0001040161-20-000051 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	000-30269
Entity Registrant Name	PIXELWORKS, INC
Entity Central Index Key	0001040161
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Incorporation, State or Country Code	OR
Entity Tax Identification Number	91-1761992
Entity Address, Address Line One	226 Airport Parkway, Suite 595
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95110
City Area Code	408
Local Phone Number	200-9200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PXLW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		42,036,203

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 16,062	$ 7,257
Short-term marketable securities	735	6,975
Accounts receivable, net	5,417	10,915
Inventories	3,895	5,401
Prepaid expenses and other current assets	1,685	1,689
Total current assets	27,794	32,237
Property and equipment, net	5,631	4,608
Operating lease right-of-use assets	6,943	5,434
Other assets, net	1,187	1,267
Acquired intangible assets, net	1,581	2,704
Goodwill	18,407	18,407
Total assets	61,543	64,657
Current liabilities:
Accounts payable	687	818
Accrued liabilities and current portion of long-term liabilities	9,649	8,692
Short-term line of credit	3,954	0
Current portion of income taxes payable	5	164
Total current liabilities	14,295	9,674
Long-term liabilities, net of current portion	1,982	982
Operating lease liabilities, net of current portion	5,304	4,212
Income taxes payable, net of current portion	2,368	2,260
Total liabilities	23,949	17,128
Commitments and contingencies (Note 12)
Shareholders’ equity:
Preferred stock	0	0
Common stock	446,278	436,122
Accumulated other comprehensive income	11	12
Accumulated deficit	(408,695)	(388,605)
Total shareholders’ equity	37,594	47,529
Total liabilities and shareholders’ equity	$ 61,543	$ 64,657

Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Income Statement [Abstract]

Revenue, net

$ 8,190

$ 18,057

$ 31,217

$ 52,732

Cost of revenue

4,214

^[1]

8,710

^[1]

15,417

25,537

Gross profit

3,976

9,347

15,800

27,195

Operating expenses:

Research and development

6,062

^[2]

6,458

^[2]

18,643

19,294

Selling, general and administrative

4,621

^[3]

5,333

^[3]

14,970

15,728

Restructuring

1,430

2,022

398

Total operating expenses

12,113

11,791

35,635

35,420

Loss from operations

(8,137)

(2,444)

(19,835)

(8,225)

Interest income and other, net

(28)

270

Gain on sale of patents

3,905

Total other income (expense), net

(28)

4,175

Loss before income taxes

(8,165)

(2,374)

(19,833)

(4,050)

Provision (benefit) for income taxes

(26)

(68)

257

571

Net loss

$ (8,139)

$ (2,306)

$ (20,090)

$ (4,621)

Net loss per share - basic and diluted

$ (0.20)

$ (0.06)

$ (0.51)

$ (0.12)

Weighted average shares outstanding - basic and diluted

40,766

38,086

39,697

37,677

[1]


(1) Includes:
Amortization of acquired intangible assets	298	298	894	894
Restructuring	166	—	166	—
Stock-based compensation	117	89	345	267
Inventory step-up and backlog amortization	—	—	—	12

[2]


(2) Includes stock-based compensation			820						570						2,274						1,934

[3]


(3) Includes:
Stock-based compensation	913	839	3,296	2,651
Amortization of acquired intangible assets	76	76	228	236

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring	$ 1,430	$ 0	$ 2,022	$ 398
Stock-based compensation	(1,850)	(1,498)
Inventory step-up and backlog amortization			0	12
Cost of revenue
Restructuring	166	0	166	0
Stock-based compensation	117	89	345	267
Inventory step-up and backlog amortization	0	0	0	12
Cost of revenue \| Acquired intangible assets
Amortization of acquired intangible assets	298	298	894	894
Research and development
Stock-based compensation	820	570	2,274	1,934
Selling, general and administrative
Amortization of acquired intangible assets	76	76	228	236
Stock-based compensation	$ 913	$ 839	$ 3,296	$ 2,651

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Other Comprehensive Income [Abstract]
Net income (loss)	$ (8,139)	$ (2,306)	$ (20,090)	$ (4,621)
Other comprehensive loss:
Unrealized gain (loss) on available-for-sale securities	(2)	(1)	(1)	6
Total comprehensive loss	$ (8,141)	$ (2,307)	$ (20,091)	$ (4,615)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (20,090)	$ (4,621)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	5,915	4,852
Depreciation and amortization	2,754	2,824
Amortization of acquired intangible assets	1,122	1,130
Reversal of uncertain tax positions	(10)	(31)
Accretion on short-term marketable securities	(6)	(77)
Deferred income tax benefit	4	0
Gain on sale of marketable securities	(4)	0
Gain on sale of patents	0	(3,905)
Inventory step-up and backlog amortization	0	12
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net	5,498	(1,875)
Inventories	1,506	(191)
Prepaid expenses and other current and long-term assets, net	2,025	1,525
Accounts payable	(162)	189
Accrued current and long-term liabilities	(1,742)	(2,877)
Income taxes payable	(41)	93
Net cash used in operating activities	(3,231)	(2,952)
Cash flows from investing activities:
Proceeds from sales and maturities of short-term marketable securities	7,748	8,150
Purchases of property and equipment	(2,376)	(2,232)
Purchases of short-term marketable securities	(1,500)	(8,679)
Purchases of licensed technology	(152)	(521)
Proceeds from sale of patents	0	4,250
Payment associated with sale of patents	0	(345)
Net cash provided by investing activities	3,720	623
Cash flows from financing activities:
Proceeds from line of credit	3,954	0
Net proceeds from "at the market" equity offering	3,641
Proceeds from Paycheck Protection Program loan	796
Payments on asset financings	(675)	(589)
Proceeds from issuance of common stock under employee equity incentive plans	600	570
Net cash provided by (used in) financing activities	8,316	(19)
Net increase (decrease) in cash and cash equivalents	8,805	(2,348)
Cash and cash equivalents, beginning of period	7,257	17,944
Cash and cash equivalents, end of period	16,062	15,596
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds received	280	509
Cash paid during the period for interest	172	110
Non-cash investing and financing activities:
Acquisitions of property and equipment and other assets under extended payment terms	$ 1,392	$ 0

Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2018		36,937,458
Beginning Balance at Dec. 31, 2018	$ 49,390	$ 428,903	$ 15	$ (379,528)
Stock issued under employee equity incentive plans (in shares)		605,911
Stock issued under employee equity incentive plans	315	$ 315
Stock-based compensation expense	1,689	$ 1,689
Unrealized gain (loss) on available for sale securities	4		4
Net income (loss)	133			133
Ending Balance (in shares) at Mar. 31, 2019		37,543,369
Ending Balance at Mar. 31, 2019	51,531	$ 430,907	19	(379,395)
Beginning Balance (in shares) at Dec. 31, 2018		36,937,458
Beginning Balance at Dec. 31, 2018	49,390	$ 428,903	15	(379,528)
Net income (loss)	(4,621)
Ending Balance (in shares) at Sep. 30, 2019		38,321,611
Ending Balance at Sep. 30, 2019	50,197	$ 434,325	21	(384,149)
Beginning Balance (in shares) at Mar. 31, 2019		37,543,369
Beginning Balance at Mar. 31, 2019	51,531	$ 430,907	19	(379,395)
Stock issued under employee equity incentive plans (in shares)		290,422
Stock issued under employee equity incentive plans	0	$ 0
Stock-based compensation expense	1,665	$ 1,665
Unrealized gain (loss) on available for sale securities	3		3
Net income (loss)	(2,448)			(2,448)
Ending Balance (in shares) at Jun. 30, 2019		37,833,791
Ending Balance at Jun. 30, 2019	50,751	$ 432,572	22	(381,843)
Stock issued under employee equity incentive plans (in shares)		487,820
Stock issued under employee equity incentive plans	255	$ 255
Stock-based compensation expense	1,498	$ 1,498
Unrealized gain (loss) on available for sale securities	(1)		(1)
Net income (loss)	(2,306)			(2,306)
Ending Balance (in shares) at Sep. 30, 2019		38,321,611
Ending Balance at Sep. 30, 2019	50,197	$ 434,325	21	(384,149)
Beginning Balance (in shares) at Dec. 31, 2019		38,434,488
Beginning Balance at Dec. 31, 2019	47,529	$ 436,122	12	(388,605)
Stock issued under employee equity incentive plans (in shares)		815,375
Stock issued under employee equity incentive plans	325	$ 325
Stock-based compensation expense	1,822	$ 1,822
Unrealized gain (loss) on available for sale securities	(6)		(6)
Net income (loss)	(5,399)			(5,399)
Ending Balance (in shares) at Mar. 31, 2020		39,249,863
Ending Balance at Mar. 31, 2020	44,271	$ 438,269	6	(394,004)
Beginning Balance (in shares) at Dec. 31, 2019		38,434,488
Beginning Balance at Dec. 31, 2019	47,529	$ 436,122	12	(388,605)
Net income (loss)	(20,090)
Ending Balance (in shares) at Sep. 30, 2020		41,537,358
Ending Balance at Sep. 30, 2020	37,594	$ 446,278	11	(408,695)
Beginning Balance (in shares) at Mar. 31, 2020		39,249,863
Beginning Balance at Mar. 31, 2020	44,271	$ 438,269	6	(394,004)
At the market equity offering (in shares)		803,528
At the market equity offering	2,474	$ 2,474
Stock issued under employee equity incentive plans (in shares)		167,100
Stock issued under employee equity incentive plans	12	$ 12
Stock-based compensation expense	2,243	$ 2,243
Unrealized gain (loss) on available for sale securities	7		7
Net income (loss)	(6,552)			(6,552)
Ending Balance (in shares) at Jun. 30, 2020		40,220,491
Ending Balance at Jun. 30, 2020	42,455	$ 442,998	13	(400,556)
At the market equity offering (in shares)		570,989
At the market equity offering	1,167	$ 1,167
Stock issued under employee equity incentive plans (in shares)		745,878
Stock issued under employee equity incentive plans	263	$ 263
Stock-based compensation expense	1,850	$ 1,850
Unrealized gain (loss) on available for sale securities	(2)		(2)
Net income (loss)	(8,139)			(8,139)
Ending Balance (in shares) at Sep. 30, 2020		41,537,358
Ending Balance at Sep. 30, 2020	$ 37,594	$ 446,278	$ 11	$ (408,695)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION Nature of Business Pixelworks is a leading provider of high-performance and power-efficient visual processing solutions that bridge the gap between video content formats and rapidly advancing display capabilities. We develop and market semiconductor and software solutions that enable consistently high-quality, authentic viewing experiences in a wide variety of applications from cinema to smartphones. Our primary target markets include Mobile (smartphone, gaming and tablet), Home Entertainment (TV, personal video recorder ("PVR"), over-the-air ("OTA") and projector), Content (creation, remastering and delivery), and Business & Education (projector). As of September 30, 2020, we had an intellectual property portfolio of 344 patents related to the visual display of digital image data. We focus our research and development efforts on developing video algorithms that improve quality, and architectures that reduce system power, cost, bandwidth and increase overall system performance and device functionality. We seek to expand our technology portfolio through internal development and co-development with business partners, and we continually evaluate acquisition opportunities and other ways to leverage our technology into other high-value markets. Pixelworks was founded in 1997 and is incorporated under the laws of the state of Oregon. On August 2, 2017, we acquired ViXS Systems, Inc., a corporation organized in Canada ("ViXS"). Condensed Consolidated Financial Statements The financial information included herein for the three and nine month periods ended September 30, 2020 and 2019 is prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and is unaudited. Such information reflects all adjustments, consisting of only normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company's condensed consolidated financial statements for these interim periods. The financial information as of December 31, 2019 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2019, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 11, 2020, and should be read in conjunction with such consolidated financial statements. The results of operations for the three month and nine month periods ended September 30, 2020 and 2019 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2020. Recent Accounting Pronouncements In December 2019, the Financial Accounting Starndards Board ("FASB") issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification ("ASC") 740 and also clarifies and amends existing guidance to provide for more consistent application. ASU 2019-12 will become effective for us in the first quarter of fiscal 2021, and early adoption is permitted. We are evaluating the impact that the adoption of ASU 2019-12 will have on our financial position, results of operations and cash flows. In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements: Clarifying the Interaction Between Topic 808 and Topic 606 ("ASU 2018-18"). ASU 2018-18 requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counterparty is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. ASU 2018-18 became effective for us on January 1, 2020. The adoption of ASU 2018-18 did not have a material impact on our financial position, results of operations and cash flows. Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. These estimates reflect considerations related to the impact of COVID-19. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates.

Balance Sheet Components

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable are contract assets that arise from the performance of our performance obligation pursuant to our contracts with our customers and represent our unconditional right to payment for the satisfaction of our performance obligations. They are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.

Accounts receivable consists of the following:


	September 30, 2020		December 31, 2019
Accounts receivable, gross	$	5,444	$	10,938
Less: allowance for doubtful accounts	(27)		(23)
Accounts receivable, net	$	5,417	$	10,915

The following is the change in our allowance for doubtful accounts:


	Nine Months Ended
	September 30,
	2020		2019
Balance at beginning of period	$	23	$	21
Additions charged (reductions credited)	4		36

Balance at end of period	$	27	$	57

Inventories

Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).

