What changed in this filing

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Item 1. Financial Statements

2022-08-16 compared with 2022-05-16 · 130 added, 87 removed, 361 unchanged (38% of the section changed)

2 unchanged sentences

CONDENSED BALANCE SHEETS

March 31, 2022

June 30, 2022

December 31, 2021

19 unchanged sentences

Preferred Stock, $ 0.00001 par value, 10,000,000 shares authorized

at March 31, 2022 and December 31, 2021;

at June 30, 2022 and December 31, 2021;

no shares issued or

outstanding at June 30, 2022 and December 31, 2021.

Common Stock, $ 0.00001 par value, 200,000,000 shares authorized

at March 31, 2022 and December 31, 2021, respectively;

77,055,028 and 76,667,205 shares issued and outstanding at

March 31, 2022 and December 31, 2021, respectively.

at June 30, 2022 and December 31, 2021;

77,464,571 and

76,667,205 shares issued and outstanding at June 30, 2022 and

December 31, 2021, respectively.

Additional paid-in capital

7 unchanged sentences

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Costs and expenses:

3 unchanged sentences

General and administrative

Severance expense

Total costs and expenses

18 unchanged sentences

Proceeds from contributions to the ESPP

Balance at March 31, 2022

Balance at March 31, 2022 (unaudited)

( 343,552,757

Stock-based compensation - options

Stock-based compensation - RSUs

Stock-based compensation - ESPP

Issuance of shares for RSUs

Proceeds from contributions to the ESPP

Balance at June 30, 2022 (unaudited)

( 350,570,506

Stockholders'

5 unchanged sentences

Proceeds from contributions to the ESPP

Balance at March 31, 2021

Balance at March 31, 2021 (unaudited)

( 303,498,509

Stock-based compensation - RSUs

Stock-based compensation - performance share units ("PSUs")

Stock-based compensation - ESPP

Issuance of shares for RSUs

Issuance of shares for PSUs

Proceeds from contributions to the ESPP

Balance at June 30, 2021 (unaudited)

( 314,514,338

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

1 unchanged sentence

CONDENSED STATEMENTS OF CASH FLOWS

For the Three Months Ended

For the Six Months Ended

Cash flows from operating activities:

4 unchanged sentences

Changes in operating lease right-of-use assets

Bad debt expense

Changes in operating assets and liabilities:

16 unchanged sentences

Cash and cash equivalents - ending

Supplemental disclosure of non-cash financing activities:

Supplemental disclosure of non-cash investing and financing activities:

Increase in operating lease right-of-use assets and operating lease liabilities

Common stock issued for RSUs

Common stock issued for PSUs

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

6 unchanged sentences

Note 2 – Liquidity and Management Plans

During the three months ended March 31, 2022 and 2021, the Company recorded revenue of $ 215,961 and $ 145,065 , respectively.

During the three months ended March 31, 2022 and 2021, the Company recorded net losses of $ 7,152,718 and $ 8,525,763 , respectively.

Net cash used in operating activities was $ 6,356,971 and $ 5,976,550 for the three months ended March 31, 2022 and 2021, respectively.

During the three and six months ended June 30, 2022, the Company recorded revenue of $ 232,971 and $ 448,932 , respectively.

During the three and six months ended June 30, 2021, the Company recorded revenue of $ 184,960 and $ 330,025 , respectively.

During the three and six months ended June 30, 2022, the Company recorded net losses of $ 7,017,749 and $ 14,170,467 , respectively.

During the three and six months ended June 30, 2021, the Company recorded net losses of $ 11,015,829 and $ 19,541,592 , respectively.

Net cash used in operating activities was $ 13,453,948 and $ 12,537,690 for the six months ended June 30, 2022 and 2021, respectively.

The Company is currently meeting its liquidity requirements through the proceeds of securities offerings that raised net proceeds of $ 53,556,202 during 2020, and $ 27,043,751 during the fourth quarter of 2021, proceeds from contributions to the Company’s employee stock purchase plan (the “ESPP”), along with payments received from customers.

