10-Q 1 inve-20230930.htm 10-Q 10-Q
false0001036044Q3--12-31Identiv, Inc.P1YP1MP1YP1YP6MP1YP1Y0001036044us-gaap:RetainedEarningsMember2023-09-300001036044us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-12-310001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:GeneralAndAdministrativeExpenseMember2023-07-012023-09-300001036044srt:AsiaPacificMember2023-07-012023-09-300001036044inve:SeriesBConvertiblePreferredStockMember2023-07-012023-09-300001036044us-gaap:TransferredOverTimeMemberinve:EuropeAndMiddleEastMember2023-01-012023-09-300001036044us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:AsiaPacificMember2023-07-012023-09-300001036044us-gaap:CommonStockMember2023-09-300001036044us-gaap:CommonStockMember2022-06-300001036044us-gaap:RetainedEarningsMember2022-07-012022-09-300001036044us-gaap:TransferredOverTimeMemberinve:EuropeAndMiddleEastMember2023-07-012023-09-300001036044us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001036044srt:AsiaPacificMember2022-07-012022-09-300001036044us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001036044inve:BuildingAndLeaseholdImprovementsMember2022-12-3100010360442024-01-012023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:SellingAndMarketingExpenseMember2022-07-012022-09-300001036044inve:PremisesMember2022-12-310001036044srt:AmericasMemberus-gaap:TransferredOverTimeMember2022-07-012022-09-300001036044inve:EuropeAndMiddleEastMember2022-01-012022-09-300001036044us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001036044us-gaap:OperatingSegmentsMemberinve:IdentityMember2023-07-012023-09-300001036044inve:SeriesBConvertiblePreferredStockMember2022-12-310001036044srt:MinimumMemberinve:ExtendedHardwareWarrantiesMember2023-01-012023-09-3000010360442023-07-012023-09-300001036044us-gaap:CommonStockMember2023-06-300001036044inve:RangeTwoMember2023-09-300001036044us-gaap:RetainedEarningsMember2023-07-012023-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001036044us-gaap:OperatingSegmentsMemberinve:PhysicalAccessControlSystemsMember2022-01-012022-09-300001036044us-gaap:GeographicConcentrationRiskMembersrt:AmericasMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-09-300001036044us-gaap:CostOfSalesMember2023-01-012023-09-300001036044us-gaap:PerformanceSharesMember2022-12-310001036044us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001036044us-gaap:TreasuryStockCommonMember2022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:CostOfSalesMember2023-01-012023-09-300001036044us-gaap:PhantomShareUnitsPSUsMember2022-01-012022-09-3000010360442022-07-012022-09-300001036044srt:AmericasMember2022-12-310001036044country:TH2023-09-300001036044us-gaap:TransferredAtPointInTimeMember2022-01-012022-09-300001036044srt:MaximumMemberinve:ProfessionalServicesMember2023-01-012023-09-300001036044us-gaap:PerformanceSharesMember2023-01-012023-09-300001036044srt:MaximumMember2023-01-012023-09-300001036044us-gaap:PrimeRateMemberus-gaap:RevolvingCreditFacilityMemberinve:AmendedLoanAgreementMember2022-04-142022-04-140001036044us-gaap:TransferredOverTimeMember2022-07-012022-09-300001036044us-gaap:TreasuryStockCommonMember2022-06-300001036044us-gaap:TreasuryStockCommonMember2021-12-310001036044us-gaap:CommonStockMember2022-09-3000010360442023-01-012023-09-300001036044us-gaap:DevelopedTechnologyRightsMember2023-09-300001036044inve:PremisesMember2022-01-012022-09-300001036044srt:AmericasMember2023-09-300001036044inve:CommonStockIssuableUponConversionOfSeriesBConvertiblePreferredStockMember2022-01-012022-09-300001036044srt:MaximumMemberinve:SoftwareMaintenanceAndSupportServicesMember2023-01-012023-09-300001036044us-gaap:RestrictedStockUnitsRSUMember2022-12-310001036044us-gaap:RevolvingCreditFacilityMemberinve:FourthAmendmentLoanAgreementMemberinve:EastWestBankMember2023-02-