Inventories consist of the following:


	September 30, 2020		December 31, 2019
Finished goods	$	1,640	$	1,630
Work-in-process	2,255		3,771
Inventories	$	3,895	$	5,401

Property and Equipment, Net

Property and equipment, net consists of the following:


	September 30, 2020		December 31, 2019
Gross carrying amount	$	26,373	$	22,866
Less: accumulated depreciation and amortization	(20,742)		(18,258)
Property and equipment, net	$	5,631	$	4,608

Acquired Intangible Assets, Net

In connection with the acquisition of ViXS (the "Acquisition"), we recorded certain identifiable intangible assets. Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following:


	September 30, 2020		December 31, 2019
Developed technology	$	5,050	$	5,050
Customer relationships	1,270		1,270
Backlog and tradename	410		410
	6,730		6,730
Less: accumulated amortization	(5,149)		(4,026)
Acquired intangible assets, net	$	1,581	$	2,704

Developed technology and customer relationships are amortized over a useful life of 3 to 5 years. Backlog was fully amortized as of September 30, 2018 and tradename was fully amortized as of March 31, 2019.

Amortization expense for intangible assets was $374 and $1,122 for the three and nine months ended September 30, 2020, respectively, $298 and $894 were included in cost of revenue for the three and nine months ended September 30, 2020, respectively, and $76 and $228 were included in selling, general and administrative for the three and nine months ended September 30, 2020, respectively, in the condensed consolidated statements of operations. As of September 30, 2020, future estimated amortization expense is as follows:


Three months ending December 31:
2020	$	374
Years ending December 31:
2021	1,117
2022	90
	$	1,581

Acquired intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Conditions that would trigger an impairment assessment include, but are not limited to, past, current, or expected cash flow or operating losses associated with the asset. There were no such triggering events requiring an impairment assessment of other intangible assets during the nine months ended September 30, 2020.

Goodwill

Goodwill resulted from the Acquisition, whereby we recorded goodwill of $18,407.

Goodwill is not amortized; however, we review goodwill for impairment annually and whenever events or changes in circumstances indicate that the fair value of the reporting unit may be less than it's carrying value. Conditions that would trigger an impairment assessment include, but are not limited to, a significant adverse change in our business climate or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continued losses or adverse changes in legal factors, regulation or business environment. There were no such triggering events requiring a goodwill impairment assessment during the nine months ended September 30, 2020. We perform our annual impairment assessment for goodwill on November 30 of each year.

Accrued Liabilities and Current Portion of Long-Term Liabilities

Accrued liabilities and current portion of long-term liabilities consist of the following:


	September 30, 2020		December 31, 2019
Accrued payroll and related liabilities	$	3,097	$	3,440
Operating lease liabilities, current	1,939		1,545
Accrued costs related to restructuring	1,132		66
Current portion of accrued liabilities for asset financings	880		483
Accrued commissions and royalties	525		663
Accrued interest payable	423		397
Deferred revenue	10		146


Other	1,643		1,952
Accrued liabilities and current portion of long-term liabilities	$	9,649	$	8,692

Deferred revenues are contract liabilities that arise when cash payments are received or due in advance of the satisfaction of our performance obligations. Any increase in deferred revenues is driven by cash payments received or due in advance of satisfying our performance obligation pursuant to the contract with the customer. Any decrease in deferred revenues is due to the recognition of revenue related to satisfying our performance obligation.

The change in deferred revenue is as follows:


	Nine Months Ended
	September 30,
	2020		2019
Deferred revenue:
Balance at beginning of period	$	146	$	96
Revenue deferred	645		401
Revenue recognized	(781)		(365)
Balance at end of period	$	10	$	132

Short-Term Line of Credit

On December 21, 2010, we entered into a Loan and Security Agreement with Silicon Valley Bank (the "Bank"), which was amended on December 14, 2012, December 4, 2013, December 18, 2015, December 15, 2016, July 21, 2017, December 21, 2017, December 18, 2018, December 18, 2019 and April 17, 2020 (as amended, the "Revolving Loan Agreement"). The Revolving Loan Agreement provides a secured working capital-based revolving line of credit (the "Revolving Line") in an aggregate amount of up to the lesser of (i) $10,000, or (ii) $2,500 plus 80% of eligible domestic accounts receivable and certain foreign accounts receivable of both Pixelworks and ViXS Systems, Inc., subject to certain limitations on the amount of accounts receivables attributable to ViXS. The Revolving Line has a maturity date of December 27, 2020. In addition, the Revolving Loan Agreement provides for non-formula advances of up to $10,000 which may be made solely during the last five business days of any fiscal month or quarter and which must be repaid by us on or before the fifth business day after the applicable fiscal month or quarter end. Due to their repayment terms, non-formula advances do not provide us with usable liquidity.

The Revolving Loan Agreement, as amended, contains customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could result in the acceleration of our obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest. As of September 30, 2020, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended.

As of September 30, 2020, short-term borrowings outstanding under the Revolving Line consisted of $3,954. The weighted-average interest rate on short-term borrowings outstanding as of September 30, 2020 was 3.5%.

As of December 31, 2019, we had no outstanding borrowings under the Revolving Line.

Paycheck Protection Program Loan

On April 25, 2020, we entered into a loan with Silicon Valley Bank as the lender in an aggregate principal amount of $796 (the “Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

The Loan is evidenced by a promissory note (the “Note”) dated April 25, 2020, and matures 2 years from the disbursement date. The Note bears interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing 6 months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Note contains customary events of default relating to, among other things, payment defaults or breaches of the terms of the Note. Upon the occurrence of an event of default, the Lender may require immediate repayment of all amounts outstanding under the Note.

Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The Loan is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses (collectively, “Qualifying Expenses”), pursuant to the terms and limitations of the PPP. The Company has used the Loan amount for Qualifying Expenses and we have applied for forgiveness, however, no assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part.

We have elected to account for the Loan as Debt under ASC 470. The Loan proceeds are included within other long-term liabilities, net of current portion in our condensed consolidated balance sheets and we recognize interest expense at 1% per annum within interest income (expense) and other, net in our condensed consolidated statements of operations.

At the Market Offering

On June 5, 2020, we entered into a sales agreement (the "Sales Agreement") with Cowen and Company, LLC ("Cowen"), pursuant to which we may issue and sell shares of the Company's common stock, par value $0.001 per share, having an aggregate offering price of up to $25,000, from time to time, through an "at the market" equity offering program under which Cowen will act as sales agent. Under the Sales Agreement, Cowen may sell the shares by methods deemed to be an "at the market offering" as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers’ transactions on the Nasdaq Global Market or on any other existing trading market for the common stock or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise directed by the Company. We pay Cowen a commission equal to three percent (3.0%) of the gross sales proceeds of any common stock sold through Cowen under the Sales Agreement. The Sales Agreement may be terminated by us upon prior notice to Cowen or by Cowen upon prior notice to us, or at any time under certain circumstances, including but not limited to the occurrence of a material adverse change in the Company. We are not obligated to sell any shares under the Sales Agreement.

