Item 1. Financial Statements
Item 1. Financial Statements
EVERSPIN TECHNOLOGIES, INC.
Condensed Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
June 30,
2026 December 31,
2025
Assets
Current assets:
Cash and cash equivalents $ 43,896 $ 44,450
Accounts receivable, net 10,770 8,101
Inventory 13,085 10,734
Prepaid expenses and other current assets 1,257 1,877
Total current assets 69,008 65,162
Property and equipment, net 14,843 14,140
Intangible assets, net 897 1,714
Right-of-use assets 2,756 3,251
Other assets 1,889 342
Total assets $ 89,393 $ 84,609
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 2,394 $ 5,180
Accrued liabilities 6,654 3,651
Deferred revenue 2,958 —
Lease liabilities, current portion 1,405 1,381
Contract obligations 271 1,472
Software liabilities, current portion 889 1,769
Total current liabilities 14,571 13,453
Lease liabilities, net of current portion 1,428 1,956
Software liabilities, net of current portion 16 15
Long-term income tax liability 271 268
Total liabilities $ 16,286 $ 15,692
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $ 0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025
— —
Common stock, $ 0.0001 par value per share; 100,000,000 shares authorized; 24,271,438 and 22,977,797 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
2 2
Additional paid-in capital 214,447 206,370
Accumulated deficit ( 141,342 ) ( 137,455 )
Total stockholders’ equity 73,107 68,917
Total liabilities and stockholders’ equity $ 89,393 $ 84,609
The accompanying notes are an integral part of these condensed financial statements.
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EVERSPIN TECHNOLOGIES, INC.
Condensed Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Product sales $ 15,313 $ 11,091 $ 29,413 $ 22,117
Licensing, royalty, engineering services and other revenue 3,423 2,110 4,195 4,222
Total revenue 18,736 13,201 33,608 26,339
Cost of product sales 8,296 6,166 15,251 12,195
Cost of licensing, royalty, engineering services and other revenue 343 267 417 623
Total cost of sales 8,639 6,433 15,668 12,818
Gross profit 10,097 6,768 17,940 13,521
Operating expenses:
Research and development 4,838 3,580 8,443 6,936
General and administrative 7,827 3,642 12,888 7,480
Sales and marketing 1,815 1,507 3,708 2,998
Total operating expenses 14,480 8,729 25,039 17,414
Loss from operations ( 4,383 ) ( 1,961 ) ( 7,099 ) ( 3,893 )
Interest income 316 423 633 831
Other income, net 478 842 2,584 1,230
Net loss before income taxes ( 3,589 ) ( 696 ) ( 3,882 ) ( 1,832 )
Income tax benefit (expense) — 26 ( 3 ) ( 4 )
Net loss and comprehensive loss $ ( 3,589 ) $ ( 670 ) $ ( 3,885 ) $ ( 1,836 )
Net loss per common share:
Basic $ ( 0.15 ) $ ( 0.03 ) $ ( 0.17 ) $ ( 0.08 )
Diluted $ ( 0.15 ) $ ( 0.03 ) $ ( 0.17 ) $ ( 0.08 )
Weighted average shares of common stock outstanding:
Basic 23,882,618 22,504,957 23,512,274 22,347,411
Diluted 23,882,618 22,504,957 23,512,274 22,347,411
The accompanying notes are an integral part of these condensed financial statements.
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EVERSPIN TECHNOLOGIES, INC.
Condensed Statements of Stockholders’ Equity
(In thousands, except share and per share amounts)
(Unaudited)
Six Months Ended June 30, 2026
Common Stock Additional
Paid-In
Capital Accumulated
Deficit Total
Stockholders’
Equity
Shares Amount
Balance at December 31, 2025 22,977,797 $ 2 $ 206,370 $ ( 137,455 ) $ 68,917
Exercise of stock options 57,027 — 326 — 326
Issuance of common stock under stock incentive plans 286,154 — — — —
Stock-based compensation expense — — 1,300 — 1,300
Other — — — ( 2 ) ( 2 )
Net Loss — — — ( 296 ) ( 296 )
Balance at March 31, 2026 23,320,978 $ 2 $ 207,996 $ ( 137,753 ) $ 70,245
Exercise of stock options 763,131 — 4,787 — 4,787
Issuance of common stock under stock incentive plans 187,329 — 290 — 290
Stock-based compensation expense — — 1,374 — 1,374
Net Loss — — — ( 3,589 ) ( 3,589 )
Balance at June 30, 2026 24,271,438 $ 2 $ 214,447 $ ( 141,342 ) $ 73,107
Six Months Ended June 30, 2025
Common Stock Additional
Paid-In
Capital Accumulated
Deficit Total
Stockholders’
Equity
Shares Amount
Balance at December 31, 2024 22,059,697 $ 2 $ 199,460 $ ( 136,869 ) $ 62,593
Exercise of stock options 10,620 — 29 — 29
Issuance of common stock under stock incentive plans 281,828 — — — —
Stock-based compensation expense — — 1,577 — 1,577
Net Loss — — — ( 1,166 ) ( 1,166 )
Balance at March 31, 2025 22,352,145 $ 2 $ 201,066 $ ( 138,035 ) $ 63,033
Exercise of stock options 12,733 — 39 — 39
Issuance of common stock under stock incentive plans 205,713 — 254 — 254
Stock-based compensation expense — — 1,419 — 1,419
Net Loss — — — ( 670 ) ( 670 )
Balance at June 30, 2025 22,570,591 $ 2 $ 202,778 $ ( 138,705 ) $ 64,075
The accompanying notes are an integral part of these condensed financial statements.
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EVERSPIN TECHNOLOGIES, INC.
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2026 2025
Cash flows from operating activities
Net loss $ ( 3,885 ) $ ( 1,836 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 1,407 1,695
Gain on sale of property and equipment — ( 25 )
Stock-based compensation 2,674 2,996
Changes in operating assets and liabilities:
Accounts receivable ( 2,670 ) 4,352
Inventory ( 2,351 ) ( 2,196 )
Prepaid expenses and other current assets 620 157
Other assets ( 417 ) ( 50 )
Accounts payable 495 809
Accrued liabilities 3,072 ( 196 )
Deferred revenue 2,958 ( 78 )
Contract obligations ( 1,201 ) 699
Lease liabilities, net 24 30
Long-term income tax liability 3 98
Net cash provided by operating activities 729 6,455
Cash flows from investing activities
Purchases of property and equipment ( 5,677 ) ( 2,901 )
Purchases of intangible assets ( 976 ) ( 977 )
Net cash used in investing activities ( 6,653 ) ( 3,878 )
Cash flows from financing activities
Payments on finance leases ( 33 ) ( 34 )
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan 5,403 322
Net cash provided by financing activities 5,370 288
Net (decrease) increase in cash and cash equivalents ( 554 ) 2,865
Cash and cash equivalents at beginning of period 44,450 42,097
Cash and cash equivalents at end of period $ 43,896 $ 44,962
Supplementary cash flow information:
Cash paid for taxes $ 31 $ 36
Operating cash flows paid for operating leases $ 715 $ 707
Financing cash flows paid for finance leases $ 33 $ 34
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease liabilities $ 175 $ —
Purchases of property and equipment in accounts payable and accrued liabilities $ 399 $ 26
The accompanying notes are an integral part of these condensed financial statements.
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EVERSPIN TECHNOLOGIES, INC.
Notes to Unaudited Condensed Financial Statements
1. Organization and Nature of Business
Everspin Technologies, Inc. (“we”, “our”, “us”, “Everspin Technologies”, “Everspin”, or the “Company”) was incorporated in Delaware on May 16, 2008. The Company’s magnetoresistive random access memory (MRAM) solutions offer the persistence of non-volatile memory with the speed and endurance of random access memory and enable the protection of mission critical data particularly in the event of power interruption or failure. The Company’s MRAM solutions allow its customers in key markets, such as industrial, medical, automotive/transportation, aerospace, and data center, to design high performance, power-efficient and reliable systems without the need for bulky batteries or capacitors.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2025, has been derived from the audited financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial information. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or for any other interim period or for any other future year.
The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K filed with the SEC.
Use of Estimates
The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory net realizable value, deferred tax assets and related valuation allowances, and stock-based compensation. The Company believes its estimates and assumptions are reasonable; however, actual results may differ from the Company’s estimates.
Segment Information
The Company’s MRAM technology solutions are sold as products and services through MRAM-based products, licenses and royalties of MRAM and magnetic sensor technology and backend foundry and design services. The Company identifies and manages the business activities in one reportable segment. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (CODM). The CODM utilizes the Company’s long-range plan, which includes product development roadmaps and long-range financial models, as a key input to resource allocation. The CODM makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actual results using net income (loss). Significant segment expenses within net income are those separately presented on the Company’s statements of operations and comprehensive loss, which include cost of sales, research and development, general and administrative, and sales and marketing expenses.
