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srt:AffiliatedEntityMember 2020-01-01 2020-06-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from      to        

Commission File Number: 001-39135

 

SiTime Corporation

(Exact name of registrant as specified in its charter)

 

 

Delaware

02-0713868

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

5451 Patrick Henry Drive

Santa Clara, CA

95054

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (408) 328-4400

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

 

SITM

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

 

As of August 1, 2021, the registrant had 19,060,787 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

i


 

 

RISK FACTOR SUMMARY

 

Our business is subject to numerous risks, as more fully described in Part II, Item 1A titled “Risk Factors.” You should read these risks before you invest in our common stock. We may be unable, for many reasons, including those that are beyond our control, to implement or execute our business strategy. In particular, risks associated with our business include, among others:

 

The impact and uncertainty related to the ongoing COVID-19 pandemic could adversely impact our business, results of operations and financial condition, as well as the businesses of our suppliers and customers;

A downturn in the worldwide economy may harm our business;

The third parties we rely upon for our raw materials, wafer fabrication and supply, assembly, packaging and testing may be unable to secure raw materials, reduce their resources available to us and our immediate suppliers, not meet satisfactory yields or quality, or increase pricing, which could harm our ability to ship our solutions to our customers on time and in the quantity required which could cause an unanticipated decline in our sales and loss of customers;

We currently depend on one end customer for a large portion of our revenue, the loss of, or a significant reduction in orders from our customers, including this end customer, could significantly reduce our revenue and adversely impact our operating results;

If we are unable to expand or further diversify our customer base, our business, financial condition, and results of operations could suffer;

We generally do not have long-term purchase commitments with our customers, and orders may be cancelled, reduced, or rescheduled with little or no notice, which in turn exposes us to inventory risk and may harm our operating results;

Our revenue and operating results may fluctuate from period to period due to, among other factors, the impact of the COVID-19 pandemic on our business as well as our suppliers and customers, customer demand, product life cycles, fluctuations in inventories held by our distributors or end customers, the gain or loss of significant customers, the availability of capacity in our supply chain, research and development costs, and product warranty claims. This in turn could cause our stock price to decline;

We have an accumulated deficit and have incurred net losses in the past, and we may continue to incur net losses in the future;

Our success and future revenue depend on our ability to achieve design wins and to convince our current and prospective customers to design our products into their product offerings, as well as our customers’ ability to develop products that achieve market acceptance;

Our target customer and product markets may not grow or develop as we currently expect, and if we fail to penetrate new markets and scale successfully within those markets, our revenue and financial condition would be harmed;

If we are not able to successfully introduce and ship in volume new products in a timely manner, our business and revenue will suffer;

Our gross margins may fluctuate due to a variety of factors, which could negatively impact our results of operations and our financial condition;

Our revenue in recent periods may not be indicative of future performance and our revenue may fluctuate over time;

Our customers require our products and our third-party contractors to undergo a lengthy and expensive qualification process, which does not assure product sales. If we are unsuccessful or delayed in qualifying any of our products with a customer, our business and operating results would suffer;

We provide a lifetime warranty on our products and may be subject to warranty or product liability claims, which could harm our reputation, result in unexpected expenses, and cause us to lose market share;

Defects in our products could harm our relationships with our customers and damage our reputation;

We are subject to the cyclical nature of the semiconductor industry;

We may not be able to accurately predict our future capital needs, and we may not be able to obtain additional financing to fund our operations;

We may seek, or be required to seek debt financing in the immediate or near term;

A portion of our operations is located outside of the United States, which subjects us to additional risks, including increased complexity and costs of managing international operations and geopolitical instability;

If significant tariffs or other restrictions are placed on Chinese imports or any related counter-measures are taken by China, our revenue and results of operations may be materially harmed;

Failure to comply with the laws associated with our activities outside of the United States could subject us to penalties and other adverse consequences;

