Organization and Nature of Business

3 Months Ended

Mar. 31, 2019

Organization and Nature of Business

Organization and Nature of Business

1. Organization and Nature of Business

Everspin Technologies, Inc. (the Company) was incorporated in Delaware on May 16, 2008. The Company’s magnetoresistive random-access memory (MRAM) solutions offer the persistence of non-volatile memory with the speed and endurance of random-access memory (RAM) and enable the protection of mission critical data particularly in the event of power interruption or failure. The Company’s MRAM solutions allow its customers in the industrial, automotive, transportation, and enterprise storage markets to design high performance, power efficient and reliable systems without the need for bulky batteries or capacitors.

Ability to continue as a going concern

The accompanying condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business for the foreseeable future. Management expects operating losses and cash flow deficits to continue for the foreseeable future. The Company’s ability to achieve profitability is dependent primarily on its ability to gain market share for both its Toggle MRAM and STT MRAM products. These conditions, and our cash balances, raise doubt about the Company’s ability to continue as a going concern for at least a year after the issuance date of the accompanying condensed financial statements. The Company plans to address these conditions by reductions in spending, improvements in product margins, increasing revenue, raising capital through equity or debt financings, licensing of its Intellectual Property, or a combination thereof. There is no assurance, however, that the Company will be successful in these plans. If additional funding is available, there is no assurance that it will be available on terms acceptable to the Company. The accompanying condensed financial statements do not include any adjustments that may be needed if the Company were unable to continue as a going concern.