XML 19 R8.htm IDEA: XBRL DOCUMENT
v3.19.2

Fair Value Measurement | 3 Months Ended
--- | ---
Mar. 31, 2019
Fair Value Disclosures [Abstract] |
Fair Value Measurement | NOTE 2 —Fair value measurement The fair value measurements standard establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standard are described below: Level 1—Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2—Inputs to the valuation methodology include:
| • | Quoted market prices for similar assets or liabilities in active markets;
| • | Quoted prices for identical or similar assets or liabilities in inactive markets;
| • | Inputs other than quoted prices that are observable for the asset or liability;
| • | Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at March 31, 2019 and 2018, and December 31, 2018. Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices. The warrant liability was classified within level 3 of the fair value hierarchy because there was no active market for the warrant or for similar warrants. The fair value of the Series A and Series B warrants at March 31, 2018, was estimated by first applying a weighting of the income approach and the market approach to determine the equity value of the Company. An Option-Pricing Method (“OPM”) was then used to allocate the total equity value of the Company to the different classes of equity according to their rights and preferences. As the Company was a private company at March 31, 2018, the fair value measurement was based on significant inputs that are not observable in the market thus represents Level 3 inputs. As of March 31, 2019, and December 31, 2018, as a result of the Company’s November 2018 stock conversion of preferred shares into common shares, all Series A and Series B warrants outstanding are now exercisable into common stock and are no longer required to be remeasured at fair value on a recurring basis. Trade-in guarantee liability is classified within level 3 of the fair value hierarchy because the fair value measurement is based on inputs that are not observable in the market, including the probability and timing of a customer upgrading to a new device and the value of the upgraded device. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following tables sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at fair value:
|  | March 31, 2019 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds * |  | $ | 5,360 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,360 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade-in Guarantee |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | December 31, 2018 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds * |  | $ | 11,006 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,006 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade-in Guarantee** |  | $ | — |  |  | $ | — |  |  | $ | 268 |  |  | $ | 268 |
* | Included in cash and cash equivalents on the condensed consolidated balance sheets.
** | Included in deferred revenue on the condensed consolidated balance sheets.
The table below sets forth a summary of changes in the fair value of the Company’s level 3 liabilities for the three months ended March 31, 2019 and 2018:
|  | Warrant |  |  | Trade-In |
|  | liability |  |  | Guarantee |
Balance at January 1, 2019 |  | $ | — |  |  | $ | 268 |
Recognition of revenue |  |  | — |  |  |  | (268 | )
Balance at March 31, 2019 |  | $ | — |  |  | $ | — |
Balance at January 1, 2018 |  | $ | 3,785 |  |  | $ | 805 |
New instrument |  |  | — |  |  |  | — |
Recognition of revenue |  |  | — |  |  |  | — |
Change in fair value |  |  | 242 |  |  |  | — |
Balance at March 31, 2018 |  | $ | 4,027 |  |  | $ | 805 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration