What changed in this filing

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Item 1. Financial Statements

2022-11-09 compared with 2022-08-02 · 120 added, 86 removed, 289 unchanged (42% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

Current assets:

14 unchanged sentences

Current financing lease liability

Deferred revenue

Total current liabilities

5 unchanged sentences

Preferred stock $ 0.001 par value, authorized 2,500 shares;

none issued and outstanding at June 30, 2022 and December 31, 2021

none issued and outstanding at September 30, 2022 and December 31, 2021

Common stock:

$ 0.001 par value, authorized 47,500 shares;

23,457 and 23,207 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively;

23,854 and 23,207 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively;

Additional paid-in capital

8 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Cost of revenue

19 unchanged sentences

Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30,

For the Three and Nine Months Ended September

30, 2022 and 2021

11 unchanged sentences

$ ( 174,421 )

Stock-based compensation

Stock option exercise

At-the-market sale of stock, net of commissions and expenses

Balance September 30, 2022

$ ( 179,023 )

Stockholders’

12 unchanged sentences

$ ( 157,486 )

Stock-based compensation

Stock option exercise

Forfeited restricted stock awards

Balance at September 30, 2021

$ ( 161,689 )

The accompanying notes are an integral part of

3 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

4 unchanged sentences

Stock-based compensation

Non cash interest expense

Changes in operating assets and liabilities:

4 unchanged sentences

Operating lease liability

Deferred revenue

Net cash used in operating activities

17 unchanged sentences

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

For the Three and Six Months Ended June 30,

For the Three and Nine Months Ended September

30, 2022 and 2021

9 unchanged sentences

LIQUIDITY AND MANAGEMENT PLANS

At June 30, 2022, the Company

had cash and cash equivalents of approximately $ 21.8 million and working capital of approximately $ 19.7 million.

The Company has generated

only limited revenues since inception and has incurred recurring operating losses.

Accordingly, it is subject to all the risks inherent

in the initial organization, financing, expenditures, and scaling of a new business that is not generating positive cashflow.

At September 30, 2022, the

Company had cash and cash equivalents of approximately $ 23.3 million and working capital of approximately $ 21.1 million.

The Company has

generated only limited revenues since inception and has incurred recurring operating losses.

Accordingly, it is subject to all the risks

inherent in the initial organization, financing, expenditures, and scaling of a new business that is not generating positive cashflow.

The Company has primarily

14 unchanged sentences

The Company’s operating plans for the next 12 months include

increased research and development headcount.

increased research and development expenses.

For capital needs beyond the next 12 months, the Company currently expects to rely on its

6 unchanged sentences

10-K filed with the Securities and Exchange Commission (“SEC”) on February 15, 2022.

Basis of presentation of unaudited condensed

financial information

Basis of presentation of unaudited condensed financial information

The unaudited condensed financial

statements of the Company for the three and six months ended June 30, 2022 and 2021 have been prepared in accordance with accounting principles

generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements

for reporting on Form 10-Q and Article 8 of Regulation S-X.

Accordingly, they do not include all the information and footnotes required

by GAAP for complete financial statements.

However, such information reflects all adjustments (consisting solely of normal recurring adjustments)

which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and its results

of operations.

Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year.

The balance sheet information as of December 31, 2021, was derived from the audited financial statements included in the Company's financial

statements as of and for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC

on February 15, 2022.

statements of the Company for the three and nine months ended September 30, 2022 and 2021 have been prepared in accordance with accounting

principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the

requirements for reporting on Form 10-Q and Article 8 of Regulation S-X.

Accordingly, they do not include all the information and footnotes

required by GAAP for complete financial statements.

However, such information reflects all adjustments (consisting solely of normal recurring

adjustments) which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and

its results of operations.

Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal

The balance sheet information as of December 31, 2021, was derived from the audited financial statements included in the Company's

financial statements as of and for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed

with the SEC on February 15, 2022.

These unaudited condensed financial statements should be read in conjunction with that report.

10 unchanged sentences

impact on its financial position, results of operations or financial statement disclosure.

The Company recognizes revenue

in accordance with Accounting Standards Codification (“ASC”) No.

The amount of revenue that the Company recognizes reflects

the consideration it expects to receive in exchange for goods or services and such revenue is recognized at the time when goods or services

are transferred and/or delivered to its customers.