We are subject to government regulation, including import, export and economic sanctions laws and regulations that may expose us to liability and increase our costs;

New or future changes to U.S. and non-U.S. tax laws, or tax regulatory authorities disagreeing with our positions and conclusions regarding certain tax positions, could materially adversely affect us;

Breaches or other disruptions of our security systems may damage our reputation and adversely affect our business;

We may fail to adequately protect our intellectual property and have received, and may in the future receive, claims of intellectual property infringement, misappropriation, or other claims, which in turn could result in significant expense, result in the loss of significant rights, and harm our relationship with our end customers and distributors;

 

1


 

We may be impacted by risks associated with MegaChips’ ownership of a significant portion of our stock, for instance as long as MegaChips holds a significant amount of our stock, our other shareholders’ ability to influence matters requiring stockholder approval will be limited, and there could be potential conflicts of interest between us and affiliates of MegaChips, which could impact our business and operating results;

Substantial future sales of our common stock could cause the market price of our common stock to decline; and

Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.


 

2


 

 

PART I—FINANCIAL INFORMATION

 

Item 1. Financial Statements.

SITIME CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

As of

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

253,538

 

 

$

73,525

 

Accounts receivable, net

 

 

25,270

 

 

 

23,920

 

Related party accounts receivable

 

 

2,411

 

 

 

736

 

Inventories

 

 

18,494

 

 

 

12,350

 

Prepaid expenses and other current assets

 

 

2,844

 

 

 

2,649

 

Total current assets

 

 

302,557

 

 

 

113,180

 

Property and equipment, net

 

 

20,772

 

 

 

11,708

 

Intangible assets, net

 

 

2,475

 

 

 

2,069

 

Right-of-use assets, net

 

 

8,417

 

 

 

8,892

 

Other assets

 

 

162

 

 

 

162

 

Total assets

 

$

334,383

 

 

$

136,011

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,932

 

 

$

6,182

 

Accrued expenses and other current liabilities

 

 

13,807

 

 

 

12,963

 

Total current liabilities

 

 

23,739

 

 

 

19,145

 

Lease liabilities

 

 

6,718

 

 

 

6,986

 

Total liabilities

 

 

30,457

 

 

 

26,131

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value - 200,000 shares authorized;

   19,061 and 17,150 shares issued and outstanding at

   June 30, 2021 and December 31, 2020

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

368,862

 

 

 

173,274

 

Accumulated deficit

 

 

(64,938

)

 

 

(63,396

)

Total stockholders’ equity

 

 

303,926

 

 

 

109,880

 

Total liabilities and stockholders’ equity

 

$

334,383

 

 

$

136,011

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

3


 

 

SITIME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands, except per share data)

 

Revenue

 

$

44,496

 

 

$

21,473

 

 

$

80,038

 

 

$

43,215

 

Cost of revenue

 

 

17,669

 

 

 

11,490

 

 

 

34,393

 

 

 

23,256

 

Gross profit

 

 

26,827

 

 

 

9,983

 

 

 

45,645

 

 

 

19,959

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

12,067

 

 

 

7,398

 

 

 

23,247

 

 

 

14,422

 

Selling, general and administrative

 

 

12,686

 

 

 

7,856

 

 

 

23,809

 

 

 

15,664

 

Total operating expenses

 

 

24,753

 

 

 

15,254

 

 

 

47,056

 

 

 

30,086

 

Income (loss) from operations

 

 

2,074

 

 

 

(5,271

)

 

 

(1,411

)

 

 

(10,127

)

Interest expense

 

 

 

 

 

(313

)

 

 

 

 

 

(616

)

Other income (expense), net

 

 

(28

)

 

 

(20

)

 

 

(68

)

 

 

48

 

Income (loss) before income taxes

 

 

2,046

 

 

 

(5,604

)

 

 

(1,479

)

 

 

(10,695

)

Income tax (expense) benefit

 

 

(23

)

 

 

1

 

 

 