As of March 31, 2022, the Company had cash on hand of $ 42,774,171 .

The Company expects that cash on hand as of March 31, 2022, together with anticipated revenues, will be sufficient to fund the Company’s operations through May 2023.

As of June 30, 2022, the Company had cash on hand of $ 35,669,685 .

The Company expects that cash on hand as of June 30, 2022, together with anticipated revenues, will be sufficient to fund the Company’s operations through August 2023.

Research and development of new technologies is by its nature unpredictable.

31 unchanged sentences

The wireless charging system revenue consists of revenue from product development projects and production-level systems.

During the three months ended March 31, 2022 and 2021, the Company recognized $ 215,961 and $ 145,065 , respectively, in revenue.

During the three and six months ended June 30, 2022, the Company recognized $ 232,971 and $ 448,932 , respectively, in revenue.

During the three and six months ended June 30, 2021, the Company recognized $ 184,960 and $ 330,025 , respectively, in revenue.

The Company records revenue associated with product development projects that it enters into with certain customers.

12 unchanged sentences

Patent application costs, which are generally legal costs, are expensed as research and development costs until such time as the future economic benefits of such patents become more certain.

The Company incurred research and development costs of $ 3,527,146 and $ 4,591,244 for the three months ended March 31, 2022 and 2021, respectively.

The Company incurred research and development costs of $ 3,209,910 and $ 6,103,694 for the three months ended June 30, 2022 and 2021, respectively.

The Company incurred research and development costs of $ 6,737,056 and $ 10,694,938 for the six months ended June 30, 2022 and 2021, respectively.

Note 3 – Summary of Significant Accounting Policies, continued

7 unchanged sentences

A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.

As of March 31, 2022, no liability for unrecognized tax benefits was required to be reported.

As of June 30, 2022, no liability for unrecognized tax benefits was required to be reported.

The guidance from ASC 740, Income Taxes, also discusses the classification of related interest and penalties on income taxes.

The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense.

No interest or penalties were recorded during the three months ended March 31, 2022 or 2021.

No interest or penalties were recorded during the three and six months ended June 30, 2022 or 2021.

The Company files income tax returns with the United States and California governments.

3 unchanged sentences

Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury stock method), the vesting of restricted stock units (“RSUs”) and performance stock units (“PSUs”) and the enrollment of employees in the ESPP.

The computation of diluted loss per share excludes potentially dilutive securities of 5,682,499 and 7,137,741 for the three months ended March 31, 2022 and 2021, respectively, because their inclusion would be anti-dilutive.

The computation of diluted loss per share excludes potentially dilutive securities of 6,212,707 and 6,323,445 for the three months ended June 30, 2022 and 2021, respectively, and 6,212,707 and 6,323,445 for the six months ended June 30, 2022 and 2021, respectively because their inclusion would be anti-dilutive.

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

Warrants issued to private investors

12 unchanged sentences

See Note 4 – Commitments and Contingencies, Operating Leases for further discussion of the Company’s operating leases.

Recent Accounting Pronouncements

In May 2021, the FASB issued ASU No.

2021-04, “ Earnings Per Share (Topic 260), Debt—Modifications and Own Equity (Subtopic 815-40Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s):

Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Extinguishments (Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force).” ASU 2021-04 clarifies accounting for modifications or exchanges of equity-classified warrants.

This standard is effective for annual reporting periods beginning after December 15, 2021 .

The Company adopted this standard, and the adoption did not have a material impact on its financial statements .

In November 2021, the FASB issued ASU No.

2021-10, “Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance.

ASU 2021-10 requires business entities to disclose certain types of government assistance they receive in the notes to the financial statements.

This standard is effective for annual reporting periods beginning after December 15, 2021 .

The Company adopted this standard, and the adoption did not have a material impact on its financial statements.