Revenue is recognized when the Company satisfies a performance obligation by transferring

the product or service to the customer.

The Company generates revenues from engineering service contracts, integration license agreements

and joint development agreements.

When the Company’s performance obligation is the promise to grant a license, revenue is recognized

either at a point in time or over time.

The Company recognizes

revenue in accordance with Accounting Standards Codification (“ASC”) No.

The Company generates revenues from

engineering service contracts, license agreements and joint development agreements.

The amount of revenue that the Company

recognizes reflects the consideration it expects to receive in exchange for goods or services and such revenue is recognized when

the Company satisfies a performance obligation by transferring the product or service to the customer.

When the Company’s

performance obligation is the promise to grant a license, revenue is recognized either at a point in time (such as a right to use

licensed technology that is under the customer’s control).

Or over time (typically a right to access technology without

obtaining control).

The following table provides information about

1 unchanged sentence

Schedule of disaggregated revenue and timing of revenue

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Primary geographic markets

29 unchanged sentences

Schedule of anti dilutive shares

Six Months Ended

Three and Nine Months Ended

September 30,

Stock Options

Unvested restricted stock

The Company accounts for

leases over one year under ASC 842.

Lease expense for the Company’s operating leases consists of the lease payments recognized

on a straight-line basis over the lease term.

Expenses for the Company’s financing leases consists of the amortization expenses

recognized on a straight-line basis over the lease term and interest expense.

The components of lease costs were as follows (in thousands):

The Company accounts for leases

over one year under ASC 842.

Lease expense for the Company’s operating leases consists of the lease payments recognized on a straight-line

basis over the lease term.

Expenses for the Company’s financing leases consists of the amortization expenses recognized on a straight-line

basis over the lease term, variable lease costs and interest expense.

The Company’s lease agreement for a tool used in the development

and marketing of the Company’s technology contains a provision for an annual adjustment of lease payments based on tool availability

The potential lease payment adjustment is determined on August 1 of each year of the lease and is calculated based on the tool

availability and usage for the preceding 12 months.

Effective August 1, 2022, the lease payments for this tool were reduced to $ 100,824

per month for the period August 1, 2022 through July 31, 2023.

adjustment to the variable lease payments resulted in a reduction in ROU and corresponding lease liability.

The components of lease

costs were as follows (in thousands):

Components of lease costs

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Financing lease costs:

4 unchanged sentences

Fixed lease costs

Variable lease costs

Short-term lease costs

Total operating lease costs

Future minimum payments under non-cancellable

leases as of June 30, 2022 were as follows (in thousands):

Future minimum payments under non-cancellable leases

as of September 30, 2022 were as follows (in thousands):

Schedule of future minimum lease payments

7 unchanged sentences

Total lease liability

The below table provides

supplemental information and non-cash activity related to the Company’s operating and financing leases are as follows (in thousands):

The table above reflects minimum

payments used to calculate our liability under our leases but do not reflect future variable lease payment such as the modified monthly

payment under the terms of the financing lease for our tool, as discussed above.

The below table provides supplemental

information and non-cash activity related to the Company’s operating and financing leases are as follows (in thousands):

Supplemental non-cash activity related to operating leases

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Operating cash flow information:

3 unchanged sentences

Right-of-use assets obtained in exchange for operating lease obligations

Right-of-use assets obtained in exchange for financing lease obligations

Remeasurement of right-of-use asset and liability in financing lease obligations

The weighted average remaining

9 unchanged sentences

A summary of warrant activity

for six months ended June 30, 2022 is as follows (in thousands except per share amounts and contractual term):

for nine months ended September 30, 2022 is as follows (in thousands except per share amounts and contractual term):

Schedule of warrant activity

Outstanding at January 1, 2022

Outstanding and exercisable at June 30, 2022

Outstanding and exercisable at September 30, 2022

STOCK BASED COMPENSATION

5 unchanged sentences

The 2017 Plan provides for the issuance

of 3,750 ,000.

shares of common stock.

of 3,750 ,000 shares of common stock.