During the nine months ended September 30, 2020, we sold an aggregate of 1,374,517 shares of our common stock under this at the market offering, resulting in aggregate net proceeds to us of approximately $3,641, and gross proceeds of approximately $4,071, and paid Cowen commissions and fees of approximately $172, and other expenses of $258. As of September 30, 2020, the remaining availability under the at the market offering is $20,929.

Marketable Securities and Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS

Marketable Securities

As of September 30, 2020 and December 31, 2019, all of our marketable securities are classified as available-for-sale, have contractual maturities of one year or less and consist of the following:


	Cost		Unrealized Gain (Loss)		Fair Value
Short-term marketable securities:
As of September 30, 2020:
Corporate debt securities	$	737	$	(2)	$	735


	$	737	$	(2)	$	735

As of December 31, 2019:
Commercial paper	$	2,487	$	—	$	2,487
U.S. government treasury bills	2,249		1		2,250
Corporate debt securities	2,236		2		2,238
	$	6,972	$	3	$	6,975

Unrealized holding gains and losses are recorded in accumulated other comprehensive income, a component of shareholders’ equity, in the condensed consolidated balance sheets.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value:

Level 1:Valuations based on quoted prices in active markets for identical assets and liabilities.

Level 2:Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3:Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions.

The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019:


	Level 1		Level 2		Level 3		Total
As of September 30, 2020:
Assets:
Cash equivalents:
Money market funds	$	9,427	$	—	$	—	$	9,427


Short-term marketable securities:

Corporate debt securities	—		735		—		735


As of December 31, 2019:
Assets:
Cash equivalents:
Money market funds	$	1,307	$	—	$	—	$	1,307


Short-term marketable securities:
U.S. government treasury bills	2,250		—		—		2,250
Commercial paper	—		2,487		—		2,487
Corporate debt securities	—		2,238		—		2,238

We primarily use the market approach to determine the fair value of our financial assets. The fair value of our current assets and liabilities, including accounts receivable and accounts payable approximates the carrying value due to the short-term nature of these balances. We have currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with U.S. GAAP.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Restructurings

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructurings

RESTRUCTURINGS

In August 2020, we executed a restructuring plan to make the operation of the Company more efficient (the "August 2020 Plan"). The August 2020 Plan included an approximately 14% reduction in workforce, primarily in the areas of operations, research and development, sales and marketing.

In January 2020, we executed a restructuring plan to make the operation of the Company more efficient (the "January 2020 Plan"). The January 2020 Plan included an approximately 4% reduction in workforce, primarily in the areas of research and development and sales.

In June 2019, we executed a restructuring plan to make the operation of the Company more efficient (the "2019 Plan"). The 2019 Plan included an approximately 2% reduction in workforce, primarily in the areas of sales and operations.

Total restructuring expense included in our statement of operations for the three and nine month periods ended September 30, 2020 and 2019 is comprised of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Cost of revenue — restructuring:

Employee severance and benefits	$	166	$	—	$	166	$	—
	166		—		166		—

Operating expenses — restructuring:

Employee severance and benefits	$	1,430	$	—	$	2,022	$	398

	1,430		—		2,022		398
Total restructuring expense	$	1,596	$	—	$	2,188	$	398

During the three months ended September 30, 2020, we recorded $1,596 in restructuring expense related to the August 2020 Plan. During the nine months ended September 30, 2020 we recorded $1,596 in restructuring expense related to the August 2020 Plan and $592 in restructuring expense related to the January 2020 Plan. During the three months ended September 30, 2019, we did not record any restructuring expense. During the nine months ended September 30, 2019, we recorded $398 in restructuring expense related to the 2019 Plan.

The following is a rollforward of the accrued liabilities related to restructuring for the nine month period ended September 30, 2020:


	Balance as of December 31, 2019		Expensed		Payments		Balance as of September 30, 2020

Employee severance and benefits	$	66	$	2,188	$	(1,122)	$	1,132
Accrued costs related to restructuring	$	66	$	2,188	$	(1,122)	$	1,132

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

LEASES

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASC 842"), which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842; and ASU No. 2018-11, Targeted Improvements. The standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

We adopted the standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated.

We elected the "practical expedient package," which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases.

Upon adoption, we recognized operating lease liabilities of $6,847 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. We also recognized ROU assets of $6,224 which represents the operating lease liability adjusted for accrued rent and cease-use liabilities. The adoption did not have a material impact on our condensed consolidated statements of operations or cash flows. The most significant impact relates to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our office operating leases; and (2) providing significant new disclosures about our leasing activities.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of 1 year to 7 years. Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Operating lease cost:	$	702	$	646	$	2,024	$	1,931


	Nine Months Ended
	September 30,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,139		$	1,993
Leased assets obtained in exchange for new operating lease liabilities	3,267			1,226
Weighted average remaining lease term (in years)	3.93			3.51
Weighted average discount rate	5.06		%	5.75		%

Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:


Operating Lease Payments
Three months ending December 31, 2020	$	520
Years ending December 31:
2021	2,317
2022	2,291
2023	1,273
2024	859
2025	346
Thereafter	434

Total operating lease payments	8,040
Less imputed interest	(797)
Total operating lease liabilities	$	7,243

As of September 30, 2020, the Company had no operating lease liabilities that had not commenced.

Revenue

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our principal revenue generating activities consist of the following:

Product Sales - We sell integrated circuit products, also known as “chips” or “ICs”, based upon a customer purchase order, which includes a fixed price per unit. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods, and not evaluate whether these activities are promised services to the customer. We generally satisfy our single performance obligation upon shipment of the goods to the customer and recognize revenue at a point in time upon shipment of the underlying product.

Our shipments are subject to limited return rights subject to our limited warranty for our products sold. In addition, we may provide other credits to certain customers pursuant to price protection and stock rotation rights, all of which are considered variable consideration when estimating the amount of revenue to recognize. We use the “most likely amount” method to determine the amount of consideration to which we are entitled. Our estimate of variable consideration is reassessed at the end of each reporting period based on changes in facts and circumstances. Historically, returns and credits have not been material.

Engineering Services - We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our engineering services agreements (“ESAs”) at contract inception. The ESA generally includes project deliverables specified by the customer. The performance obligations in the ESA are generally combined into one deliverable, with the pricing for services stated at a fixed amount. Services provided under the ESA generally result in the transfer of control over time. We recognize revenue on ESAs based on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. ESAs could include substantive customer acceptance provisions. In ESAs that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance.

