foreign currency translation adjustment (973) 225
Total $ 18,723 $ 19,696
v3.25.0.1
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life in Years 6 years
Gross Carrying Amount $ 17,807
Accumulated Amortization (7,516)
Net Total $ 10,291
Backlog  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life in Years 3 months
Gross Carrying Amount $ 725
Accumulated Amortization $ (725)
Customer Relationships  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life in Years 1 year
Gross Carrying Amount $ 3,470
Accumulated Amortization $ (3,470)
Developed Technology  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life in Years 7 years 3 months
Gross Carrying Amount $ 12,223
Accumulated Amortization (2,950)
Net Total $ 9,273
Patent  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life in Years 3 years
Gross Carrying Amount $ 250
Accumulated Amortization (122)
Net Total $ 128
Trade Name  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life in Years 8 years
Gross Carrying Amount $ 1,139
Accumulated Amortization (249)
Net Total $ 890
v3.25.0.1
Goodwill and Intangible Assets - Schedule of Estimated Intangible Asset Amortization Expense (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]  
2025 $ 1,912
2026 1,873
2027 1,828
2028 1,828
2028 1,828
Thereafter 1,022
Net Total $ 10,291
v3.25.0.1
Income Taxes - Summary of Components of Income (Loss) before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
U.S. $ 41,729 $ (40,349) $ (24,508)
Foreign (734) (3,339) 391
Income (loss) before income taxes $ 40,995 $ (43,688) $ (24,117)
v3.25.0.1
Income Taxes - Summary of Income Tax Benefit (Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
U.S. - State $ (212) $ (163) $ (68)
Foreign (512) (446) (110)
Total current (724) (609) (178)
Deferred:      
U.S. - Federal   (53) 5
U.S. - State 3   (11)
Foreign 564 984  
Total deferred 567 931 (6)
Total income tax expense $ (157) $ 322 $ (184)
v3.25.0.1
Income Taxes - Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
U.S. Statutory Rate 21.00% 21.00% 21.00%
Change in valuation allowance 29.40% (42.00%) (54.70%)
State taxes (net of federal benefit) 0.20% 0.10% 0.40%
Federal research and development credit (20.10%) 18.60% 16.50%
Stock-based compensation (37.80%) 10.40% 16.10%
Inducement premium     5.00%
Unrecognized tax benefits 5.00% (4.70%) (4.10%)
Other, net 2.70% (2.80%) (1.00%)
Effective income tax rate 0.40% 0.70% (0.80%)
v3.25.0.1
Income Taxes - Summary of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Net operating loss carryforwards $ 40,760 $ 49,228
Credit carryforwards 29,123 22,971
Capitalized research and development 46,318 32,988
Operating lease liabilities 1,873 2,569
Allowances 4,323 1,624
Deferred revenue 15 48
Stock-based compensation 5,753 6,351
Inventory cost capitalization 1,655 1,433
Deferred tax assets 129,820 117,211
Less: Valuation allowance (126,102) (114,040)
Net deferred tax assets 3,718 3,171
Deferred tax liability:    
Goodwill (820) (823)
Depreciation and amortization (3,683) (3,326)
Operating lease ROU assets (1,415) (1,933)
Deferred tax liabilities (5,918) (6,082)
Net deferred tax liability $ (2,200) $ (2,911)
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Apr. 03, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]          
Deferred tax liability     $ 3,700,000    
Accumulated federal tax losses $ 190,300,000 $ 230,500,000      
Accumulated federal tax losses with indefinite life 141,800,000        
Accumulated state tax losses 18,800,000 21,300,000      
Research and development credit carry-forwards 38,700,000 30,500,000      
Tax cut job act, impact of provision in deferred tax assets $ 46,300,000 32,900,000      
Federal tax losses and research and development credit carryforward expiration year 2020        
Unrecognized tax benefits $ 9,696,000 $ 7,640,000   $ 5,606,000 $ 4,609,000
Unrecognized tax benefits, if recognized would impact the effective tax rate 0        
Accrued interest and penalties related to unrecognized tax benefits $ 0        
v3.25.0.1
Income Taxes - Total Balance of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Balance at beginning of period $ 7,640 $ 5,606 $ 4,609
Gross increase to tax positions in current periods 2,056 2,034 997
Balance at end of period $ 9,696 $ 7,640 $ 5,606
v3.25.0.1
Long-term Debt - Additional Information (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Dec. 11, 2019
Jun. 30, 2022
USD ($)
Nov. 30, 2021
USD ($)
Dec. 31, 2019
USD ($)
Days
$ / shares
Dec. 31, 2024
USD ($)
Days
$ / shares
Dec. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
Debt Instrument [Line Items]              
Payment of 2019 Notes           $ 17,564  
Long-term debt             $ 281,855
Additional paid in capital         $ (541,090)   (463,900)
Accumulated deficit         389,313   430,151
Induced conversion expense related to convertible notes           $ 2,232  
2021 Convertible Promissory Notes due 2027              
Debt Instrument [Line Items]              