082023-02-080001036044srt:AsiaPacificMember2023-01-012023-09-300001036044inve:IdentityMember2023-09-3000010360442023-09-300001036044inve:PremisesMember2023-01-012023-09-300001036044us-gaap:TransferredAtPointInTimeMember2023-07-012023-09-300001036044us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001036044inve:PremisesMember2021-12-310001036044inve:StockIncentivePlanTwentyElevenMember2023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:SellingAndMarketingExpenseMember2022-01-012022-09-3000010360442025-01-012023-09-300001036044us-gaap:TreasuryStockCommonMember2023-06-300001036044us-gaap:FurnitureAndFixturesMember2022-12-3100010360442021-12-310001036044srt:AmericasMemberus-gaap:TransferredAtPointInTimeMember2023-01-012023-09-300001036044us-gaap:EmployeeSeveranceMember2023-01-012023-09-3000010360442022-06-300001036044inve:EuropeAndMiddleEastMember2022-12-310001036044inve:EuropeAndMiddleEastMember2023-07-012023-09-300001036044inve:RangeThreeMember2023-01-012023-09-3000010360442023-11-020001036044us-gaap:CostOfSalesMember2023-07-012023-09-300001036044us-gaap:TreasuryStockCommonMember2023-09-300001036044inve:RangeOneMember2023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberinve:EuropeAndMiddleEastMember2023-07-012023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:SellingAndMarketingExpenseMember2023-01-012023-09-300001036044us-gaap:CustomerRelationshipsMember2022-12-310001036044inve:IdentityMember2021-12-310001036044us-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001036044inve:EuropeAndMiddleEastMember2022-07-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:CostOfSalesMember2023-07-012023-09-300001036044us-gaap:TransferredOverTimeMemberinve:EuropeAndMiddleEastMember2022-01-012022-09-300001036044us-gaap:SellingAndMarketingExpenseMember2022-01-012022-09-300001036044inve:SeriesBConvertiblePreferredStockMember2023-06-300001036044us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001036044inve:SoftwareLicensingMembersrt:MinimumMember2023-01-012023-09-300001036044us-gaap:SalesRevenueNetMemberinve:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001036044inve:AprilTwentyOneFundsWarrantsMember2023-04-240001036044inve:SeriesBConvertiblePreferredStockMember2022-01-012022-09-300001036044us-gaap:CommonStockMember2023-07-012023-09-300001036044srt:AmericasMemberus-gaap:TransferredOverTimeMember2023-01-012023-09-3000010360442023-10-012023-09-300001036044inve:SeriesBConvertiblePreferredStockMember2023-01-012023-09-300001036044srt:MaximumMemberus-gaap:SubscriptionAndCirculationMember2023-01-012023-09-300001036044inve:SeriesBConvertiblePreferredStockMemberus-gaap:CommonStockMember2023-09-300001036044srt:MinimumMemberinve:ProfessionalServicesMember2023-01-012023-09-300001036044inve:SeriesBConvertiblePreferredStockMember2022-09-300001036044us-gaap:AdditionalPaidInCapitalMember2022-06-300001036044us-gaap:PhantomShareUnitsPSUsMember2023-01-012023-09-300001036044srt:AmericasMember2023-07-012023-09-300001036044us-gaap:FurnitureAndFixturesMember2023-09-300001036044us-gaap:PreferredStockMemberinve:SeriesBConvertiblePreferredStockMember2021-12-310001036044us-gaap:RevolvingCreditFacilityMemberinve:LoanAndSecurityAgreementsMember2023-09-300001036044us-gaap:AdditionalPaidInCapitalMember2023-06-300001036044inve:AprilTwentyOneFundsWarrantsMember2020-05-050001036044srt:AsiaPacificMemberus-gaap:TransferredAtPointInTimeMember2022-07-012022-09-300001036044us-gaap:EmployeeSeveranceMember2022-07-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001036044us-gaap:AdditionalPaidInCapitalMember2022-09-300001036044srt:AmericasMemberus-gaap:TransferredAtPointInTimeMember2023-07-012023-09-300001036044us-gaap:TransferredAtPointInTimeMemberinve:EuropeAndMiddleEastMember2022-01-012022-09-300001036044us-gaap:PreferredStockMemberinve:SeriesBConvertiblePreferredStockMember2023-09-300001036044us-gaap:SellingAndMarketingExpenseMember2022-07-012022-09-300001036044us-gaap:RevolvingCreditFacilityMemberinve:EastWestBankMemberinve:AmendedLoanAgreementMember2022-04-140001036044us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001036044srt:MaximumMemberus-gaap:DevelopedTechnologyRightsMember2023-09-300001036044us-gaap:FairValueMeasurementsRecurringMember2022-12-310001036044us-gaap:RetainedEarningsMember2023-06-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001036044srt:AsiaPacificMember2023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:AsiaPacificMember2022-01-012022-09-300001036044srt:AsiaPacificMember2022-12-310001036044us-gaap:AdditionalPaidInCapitalMember2023-09-300001036044us-gaap:TreasuryStockCommonMember2022-01-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001036044us-gaap:OperatingSegmentsMemberinve:IdentityMember2023-01-012023-09-300001036044us-gaap:FairValueMeasurementsRecurringMember2023-09-300001036044srt:MinimumMemberus-gaap:DevelopedTechnologyRightsMember2023-09-300001036044us-gaap:TrademarksMember2023-09-300001036044srt:AmericasMemberus-gaap:TransferredOverTimeMember2023-07-012023-09-300001036044srt:AsiaPacificMember2022-01-012022-09-300001036044inve:EmployeeSeveranceAndFacilityClosingMember2022-01-012022-03-310001036044us-gaap:CommonStockMember2022-07-012022-09-300001036044us-gaap:RetainedEarningsMember2022-09-300001036044inve:SoftwareLicensingMember2023-01-012023-09-300001036044srt:AsiaPacificMemberus-gaap:TransferredAtPointInTimeMember2023-01-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberinve:EuropeAndMiddleEastMember2022-07-012022-09-300001036044srt:AmericasMember2022-01-012022-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001036044inve:RangeOneMember2023-01-012023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMember2023-01-012023-09-300001036044inve:HardwareProductMember2023-01-012023-09-3000010360442022-09-300001036044srt:MinimumMemberinve:HardwareProductMember2023-01-012023-09-300001036044inve:SeriesBConvertiblePreferredStockMember2022-07-012022-09-300001036044us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-09-300001036044us-gaap:CommonStockMember2022-12-310001036044srt:AmericasMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-09-300001036044inve:RangeTwoMember2023-01-012023-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001036044us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001036044us-gaap:PhantomShareUnitsPSUsMember2022-07-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001036044us-gaap:SalesRevenueNetMemberinve:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001036044inve:AprilTwentyOneFundsWarrantsMember2023-04-242023-04-240001036044inve:CommonStockIssuableUponConversionOfSeriesBConvertiblePreferredStockMember2023-07-012023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMember2023-07-012023-09-300001036044srt:MaximumMemberus-gaap:CommonStockMember2023-09-300001036044us-gaap:AdditionalPaidInCapitalMember2021-12-310001036044srt:AsiaPacificMemberus-gaap:TransferredAtPointInTimeMember2023-07-012023-09-300001036044inve:EuropeAndMiddleEastMember2023-01-012023-09-300001036044us-gaap:RevolvingCreditFacilityMemberinve:AmendedLoanAgreementMember2023-01-012023-09-300001036044us-gaap:CommonStockMember2021-12-310001036044us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberinve:EuropeAndMiddleEastMember2023-01-012023-09-300001036044inve:CommonStockIssuableUponConversionOfSeriesBConvertiblePreferredStockMember2023-01-012023-09-300001036044inve:ProfessionalServicesMember2023-01-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300001036044us-gaap:PreferredStockMemberinve:SeriesBConvertiblePreferredStockMember2022-12-310001036044us-gaap:EmployeeStockMember2023-09-300001036044srt:MinimumMember2023-09-300001036044us-gaap:EmployeeSeveranceMember2023-07-012023-09-300001036044us-gaap:SellingAndMarketingExpenseMember2023-01-012023-09-300001036044us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001036044us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001036044srt:AsiaPacificMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-09-300001036044us-gaap:GeographicConcentrationRiskMembersrt:AmericasMemberus-gaap:RevenueFromContractWithCustomerMember2023-01-012023-09-300001036044inve:StockOptionsVestingOfRestrictedStockUnitsVestingOfPerformanceStockUnitsAndIssuanceOfRestrictedStockUnitsVestedMember2023-09-300001036044us-gaap:TransferredAtPointInTimeMember2022-07-012022-09-300001036044us-gaap:RevolvingCreditFacilityMemberinve:EastWestBankMemberinve:AmendedLoanAgreementMember2022-04-142022-04-140001036044country:SG2023-09-300001036044us-gaap:TransferredOverTimeMember2023-07-012023-09-300001036044us-gaap:SubscriptionAndCirculationMember2023-01-012023-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001036044inve:BuildingAndLeaseholdImprovementsMember2023-09-300001036044inve:CommonStockIssuableUponConversionOfSeriesBConvertiblePreferredStockMember2023-09-300001036044us-gaap:OperatingSegmentsMemberinve:IdentityMember2022-07-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001036044us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001036044us-gaap:CommonStockMember2022-01-012022-09-300001036044us-gaap:TransferredOverTimeMemberinve:EuropeAndMiddleEastMember2022-07-012022-09-300001036044us-gaap:RetainedEarningsMember2022-06-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-07-012022-09-300001036044us-gaap:TransferredAtPointInTimeMember2023-01-012023-09-3000010360442023-01-012023-06-300001036044srt:AmericasMember2022-07-012022-09-300001036044us-gaap:CustomerRelationshipsMembersrt:MinimumMember2023-09-300001036044srt:MaximumMember2023-09-300001036044us-gaap:TransferredOverTimeMember2023-01-012023-09-300001036044us-gaap:OperatingSegmentsMemberinve:PhysicalAccessControlSystemsMember2023-07-012023-09-300001036044us-gaap:CommonStockMember2023-01-012023-09-300001036044srt:AsiaPacificMemberus-gaap:TransferredOverTimeMember2022-01-012022-09-300001036044srt:AmericasMemberus-gaap:TransferredAtPointInTimeMember2022-07-012022-09-300001036044inve:SeriesBConvertiblePreferredStockMember2022-06-300001036044us-gaap:RetainedEarningsMember2022-12-310001036044us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001036044us-gaap:RestrictedStockUnitsRSUMember2023-09-300001036044us-gaap:EmployeeSeveranceMember2022-01-012022-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:AsiaPacificMember2022-07-012022-09-300001036044inve:EuropeAndMiddleEastMember2023-09-3000010360442022-01-012022-09-300001036044us-gaap:PreferredStockMemberinve:SeriesBConvertiblePreferredStockMember2022-09-300001036044inve:EuropeAndMiddleEastMemberus-gaap:TransferredAtPointInTimeMember2022-07-012022-09-300001036044srt:AmericasMember2023-01-012023-09-300001036044srt:AsiaPacificMemberus-gaap:TransferredOverTimeMember2022-07-012022-09-300001036044inve:SoftwareMaintenanceAndSupportServicesMember2023-01-012023-09-300001036044us-gaap:TransferredAtPointInTimeMemberinve:EuropeAndMiddleEastMember2023-01-012023-09-300001036044inve:PremisesMember2023-09-300001036044us-gaap:TreasuryStockCommonMember2022-12-310001036044us-gaap:OperatingSegmentsMemberinve:PhysicalAccessControlSystemsMember2022-07-012022-09-300001036044srt:MinimumMember2023-01-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberinve:EuropeAndMiddleEastMember2022-01-012022-09-300001036044us-gaap:CustomerRelationshipsMembersrt:MaximumMember2023-09-300001036044inve:SoftwareLicensingMembersrt:MaximumMember2023-01-012023-09-300001036044us