(63

)

 

 

(1

)

Net income (loss)

 

$

2,023

 

 

$

(5,603

)

 

$

(1,542

)

 

$

(10,696

)

Net income (loss) attributable to common stockholders and

   comprehensive loss

 

$

2,023

 

 

$

(5,603

)

 

$

(1,542

)

 

$

(10,696

)

Net income (loss) per share attributable to common

   stockholders, basic

 

$

0.11

 

 

$

(0.36

)

 

$

(0.08

)

 

$

(0.70

)

Net income (loss) per share attributable to common

   stockholders, diluted

 

$

0.10

 

 

$

(0.36

)

 

$

(0.08

)

 

$

(0.70

)

Weighted-average shares used to compute basic

   net income (loss) per share

 

 

18,942

 

 

 

15,371

 

 

 

18,408

 

 

 

15,191

 

Weighted-average shares used to compute diluted

   net income (loss) per share

 

 

20,893

 

 

 

15,371

 

 

 

18,408

 

 

 

15,191

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

4


 

 

SITIME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

 

 

(in thousands)

 

Balances at March 31, 2021

 

 

18,840

 

 

$

2

 

 

$

362,228

 

 

$

(66,961

)

 

$

295,269

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

6,634

 

 

 

 

 

 

6,634

 

Net income

 

 

 

 

 

 

 

 

 

 

 

2,023

 

 

 

2,023

 

Issuance of shares upon vesting of restricted stock units

 

 

221

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2021

 

 

19,061

 

 

$

2

 

 

$

368,862

 

 

$

(64,938

)

 

$

303,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2020

 

 

15,061

 

 

 

2

 

 

 

117,129

 

 

 

(59,117

)

 

 

58,014

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,076

 

 

 

 

 

 

3,076

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(5,603

)

 

 

(5,603

)

Issuance of common stock upon follow-on public offering

   net of underwriting discounts and commissions and

   other offering costs

 

 

1,525

 

 

 

 

 

 

45,789

 

 

 

 

 

 

 

45,789

 

Issuance of shares upon vesting of restricted stock units, net of tax withholdings

 

 

130

 

 

 

 

 

 

(1,707

)

 

 

 

 

 

 

(1,707

)

Balances at June 30, 2020

 

 

16,716

 

 

$

2

 

 

$

164,287

 

 

$

(64,720

)

 

$

99,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2020

 

 

17,150

 

 

$

2

 

 

$

173,274

 

 

$

(63,396

)

 

$

109,880

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

14,000

 

 

 

 

 

 

14,000

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(1,542

)

 

 

(1,542

)

Issuance of common stock upon follow-on public offering

   net of underwriting discounts and commissions and

   other offering costs

 

 

1,500

 

 

 

 

 

 

181,588

 

 

 

 

 

 

181,588

 

Issuance of shares upon vesting of restricted stock units

 

 

411

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2021

 

 

19,061

 

 

$

2

 

 

$

368,862

 

 

$

(64,938

)

 

$

303,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2019

 

 

14,968

 

 

 

2

 

 

 

116,162

 

 

 

(54,024

)

 

 

62,140

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

5,831

 

 

 

 

 

 

 

5,831

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(10,696

)

 

 

(10,696

)

Issuance of common stock upon follow-on public offering

   net of underwriting discounts and commissions and

   other offering costs

 

 

1,525

 

 

 

 

 

 

45,789

 

 

 

 

 

 

45,789

 

Issuance of shares upon vesting of restricted stock units, net of tax withholdings

 

 

223

 

 

 

 

 

 

(3,495

)

 

 

 

 

 

(3,495

)

Balances at June 30, 2020

 

 

16,716

 

 

$

2

 

 

$

164,287

 

 

$

(64,720

)

 

$

99,569

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

5


 

 

SITIME CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(1,542

)

 

$

(10,696

)

Adjustments to reconcile net loss to net cash provided by

   operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

3,544

 