Aggregate principal amount     $ 287,500        
Debt instrument, maturity date     May 15, 2027        
2021 Convertible Promissory Notes due 2027 | Level 2              
Debt Instrument [Line Items]              
Estimated fair value         408,700   314,000
2019 Convertible Senior Notes due 2026              
Debt Instrument [Line Items]              
Aggregate principal amount       $ 86,300      
Repurchase of debt principal amount   $ 9,900 $ 76,400        
Cap price of the capped call transactions | $ / shares       $ 54.2      
Capped call transactions expiration consecutive days | Days       40      
Capped call transaction expiring date Dec. 11, 2026            
Payment of 2019 Notes   17,600 183,600        
Induced conversion expense related to convertible notes   2,200 11,300        
Unamortized debt issuance costs   200 1,800        
2019 Convertible Senior Notes due 2026 | 2019 Note Repurchase              
Debt Instrument [Line Items]              
Payment of 2019 Notes   17,600 183,600        
Repurchase of debt principal amount   $ 9,900 $ 76,400        
2021 Convertible Senior Notes due 2027              
Debt Instrument [Line Items]              
Debt instrument, maturity date     May 15, 2027        
Net proceeds from issuing notes     $ 278,400        
Total issuance costs     $ 9,100        
Accrued interest         400   400
Unamortized debt issuance costs         $ 4,007   $ 5,645
Convertible Senior Notes              
Debt Instrument [Line Items]              
Debt instrument, threshold trading days | Days         5    
Debt instrument, threshold consecutive trading days | Days         30    
Debt instrument, threshold percentage of stock price trigger         130.00%    
Number of business day | Days         5    
Debt instrument, terms of conversion feature         Regardless of the foregoing circumstances, holders may convert all or any portion of the 2021 Notes, in increments of $1,000 principal amount, on or after February 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date.    
Percentage of repurchase price of principal amount         100.00%    
Debt instrument, if-converted value in excess of principal         $ 88,600    
Closing price of common stock | $ / shares         $ 145.26    
Convertible Senior Notes | Minimum              
Debt Instrument [Line Items]              
Debt instrument, threshold trading days | Days         20    
Convertible Senior Notes | Maximum              
Debt Instrument [Line Items]              
Debt instrument, threshold percentage of stock price trigger         98.00%    
v3.25.0.1
Long-term Debt - Summary of Outstanding Principal Amount and Carrying Value (Details) - 2021 Convertible Senior Notes due 2027 - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Principal Amount $ 287,500 $ 287,500
Unamortized debt issuance costs (4,007) (5,645)
Net Carrying Amount $ 283,493 $ 281,855
v3.25.0.1
Long-term Debt - Schedule of Notes (Details) - 2021 Notes
Unit in Millions
 1 Months Ended
Nov. 30, 2021
Unit
$ / shares
shares
Debt Instrument [Line Items]  
Maturity Date May 15, 2027
Interest Rate 1.125%
First Interest Payment Date May 15, 2022
Effective Interest Rate 1.72%
Semi-Annual Interest Payment Dates May 15; November 15
Initial Conversion Rate per $1,000 Principal | shares 9.0061
Initial Conversion Price | $ / shares $ 111.04
Number of Shares (in millions) | Unit 2.6
v3.25.0.1
Long-term Debt - Schedule of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
2019 Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Amortization of debt issuance costs     $ 1,583
Cash interest expense     3,234
Total interest expense     4,817
2021 Convertible Senior Notes due 2027      
Debt Instrument [Line Items]      
Amortization of debt issuance costs $ 1,639 $ 1,612 19
Cash interest expense 3,234 3,236 87
Total interest expense $ 4,873 $ 4,848 106
Convertible Senior Notes      
Debt Instrument [Line Items]      
Amortization of debt issuance costs     1,602
Cash interest expense     3,321
Total interest expense     $ 4,923
v3.25.0.1
Stockholders' Equity - Additional Information (Details) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Stockholders' Equity Note [Abstract]    
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 495,000,000 495,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, voting rights Each holder of the common stock is entitled to one vote per common share  
v3.25.0.1
Stock-Based Awards - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total stock-based compensation expense $ 56,546 $ 47,986 $ 42,443
Cost of Revenue      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 2,034 1,869 1,522
Research and Development Expense      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 25,666 21,307 17,961
Selling and Marketing Expense      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 10,774 10,240 9,447
General and Administrative Expense      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total stock-based compensation expense $ 18,072 $ 14,570 $ 13,513
