The Company entered into an agreement with MegaChips, whereby the Company appointed MegaChips as the exclusive sales representative of its products in Japan. The Company sells products through MegaChips to distributors, resellers, or direct customers in Japan. The Company pays MegaChips a fixed percentage of the revenue as sales commission, which is recorded as commission expense and included in sales and marketing in the consolidated statements of operations and comprehensive loss. The Company has also entered into a service and secondment agreement with MegaChips LSI USA Corporation, a wholly owned subsidiary of MegaChips.

MegaChips is the largest stockholder of the Company and held approximately 31.5% and 43.7% of the Company’s outstanding common stock as of June 30, 2021 and December 31, 2020, respectively.

In May 2021, the Company signed a consulting agreement with Akira Takata, a member of the Board of Directors of the Company. As a consultant, Mr. Takata will provide sales consulting services through December 31, 2021, for which he will receive monthly cash fees of $5,000, reimbursement of expenses, and an equity award of 500 RSUs that vest on November 20, 2021.

The following is a summary of significant balances, transactions and payments with the related parties and affiliates.

	As of
Balances	June 30, 2021		December 31, 2020
	(in thousands)
MegaChips
Accounts receivable	$	2,411	$	736
Property and equipment, net		—		209

	Three Months Ended June 30,				Six Months Ended June 30,
Transactions	2021		2020		2021		2020
	(in thousands)
MegaChips
Sales through distribution agreement	$	4,415	$	1,584	$	6,270	$	2,730
License expense		—		80		—		148
Commission expense		184		65		261		112
Affiliates
Consulting fees		38		58		125		175

	Three Months Ended June 30,				Six Months Ended June 30,
Payments	2021		2020		2021		2020
	(in thousands)				(in thousands)
MegaChips
Cash paid for commissions	$	184	$	65	$	261	$	112
Cash paid for licenses		—		8		—		25
Affiliates
Cash paid for consulting fees		38		58		125		175