License Revenue - On occasion, we derive revenue from the license of our internally developed intellectual property ("IP"). IP licensing agreements that we enter into generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Fees under these agreements generally include license fees relating to our IP and support service fees, resulting in two performance obligations. We evaluate each performance obligation, which generally results in the transfer of control at a point in time for the license fee and over time for support services.

Other - From time-to-time, we enter into arrangements for other revenue generating activities, such as providing technical support services to customers through technical support agreements. In each circumstance, we evaluate such arrangements for our performance obligations which generally results in the transfer of control for such services over time. Historically, such arrangements have not been material to our operating results.

The following table provides information about disaggregated revenue based on the preceding categories for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
IC sales	$	7,968	$	17,690	$	29,926	$	50,352
Engineering services, license and other	222		367		1,291		2,380
Total revenues	$	8,190	$	18,057	$	31,217	$	52,732

For segment information, including revenue by geographic region, see "Note 10: Segment Information".

Our contract balances include accounts receivable and deferred revenue. For information concerning these contract balances, see "Note 2: Balance Sheet Components".

Payment terms and conditions for goods and services provided vary by contract; however, payment is generally required within 30 to 60 days of invoicing.

We have not identified any material costs incurred associated with obtaining a contract with a customer which would meet the criteria to be capitalized, therefore, these costs are expensed as incurred.

The aggregate amount of the transaction price allocated to unsatisfied performance obligations with an original expected duration of greater than one year is $180, which we expect to recognize ratably over the next 18 months.

Interest Income (Expense) and Other, Net

9 Months Ended

Sep. 30, 2020

Other Income and Expenses [Abstract]

Interest Income (Expense) and Other, Net

INTEREST INCOME (EXPENSE) AND OTHER, NET

Interest income (expense) and other, consists of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Interest income	$	9	$	75	$	81	$	261
Other income	34		35		114		132
Interest expense	(71)		(40)		(193)		(123)



Total interest income (expense) and other, net	$	(28)	$	70	$	2	$	270

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Incomes Taxes	INCOME TAXES The provision for income taxes during the 2020 and 2019 periods is primarily comprised of current and deferred tax expense in profitable cost-plus foreign jurisdictions, accruals for tax contingencies in foreign jurisdictions and benefits for the reversal of previously recorded foreign tax contingencies due to the expiration of the applicable statutes of limitation. We recorded a benefit for the reversal of previously recorded foreign tax contingencies of $10 and $31 during the first nine months of 2020 and 2019, respectively. As we do not believe that it is more likely than not that we will realize a benefit from our U.S. net deferred tax assets, including our U.S. net operating losses, we continue to provide a full valuation allowance against essentially all of those assets, therefore, we do not incur significant U.S. income tax expense or benefit. We have not recorded a valuation allowance against our other foreign net deferred tax assets, with the exception of Canada, as we believe that it is more likely than not that we will realize a benefit from those assets. As of September 30, 2020 and December 31, 2019, the amount of our uncertain tax positions was a liability of $1,601 and $1,554, respectively, as well as a contra deferred tax asset of $1,254 and $1,100, respectively. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitation. Settlement of any particular position could require the use of cash. If the uncertain tax positions we have accrued for are sustained by the taxing authorities in our favor or if the statute of limitation expires, the reduction of the liability will reduce our effective tax rate. We reasonably expect reductions in the liability for unrecognized tax benefits and interest and penalties of approximately $79 within the next twelve months due to the expiration of statutes of limitation in foreign jurisdictions. We recognize interest and penalties related to uncertain tax positions in income tax expense in our condensed consolidated statements of operations.

Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

LOSS) PER SHARE

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net loss	$	(8,139)	$	(2,306)	$	(20,090)	$	(4,621)
Weighted average shares outstanding - basic and diluted	40,766		38,086		39,697		37,677




Net loss per share - basic and diluted	$	(0.20)	$	(0.06)	$	(0.51)	$	(0.12)

The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands):


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019
Employee equity incentive plans	3,732	3,203	3,836	3,277

Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan.

Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We function as a single operating segment: the design and development of integrated circuits for use in electronic display devices. The majority of our assets are located in the United States.

Geographic Information

Revenue by geographic region, is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Japan	$	5,296	$	14,119	$	21,297	$	42,814
China	2,045		2,562		5,850		6,110
United States	384		694		2,483		2,031
Korea	275		15		308		108
Taiwan	120		667		1,019		1,565
Europe	70		—		260		104

	$	8,190	$	18,057	$	31,217	$	52,732

Significant Customers

The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented 10% or more of revenue in at least one of the periods presented, is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Distributors:
All distributors	50	%	48	%	51	%	42	%
Distributor A	24	%	31	%	28	%	30	%


End customers: 1
Top five end customers	68	%	76	%	61	%	78	%
End customer A	40	%	46	%	38	%	49	%
End customer B	10	%	12	%	6	%	14	%

1End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented:


	September 30, 2020		December 31, 2019
Account X	35	%	24	%
Account Y	39	%	42	%
Account Z	7	%	26	%

Risks and Uncertainties	9 Months Ended
Risks and Uncertainties	Sep. 30, 2020
Risks and Uncertainties [Abstract]
Risks and Uncertainties	RISKS AND UNCERTAINTIES Concentration of Suppliers We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan and the People’s Republic of China increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances. Risk of Technological Change The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Indemnifications Certain of our agreements include indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of September 30, 2020, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could materially impact our results of operations. Legal Proceedings We are subject to legal matters that arise from time to time in the ordinary course of our business. Although we currently believe that resolving such matters, individually or in the aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows, these matters are subject to inherent uncertainties and our view of these matters may change in the future. Other Contractual Obligation As part of the Acquisition, we acquired debt associated with an agreement with the Government of Canada called Technology Partnerships Canada ("TPC"). As part of the TPC agreement, ViXS Systems, Inc. was provided funding to assist in research and development expenses of which a portion was later required to be repaid because the conditions for repayment were met. The scheduled payments are made on a quarterly basis and end in January 2024. As of September 30, 2020, $474 is included in accrued liabilities and current portion of long-term liabilities in our condensed consolidated balance sheets and $302 is included in long-term liabilities, net of current portion in our condensed consolidated balance sheets.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTOn October 19, 2020, we entered into a Securities Purchase Agreement with MTM-Xinhe Investment Limited, a British Virgin Islands company (the “Investor”), pursuant to which we agreed to issue and sell in a private placement 3,200,000 shares of the our common stock, par value $0.001 per share, to the Investor at a purchase price of $2.071 per share, for gross proceeds to us of approximately $6,600 (the “Private Placement”). Subject to the fulfillment of certain conditions, the Private Placement is expected to close in November 2020.