v3.25.0.1
Stock-Based Awards - Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 6 Months Ended 12 Months Ended
Jul. 31, 2016
Dec. 31, 2016
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Stock based compensation expense     $ 56,546 $ 47,986 $ 42,443  
Stock Option            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Total intrinsic value of options exercised     85,100 19,100 31,900  
Total grant date fair value of options vested     1,000 3,300 7,000  
Performance Share Units            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Total fair market value of RSUs/PSUs/MSUs vested       7,261 18,873  
Restricted Stock Units            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Unrecognized stock-based compensation cost     $ 89,400      
Unrecognized stock-based compensation cost, period for recognition     2 years 4 months 24 days      
Total fair market value of RSUs/PSUs/MSUs vested     $ 74,358 64,417 $ 32,871  
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period     461,000      
MSU            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Unrecognized stock-based compensation cost     $ 25,800      
Unrecognized stock-based compensation cost, period for recognition     1 year 6 months      
Total fair market value of RSUs/PSUs/MSUs vested     $ 9,829 $ 7,219    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period     165,000      
2016 Equity Incentive Plan            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Incentive plan effective period     2016-07      
Shares of common stock reserved for future issuance, description     The number of shares of common stock reserved for issuance under the 2016 Plan may increase on January 1 of each year, beginning on January 1, 2017 and ending on and including January 1, 2026, by the lesser of (1) 1,825,000 shares; (2) 5% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year; and (3) a lesser number of shares determined by our board of directors.      
Options granted, maximum term     10 years      
Options granted, exercisable term     4 years      
Common stock available for future grants     3,600,000      
2016 Equity Incentive Plan | Lower of Potential Outcome One            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock capital incremental shares reserved for future issuance each year     1,825,000      
2016 Equity Incentive Plan | Lower of Potential Outcome Two            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Percentage of total number of shares of common stock outstanding     5.00%      
2016 Employee Stock Purchase Plan            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock capital incremental shares reserved for future issuance each year     365,411      
Percentage of total number of shares of common stock outstanding           1.00%
Unrecognized stock-based compensation cost     $ 200      
Percentage of salary contribution by employees 15.00%          
Maximum number of shares purchase per employee   4,000        
Percentage of price lesser than fair market value per share 85.00%          
2016 Employee Stock Purchase Plan | Maximum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Unrecognized stock-based compensation cost, period for recognition     1 year      
v3.25.0.1
Stock-Based Awards - Summary of Stock Options Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]    
Number of Underlying Shares, Outstanding, Beginning balance 1,466  
Number of Underlying Shares, Exercised (677)  
Number of Underlying Shares, Forfeited or expired (2)  
Number of Underlying Shares, Outstanding, Ending balance 787 1,466
Number of Underlying Shares, Vested and exercisable 787  
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance $ 25.48  
Weighted-Average Exercise Price Per Share, Exercised 24.52  
Weighted-Average Exercise Price Per Share, Forfeited or Expired 29.98  
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance 26.28 $ 25.48
Weighted-Average Exercise Price Per Share, Vested and exercisable $ 26.27  
Weighted-Average Remaining Contractual Life (Years), Outstanding 4 years 2 months 26 days 4 years 11 months 19 days
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable 4 years 2 months 26 days  
Total Intrinsic Value, Outstanding $ 93,654 $ 94,650
Total Intrinsic Value, Vested and exercisable $ 93,622  
v3.25.0.1
Stock-Based Awards - Summary of Restricted Stock Units (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock Units      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of Underlying Shares Outstanding, Balance 1,078    
Number of Underlying Shares, Granted 461    
Number of Underlying Shares, Vested (502)    
Number of Underlying Shares, Forfeited (117)    
Number of Underlying Shares Outstanding, Balance 920 1,078  
Weighted-Average Grant-Date Fair Value , Beginning balance $ 84.18    
Weighted-Average Grant-Date Fair Value , Granted 134.76 $ 119.12 $ 65.81
Weighted-Average Exercise Price Per Share, Vested 79.15    
Weighted-Average Exercise Price Per Share, Forfeited 90.01    
Weighted-Average Grant-Date Fair Value , Ending balance $ 111.5    
Market and Service Conditions Units      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of Underlying Shares Outstanding, Balance 174    
Number of Underlying Shares, Granted 165    
Number of Underlying Shares, Vested (98)    
Number of Underlying Shares, Forfeited (2)    
Number of Underlying Shares Outstanding, Balance 239 174  
Weighted-Average Grant-Date Fair Value , Beginning balance $ 138.77    
Weighted-Average Grant-Date Fair Value , Granted 160.32 $ 145.51 81.22
Weighted-Average Exercise Price Per Share, Vested 44.32    
Weighted-Average Exercise Price Per Share, Forfeited 185.49    
Weighted-Average Grant-Date Fair Value , Ending balance $ 192.06    
Performance Share Units      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Weighted-Average Grant-Date Fair Value , Granted     $ 64.07
v3.25.0.1
Stock Based Awards - Summary of Information Related to Granted and Vested RSUs, PSUs and MSUs (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock Units      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Weighted-average grant date fair value $ 134.76 $ 119.12 $ 65.81
Fair market value of vested $ 74,358 $ 64,417 $ 32,871
Market and Service Conditions Units      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Weighted-average grant date fair value $ 160.32 $ 145.51 $ 81.22
Fair market value of vested $ 9,829 $ 7,219  
Performance Share Units      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Weighted-average grant date fair value     $ 64.07
Fair market value of vested   $ 7,261 $ 18,873
v3.25.0.1
Stock-Based Awards - Schedule of Employee Stock Purchase Plan Valuation Assumptions (Details) - Employee Stock Purchase Plan
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Risk-free interest rates, minimum 5.00% 5.10% 0.70%
Risk-free interest rates, maximum 5.30% 5.60% 3.20%
Expected term 6 months 6 months 6 months
Volatility, minimum 59.90% 64.70% 71.90%
Volatility, maximum 61.60% 85.90% 76.30%
v3.25.0.1
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating lease costs      
Single lease costs $ 3,394 $ 3,486 $ 4,299
Variable lease costs 1,367 1,280 2,159
Sublease income:      
Sublease income   (165) (1,976)
Total operating lease costs $ 4,761 $ 4,601 $ 4,482
v3.25.0.1
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows used $ 4,060 $ 4,233 $ 5,097
Lease liabilities arising from remeasurement of right-of-use assets      
Operating leases   159  
Lease liabilities arising from obtaining ROU assets      
Operating leases   $ 1,690 $ 2,237
v3.25.0.1
Leases - Schedule of Weighted-Average Remaining Lease Terms and Weighted-Average Discount Rate Related to Operating Leases (Details)
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average remaining lease term (years) 2 years 9 months 18 days 3 years 8 months 12 days
Weighted-average discount rate 6.90% 6.90%
v3.25.0.1
Leases - Schedule of Future Lease Payments under Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating Leases, Lease Payments, 2025 $ 4,101  
Operating Leases, Lease Payments, 2026 4,190  
Operating Leases, Lease Payments, 2027 766  
Operating Leases, Lease Payments, 2028 642  
Operating Leases, Lease Payments, 2029 549  
Operating Leases, Lease Payments, Total lease payments 10,248  
Less: Imputed interest (940)  
Present value of lease liabilities 9,308  
Less: Current portion of lease liabilities 3,589 $ 3,373
Lease liabilities, net of current portion $ 5,719 $ 9,360
v3.25.0.1
Commitments and Contingencies - Additional Information (Details) - USD ($)
 3 Months Ended
Mar. 13, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Commitments And Contingencies [Line Items]          
Inventory purchase commitment, amount       $ 24,600,000  
Annual license fee payment $ 45,000,000        
Additional annual license fee payment   $ 15,000,000      
Litigation settlement expense     $ 45,000,000    
Accrued Liabilities          
Commitments And Contingencies [Line Items]          
Contingent liabilities       $ 0 $ 0
v3.25.0.1
Deferred Revenue - Summary of Changes in Deferred Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deferred Revenue Disclosure [Abstract]    
Balance at beginning of period $ 1,985 $ 2,599
Opening balance from Voyantic acquisition 1,233  
Deferral of revenue 2,930 2,920
Recognition of deferred revenue (2,947) (4,767)
Balance at end of period $ 1,968 $ 1,985
v3.25.0.1
Deferred Revenue - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deferred Revenue Disclosure [Abstract]    
Recognition of deferred revenue $ 1.4 $ 2.2
v3.25.0.1
Segment Reporting - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | Segment 1    
Number of operating segments | Segment 1    
Total revenue $ 366,087 $ 307,539 $ 257,800
United States      
Segment Reporting Information [Line Items]      
Total revenue 82,900 86,200 43,000
China (and Hong Kong)      
Segment Reporting Information [Line Items]      
Total revenue $ 162,700 $ 128,300 109,600
Malaysia      
Segment Reporting Information [Line Items]      
Total revenue     $ 41,000
v3.25.0.1
Segment Reporting - Summary of Revenue Categories (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Total revenue $ 366,087 $ 307,539 $ 257,800
Endpoint ICs      
Segment Reporting Information [Line Items]      
Total revenue 305,915 234,426 191,532
Systems      
Segment Reporting Information [Line Items]      
Total revenue $ 60,172 $ 73,113 $ 66,268
v3.25.0.1
Segment Reporting - Summary of Long-lived Assets Geography (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Property and equipment, net $ 50,610 $ 44,891
United States    
Segment Reporting Information [Line Items]    
Property and equipment, net 13,255 14,110
Malaysia    
Segment Reporting Information [Line Items]    
Property and equipment, net 9,221 11,749
Taiwan    
Segment Reporting Information [Line Items]    
Property and equipment, net 20,541 13,396
Others    
Segment Reporting Information [Line Items]    
Property and equipment, net $ 7,593 $ 5,636
v3.25.0.1
Segment Reporting - Summary of Sales by Geography (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Total revenue $ 366,087 $ 307,539 $ 257,800
Americas      
Segment Reporting Information [Line Items]      
Total revenue 110,155 96,418 57,129
Asia Pacific      
Segment Reporting Information [Line Items]      
Total revenue 209,538 176,409 168,249
Europe, Middle East and Africa      
Segment Reporting Information [Line Items]      
Total revenue $ 46,394 $ 34,712 $ 32,422
v3.25.0.1
Net Earnings (Loss) per Share - Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator:      
Net income (loss) $ 40,838 $ (43,366) $ (24,301)
Interest add back 0 0 0
Net income (loss) attributable to common stock holders $ 40,838 $ (43,366) $ (24,301)
Denominator:      
Weighted-average shares outstanding - basic 27,953 26,752 25,539
Weighted-average shares outstanding - diluted 29,471 26,752 25,539
Net earnings (loss) per share - basic $ 1.46 $ (1.62) $ (0.95)
Net earnings (loss) per share - diluted $ 1.39 $ (1.62) $ (0.95)
Stock Plans      
Denominator:      
Weighted-average shares outstanding - diluted 1,518    
2021 Notes      
Denominator:      
Weighted-average shares outstanding - diluted 0    
v3.25.0.1
Net Earnings (Loss) per Share - Computation of Diluted Net Loss Per Share Effect in Antidilutive (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Stock Option      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share 0 1,466 1,712
RSUs, MSUs, and PSUs      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share 349 1,252 1,494
Employee Stock Purchase Plan Shares      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share 0 51 26
2021 Notes      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share 2,589 2,589 2,589
v3.25.0.1
Related-Party Transactions - Additional Information (Details) - USD ($)
 12 Months Ended
Jun. 23, 2023
Oct. 01, 2022
Sep. 21, 2020
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock Units            
Related Party Transaction [Line Items]            
Other than option granted       461,000    
Cathal Phelan | Restricted Stock Units            
Related Party Transaction [Line Items]            
Stock options, vesting percentage   25.00%        
Other than option granted   8,000        
Cathal Phelan | Advisory and Consulting Services            
Related Party Transaction [Line Items]            
Consulting fee expense recognized and paid       $ 0 $ 0 $ 500,000
Stock options granted     60,000      
Cathal Phelan | Advisory and Consulting Services | 1/24th of Shares Shall Vest on October 21, 2020            
Related Party Transaction [Line Items]            
Stock options, vesting percentage     4.17%      
Cathal Phelan | Advisory and Consulting Services | 1/24th of Shares Shall Vest Subject on Each Month Thereafter, Subject to His Continued Consulting Services            
Related Party Transaction [Line Items]            
Stock options, vesting percentage     4.17%      
Related Party | Endpoint ICs | Patents            
Related Party Transaction [Line Items]            
Patent acquired $ 300,000          
v3.25.0.1
Retirement Plans - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
401(k) Plan    
Defined Contribution Plan Disclosure [Line Items]    
Employer matching contribution amount $ 1.7 $ 1.8
v3.25.0.1
Restructuring - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Feb. 07, 2024
Mar. 31, 2024
Dec. 31, 2024
Restructuring Cost and Reserve [Line Items]      
Number of positions eliminated, percent 10.00%    
Restructuring charges   $ 1,800 $ 1,812
v3.25.0.1
Restructuring - Summary of Accrued Restructuring Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2024
Restructuring and Related Activities [Abstract]    
Restructuring costs $ 1,800 $ 1,812
Non cash payments   (366)
Cash payments   $ (1,446)