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001036044us-gaap:FairValueMeasurementsNonrecurringMember2023-09-300001036044srt:MaximumMemberinve:HardwareProductMember2023-01-012023-09-3000010360442022-01-012022-12-310001036044us-gaap:DevelopedTechnologyRightsMember2022-12-310001036044us-gaap:RetainedEarningsMember2022-01-012022-09-300001036044inve:PlantAndMachineryMember2022-12-310001036044us-gaap:OperatingSegmentsMemberinve:IdentityMember2022-01-012022-09-300001036044us-gaap:CustomerRelationshipsMember2023-09-300001036044inve:ExtendedHardwareWarrantiesMember2023-01-012023-09-300001036044us-gaap:GeographicConcentrationRiskMembersrt:AmericasMemberus-gaap:RevenueFromContractWithCustomerMember2022-07-012022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-09-300001036044us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001036044inve:PremisesMember2022-09-300001036044inve:PlantAndMachineryMember2023-09-300001036044inve:SeriesBConvertiblePreferredStockMember2021-12-310001036044us-gaap:PreferredStockMemberinve:SeriesBConvertiblePreferredStockMember2022-06-300001036044srt:MinimumMemberus-gaap:SubscriptionAndCirculationMember2023-01-012023-09-300001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001036044us-gaap:PerformanceSharesMember2023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001036044us-gaap:AdditionalPaidInCapitalMember2022-12-3100010360442023-06-300001036044inve:StockOptionsAndRestrictedStockUnitsMember2022-07-012022-09-300001036044inve:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-01-012023-09-300001036044us-gaap:TrademarksMember2022-12-310001036044srt:MaximumMemberinve:ExtendedHardwareWarrantiesMember2023-01-012023-09-300001036044us-gaap:PreferredStockMemberinve:SeriesBConvertiblePreferredStockMember2023-06-300001036044inve:CommonStockIssuableUponConversionOfSeriesBConvertiblePreferredStockMember2022-07-012022-09-300001036044us-gaap:OperatingSegmentsMemberinve:PhysicalAccessControlSystemsMember2023-01-012023-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300001036044us-gaap:TransferredOverTimeMember2022-01-012022-09-300001036044srt:AmericasMemberus-gaap:TransferredOverTimeMember2022-01-012022-09-300001036044inve:EuropeAndMiddleEastMemberus-gaap:TransferredAtPointInTimeMember2023-07-012023-09-300001036044inve:AprilTwentyOneFundsWarrantsMember2020-05-052020-05-050001036044inve:StockOptionsAndRestrictedStockUnitsMember2022-01-012022-09-300001036044us-gaap:RevolvingCreditFacilityMember2023-09-300001036044us-gaap:GeographicConcentrationRiskMembersrt:AmericasMemberus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-09-300001036044us-gaap:CostOfSalesMember2022-01-012022-09-300001036044us-gaap:SellingAndMarketingExpenseMember2023-07-012023-09-300001036044inve:IdentityMember2022-09-300001036044inve:StockOptionsAndRestrictedStockUnitsMemberus-gaap:SellingAndMarketingExpenseMember2023-07-012023-09-300001036044us-gaap:CostOfSalesMember2022-07-012022-09-300001036044inve:RangeThreeMember2023-09-300001036044srt:MinimumMemberinve:SoftwareMaintenanceAndSupportServicesMember2023-01-012023-09-300001036044us-gaap:RetainedEarningsMember2023-01-012023-09-3000010360442022-12-310001036044us-gaap:WarrantMember2022-01-012022-09-300001036044inve:SeriesBConvertiblePreferredStockMember2023-09-300001036044us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001036044us-gaap:PhantomShareUnitsPSUsMember2023-07-012023-09-300001036044us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:AsiaPacificMember2023-01-012023-09-300001036044inve:IdentityMember2022-12-310001036044us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001036044us-gaap:RetainedEarningsMember2021-12-31iso4217:USDxbrli:sharesinve:Segmentxbrli:purexbrli:sharesinve:Customeriso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File Number: 000-29440

