Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies

Schedule of accounts receivable net

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

	September 30,		December 31,
	2018		2017
Trade accounts receivable	$	5,687	$	4,188
Unbilled accounts receivable		487		—
Allowance for accounts receivable		(592)		(147)
Accounts receivable, net	$	5,582	$	4,041

Schedule of Revenue and Accounts Receivable for Each Significant Customer

	Revenue				Revenue				Accounts Receivable, net
	Three Months Ended				Nine Months Ended				As of		As of
	September 30,				September 30,				September 30,		December 31,
Customers	2018		2017		2018		2017		2018		2017
Customer A	13	%	*		13	%	*		*		11	%
Customer B	13	%	16	%	13	%	14	%	*		*
Customer C	10	%	18	%	*		17	%	*		*
Customer D	10	%	*		*		*		11	%	*
Customer E	*		*		14	%	*		*		*
Customer F	*		*		*		*		17	%	*
Customer G	*		*		*		*		12	%	*
Customer H	*		*		*		*		*		15	%
Customer I	*		*		*		10	%	*		10	%

*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):

	September 30, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	31,683	$	—	$	—	$	31,683
Total assets measured at fair value	$	31,683	$	—	$	—	$	31,683

	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
September 30, 2018	As reported		Adjustments		Topic 606
Accounts receivable, net	$	5,582	$	(630)	$	4,952
Inventory		9,482		58		9,540
Total current assets		46,938		(572)		46,366
Total assets		51,449		(572)		50,877
Deferred income on shipments to distributors		—		2,917		2,917
Total current liabilities		15,907		2,917		18,824
Total liabilities		23,835		2,917		26,752
Accumulated deficit		(130,513)		(3,489)		(134,002)
Total liabilities and stockholders’ equity		51,449		(572)		50,877

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 September 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	10,469	$	(1,330)	$	9,139
Licensing, royalty, and other revenue		1,049		(72)		977
Total revenue		11,518		(1,402)		10,116
Cost of sales		6,109		(541)		5,568
Gross profit		5,409		(861)		4,548
Loss from operations		(5,539)		(861)		(6,400)
Net loss and comprehensive loss		(5,629)		(861)		(6,490)
Net loss per common share, basic and diluted		(0.33)		(0.05)		(0.38)

					Balances without
					the adoption of
Nine Months Ended September 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	29,283	$	(2,748)	$	26,535
Licensing, royalty, and other revenue		7,853		(169)		7,684
Total revenue		37,136		(2,917)		34,219
Cost of sales		17,235		(728)		16,507
Gross profit		19,901		(2,189)		17,712
Loss from operations		(13,927)		(2,189)		(16,116)
Net loss and comprehensive loss		(14,274)		(2,189)		(16,463)
Net loss per common share, basic and diluted		(0.88)		(0.14)		(1.02)

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
Nine Months Ended September 30, 2018	As reported		Adjustments		Topic 606
Cash flows from operating activities
Net loss	$	(14,274)	$	(2,189)	$	(16,463)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable		(1,876)		965		(911)
Inventory		309		(12)		297
Shipping term reversal		(39)		1,236		1,197