Management’s Evaluation of Subsequent Events

The Company evaluates events that have occurred after the balance sheet date of March 31, 2022, through the date which the financial statements are available to be issued.

The Company evaluates events that have occurred after the balance sheet date of June 30, 2022, through the date which the financial statements are available to be issued.

Note 4 – Commitments and Contingencies

1 unchanged sentence

San Jose Lease

On July 1, 2019, the Company signed a new lease agreement for the lease of its office space at its corporate headquarters in San Jose, California for an additional three years .

Upon expiration of the original lease on September 30, 2019, the new monthly lease payment starting October 1, 2019 was $ 52,970 and is subject to annual escalations up to a maximum monthly lease payment of $ 64,941 .

Operating Leases, continued

On May 20, 2022, the Company signed a lease amendment to the existing lease of its office space at its corporate headquarters in San Jose, California, extending the term of the lease for an additional three years .

Upon signing the new lease amendment, the Company recorded a new right-of-use lease asset of $ 2,071,336 and operating lease liability of $ 2,071,336 , using a present value discount rate of 3.0 %.

Upon expiration of the original lease on September 30, 2022, the new monthly lease payment starting October 1, 2022 will be $ 58,903 , subject to annual escalations up to a maximum monthly lease payment of $ 62,490 .

Costa Mesa Lease

8 unchanged sentences

The Company follows ASC 842, Leases, (“Topic 842”) and recognizes the required right-of-use assets and operating lease liabilities on its balance sheet.

The Company anticipates having future total lease payments of $ 470,120 during the period from the second quarter of 2022 to the third quarter of 2023.

As of March 31, 2022, the Company has total operating lease right-of-use assets of $ 432,249 , current portion operating lease liabilities of $ 438,698 and long-term portion of operating lease liabilities of $ 27,012 .

The weighted average remaining lease term is 0.7 years as of March 31, 2022.

A reconciliation of undiscounted cash flows to lease liabilities recognized as of March 31, 2022 is as follows:

The Company anticipates having future total lease payments of $ 2,446,936 during the period from the third quarter of 2022 to the third quarter of 2025.

As of June 30, 2022, the Company has total operating lease right-of-use assets of $ 2,318,717 , current portion of operating lease liabilities of $ 721,500 and long-term portion of operating lease liabilities of $ 1,615,527 .

The weighted average remaining lease term is 3.2 years as of June 30, 2022.

A reconciliation of undiscounted cash flows to lease liabilities recognized as of June 30, 2022 is as follows:

Total future lease payments

3 unchanged sentences

On June 25, 2015, the Company entered into a three-year agreement to license electronic design automation software in a hosted environment.

Pursuant to the agreement, under which services began July 2015, the Company is required to remit quarterly payments.

Pursuant to the agreement, under which services began in July 2015, the Company is required to remit quarterly payments.

In June 2021, the Company entered into its latest renewal of the agreement for an additional three years , and the Company is required to remit quarterly payments of approximately $ 233,000 through the second quarter of 2024.

6 unchanged sentences

Under the Bonus Plan, the Compensation Committee is responsible for selecting the amounts of potential bonuses for executive officers, the performance metrics used to determine whether any such bonuses will be paid and determining whether those performance metrics have been achieved.

During the three months ended March 31, 2022, the Company accrued $ 225,802 in expense under the Bonus Plan, which will be paid during the second quarter of 2022.

During the three months ended March 31, 2021, the Company accrued $ 391,578 in expense under the Bonus Plan, which was paid during the second quarter of 2021.

During the three months ended June 30, 2022, the Company accrued $ 275,990 in expense under the Bonus Plan, which will be paid during the third quarter of 2022.

During the three months ended June 30, 2021, the Company accrued $ 391,578 in expense under the Bonus Plan, which was paid during the third quarter of 2021.

During the six months ended June 30, 2022 and 2021, the Company accrued $ 501,792 and $ 783,156 in expense under the Bonus Plan, respectively.