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Consolidated Financial Statements	Condensed Consolidated Financial Statements The financial information included herein for the three and nine month periods ended September 30, 2020 and 2019 is prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and is unaudited. Such information reflects all adjustments, consisting of only normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company's condensed consolidated financial statements for these interim periods. The financial information as of December 31, 2019 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2019, included in Item 8 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 11, 2020, and should be read in conjunction with such consolidated financial statements. The results of operations for the three month and nine month periods ended September 30, 2020 and 2019 are not necessarily indicative of the results expected for future periods or for the entire fiscal year ending December 31, 2020.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Starndards Board ("FASB") issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification ("ASC") 740 and also clarifies and amends existing guidance to provide for more consistent application. ASU 2019-12 will become effective for us in the first quarter of fiscal 2021, and early adoption is permitted. We are evaluating the impact that the adoption of ASU 2019-12 will have on our financial position, results of operations and cash flows. In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements: Clarifying the Interaction Between Topic 808 and Topic 606 ("ASU 2018-18"). ASU 2018-18 requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counterparty is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. ASU 2018-18 became effective for us on January 1, 2020. The adoption of ASU 2018-18 did not have a material impact on our financial position, results of operations and cash flows.
Use of Estimates	Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. These estimates reflect considerations related to the impact of COVID-19. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, valuation of share-based payments, income taxes, litigation and other contingencies. The actual results experienced could differ materially from our estimates.
Receivables, Policy	Accounts receivable are contract assets that arise from the performance of our performance obligation pursuant to our contracts with our customers and represent our unconditional right to payment for the satisfaction of our performance obligations. They are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments.
Inventory, Policy	Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).

Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

Accounts receivable consists of the following:


	September 30, 2020		December 31, 2019
Accounts receivable, gross	$	5,444	$	10,938
Less: allowance for doubtful accounts	(27)		(23)
Accounts receivable, net	$	5,417	$	10,915

Allowance for Doubtful Accounts

The following is the change in our allowance for doubtful accounts:


	Nine Months Ended
	September 30,
	2020		2019
Balance at beginning of period	$	23	$	21
Additions charged (reductions credited)	4		36

Balance at end of period	$	27	$	57

Inventories

Inventories consist of the following:


	September 30, 2020		December 31, 2019
Finished goods	$	1,640	$	1,630
Work-in-process	2,255		3,771
Inventories	$	3,895	$	5,401

Property and Equipment, Net

Property and equipment, net consists of the following:


	September 30, 2020		December 31, 2019
Gross carrying amount	$	26,373	$	22,866
Less: accumulated depreciation and amortization	(20,742)		(18,258)
Property and equipment, net	$	5,631	$	4,608

Acquired Intangible Assets, Net

Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following:


	September 30, 2020		December 31, 2019
Developed technology	$	5,050	$	5,050
Customer relationships	1,270		1,270
Backlog and tradename	410		410
	6,730		6,730
Less: accumulated amortization	(5,149)		(4,026)
Acquired intangible assets, net	$	1,581	$	2,704

Future Amortization Expense

As of September 30, 2020, future estimated amortization expense is as follows:


Three months ending December 31:
2020	$	374
Years ending December 31:
2021	1,117
2022	90
	$	1,581

Accrued Liabilities and Current Portion of Long-Term Liabilities

Accrued liabilities and current portion of long-term liabilities consist of the following:


	September 30, 2020		December 31, 2019
Accrued payroll and related liabilities	$	3,097	$	3,440
Operating lease liabilities, current	1,939		1,545
Accrued costs related to restructuring	1,132		66
Current portion of accrued liabilities for asset financings	880		483
Accrued commissions and royalties	525		663
Accrued interest payable	423		397
Deferred revenue	10		146


Other	1,643		1,952
Accrued liabilities and current portion of long-term liabilities	$	9,649	$	8,692

Deferred Revenue

The change in deferred revenue is as follows:


	Nine Months Ended
	September 30,
	2020		2019
Deferred revenue:
Balance at beginning of period	$	146	$	96
Revenue deferred	645		401
Revenue recognized	(781)		(365)
Balance at end of period	$	10	$	132

Marketable Securities and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

As of September 30, 2020 and December 31, 2019, all of our marketable securities are classified as available-for-sale, have contractual maturities of one year or less and consist of the following:


	Cost		Unrealized Gain (Loss)		Fair Value
Short-term marketable securities:
As of September 30, 2020:
Corporate debt securities	$	737	$	(2)	$	735


	$	737	$	(2)	$	735

As of December 31, 2019:
Commercial paper	$	2,487	$	—	$	2,487
U.S. government treasury bills	2,249		1		2,250
Corporate debt securities	2,236		2		2,238
	$	6,972	$	3	$	6,975

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about our assets measured at fair value on a recurring basis in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019:


	Level 1		Level 2		Level 3		Total
As of September 30, 2020:
Assets:
Cash equivalents:
Money market funds	$	9,427	$	—	$	—	$	9,427


Short-term marketable securities:

Corporate debt securities	—		735		—		735


As of December 31, 2019:
Assets:
Cash equivalents:
Money market funds	$	1,307	$	—	$	—	$	1,307


Short-term marketable securities:
U.S. government treasury bills	2,250		—		—		2,250
Commercial paper	—		2,487		—		2,487
Corporate debt securities	—		2,238		—		2,238

Restructurings (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring Expense by Components

Total restructuring expense included in our statement of operations for the three and nine month periods ended September 30, 2020 and 2019 is comprised of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Cost of revenue — restructuring:

Employee severance and benefits	$	166	$	—	$	166	$	—
	166		—		166		—

Operating expenses — restructuring:

Employee severance and benefits	$	1,430	$	—	$	2,022	$	398

	1,430		—		2,022		398
Total restructuring expense	$	1,596	$	—	$	2,188	$	398

Schedule of Accrued Restructuring Liabilities

The following is a rollforward of the accrued liabilities related to restructuring for the nine month period ended September 30, 2020:


	Balance as of December 31, 2019		Expensed		Payments		Balance as of September 30, 2020

Employee severance and benefits	$	66	$	2,188	$	(1,122)	$	1,132
Accrued costs related to restructuring	$	66	$	2,188	$	(1,122)	$	1,132

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Supplemental Information Related to Leases

Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Operating lease cost:	$	702	$	646	$	2,024	$	1,931

Future Minimum Payments Under Non-cancellable Leases

Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:


Operating Lease Payments
Three months ending December 31, 2020	$	520
Years ending December 31:
2021	2,317
2022	2,291
2023	1,273
2024	859
2025	346
Thereafter	434

Total operating lease payments	8,040
Less imputed interest	(797)
Total operating lease liabilities	$	7,243

Revenue (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information about disaggregated revenue based on the preceding categories for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
IC sales	$	7,968	$	17,690	$	29,926	$	50,352
Engineering services, license and other	222		367		1,291		2,380
Total revenues	$	8,190	$	18,057	$	31,217	$	52,732

