Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies

Schedule of accounts receivable net

Accounts receivable, net consisted of the following (in thousands):

	June 30,		December 31,
	2018		2017
Trade accounts receivable	$	5,408	$	4,188
Unbilled accounts receivable		289		—
Allowance for accounts receivable		(600)		(147)
Accounts receivable, net	$	5,097	$	4,041

Schedule of Revenue and Accounts Receivable for Each Significant Customer

	Revenue				Revenue				Accounts Receivable, net
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
Customers	2018		2017		2018		2017		2018		2017
Customer A	*		*		20	%	*		*		*
Customer B	14	%	17	%	14	%	14	%	*		*
Customer C	*		15	%	*		16	%	*		*
Customer D	19	%	*		13	%	*		17	%	11	%
Customer E	*		*		*		11	%	*		10	%
Customer F	*		*		*		*	%	*		15	%

*Less than 10%

Schedule of Fair Value of Financial Assets Measured on Recurring Basis

The following tables sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis (in thousands):

	June 30, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	32,856	$	—	$	—	$	32,856
Total assets measured at fair value	$	32,856	$	—	$	—	$	32,856

	December 31, 2017
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	13,369	$	—	$	—	$	13,369
Total assets measured at fair value	$	13,369	$	—	$	—	$	13,369

Schedule of impact of adopting Topic 606

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed balance sheet line items (in thousands):

					Balances without
					the adoption of
June 30, 2018	As restated		Adjustments		Topic 606
Accounts receivable, net	$	5,097	$	(524)	$	4,573
Inventory		8,851		47		8,898
Total current assets		47,898		(477)		47,421
Total assets		51,564		(477)		51,087
Deferred income on shipments to distributors		—		2,151		2,151
Total current liabilities		15,215		2,151		17,366
Total liabilities		20,581		2,151		22,732
Accumulated deficit		(124,885)		(2,628)		(127,513)
Total liabilities and stockholders’ equity		51,564		(477)		51,087

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of operations line items (in thousands, except per share data):

					Balances without
					the adoption of
Three Months Ended June 30, 2018	As restated		Adjustments		Topic 606
Product sales	$	9,449	$	(586)	$	8,863
Licensing, royalty, and other revenue		1,316		(126)		1,190
Total revenue		10,765		(712)		10,053
Cost of sales		6,229		107		6,336
Gross profit		4,536		(819)		3,717
Loss from operations		(7,279)		(819)		(8,098)
Net loss and comprehensive loss		(7,369)		(819)		(8,188)
Net loss per common share, basic and diluted		(0.44)		(0.05)		(0.49)

					Balances without
					the adoption of
Six Months Ended June 30, 2018	As restated		Adjustments		Topic 606
Product sales	$	18,814	$	(1,418)	$	17,396
Licensing, royalty, and other revenue		6,804		(97)		6,707
Total revenue		25,618		(1,515)		24,103
Cost of sales		11,127		(187)		10,940
Gross profit		14,491		(1,328)		13,163
Loss from operations		(8,389)		(1,328)		(9,717)
Net loss and comprehensive loss		(8,646)		(1,328)		(9,974)
Net loss per common share, basic and diluted		(0.55)		(0.08)		(0.63)

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of cash flows line items (in thousands):

					Balances without
					the adoption of
Six Months Ended June 30, 2018	As restated		Adjustments		Topic 606
Cash flows from operating activities
Net loss	$	(8,646)	$	(1,328)	$	(9,974)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable		(1,391)		859		(532)
Inventory		940		(1)		939
Shipping term reversal		(39)		470		431