The expense under the Bonus Plan is recorded under operating expenses on the Company’s Condensed Statement of Operations within each executive’s department.

Note 4 – Commitments and Contingencies, continued

Severance and Change in Control Agreement

On March 15, 2018, the Compensation Committee approved a form of Severance and Change in Control Agreement (“Severance Agreement”) that the Company may enter into with executive officers (each, an “Executive”).

Note 4 – Commitments and Contingencies, continued

Under the Severance Agreement, if an Executive is terminated in a qualifying change in control termination, the Company agrees to pay the Executive six to 12 months of that Executive’s monthly base salary.

12 unchanged sentences

Johnston and the Compensation Committee, and (b) an additional equity award of up to 25,000 PSUs per calendar year for 2022, 2023 and 2024, respectively, based on outperformance of agreed upon goals per calendar year, as determined by the Compensation Committee with approval of the Board.

As of March 31, 2022, the PSUs have no t yet been granted.

As of June 30, 2022, the PSUs had no t yet been granted.

On July 20, 2022, the Compensation Committee approved by unanimous written consent, the PSU grants to Mr.

Johnston pursuant to the terms of Mr.

Johnston’s offer letter and subject to the outperformance of certain performance metrics as determined by the Compensation Committee.

In connec ti o n w ith M r.

6 unchanged sentences

J ohn st on ’s COBR A p r em i um s o n h is beha lf f o r 1 8 mon t h s.

Note 4 – Commitments and Contingencies, continued

Johnston’s agreement additionally provides that, in the event of a change-in-control qualifying termination, Mr.

4 unchanged sentences

Johnston is also eligible to receive all customary and usual benefits generally available to senior executives of the Company.

Note 4 – Commitments and Contingencies, continued

Executive Transition Agreement – Stephen Rizzone

17 unchanged sentences

All compensation under the Separation Agreement has been or will be subject to applicable withholding.

As of March 31, 2022, the Company had unpaid accrued severance expense of $ 909,873 which is expected to be paid through August 31, 2023.

As of June 30, 2022, the Company had unpaid accrued severance expense of $ 732,424 pertaining to Mr.

Rizzone’s Separation Agreement which is expected to be paid through August 31, 2023.

Executive Transition Agreement – Neeraj Sahejpal

On April 29, 2022, the Company announced the departure of Neeraj Sahejpal, former Senior Vice President of Marketing and Business Development, effective April 30, 2022.

Pursuant to the terms of Mr.

Sahejpal’s severance and change of control agreement with the Company, Mr.

Sahejpal received payments and benefits including compensation equal to 12 months of Mr.

Sahejpal’s then-current salary of $ 261,250 , 12 months of maximum potential bonus of $ 261,250 , and 12 months of COBRA reimbursements.

In addition, all RSUs held by Mr.

Sahejpal that were due to vest in the 12 months after his departure, totaling RSUs covering 85,943 shares, were accelerated.

The Company recorded $ 633,444 in total severance expense pertaining to Mr.

Sahejpal’s departure for the three and six months ended June 30, 2022.

As of June 30, 2022, the Company had unpaid accrued severance expense of $ 12,396 pertaining to Mr.

Sahejpal’s agreement which is expected to be paid through April 30, 2023.

Note 4 – Commitments and Contingencies, continued

Strategic Alliance Agreement

24 unchanged sentences

a base prospectus, which covers the offering, issuance and sale by the Company of up to $ 75,000,000 of its common stock, preferred stock, debt securities, warrants to purchase our common stock, preferred stock or debt securities, subscription rights to purchase its common stock, preferred stock or debt securities and/or units consisting of some or all of these securities;

and an at-the-market sales agreement prospectus supplement covering the offering, issuance and sale by the Company of up to a maximum aggregate offering price of $ 40,000,000 of its common stock that may be issued and sold under that certain sales agreement (the “ATM Program”).

