The Company entered into an agreement with MegaChips, whereby the Company appointed MegaChips as a non-exclusive sales representative of its products in Japan. The Company sold products through MegaChips to distributors, resellers, or direct customers in Japan. The Company paid MegaChips a fixed percentage of the revenue as sales commission, which is recorded as commission expense and included in sales and marketing in the consolidated statements of operations and comprehensive loss. In connection with the Company's efforts to contract directly with distributors in Japan, the Company and MegaChips mutually terminated the Distribution Agreement effective November 3, 2021.

MegaChips has been the largest stockholder of the Company and held approximately 24.0% and 43.7% of the Company’s outstanding common stock as of December 31, 2021 and December 31, 2020, respectively.

As of December 31, 2021 and 2020, the Company had accounts receivable from MegaChips of $0.0 million and $0.7 million, respectively.

During the year ended December 31, 2020, the Company entered into an asset purchase agreement with MegaChips Corporation. The Company recorded the equipment of $0.1 million on the consolidated balance sheet under “Property and equipment, net.”

During the year ended December 31, 2020 the Company entered into an equipment purchase agreement with MegaChips Taiwan Corporation, a wholly-owned subsidiary of MegaChips Corporation. The Company recorded the equipment of $0.1 million on the consolidated balance sheet under “Property and equipment, net.”

During the year ended December 31, 2020 the Company entered into a services and secondment agreement with MegaChips LSI USA Corporation, a wholly-owned subsidiary of MegaChips Corporation. The Company records the transactions as consulting expenses as part of its research and development expense on the consolidated statement of operations and comprehensive loss. The service and secondment agreement with MegaChips LSI USA Corporation was terminated on August 31, 2021.

In May 2021, the Company signed a consulting agreement with Akira Takata, a member of the Board of Directors of the Company. As a consultant, Mr. Takata provided sales consulting services through December 31, 2021, for which he received monthly cash fees of $5,000, reimbursement of expenses, and an equity award of 500 RSUs that fully vested on November 20, 2021. In December 2021, the Company signed an amendment to extend the consulting agreement with Akira Takata through December 31, 2022.

The following is a summary of significant balances, transactions and payments with the related parties and affiliates.


Components of Statement of Operations and Comprehensive Loss	Year ended December 31,
	2021		2020		2019
	(in thousands)
MegaChips
Sales through distribution agreement	$	8,167	$	5,714	$	5,071
License expense		—		148		158
Commission expense		340		228		202
Interest expense		—		—		94
Affiliates
Consulting fees		254		380		—


Components of Consolidated Cash Flows	Year Ended December 31,
	2021		2020		2019
	(in thousands)
MegaChips
Cash paid for principal	$	—	$	—	$	3,000
Cash paid for equipment		—		209		—
Cash paid for commissions		340		228		228
Cash paid for licenses		—		25		329
Affiliates
Cash paid for consulting fees		254		380		—