Cash and Cash Equivalents
The Company considers all highly liquid, short-term investments with maturity dates of 90 days or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist solely of money market funds.
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Accounts Receivable, Net
The Company establishes an allowance for product returns. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of products when evaluating the adequacy of sales returns. Returns are processed as credits on future purchases and, as a result, the allowance is recorded against the balance of trade accounts receivable. In addition, the Company, from time to time, may establish an allowance for estimated price adjustments related to its distributor agreements. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales and evaluation of current market conditions.
Accounts receivable, net consisted of the following (in thousands):
June 30,
2026 December 31,
2025
Trade accounts receivable $ 10,827 $ 8,231
Unbilled accounts receivable 148 179
Allowance for product returns and price adjustments ( 205 ) ( 309 )
Accounts receivable, net $ 10,770 $ 8,101
Concentration of Credit Risk
Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by a financial institution in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits.
Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. For the purposes of this disclosure, the Company defines “customer” as the entity that is purchasing the products or licenses directly from the Company, which includes the distributors of the Company’s products in addition to end customers that the Company sells to directly. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows:
Revenue Accounts Receivable
Three Months Ended
June 30, Six Months Ended
June 30, June 30
2026 December 31
2025
Customers 2026 2025 2026 2025
Customer A * 14 % * 16 % * *
Customer B 10 % * 11 % * * *
Customer C 16 % * * * * *
Customer D 21 % 20 % 24 % 15 % 33 % 57 %
_______________________________
* Less than 10%
Fair Value of Financial Instruments
Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:
Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and
Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.
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The carrying value of accounts receivable, accounts payable, and other accruals readily convertible into cash approximate fair value because of the short-term nature of the instruments. The Company’s financial instruments consist of Level 1 assets. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash equivalents.
Recently Adopted Accounting Pronouncements
The Company adopted Accounting Standards Update (ASU) 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification (ASC) Topic 606. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The guidance is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within fiscal years beginning after December 15, 2025.
The Company adopted ASU 2025-05 effective January 1, 2026, on a prospective basis. The adoption of ASU 2025-05 did not have a significant impact on the financial statements and related disclosures.
Recently Issued Accounting Pronouncements Under Evaluation
In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses , which requires additional disclosure of certain amounts included in the expense captions presented on the statement of operations, as well as disclosures about selling expenses. ASU 2024-03 is effective for the Company’s annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, on a prospective basis, with the option for retrospective application. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact that the standard will have on its financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Topic 350): Targeted Improvements to the Accounting for Internal-Use Software , which updates guidance for recognizing software development costs to better align the accounting with how software is developed. The update removes references to development stages, introduces a probable completion threshold, and incorporates website development costs into the internal-use software framework under ASC Topic 350. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those fiscal years, on a prospective basis, with the option for retrospective application. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact that the standard will have on its financial statements and related disclosures.
In December 2025, the FASB issued ASU No.2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements , which clarifies interim disclosure requirements and the applicability of Topic 270. The objective of the update is to provide clarity about current interim requirements. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 are effective for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact that the standard will have on its financial statements and related disclosures.
In December 2025, the FASB issued ASU No.2025-12, Codification Improvements , which addresses suggestions received from stakeholders regarding the Accounting Standards Codification and makes other incremental improvements to GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. The amendments to ASC 260 must be applied retrospectively, while all other amendments may be applied prospectively or retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact that the standard will have on its financial statements and related disclosures.
The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on the financial statements and related disclosures.
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3. Statements of Operations and Comprehensive Loss Components
Revenue
The Company sells products to its distributors, original equipment manufacturers, original design manufacturers and contract manufacturers. The Company also recognizes revenue under licensing, engineering services and royalty agreements with some customers.