The $40,000,000 of common stock to be offered, issued and sold under the sales agreement prospectus is included in the $75,000,000 of securities that may be offered, issued and sold by the Company under the base prospectus.

and an at-the-market sales agreement prospectus supplement covering the offering, issuance and sale by the Company of up to a maximum aggregate offering price of $ 40,000,000 of its common stock that may be issued and sold under the At Market Issuance Sales Agreement, as amended, between the Company, B.

Riley, Roth Capital Partners LLC and Ladenburg Thalmann & Co.

(the “ATM Program”).

The $40,000,000 of common stock to be offered, issued and sold under the ATM Program is included in the $75,000,000 of securities that may be offered, issued and sold by the Company under the base prospectus.

Pursuant to this shelf registration statement, the Company sold shares which raised net proceeds of $ 38,832,711 (net of $ 1,167,289 in issuance costs) during the third and fourth quarters of 2020 under the ATM Program.

13 unchanged sentences

Effective on June 16, 2021, the Company’s stockholders approved the amendment and restatement of the 2013 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by 1,500,000 shares, bringing to 8,785,967 the total number of shares approved for issuance under that plan.

As of March 31, 2022, 1,362,773 shares of common stock remain eligible to be issued through equity-based instruments under the 2013 Equity Incentive Plan.

As of June 30, 2022, 609,384 shares of common stock remain eligible to be issued through equity-based instruments under the 2013 Equity Incentive Plan.

2014 Non-Employee Equity Compensation Plan

Effective on May 26, 2020, the Company’s stockholders approved the amendment and restatement of the 2014 Non-employee Equity Compensation Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 800,000 shares, bringing to 1,650,000 the total number of shares approved for issuance under that plan.

As of March 31, 2022, 741,326 shares of common stock remain eligible to be issued through equity-based instruments under the 2014 Non-Employee Equity Compensation Plan.

As of June 30, 2022, 738,326 shares of common stock remain eligible to be issued through equity-based instruments under the 2014 Non-Employee Equity Compensation Plan.

2015 Performance Share Unit Plan

Effective on June 16, 2021, the Company’s stockholders approved the amendment and restatement of the 2015 Performance Share Unit Plan to increase the number of shares reserved for issuance through equity-based instruments thereunder by 1,700,000 shares, bringing to 5,110,104 the total number of shares approved for issuance under that plan.

As of March 31, 2022, 2,411,013 shares of common stock remain eligible to be issued through equity-based instruments under the 2015 Performance Share Unit Plan.

As of June 30, 2022, 2,411,013 shares of common stock remain eligible to be issued through equity-based instruments under the 2015 Performance Share Unit Plan.

2017 Equity Inducement Plan

5 unchanged sentences

or (c) will become an employee of the Company or any subsidiary in connection with a merger or acquisition.

As of March 31, 2022, 130,426 shares of common stock remain available to be issued through equity-based instruments under the 2017 Equity Inducement Plan.

As of June 30, 2022, 140,861 shares of common stock remain available to be issued through equity-based instruments under the 2017 Equity Inducement Plan.

On July 20, 2022, the Board increased the number of shares of common stock reserved and available for issuance under the plan by 2,000,000 shares.

Employee Stock Purchase Plan

6 unchanged sentences

The exercise price of the option will be the lesser of 85 % of the fair market of the common stock on the first business day of the offering period and 85 % of the fair market value of the common stock on the applicable exercise date.

As of March 31, 2022, 547,548 shares of common stock remain eligible to be issued under the ESPP.

Employees contributed $ 104,217 through payroll withholdings to the ESPP as of March 31, 2022 for the current offering period that will end on June 30, 2022 and shares will be deemed delivered on that date.

As of June 30, 2022, 353,751 shares of common stock remain eligible to be issued under the ESPP.

Employees contributed $ 164,728 through payroll withholdings to the ESPP for the offering period ended June 30, 2022 and shares were be deemed delivered on that date.

