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Business Segments, Concentration of Credit Risk and Significant Customers
 6 Months Ended
Jun. 30, 2025
Business Segments, Concentration of Credit Risk and Significant Customers [Abstract]  
Business Segments, Concentration of Credit Risk and Significant Customers

Note 6. Business Segments, Concentration of Credit Risk and Significant Customers

 

Segment Information

 

The Company determines its reporting units in accordance with ASC No. 280, Segment Reporting (ASC 280), as amended by ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which the Company adopted effective December 31, 2024. Management evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated.

The Company’s chief executive officer is the chief operating decision maker (CODM), and the CODM evaluates financial performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis, including consolidated net income (loss). Because the CODM evaluates financial performance on a consolidated basis, the Company operates and manages its business as one reportable and operating segment as a fabless semiconductor company focused on the development and sale of mmWave wireless technology, semiconductor devices and antenna modules, the performance of non-recurring engineering, or NRE, services and the licensing of intellectual property. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company’s reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments.

 

Significant segment expenses include research and development expenditures, salaries and benefits, stock-based compensation and software license obligations. Operating expenses include all remaining costs necessary to operate the Company’s business, which primarily include facilities, external professional services and other administrative expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by the CODM:

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2025   2024   2025   2024 
Total net revenue  $2,220   $4,238   $6,089   $7,054 
                     
Less:                    
Cost of net revenue   1,147    1,887    2,336    3,397 
Research and development   610    979    1,214    2,058 
Salaries   1,518    1,562    2,962    3,135 
Stock-based compensation   141    1,155    266    2,376 
Severance and software license obligations   (223)   2,041    (223)   2,063 
Other operating expenses   804    1,089    1,825    2,131 
Other (income) expense, net   52    (50)   9    (1,650)
Net loss  $(1,829)  $(4,425)  $(2,300)  $(6,456)

 

Concentrations

 

The Company recognized revenue from shipments of products, licensing of its technologies and performance of services to customers by geographical destination as follows (in thousands):

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2025   2024   2025   2024 
Europe  $1,204   $561   $1,733   $755 
Taiwan   570    71    1,590    161 
North America   8    3,308    1,779    5,539 
Hong Kong   2    234    8    446 
Rest of the world   436    64    979    153 
Total net revenue  $2,220   $4,238   $6,089   $7,054 

The following is a breakdown of product revenue by category (in thousands):

 

   Three months Ended
June 30,		   Six Months Ended
June 30,		 
Product category  2025   2024   2025   2024 
Memory ICs  $
—
   $3,428   $2,267   $5,811 
mmWave ICs   1,318    127    2,293    204 
mmWave modules   886    553    1,444    757 
mmWave other products   14    1    14    13 
   $2,218   $4,109   $6,018   $6,785 

 

The following table lists significant customers that represented more than 10% of total revenue during each respective period:

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Customer A   32%   
*
    12%   
*
 
Customer B   21%   12%   15%   
*
 
Customer C   17%   
*
    
*
    
*
 
Customer D   17%   
*
    
*
    
*
 
Customer E   
*
    
*
    19%   
*
 
Customer F   
*
    55%   26%   53%
Customer G   
*
    24%   
*
    23%

 

* Represents less than 10%

 

The following table lists significant customers that represented more than 10% of the net accounts receivable balance at each respective balance sheet date:

 

   June 30,   December 31, 
   2025   2024 
Customer A   71%   
*
 
Customer B   21%   
*
 
Customer C   
*
    58%
Customer D   
*
    18%
Customer E   
*
    15%

 

* Represents less than 10%

 

The following table lists significant vendors that represented more than 10% of the total accounts payable balance at each respective balance sheet date:

 

   June 30,   December 31, 
   2025   2024 
Vendor A   19%   
*
 
Vendor B   24%   15%
Vendor C   
*
    16%

 

* Represents less than 10%