The following table presents the Company’s revenues disaggregated by sales channel (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Distributor $ 14,790 $ 8,731 $ 28,112 $ 16,649
Non-distributor 3,946 4,470 5,496 9,690
Total revenue $ 18,736 $ 13,201 $ 33,608 $ 26,339
The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Point in time $ 15,452 $ 11,416 $ 29,693 $ 22,574
Over time 3,284 1,785 3,915 3,765
Total revenue $ 18,736 $ 13,201 $ 33,608 $ 26,339
The following table presents the Company’s revenues disaggregated by type (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Product sales $ 15,313 $ 11,091 $ 29,413 $ 22,117
Licensing — 643 — 1,154
Royalties 139 325 280 457
Engineering services and other revenue 3,284 1,142 3,915 2,611
Total revenue $ 18,736 $ 13,201 $ 33,608 $ 26,339
The Company licenses its intellectual property and is entitled to consideration based on the customer’s sales. The Company makes estimates in instances when the customer reports sales on a lagged basis and actual information is not available timely. The estimates are based on historical trends in the customer’s activity and current market conditions. The amounts are reported in licensing, royalty, engineering services and other revenue in the statements of operations and comprehensive loss.
The Company recognizes revenue in three primary geographic regions: Asia-Pacific (APAC); North America; and Europe, Middle East and Africa (EMEA). The Company recognizes revenue by geography based on the region in which its products are sold, and not where the end products in which they are assembled are shipped. Revenue by region for the periods indicated was as follows (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
APAC $ 10,866 $ 8,582 $ 20,060 $ 15,841
North America 5,256 2,926 8,104 5,409
EMEA 2,614 1,693 5,444 5,089
Total revenue $ 18,736 $ 13,201 $ 33,608 $ 26,339
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Other Income, Net
On August 14, 2024, the Company received a strategic award to develop a long-term plan to provide manufacturing services for aerospace and defense segments (the Award). Under the Award, the Company will provide a plan to mitigate risks to its MRAM manufacturing supply chain. Pursuant to the Award, the Company may receive cash payments upon the achievement of certain technical tasks and deliverables. The Award allows for milestones totaling up to approximately $ 14.6 million for the Company over a span of 2.5 years.
The Award is not in the ordinary course of the Company’s business and hence not a contract with a customer. The Company has applied the revenue recognition principles under Accounting Standards Codification 606 by analogy.
During the three and six months ended June 30, 2026, the Company recognized $ 0.5 million and $ 2.6 million of other income related to the Award, respectively, based on progress toward completion. Income recognition is based on an input method that measures costs incurred to date relative to total estimated costs over the term of the Award. During the three and six months ended June 30, 2026, the Company billed $ 0.5 million and $ 1.5 million relating to the Award, respectively. As of June 30, 2026, $ 0.3 million of the billed amount for the Award is recorded as a contract obligations liability on the condensed balance sheets. This amount represents the Company’s obligation to perform future services for which the Company has received or is entitled to receive payment but which are not yet fulfilled.
4. Balance Sheet Components
Inventory
Inventory consisted of the following (in thousands):
June 30,
2026 December 31,
2025
Raw materials $ 505 $ 323
Work-in-process 12,021 9,269
Finished goods 559 1,142
Total inventory $ 13,085 $ 10,734
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
June 30,
2026 December 31,
2025
Manufacturing equipment $ 15,341 $ 15,070
Computer and network equipment 689 731
Furniture and fixtures 113 113
Construction in Progress 11,835 11,131
Leasehold improvements 1,476 1,476
Total property and equipment, gross 29,454 28,521
Less: accumulated depreciation ( 14,611 ) ( 14,381 )
Total property and equipment, net $ 14,843 $ 14,140
For the three months ended June 30, 2026 and 2025, the depreciation expense was $ 0.3 million and $ 0.4 million, respectively. For the six months ended June 30, 2026 and 2025, depreciation expense was $ 0.5 million and $ 0.7 million, respectively.
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Intangible Assets, Net
The gross carrying amounts and accumulated amortization of intangible assets are as follows at the dates indicated (in thousands):
June 30, 2026
Weighted-
Average
Life
(in years) Gross Carrying
Amount Accumulated
Amortization Net
Carrying
Amount
Internal-use software 0.6 $ 4,525 $ ( 3,628 ) $ 897
Total intangible assets $ 4,525 $ ( 3,628 ) $ 897
December 31, 2025
Weighted-
Average
Life
(in years) Gross Carrying
Amount Accumulated
Amortization Net
Carrying
Amount
Internal-use software 1.0 $ 4,456 $ ( 2,742 ) $ 1,714
Total intangible assets $ 4,456 $ ( 2,742 ) $ 1,714
For the three months ended June 30, 2026 and 2025, the amortization expense for the intangible assets was $ 0.5 million and $ 0.4 million, respectively. For the six months ended June 30, 2026 and 2025, the amortization expense for the intangible assets was $ 0.9 million and $ 0.9 million, respectively.
Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
June 30
2026 December 31
2025
Payroll-related expenses $ 2,680 $ 2,481
Legal fees 2,564 185
Inventory 788 425
Other 622 560
Total accrued liabilities $ 6,654 $ 3,651
Deferred Revenue
During the three months ended June 30, 2026, the Company executed two engineering services agreements with two customers. The total consideration in the two arrangements is $ 40.3 million. The Company is recognizing revenue related to the performance obligations over time using the input method based on costs incurred to date relative to the total expected costs of the contract and began recognizing revenue in the second quarter of 2026.
As of June 30, 2026, the Company has billed $ 6.2 million for the performance under the agreements. Under the input method of recognition, the Company has recognized $ 3.3 million in revenue for the three and six months ended June 30, 2026. As a result, the Company has recorded $ 2.9 million in deferred revenue as of June 30, 2026. The Company expects to recognize the remaining $ 37.0 million of the transaction price as services are performed throughout the contractual period and performance is expected to be complete in the year ended December 31, 2028.
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5. Commitments and Contingencies
Leases
Operating leases consist of fabrication, lab, and office space expiring at various dates through 2029. Finance leases relate to a server lease expiring in February 2029. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The undiscounted future non-cancellable lease payments under the Company’s operating and finance leases were as follows (in thousands):
As of June 30, 2026 Amount
Remainder of 2026 $ 749
2027 1,513
2028 658
2029 48
Total lease payments 2,968
Less: imputed interest ( 135 )
Total lease liabilities 2,833
Less: current portion of lease liabilities ( 1,405 )
Total lease liabilities, net of current portion $ 1,428
Other information related to the Company’s operating lease liabilities was as follows:
June 30,
2026 December 31,
2025
Weighted-average remaining lease term (years) 2.02 2.44
Weighted-average discount rate 4.77 % 4.50 %
Other information related to the Company’s finance lease liabilities was as follows:
June 30,
2026 December 31,
2025
Weighted-average remaining lease term (years) 2.67 3.16
Weighted-average discount rate 3.90 % 3.90 %
Legal Proceedings
From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Other than the patent infringement lawsuit disclosed below, management is currently not aware of any matters that would have a material adverse effect on the financial position, results of operations or cash flows of the Company.
Patent Infringement Lawsuit
On January 28, 2026, Avalanche Technology, Inc. filed a patent infringement lawsuit against the Company in the United States District Court for the District of Delaware, alleging infringement of certain patents. Avalanche Technology, Inc. also filed a complaint with the U.S. International Trade Commission seeking the institution of an investigation under Section 337 of the Tariff Act of 1930, as amended. The Company has retained a dedicated legal team and is vigorously defending itself against such claims. As of June 30, 2026, the Company has not recorded an accrual related to these matters because it currently estimates that while possible, a loss is not probable. Further, any possible range of loss cannot reasonably be estimated at this time.
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6. Stock-Based Compensation
Share-Based Compensation Expense
The following table presents the details of the Company’s share-based compensation expense (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
General and administrative $ 674 $ 688 $ 1,337 $ 1,405
Research and development 372 437 722 934
Sales and marketing 170 133 316 310
Cost of sales 158 161 299 347
Total stock-based compensation $ 1,374 $ 1,419 $ 2,674 $ 2,996
Summary of Stock Option Activity
The following table summarizes the stock option activity for the six months ended June 30, 2026:
Options Outstanding
Number of
Options Weighted-
Average
Exercise
Price Per
Share Weighted-
Average
Remaining
Contractual
Life (years) Aggregate
Intrinsic
Value
(In thousands)
Balance—December 31, 2025 1,365,002 $ 6.16 4.9 $ 4,303
Options granted —
Options exercised ( 820,158 ) $ 6.23 $ 18,470
Options cancelled/forfeited ( 853 ) $ 11.16
Balance—June 30, 2026 543,991 $ 6.03 4.4 $ 9,872
Options exercisable—June 30, 2026 543,182 $ 6.03 4.4 $ 9,858
The total grant date fair value of options vested was $ 0.1 million and $ 0.2 million during the three months ended June 30, 2026 and 2025, respectively, and $ 0.1 million and $ 0.4 million during the six months ended June 30, 2026 and 2025, respectively.