 

IDENTIV, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

77-0444317

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

2201 Walnut Avenue, Suite 100

Fremont, California

94538

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (949) 250-8888

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of exchange on which registered

 

Common Stock, $0.001 par value per share

 

INVE

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of November 2, 2023, the registrant had 23,174,351 shares of common stock outstanding.

 


 

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

3

 

 

Condensed Consolidated Balance Sheets

3

 

 

Condensed Consolidated Statements of Comprehensive Loss

4

 

 

Condensed Consolidated Statements of Stockholders’ Equity

5

 

 

Condensed Consolidated Statements of Cash Flows

7

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

33

Item 4.

Controls and Procedures

33

 

 

PART II. OTHER INFORMATION

 

Item 1.

Legal Proceedings

35

Item 1A.

Risk Factors

35

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 5.

 

Other Information

35

Item 6.

 

Exhibits

36

 

 

 

SIGNATURES

37

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

IDENTIV, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except par value)

 

 

 

September 30,
2023

 

 

December 31,
2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,674

 

 

$

16,650

 

Restricted cash

 

 

1,254

 

 

 

487

 

Accounts receivable, net of allowances of $2,677 and $2,666 as of September 30, 2023
   and December 31, 2022, respectively

 

 

25,892

 

 

 

24,826

 

Inventories

 

 

29,423

 

 

 

28,958

 

Prepaid expenses and other current assets

 

 

5,238

 

 

 

4,177

 

Total current assets

 

 

81,481

 

 

 

75,098

 

Property and equipment, net

 

 

8,518

 

 

 

6,719

 

Operating lease right-of-use assets

 

 

5,525

 

 

 

4,373

 

Intangible assets, net

 

 

4,483

 

 

 

5,265

 

Goodwill

 

 

10,189

 

 

 

10,190

 

Other assets

 

 

1,261

 

 

 

1,120

 

Total assets

 

$

111,457

 

 

$

102,765

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

12,099

 

 

$

14,760

 

Financial liabilities, net of debt issuance costs of $61
   as of September 30, 2023

 

 

9,939

 

 

 

 

Operating lease liabilities

 

 

1,708

 

 

 

1,190

 

Deferred revenue

 

 

2,474

 

 

 

2,068

 

Accrued compensation and related benefits

 

 

2,580

 

 

 

2,757

 

Other accrued expenses and liabilities

 

 

2,872

 

 

 

2,618

 

Total current liabilities

 

 

31,672

 

 

 

23,393

 

Long-term operating lease liabilities

 

 

4,037

 

 

 

3,366

 

Long-term deferred revenue

 

 

904

 

 

 

587

 

Other long-term liabilities

 

 

25

 

 

 

25

 

Total liabilities

 

 

36,638

 

 

 

27,371

 

Commitments and contingencies (see Note 15)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value: 10,000 shares authorized; 5,000 shares
   issued and outstanding as of September 30, 2023 and December 31, 2022

 

 

5

 

 

 

5

 

Common stock, $0.001 par value: 50,000 shares authorized; 24,751 and 24,168 shares
   issued and
23,150 and 22,623 shares outstanding as of September 30, 2023 and
   December 31, 2022, respectively

 

 

24

 

 

 

24

 

Additional paid-in capital

 

 

499,754

 

 

 

495,818

 

Treasury stock, 1,601 and 1,545 shares as of September 30, 2023 and December 31, 2022,
   respectively

 

 

(12,588

)

 

 

(12,173

)

Accumulated deficit

 

 

(413,266

)

 

 

(409,381

)

Accumulated other comprehensive income

 

 

890

 

 

 

1,101

 

Total stockholders' equity

 

 

74,819

 

 

 

75,394

 

Total liabilities and stockholders' equity

 

$

111,457

 

 

$

102,765

 

 

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

 

3


 

IDENTIV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands, except per share data)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenue

 

$

31,846

 

 

$

30,996

 

 

$

87,398

 

 

$

83,914

 

Cost of revenue

 

 

19,905

 

 

 

19,808

 

 

 

55,398

 

 

 

53,550

 

Gross profit

 

 

11,941

 

 

 

11,188

 

 

 

32,000

 

 

 

30,364

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,916

 

 

 

2,625

 

 

 

8,638

 

 

 

7,633

 

Selling and marketing

 

 

5,641

 

 

 

5,326

 

 

 

17,617

 

 

 

15,709

 

General and administrative

 

 

2,939

 

 

 

2,639

 

 

 

8,790

 

 

 

7,623

 

Restructuring and severance

 

 

104

 

 

 

49

 

 

 

376

 

 

 

132

 

Total operating expenses

 

 

11,600

 

 

 