 

 

3,696

 

Stock-based compensation expense

 

 

14,149

 

 

 

5,831

 

Impairment of internal-use software

 

 

 

 

 

173

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(1,350

)

 

 

4,658

 

Related party accounts receivable

 

 

(1,675

)

 

 

492

 

Inventories

 

 

(6,143

)

 

 

(3,054

)

Prepaid expenses and other assets

 

 

47

 

 

 

4,019

 

Accounts payable

 

 

2,448

 

 

 

491

 

Accrued expenses and other liabilities

 

 

912

 

 

 

758

 

Lease liabilities

 

 

 

 

 

(713

)

Net cash provided by operating activities

 

 

10,390

 

 

 

5,655

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(11,388

)

 

 

(1,675

)

Cash paid for intangibles

 

 

(577

)

 

 

(1,206

)

Net cash used in investing activities

 

 

(11,965

)

 

 

(2,881

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from public offering, net of underwriting

discounts and commissions

 

 

181,928

 

 

 

46,116

 

Payments for offering costs

 

 

(340

)

 

 

(327

)

Tax withholding paid on behalf of employees for net share settlement

 

 

 

 

 

(3,495

)

Proceeds from loans from financial institutions

 

 

 

 

 

35,000

 

Principal payments on loans to financial institutions

 

 

 

 

 

(41,000

)

Net cash provided by financing activities

 

 

181,588

 

 

 

36,294

 

Net increase in cash and cash equivalents

 

 

180,013

 

 

 

39,068

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

Beginning of period

 

 

73,525

 

 

 

63,418

 

End of period

 

$

253,538

 

 

$

102,486

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Interest paid during the period

 

 

 

 

 

604

 

Income taxes paid

 

 

1

 

 

 

1

 

Supplemental disclosure of noncash flow information

 

 

 

 

 

 

 

 

Unpaid property and equipment

 

 

1,644

 

 

 

1,279

 

Right-of-use assets acquired under operating leases

 

 

238

 

 

 

300

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

6


 

 

SITIME CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. The Company and Basis of Presentation

SiTime Corporation (the “Company”) was incorporated in the State of Delaware in December 2003. The Company is a provider of silicon timing systems. The Company primarily supplies oscillator products that comprise a MEMS resonator and clock IC that is integrated into a package, as well as standalone resonators. The Company has also started to sample clock ICs. The Company’s products are designed to address a wide range of applications across a broad array of end markets. The Company operates a fabless business model and leverages its global network of distributors and resellers to address the broad set of end markets that it serves.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments of a normal, recurring nature, which are necessary to state fairly the financial information included therein. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in SiTime Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

The Company was a wholly-owned subsidiary of MegaChips Corporation (“MegaChips”), a fabless semiconductor company based in Japan and traded on the Tokyo Stock Exchange, until the Company completed its initial public offering in November 2019.

On June 16, 2020, the Company completed a follow-on public offering, in which it issued and sold 1,525,000 shares of its common stock and MegaChips sold 2,500,000 of the Company’s common stock held by them, resulting in net proceeds to the Company of $45.8 million after deducting underwriting discounts and commissions of $2.7 million and deferred offering costs of $0.3 million.

On February 22, 2021, the Company completed an additional follow-on public offering, in which it issued and sold 1,500,000 shares of its common stock and MegaChips sold 1,500,000 of the Company’s common stock held by them, resulting in net proceeds to the Company of $181.6 million after deducting underwriting discounts and commissions of $8.6 million and deferred offering costs of $0.3 million.

MegaChips remains the largest stockholder of the Company and held approximately 31.5% of the Company’s outstanding common stock as of June 30, 2021.

Outbreak of Coronavirus Disease 2019 (“the COVID-19 pandemic”)

On March 11, 2020, the World Health Organization characterized the outbreak of the coronavirus disease known as COVID-19 as a global pandemic and recommended containment and mitigation measures.  On March 13, 2020, the United States declared a national emergency concerning the outbreak, and several states and municipalities have declared public health emergencies.  To combat the spread of the COVID-19 pandemic, the United States and other foreign countries in which the Company operates have imposed measures such as quarantines and “shelter-in-place” orders that are restricting business operations and travel and requiring individuals to work from home (“WFH”), which has impacted all aspects of the Company’s business as well as those of the third-parties we rely upon for our manufacturing, assembly, testing, shipping and other operations.

The global health crisis caused by the COVID-19 pandemic has negatively impacted business activity across the globe and has impacted the Company's employees and operations.  The inputs into the Company’s judgments and estimates consider the economic implications of the COVID-19 pandemic, as the Company knows them, on the Company’s critical and significant accounting estimates.  The extent to which the COVID-19 pandemic may impact the Company’s business will depend on future developments, which are highly uncertain, including the future effects of the COVID-19 pandemic on its employees, customers, suppliers, results of operations, financial condition, or liquidity for the remainder of fiscal year 2021.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the Company’s audited consolidated financial statements and related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020. There had been no changes to these accounting policies except for the recently adopted accounting guidance as discussed below.

Recently Adopted Accounting Guidance

In December 2019, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of this standard on January 1, 2021 did not have any impact on the Company’s consolidated financial position, results of operations or cash flows.

 

7


 

There are no new accounting pronouncements that are pending to be adopted by the Company.

 

Note 2. Net Income (Loss) Per Share

The following table summarizes the computation of basic and diluted net loss (income) per share attributable to common stockholders of the Company:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands, except per share data)

 

Net income (loss) attributable to common stockholders

 

$

2,023

 

 

$

(5,603

)

 

$

(1,542

)

 

$

(10,696

)

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to compute basic net income (loss) per share

 

 

18,942

 

 

 

15,371

 

 

 

18,408

 

 

 

15,191

 

Dilutive effect of employee equity incentive plans

 

 

1,951

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to compute diluted net income (loss) per share

 

 

20,893

 

 

 

15,371

 

 

 

18,408

 

 

 

15,191

 

Net income (loss) attributable to common stockholders per share, basic

 

$

0.11

 

 

$

(0.36

)

 

$

(0.08

)

 

$

(0.70

)

Net income (loss) attributable to common stockholders per share, diluted

 

$

0.10

 

 

$

(0.36

)

 

$

(0.08

)

 

$

(0.70

)

 

Note 3. Fair Value Measurements

The carrying amounts of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term debt obligations, and other current liabilities, approximate their fair values due to their short maturities.

At June 30, 2021 and December 31, 2020, cash balances in bank checking and savings accounts of $53.4 million and $18.4 million, respectively, were valued using Level 1 of the fair value hierarchy. At June 30, 2021 and December 31, 2020, highly liquid money market funds of  $200.1 million and $55.1 million, respectively, were valued using Level 1 of the fair value hierarchy, quoted prices in active markets for identical assets, and are included in cash equivalents.

Note 4. Balance Sheet Components

Accounts Receivable, net

Accounts receivable, net consisted of the following:

 

 

 

As of

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(in thousands)

 

Accounts receivable, gross

 

$

25,320

 

 

$

23,970

 

Allowance for credit losses

 

 

(50

)

 

 

(50

)

Accounts receivable, net

 

$

25,270

 

 

$

23,920

 

Inventories

Inventories consisted of the following:

 

 

 

As of

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(in thousands)

 

Raw materials

 

$

1,619

 

 

$

435

 

Work in progress

 

 

13,567

 

 

 

10,184

 

Finished goods

 

 

3,308

 

 

 

1,731

 

Total inventories

 

$

18,494

 

 

$

12,350

 

 

 

8


 

 

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

 

 

 

As of

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(in thousands)

 

Advance to suppliers

 

$

339

 

 

$

853

 

Prepaid expenses