All of the Company’s employees and any subsidiary employees (including officers and directors

4 unchanged sentences

The following table summarizes

the stock-based compensation expense recorded in the Company’s results of operations during the three and six months ended June

the stock-based compensation expense recorded in the Company’s results of operations during the three and nine months ended September

30, 2022 and 2021 for stock options and restricted stock granted under the 2017 Plan and 2007 Plan (in thousands):

Schedule of stock-based compensation expense

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Research and development

1 unchanged sentence

Selling and Marketing

As of June 30, 2022, there

was approximately $ 7.9 million of total unrecognized compensation expense related to unvested share-based compensation arrangements.

cost is expected to be recognized over a weighted-average period of 2.3 years.

As of September 30, 2022,

there was approximately $ 7.2 million of total unrecognized compensation expense related to unvested share-based compensation arrangements.

This cost is expected to be recognized over a weighted-average period of 2.1 years.

The weighted average grant

date fair value per share of the options granted under the Company’s 2017 Plan was $ 10.60 for the six months ended June 30, 2022.

The weighted average grant date fair value per share of the options granted under Company’s 2017 Plan was $ 14.78 and $ 15.36 for

the three and six months ended June 30, 2021, respectively.

date fair value per share of the options granted under the Company’s 2017 Plan was $ 8.48 and $ 10.37 for the three and nine months

ended September 30, 2022, respectively.

The weighted average grant date fair value per share of the options granted under Company’s

2017 Plan was $ 13.77 and $ 15.29 for the three and nine months ended September 30, 2021, respectively.

The following table summarizes

stock option activity during the six months ended June 30, 2022 (in thousands except exercise prices and contractual terms):

stock option activity during the nine months ended September 30, 2022 (in thousands except exercise prices and contractual terms):

Schedule of stock option activity

2 unchanged sentences

Outstanding at January 1, 2022

Outstanding at June 30, 2022

Exercisable at June 30, 2022

During the six months ended

June 30, 2022, the Company granted options under the 2017 Plan to purchase approximately 175 ,000 shares of its common stock to its employees.

Outstanding at September 30, 2022

Exercisable at September 30, 2022

During the nine months ended

September 30, 2022, the Company granted options under the 2017 Plan to purchase approximately 196 ,000 shares of its common stock to its

The fair value of these options was approximately $ 2.0 million at the time of grant.

2 unchanged sentences

The following

table summarizes all restricted stock activity during the six months ended June 30, 2022 (in thousands except per share data):

table summarizes all restricted stock activity during the nine months ended September 30, 2022 (in thousands except per share data):

Schedule of restricted stock option activity

2 unchanged sentences

Outstanding at January 1, 2022

Outstanding non-vested shares at June 30, 2022

During the six months ended

June 30, 2022 the Company granted approximately 194 ,000 restricted stock awards under the 2017 Plan to its employees and directors.

fair value of these awards was approximately $ 2.8 million at the time of grant.

Outstanding non-vested shares at September 30, 2022

During the nine months ended

September 30, 2022 the Company granted approximately 194 ,000 restricted stock awards under the 2017 Plan to its employees and directors.

The fair value of these awards was approximately $ 2.8 million at the time of grant.

PROVISION FOR INCOME TAXES

The Company recorded a provision

for income taxes of approximately $ 17,000 and $ 31,000 during the three and six months ended June 30, 2021, respectively.

for income taxes of approximately $ 17,000 and $ 48,000 during the three and nine months ended September 30, 2021, respectively.

The provision

1 unchanged sentence

The Company recorded the provision in accordance

with ASC 740 using its estimated annual tax rate and applied it to the net loss for the three and six months ended June 30, 2021.

Company did not incur withholding of income taxes for the three or six months ended June 30, 2022.

with ASC 740 using its estimated annual tax rate and applied it to the net loss for the three and nine months ended September 30, 2021.

The Company did not incur withholding of income taxes for the three or nine months ended September 30, 2022.

COMMITMENTS AND CONTINGENCIES

3 unchanged sentences

The Company is not party to any material

litigation as of June 30, 2022, or through the date these financial statements have been issued.

litigation as of September 30, 2022, or through the date these financial statements have been issued.

SUBSEQUENT EVENTS

As of August 1, 2022 the Company has issued an additional 235,050 shares

through its ATM offering at an average price per share of $11.33 resulting in additional net proceeds of approximately $2.6 million.

Management has evaluated subsequent

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements