Balance Sheet Components

3 Months Ended

Mar. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable are contract assets that arise from the performance of our obligation pursuant to our contracts with our customers and represent our unconditional right to payment for the satisfaction of our performance obligations. They are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.

Accounts receivable net, consist of the following:

	March 31, 2023		December 31, 2022
Accounts receivable, gross	$	7,955	$	10,124
Less: allowance for doubtful accounts	(38)		(77)
Accounts receivable, net	$	7,917	$	10,047

The following is the change in our allowance for doubtful accounts: 

	Three Months Ended
	March 31,
	2023		2022
Balance at beginning of period	$	77	$	36
Additions charged (reductions credited)	(39)		27
Balance at end of period	$	38	$	63

Inventories

Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).

Inventories consist of the following: 

	March 31, 2023		December 31, 2022
Finished goods	$	1,023	$	480
Work-in-process	1,284		1,280
Inventories	$	2,307	$	1,760

Property and Equipment, Net

Property and equipment, net consists of the following:

	March 31, 2023		December 31, 2022
Gross carrying amount	$	24,514	$	20,792
Less: accumulated depreciation and amortization	(17,089)		(16,160)
Property and equipment, net	$	7,425	$	4,632

Acquired Intangible Assets, Net

In connection with the acquisition of ViXS (the "Acquisition"), we recorded certain identifiable intangible assets. Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following:

	March 31, 2023		December 31, 2022
Developed technology	$	5,050	$	5,050
Customer relationships	1,270		1,270
Backlog and tradename	410		410
	6,730		6,730
Less: accumulated amortization	(6,730)		(6,730)
Acquired intangible assets, net	$	—	$	—

Developed technology and customer relationships were fully amortized as of March 31, 2022, tradename was fully amortized as of March 31, 2019 and backlog was fully amortized as of September 30, 2018.

Goodwill

Goodwill resulted from the Acquisition, whereby we recorded goodwill of $18,407.

Goodwill is not amortized; however, we review goodwill for impairment annually and whenever events or changes in circumstances indicate that the fair value of the reporting unit may be less than it's carrying value. Conditions that would trigger an impairment assessment include, but are not limited to, a significant adverse change in our business climate or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continued losses or adverse changes in legal factors, regulation or business environment. There were no such triggering events requiring a goodwill impairment assessment during the three months ended March 31, 2023. We perform our annual impairment assessment for goodwill on November 30 of each year.

Accrued Liabilities and Current Portion of Long-Term Liabilities

Accrued liabilities and current portion of long-term liabilities consist of the following:

	March 31, 2023		December 31, 2022
Accrued payroll and related liabilities	$	2,301	$	3,632
Operating lease liabilities, current	1,991		1,391
Current portion of accrued liabilities for asset financings	1,423		876
Deferred revenue	185		230
Accrued interest payable	140		246
Accrued commissions and royalties	56		210
Liability for warranty returns	22		15
Other	2,136		2,249
Accrued liabilities and current portion of long-term liabilities	$	8,254	$	8,849

Deferred revenues are contract liabilities that arise when cash payments are received or due in advance of the satisfaction of our performance obligations. Any increase in deferred revenues is driven by cash payments received or due in advance of satisfying our performance obligation pursuant to the contract with the customer. Any decrease in deferred revenues is due to the recognition of revenue related to satisfying our performance obligation.

The change in deferred revenue is as follows:

	Three Months Ended
	March 31,
	2023		2022
Deferred revenue:
Balance at beginning of period	$	230	$	50
Revenue deferred	90		250
Revenue recognized	(135)		(80)
Balance at end of period	$	185	$	220