Note 6 – Stock-Based Compensation, continued

Stock Option Activity

During the three months ended March 31, 2022, the Board granted our Chief Executive Officer 300,000 stock options under the 2013 Equity Incentive Plan at an exercise price of $ 1.27 per share with half of the options vesting on the second anniversary of the vesting start date and a quarter of the options vesting on each of the two following anniversaries .

The Company estimated the fair value of stock options granted during the three months ended March 31, 2022 using the Black-Scholes option pricing model.

During the six months ended June 30, 2022, the Board granted our Chief Executive Officer 300,000 stock options under the 2013 Equity Incentive Plan at an exercise price of $ 1.27 per share with half of the options vesting on the second anniversary of the vesting start date and a quarter of the options vesting on each of the two following anniversaries .

The Company estimated the fair value of stock options granted during the six months ended June 30, 2022 using the Black-Scholes option pricing model.

The fair values of stock options granted were estimated using the following assumptions:

Three Months Ended

March 31, 2022

Six Months Ended

June 30, 2022

Dividend yield

2 unchanged sentences

Expected life

The following is a summary of the Company’s stock option activity during the three months ended March 31, 2022:

The following is a summary of the Company’s stock option activity during the six months ended June 30, 2022:

Outstanding at January 1, 2022

Outstanding at March 31, 2022

Outstanding at June 30, 2022

Exercisable at January 1, 2022

Exercisable at March 31, 2022

As of March 31, 2022, the unamortized fair value of options was $ 298,147 .

Exercisable at June 30, 2022

As of June 30, 2022, the unamortized fair value of options was $ 276,817 .

The unamortized amount will be expensed over a weighted average period of 3.0 years.

Restricted Stock Units (“RSUs”)

During the three months ended March 31, 2022, the Board granted various employees RSUs covering 152,500 shares of common stock under the 2013 Equity Incentive Plan.

The awards vest over terms ranging from three to four years .

During the three months ended March 31, 2022, the Compensation Committee and the Board granted various non-employees RSUs covering 131,096 shares of common stock under the 2014 Non-employee Equity Compensation Plan.

The awards vest on the one year anniversary of the grant date.

During the three months ended March 31, 2022, the Board granted an employee RSUs covering 10,000 shares of common stock under the 2017 Equity Inducement Plan.

The award vests over a term of four years .

During the six months ended June 30, 2022, the Board granted various employees RSUs covering 1,018,450 shares of common stock under the 2013 Equity Incentive Plan.

The awards vest over terms ranging from two to four years .

During the six months ended June 30, 2022, the Compensation Committee and the Board granted various non-employees RSUs covering 179,096 shares of common stock under the 2014 Non-employee Equity Compensation Plan.

The awards vest over terms ranging from one to two years .

During the six months ended June 30, 2022, the Board granted various employees RSUs covering 20,000 shares of common stock under the 2017 Equity Inducement Plan.

The awards vest over four years .

Note 6 – Stock-Based Compensation, continued

As of March 31, 2022, t h e un am or ti ze d fair v a l u e o f t h e R SUs w a s $ 3,155,703 .

As of June 30, 2022, t h e un am or ti ze d fair v a l u e o f t h e R SUs w a s $ 2,927,707 .

T h e un am or ti ze d am oun t w il l b e e xp e n s e d ov e r a weighted average p e r i o d o f 1.7 y ea r s .

A summary of the activity related to RSUs for the three months ended March 31, 2022 is presented below:

A summary of the activity related to RSUs for the six months ended June 30, 2022 is presented below:

Outstanding at January 1, 2022

RSUs forfeited

Outstanding at March 31, 2022

Outstanding at June 30, 2022

Employee Stock Purchase Plan (“ESPP”)

The current offering period under the ESPP started on January 1, 2022 and will conclude on June 30, 2022.

The most recent offering period under the ESPP started on January 1, 2022 and concluded on June 30, 2022.

During the year ended December 31, 2021, there were two offering periods.