No options were granted during the three and six months ended June 30, 2026 or 2025.
As of June 30, 2026, unrecognized compensation expense related to unvested options was not material and is expected to be recognized over a weighted-average period of 0.78 years. Stock-based compensation cost for options capitalized within inventory at June 30, 2026 and 2025 was not material.
2016 Employee Stock Purchase Plan
In January 2026, there was an increase of 229,777 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP) pursuant to the terms of the ESPP. The Company had 1,304,274 shares available for future issuance under the ESPP as of June 30, 2026. Employees purchased 67,049 shares for $ 290,000 during the three and six months ended June 30, 2026. Employees purchased 61,181 shares for $ 254,000 during the three and six months ended June 30, 2025.
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Restricted Stock Units
The following table summarizes restricted stock units (RSUs) activity for the six months ended June 30, 2026:
RSUs Outstanding
Number of
Restricted Stock
Units Weighted-
Average
Grant Date
Fair Value Per
Share
Balance—December 31, 2025 1,294,166 $ 6.63
Granted 884,683 $ 9.48
Vested ( 406,434 ) $ 7.31
Cancelled/forfeited ( 3,100 ) $ 7.01
Balance—June 30, 2026 1,769,315 $ 7.90
The fair value of RSUs is determined on the date of grant based on the market price of the Company’s common stock on that date . As of June 30, 2026, there was $ 12.8 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.9 years. Compensation cost capitalized within inventory was not material as of June 30, 2026 and 2025 .
7. Significant Agreements
GLOBALFOUNDRIES Inc. Joint Development Agreement
Since October 17, 2014, the Company has participated in a joint development agreement (JDA) with GLOBALFOUNDRIES Inc. (GF), a semiconductor foundry, for the joint development of Spin-transfer Torque MRAM (STT-MRAM) technology to produce a family of discrete and embedded MRAM technologies. The term of the JDA is until the completion, termination, or expiration of the last statement of work entered into pursuant to the JDA. The agreement was extended on December 31, 2019 to include a new phase of support for 12nm MRAM development.
Under the current JDA extension terms, each party licenses its relevant intellectual property to the other party. For certain jointly developed works, the parties have agreed to follow an invention allocation procedure to determine ownership. In addition, GF possesses the exclusive right to manufacture the Company’s discrete and embedded STT-MRAM devices developed pursuant to the JDA until the earlier of three years after the qualification of the MRAM device for a particular technology node or four years after the completion of the relevant statement of work under which the device was developed. For the same exclusivity period associated with the relevant device, GF agreed not to license intellectual property developed in connection with the JDA to named competitors of the Company.
If GF manufactures, sells, or transfers to customers wafers containing production quantified STT-MRAM devices that utilize certain design information, GF will be required to pay the Company a royalty.
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8. Net Loss Per Common Share
Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period less shares subject to repurchase, without consideration of potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method by dividing net loss by the total weighted average shares of common stock outstanding in addition to the potential impact of dilutive securities including restricted stock units, warrants, and options. In periods with a net loss, potentially dilutive securities are excluded from the Company’s calculation of earnings per share as their inclusion would have an antidilutive effect.
The following tables set forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts):
Basic and diluted EPS
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Numerator:
Net loss $ ( 3,589 ) $ ( 670 ) $ ( 3,885 ) $ ( 1,836 )
Net loss attributable to common stockholders, diluted $ ( 3,589 ) $ ( 670 ) $ ( 3,885 ) $ ( 1,836 )
Denominator:
Weighted-average shares of common stock outstanding, basic 23,882,618 22,504,957 23,512,274 22,347,411
Weighted-average shares of common stock outstanding, diluted 23,882,618 22,504,957 23,512,274 22,347,411
Net loss per common share, basic
$ ( 0.15 ) $ ( 0.03 ) $ ( 0.17 ) $ ( 0.08 )
Net loss per common share, diluted $ ( 0.15 ) $ ( 0.03 ) $ ( 0.17 ) $ ( 0.08 )
Potentially dilutive securities representing 1.9 million and 1.6 million stock options and RSUs that were outstanding during the three months ended June 30, 2026, and 2025, respectively, and 1.7 million and 1.6 million stock options and RSUs outstanding during the six months ended June 30, 2026 and 2025, respectively, were excluded from the computation of diluted earnings per common share during these periods as their inclusion would have an antidilutive effect.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.