What changed in this filing

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Item 1A. Risk Factors

2020-08-10 compared with 2020-05-11 · 20 added, 23 removed, 308 unchanged (12% of the section changed)

10 unchanged sentences

We have a limited operating history upon which investors may rely in evaluating our business and prospects.

We have generated limited revenues to date, and as of March 31, 2020, we had an accumulated deficit of approximately $272 million.

We have generated limited revenues to date, and as of June 30, 2020, we had an accumulated deficit of approximately $280 million.

Our ability to generate revenues and achieve profitability will depend on our ability to execute our business plan, complete the development and approval of our technology, incorporate the technology into products that customers wish to buy, and if necessary, secure additional financing.

33 unchanged sentences

We believe the outbreak of COVID-19 has delayed adoption of our technology by potential customers who temporarily shut down their workforce and supply chain based in China.

In one case, this outbreak delayed the launch of a new product that incorporates our technology.

In the United States, COVID-19 has resulted in travel and other restrictions in order to reduce the spread of the disease, including executive orders in California and several other state and local orders across the country, which, among other things, direct individuals to shelter at their places of residence, direct businesses and governmental agencies to cease non-essential operations at physical locations, prohibit certain non-essential gatherings, and order cessation of non-essential travel.

As a result of these developments, we have implemented work-from-home policies for our employees.

The effects of the state executive order, local shelter-in-place orders, government-imposed quarantines and our work-from-home policies may negatively impact productivity, disrupt our research and development or other operations and delay the launch of our customers’ new products that incorporate our technology, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on our ability to conduct our business in the ordinary course.

Due to the rapid development and fluidity of this situation, the magnitude and duration of the pandemic and its impact on our operations and liquidity is uncertain as of the date of this report.

As a result of these developments, we have implemented work-from-home policies for our employees that will likely be in place until the end of the year.

The effects of state executive orders, local shelter-in-place orders, government-imposed quarantines and our work-from-home policies could negatively impact productivity, disrupt our research and development or other operations and delay the planned launch of our customers’ new products that incorporate our technology, the magnitude of which will depend, in part, on the length and severity of the continuing restrictions and other limitations on our ability to conduct our business in the ordinary course.

Due to the continuing developments and fluidity of this situation, the magnitude and duration of the pandemic and its impact on our operations and liquidity are still uncertain as of the date of this report.

In addition, COVID-19 has resulted and may continue to result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in a global economic downturn that could affect interest in our products or demand by potential customers.

Any of these events could materially and

adversely affect our business, results of operations and financial condition.

Any of these events could materially and adversely affect our business, results of operations and financial condition.

The extent of the impact will depend on future developments, which are highly uncertain and cannot be predicted.

32 unchanged sentences

It may also be subject to regulation by other agencies.

Regulatory concerns include whether human

exposure to radio frequency emissions are below specified thresholds.

Regulatory concerns include whether human exposure to radio frequency emissions are below specified thresholds.

Higher levels of exposure require separate approval.

For example, transmitting more power over a certain distance or transmitting power over a greater distance may require separate regulatory approvals.

In addition, we design our technology to operate in a RF band that is also used for Wi-Fi routers and other wireless consumer electronics, and we also design it to ope rate at different frequencies as demanded for some customer applications.

In addition, we design our technology to operate in a RF band

that is also used for Wi-Fi routers and other wireless consumer electronics, and we also design it to operate at different frequencies as demanded for some customer applications.

Applications at different frequencies may require separate regulatory approvals.

1 unchanged sentence

If approvals are not obtained in a timely and cost-efficient manner, our business and operating results could be materially adversely affected.

In addition, legal or re gulatory developments could impose additional restrictions or costs on us that could require us to redesign our technology or future products, or that are difficult or impracticable to comply with, all of which would adversely affect our revenues and finan cial results.

In addition, legal or regulatory developments could impose additional restrictions or costs on us that could require us to redesign our technology or future products, or that are difficult or impracticable to comply with, all of which would adversely affect our revenues and financial results.

We depend upon our strategic relationship with Dialog Semiconductor, a provider of electronics products, and there can be no assurance that we will achieve the expected benefits of this relationship.

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As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal controls.

Although our management has determined that our internal control over financial reporting was effective as of March 31, 2020, we cannot assure you that we will not identify any material weakness in our internal control in the future.

Although our management has determined that our internal control over financial reporting was effective as of June 30, 2020, we cannot assure you that we will not identify any material weakness in our internal control in the future.

While we are no longer an emerging growth company and we included an attestation report on the effectiveness of our internal control over financial reporting of our independent registered public accounting firm in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, it is possible that we will qualify as a “smaller reporting company” under new SEC rules such that an auditor attestation report will no longer be required.

45 unchanged sentences

If we become subject to a patent infringement or other intellectual property lawsuit and if the relevant patents or other intellectual property were upheld as valid and enforceable and we were found to infringe or violate the terms of a license to which we are a party, we could be prevented from selling any infringing products of ours unless we could obtain a license or were able to redesign the product to avoid infringement.

If we were unable to obtain a license or successfully redesign, we might b e prevented from selling our technology under development or other future products.

If we were unable to obtain a license or successfully redesign, we might be prevented from selling our technology under development or other future products.

If there is a determination that we have infringed the intellectual property rights of a competitor or other person, we may be required to pay damages, pay a settlement, or pay ongoing royalties, or be enjoined.

59 unchanged sentences

The market price of our common stock has fluctuated significantly since our initial public offering in 2014.

Our common stock has experienced an intra-day trading high of $5.28 per share and a low of $0.61 per share on The Nasdaq Stock Market over the last 52 weeks, as of May 8, 2020.

Our common stock has experienced an intra-day trading high of $4.29 per share and a low of $0.61 per share on The Nasdaq Stock Market over the last 52 weeks, as of August 6, 2020.

The price of our common stock is likely to continue to fluctuate significantly in response to many factors that are beyond our control, including:

1 unchanged sentence

actual or anticipated variations in operating results;

general economic conditions and perceptions of future economic growth prospectus in the economy at large, including as a result of the impact of the COVID-19 pandemic;

the limited number of holders of our common stock;

4 unchanged sentences

additions or departures of key personnel;

general economic conditions and perceptions of future economic growth prospectus in the economy at large, including as a result of the impact of the COVID-19 pandemic;

sales or other transactions involving our capital stock.

3 unchanged sentences

We cannot assure you that we would, at any time, generate sufficient surplus cash that would be available for distribution to the holders of our common stock as a dividend.

Concentration of ownership among our existing executive officers, directors and significant stockholders may prevent new investors from influencing significant corporate decisions.

All decisions with respect to the management of our company are made by our board of directors and our officers, who beneficially own approximately 5.1% of our common stock collectively as of April 30, 2020.

In addition, our greater than 5% stockholders such as Dialog Semiconductor plc, beneficially owned approximately 5.8% of our common stock as of April 30, 2020.

As a result, these stockholders will be able to exercise a significant level of control over all matters requiring stockholder approval, including the election of directors, amendment of our certificate of incorporation and approval of significant corporate transactions.

This control could have the effect of delaying or preventing a change of control of our company or changes in management and will make the approval of certain transactions difficult or impossible without the support of these stockholders.

We expect to continue to incur significant costs as a result of being a public reporting company and our management will be required to devote substantial time to meet our compliance obligations.

3 unchanged sentences

Those costs can be expected to increase as we emerged from emerging growth company status and will increase significantly if we no longer qualify as a smaller reporting company.

We may be subject to securities litigation, which is expen sive and could divert management attention.

Concentration of ownership among our existing executive officers, directors and significant stockholders may prevent new investors from influencing significant corporate decisions.

All decisions with respect to the management of our company are made by our board of directors and our officers, who beneficially own approximately 5.5% of our common stock collectively as of July 29, 2020.

We may be subject to securities litigation, which is expensive and could divert management attention.

Our stock price has fluctuated in the past, reacting to news such as our past announcements of FCC approvals and it may be volatile in the future.

26 unchanged sentences

provide that all vacancies may be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum.

In addition, Section 203 of the Delaware General Corporation Law ma y limit our ability to engage in any business combination with a person who beneficially owns 15% or more of our outstanding voting stock unless certain conditions are satisfied.

This restriction lasts for a period of three years following the share acquis ition.

In addition, Section 203 of the Delaware General Corporation Law may limit our ability to engage in any business combination with a person who beneficially owns 15% or more of our outstanding voting stock unless certain conditions are satisfied.

This restriction lasts for a period of three years following the share acquisition.

These provisions may have the effect of entrenching our management team and may deprive you of the opportunity to sell your shares to potential acquirers at a premium over prevailing prices.

8 unchanged sentences

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 1A. Risk Factors