1 unchanged sentence

The second offering period began on July 1, 2021 and concluded on December 31, 2021.

The weighted-average grant-date fair value of the purchase option for each designated share purchased under this plan was approximately $ 0.40 and $ 0.75 for the three months ended March 31, 2022 and 2021, respectively, which represents the fair value of the option, consisting of three main components:

The weighted-average grant-date fair value of the purchase option for each designated share purchased under this plan was approximately $ 0.40 and $ 0.75 for the six months ended June 30, 2022 and 2021, respectively, which represents the fair value of the option, consisting of three main components:

(i) the value of the discount on the enrollment date, (ii) the proportionate value of the call option for 85 % of the stock and (iii) the proportionate value of the put option for 15 % of the stock.

The Company recognized compensation expense for the ESPP of $ 40,973 and $ 57,316 for the three months ended March 31, 2022 and 2021, respectively.

The Company estimated the fair value of ESPP purchase options granted during the three months ended March 31, 2022 and 2021 using the Black-Scholes option pricing model.

The Company recognized compensation expense for the ESPP of $ 41,428 and $ 60,651 for the three months ended June 30, 2022 and 2021, respectively, and the Company recognized compensation expense for the ESPP of $ 82,401 and $ 117,967 for the six months ended June 30, 2022 and 2021, respectively.

The Company estimated the fair value of ESPP purchase options granted during the six months ended June 30, 2022 and 2021 using the Black-Scholes option pricing model.

The fair values of ESPP purchase options granted were estimated using the following assumptions:

Three Months Ended

March 31, 2022

Three Months Ended

March 31, 2021

Six Months Ended

June 30, 2022

Six Months Ended

June 30, 2021

Dividend yield

3 unchanged sentences

Stock-Based Compensation Expense

The following tables summarize total stock-based compensation costs recognized for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31,

The following tables summarize total stock-based compensation costs recognized for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30,

Six Months Ended June 30,

Stock options

1 unchanged sentence

The total amount of stock-based compensation was reflected within the statements of operations as:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Research and development

1 unchanged sentence

General and administrative

Severance expense

Note 7 – Related Party Transactions

2 unchanged sentences

As of March 31, 2022, none of the warrants remain outstanding.

As of March 31, 2022, Dialog owns approximately 2.3 % of the Company’s outstanding common shares.

The Company did not record any revenue or expense related to Dialog during the three months ended March 31, 2022 and 2021.

As of June 30, 2022, Dialog owns approximately 2.2 % of the Company’s outstanding common shares.

The Company did not record any revenue during the three or six months ended June 30, 2022 and 2021.

The Company incurred $ 0 and $ 183,000 from Dialog in chip development expense during the three months ended June 30, 2022 and 2021, respectively, and the Company incurred $ 0 and $ 183,000 from Dialog in chip development expense during the six months ended June 30, 2022 and 2021, respectively.

On September 20, 2021, the Company was notified by Dialog, recently acquired by Renesas Electronics Corporation, that it was terminating the Alliance Agreement between the Company and Dialog.

Note 8 – Customer Concentrations

Two customers accounted for approximately 53 % of the Company’s revenue for the three months ended March 31, 2022, and one customer accounted for approximately 69 % of the Company’s revenue for the three months ended March 31, 2021.

Two customers accounted for approximately 63 % of the accounts receivable balance as of March 31, 2022.

Four customers accounted for approximately 88 % of the Company’s revenue for the three months ended June 30, 2022, and three customers accounted for approximately 64 % of the Company’s revenue for the three months ended June 30, 2021.

Four customers accounted for approximately 69 % of the Company’s revenue for the six months ended June 30, 2022, and four customers accounted for approximately 72 % of the Company’s revenue for the six months ended June 30, 2021.

Four customers accounted for approximately 85 % of the accounts receivable balance as of June 30, 2022.

Four customers accounted for approximately 68 % of the accounts receivable balance as of December 31, 2021.

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