Interest Income (Expense) and Other, Net (Tables)

9 Months Ended

Sep. 30, 2020

Other Income and Expenses [Abstract]

Interest Income (Expense) and Other, net

Interest income (expense) and other, consists of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Interest income	$	9	$	75	$	81	$	261
Other income	34		35		114		132
Interest expense	(71)		(40)		(193)		(123)



Total interest income (expense) and other, net	$	(28)	$	70	$	2	$	270

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net loss	$	(8,139)	$	(2,306)	$	(20,090)	$	(4,621)
Weighted average shares outstanding - basic and diluted	40,766		38,086		39,697		37,677




Net loss per share - basic and diluted	$	(0.20)	$	(0.06)	$	(0.51)	$	(0.12)

Antidilutive Securities Excluded from Computation of Earnings Per Share

The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands):


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019
Employee equity incentive plans	3,732	3,203	3,836	3,277

Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Region

Revenue by geographic region, is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Japan	$	5,296	$	14,119	$	21,297	$	42,814
China	2,045		2,562		5,850		6,110
United States	384		694		2,483		2,031
Korea	275		15		308		108
Taiwan	120		667		1,019		1,565
Europe	70		—		260		104

	$	8,190	$	18,057	$	31,217	$	52,732

Schedule of Revenue from Significant Customers


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Distributors:
All distributors	50	%	48	%	51	%	42	%
Distributor A	24	%	31	%	28	%	30	%


End customers: 1
Top five end customers	68	%	76	%	61	%	78	%
End customer A	40	%	46	%	38	%	49	%
End customer B	10	%	12	%	6	%	14	%

1End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

Schedule of Accounts Receivable Percentage from Significant Customers

The following accounts represented 10% or more of total accounts receivable in at least one of the periods presented:


	September 30, 2020		December 31, 2019
Account X	35	%	24	%
Account Y	39	%	42	%
Account Z	7	%	26	%

Basis of Presentation (Details)	Sep. 30, 2020 patent
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of patents held	344

Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts receivable, gross	$ 5,444	$ 10,938
Less: allowance for doubtful accounts	(27)	(23)	$ (57)	$ (21)
Accounts receivable, net	$ 5,417	$ 10,915

Balance Sheet Components - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 23	$ 21
Additions charged (reductions credited)	4	36
Balance at end of period	$ 27	$ 57

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Finished goods	$ 1,640	$ 1,630
Work-in-process	2,255	3,771
Inventories	$ 3,895	$ 5,401

Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Gross carrying amount	$ 26,373	$ 22,866
Less: accumulated depreciation and amortization	(20,742)	(18,258)
Property and equipment, net	$ 5,631	$ 4,608

Balance Sheet Components - Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 6,730	$ 6,730	$ 6,730
Less: accumulated amortization	(5,149)	(5,149)	(4,026)
Acquired intangible assets, net	1,581	1,581	2,704
Amortization of acquired intangible assets including backlog	374	1,122
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets including backlog	298	894
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets including backlog	76	228
Developed technology
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	5,050	$ 5,050	5,050
Developed technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives		3 years
Developed technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives		5 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	1,270	$ 1,270	1,270
Backlog and tradename
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 410	$ 410	$ 410

Balance Sheet Components - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
2020	$ 374
2021	1,117
2022	90
Acquired intangible assets, net	$ 1,581	$ 2,704

Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Aug. 02, 2017
Goodwill [Line Items]
Goodwill	$ 18,407	$ 18,407
ViXS Systems, Inc.
Goodwill [Line Items]
Goodwill			$ 18,407

Balance Sheet Components - Accrued Liabilities and Current Portion of Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Accrued payroll and related liabilities	$ 3,097	$ 3,440
Operating lease liabilities, current	1,939	1,545
Accrued costs related to restructuring	1,132	66
Current portion of accrued liabilities for asset financings	880	483
Accrued commissions and royalties	525	663
Accrued interest payable	423	397
Deferred revenue	10	146	$ 132	$ 96
Other	1,643	1,952
Accrued liabilities and current portion of long-term liabilities	$ 9,649	$ 8,692

Balance Sheet Components - Deferred Revenue (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Deferred Revenue [Abstract]
Balance at beginning of period	$ 146	$ 96
Revenue deferred	645	401
Revenue recognized	(781)	(365)
Balance at end of period	$ 10	$ 132

Balance Sheet Components - Short-Term Line of Credit (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Apr. 17, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Maximum borrowing capacity		$ 10,000
Line of credit facility, component of calculation for maximum borrowing amount under formula advances		$ 2,500
Line of credit facility maximum borrowing capacity limited by eligible AR		80.00%
Line of credit facility, maximum borrowing capacity under non-formula advances		$ 10,000
Short term line of credit	$ 3,954		$ 0
Weighted average interest rate	3.50%

Balance Sheet Components - Paycheck Protection Program Loan (Narrative) (Details) - Promissory Notes - Paycheck Protection Program Loan $ in Thousands	Apr. 25, 2020 USD ($)
Debt Instrument [Line Items]
Face amount of debt instrument	$ 796
Term of debt instrument	2 years
Stated interest rate (as a percent)	1.00%

Balance Sheet Components - At the Market Offering (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		4 Months Ended	9 Months Ended
	Jun. 05, 2020	Sep. 30, 2020	Sep. 30, 2020
Class of Stock [Line Items]
Net proceeds from "at the market" equity offering			$ 3,641
At the Market Offering \| Common Stock
Class of Stock [Line Items]
Common stock, par value (USD per share)	$ 0.001
Maximum aggregate offering price	$ 25,000
Commission fee (as a percent)	3.00%
Stock issued in transaction (shares)		1,374,517
Net proceeds from "at the market" equity offering		$ 3,641
Gross proceeds from sale of stock		4,071
Commissions and fees		172
Other expenses		258
Remaining availability under the at the market offering		$ 20,929

Marketable Securities and Fair Value Measurements - Schedule of Short Term Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	$ 737	$ 6,972
Unrealized Gain (Loss)	(2)	3
Fair Value	735	6,975
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost		2,487
Unrealized Gain (Loss)		0
Fair Value		2,487
U.S. government treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost		2,249
Unrealized Gain (Loss)		1
Fair Value		2,250
Corporate debt securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	737	2,236
Unrealized Gain (Loss)	(2)	2
Fair Value	$ 735	$ 2,238

Marketable Securities and Fair Value Measurements - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	$ 735	$ 6,975
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	9,427	1,307
Money market funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	9,427	1,307
Money market funds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	0	0
Money market funds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash equivalents:	0	0
U.S. government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		2,250
U.S. government treasury bills \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		2,250
U.S. government treasury bills \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		0
U.S. government treasury bills \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	735	2,238
Corporate debt securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	0	0
Corporate debt securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	735	2,238
Corporate debt securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:	$ 0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		2,487
Commercial paper \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		0
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		2,487
Commercial paper \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term marketable securities:		$ 0

Restructurings (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended	9 Months Ended
Restructurings (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Jan. 31, 2020	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring expense					$ 2,188
August 2020 Plan
Restructuring Cost and Reserve [Line Items]
Reduction in workforce	14.00%
Restructuring expense				$ 1,596	1,596
January 2020 Plan
Restructuring Cost and Reserve [Line Items]
Reduction in workforce		4.00%
Restructuring expense					$ 592
2019 Plan
Restructuring Cost and Reserve [Line Items]
Reduction in workforce			2.00%
Restructuring expense						$ 398

Restructurings - Components of Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	$ 1,430	$ 0	$ 2,022	$ 398
Total Restructuring Expense
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	1,596	0	2,188	398
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Employee severance and benefits	166	0	166	0
Total restructuring expense	166	0	166	0
Operating expenses
Restructuring Cost and Reserve [Line Items]
Employee severance and benefits	1,430	0	2,022	398
Total restructuring expense	$ 1,430	$ 0	$ 2,022	$ 398

Restructurings - Restructuring Reserve Rollforward (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2019	$ 66
Expensed	2,188
Payments	(1,122)
Balance as of September 30, 2020	1,132
Employee severance and benefits
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2019	66
Expensed	2,188
Payments	(1,122)
Balance as of September 30, 2020	$ 1,132

Leases - Narrative (Details) - USD ($)	9 Months Ended
Leases - Narrative (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease liabilities	$ 7,243,000		$ 6,847,000
Operating lease right-of-use assets	6,943,000	$ 5,434,000	$ 6,224,000
Lease liabilities not yet commenced	$ 0
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms on operating leases	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms on operating leases	7 years

Leases - Supplemental information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease cost:	$ 702	$ 646	$ 2,024	$ 1,931
Operating cash flows from operating leases			2,139	1,993
Leased assets obtained in exchange for new operating lease liabilities			$ 3,267	$ 1,226
Weighted average remaining lease term (in years)	3 years 11 months 4 days	3 years 6 months 3 days	3 years 11 months 4 days	3 years 6 months 3 days
Weighted average discount rate	5.06%	5.75%	5.06%	5.75%

Leases - Future minimum lease payments under noncancellable leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jan. 01, 2019
Leases [Abstract]
Three months ending December 31, 2020	$ 520
Years ending December 31:
2021	2,317
2022	2,291
2023	1,273
2024	859
2025	346
Thereafter	434
Total operating lease payments	8,040
Less imputed interest	(797)
Total operating lease liabilities	$ 7,243	$ 6,847

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from External Customer [Line Items]
Revenues	$ 8,190	$ 18,057	$ 31,217	$ 52,732
IC sales
Revenue from External Customer [Line Items]
Revenues	7,968	17,690	29,926	50,352
Engineering services, license and other
Revenue from External Customer [Line Items]
Revenues	$ 222	$ 367	$ 1,291	$ 2,380

Revenue - Narrative (Details) $ in Thousands	9 Months Ended
Revenue - Narrative (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Unsatisfied performance obligations	$ 180
Expected timing of satisfaction of performance obligations	which we expect to recognize ratably over the next 18 months

Interest Income (Expense) and Other, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other Income and Expenses [Abstract]
Interest income	$ 9	$ 75	$ 81	$ 261
Other income	34	35	114	132
Interest expense	(71)	(40)	(193)	(123)
Total interest income (expense) and other, net	$ (28)	$ 70	$ 2	$ 270

Income Taxes (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Reversal of uncertain tax positions	$ 10	$ 31
Liability for uncertain tax positions	1,601		$ 1,554
Reduction to deferred tax assets	1,254		$ 1,100
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations, including interest and penalties	$ 79

Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ (8,139)	$ (6,552)	$ (5,399)	$ (2,306)	$ (2,448)	$ 133	$ (20,090)	$ (4,621)
Weighted average shares outstanding - basic and diluted	40,766			38,086			39,697	37,677
Net loss per share - basic and diluted	$ (0.20)			$ (0.06)			$ (0.51)	$ (0.12)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings Per Share - Antidilutive Effect on Weighted Average Shares (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee equity incentive plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	3,732	3,203	3,836	3,277

Segment Information - Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue, net	$ 8,190	$ 18,057	$ 31,217	$ 52,732
Japan
Revenue, net	5,296	14,119	21,297	42,814
China
Revenue, net	2,045	2,562	5,850	6,110
United States
Revenue, net	384	694	2,483	2,031
Korea
Revenue, net	275	15	308	108
Taiwan
Revenue, net	120	667	1,019	1,565
Europe
Revenue, net	$ 70	$ 0	$ 260	$ 104

Segment Information - Revenue by Major Customer (Details) - Revenue, net

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

All distributors

Revenue, Major Customer

Percentage of revenue

50.00%

48.00%

51.00%

42.00%

Distributor A

Revenue, Major Customer

Percentage of revenue

24.00%

31.00%

28.00%

30.00%

Top five end customers

Revenue, Major Customer

Percentage of revenue

68.00%

^[1]

76.00%

^[1]

61.00%

78.00%

End customer A

Revenue, Major Customer

Percentage of revenue

40.00%

^[1]

46.00%

^[1]

38.00%

49.00%

End customer B

Revenue, Major Customer

Percentage of revenue

10.00%

^[1]

12.00%

^[1]

6.00%

14.00%

[1]	End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

Segment Information - Accounts Receivable by Major Customer (Details) - Accounts Receivable	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Account X
Segment Reporting Information
Percentage of accounts receivable	35.00%	24.00%
Account Y
Segment Reporting Information
Percentage of accounts receivable	39.00%	42.00%
Account Z
Segment Reporting Information
Percentage of accounts receivable	7.00%	26.00%

Commitments and Contingencies (Details) - ViXS Systems, Inc. - Research And Development Expense Payment $ in Thousands	Sep. 30, 2020 USD ($)
Accrued Liabilities And Current Portion Of Long Term Debt
Other Commitments [Line Items]
Other Commitment	$ 474
Long-term Debt
Other Commitments [Line Items]
Other Commitment	$ 302

Subsequent Events - Narrative (Details) - Subsequent Event - Private Placement $ / shares in Units, $ in Millions	Oct. 19, 2020 USD ($) $ / shares shares
Subsequent Event [Line Items]
Sale of stock, agreement to issue shares (in shares) \| shares	3,200,000
Common stock, par value (USD per share)	$ 0.001
Sale of stock, price per share (USD per share)	$ 2.071
Sale of stock, consideration received \| $	$ 6.6