10,639

 

 

 

35,421

 

 

 

31,097

 

Income (loss) from operations

 

 

341

 

 

 

549

 

 

 

(3,421

)

 

 

(733

)

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(211

)

 

 

(39

)

 

 

(351

)

 

 

(101

)

Gain on investment

 

 

132

 

 

 

 

 

 

132

 

 

 

30

 

Foreign currency gains (losses), net

 

 

(264

)

 

 

(3

)

 

 

(184

)

 

 

111

 

Income (loss) before income tax benefit (provision)

 

 

(2

)

 

 

507

 

 

 

(3,824

)

 

 

(693

)

Income tax benefit (provision)

 

 

(20

)

 

 

12

 

 

 

(61

)

 

 

(38

)

Net income (loss)

 

 

(22

)

 

 

519

 

 

 

(3,885

)

 

 

(731

)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(312

)

 

 

(644

)

 

 

(211

)

 

 

(1,490

)

Comprehensive loss

 

$

(334

)

 

$

(125

)

 

$

(4,096

)

 

$

(2,221

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.01

 

 

$

(0.21

)

 

$

(0.07

)

Diluted

 

$

(0.01

)

 

$

0.01

 

 

$

(0.21

)

 

$

(0.07

)

Weighted average shares used in computing net
   income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,174

 

 

 

22,682

 

 

 

23,008

 

 

 

22,632

 

Diluted

 

 

23,174

 

 

 

23,315

 

 

 

23,008

 

 

 

22,632

 

 

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

4


 

IDENTIV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in thousands)

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

Series B
Convertible Preferred Stock

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Treasury

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Income

 

 

Equity

 

Balances, July 1, 2023

 

 

5,000

 

 

$

5

 

 

 

23,112

 

 

$

24

 

 

$

498,765

 

 

$

(12,457

)

 

$

(413,244

)

 

$

1,202

 

 

$

74,295

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22

)

 

 

 

 

 

(22

)

Unrealized loss from foreign
   currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(312

)

 

 

(312

)

Issuance of common stock in connection
   with vesting of stock awards

 

 

 

 

 

 

 

 

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

989

 

 

 

 

 

 

 

 

 

 

 

 

989

 

Shares withheld in payment of taxes in
   connection with net share settlement of
   restricted stock units

 

 

 

 

 

 

 

 

(16

)

 

 

 

 

 

 

 

 

(131

)

 

 

 

 

 

 

 

 

(131

)

Balances, September 30, 2023

 

 

5,000

 

 

$

5

 

 

 

23,150

 

 

$

24

 

 

$

499,754

 

 

$

(12,588

)

 

$

(413,266

)

 

$

890

 

 

$

74,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Series B
Convertible Preferred Stock

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Treasury

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Income

 

 

Equity

 

Balances, January 1, 2023

 

 

5,000

 

 

$

5

 

 

 

22,623

 

 

$

24

 

 

$

495,818

 

 

$

(12,173

)

 

$

(409,381

)

 

$

1,101

 

 

$

75,394

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,885

)

 

 

 

 

 

(3,885

)

Unrealized income from foreign
   currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(211

)

 

 

(211

)

Issuance of common stock in connection
   with vesting of stock awards

 

 

 

 

 

 

 

 

308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,973

 

 

 

 

 

 

 

 

 

 

 

 

2,973

 

Shares withheld in payment of taxes in
   connection with net share settlement of
   restricted stock units

 

 

 

 

 

 

 

 

(56

)

 

 

 

 

 

 

 

 

(415

)

 

 

 

 

 

 

 

 

(415

)

Proceeds from exercise of
   warrants

 

 

 

 

 

 

 

 

275

 

 

 

 

 

 

963

 

 

 

 

 

 

 

 

 

 

 

 

963

 

Balances, September 30, 2023

 

 

5,000

 

 

$

5

 

 

 

23,150

 

 

$

24

 

 

$

499,754

 

 

$

(12,588

)

 

$

(413,266

)

 

$

890

 

 

$

74,819

 

 

5


 

 

 

Three Months Ended September 30, 2022

 

 

 

Series B
Convertible Preferred Stock

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Treasury

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Income

 

 

Equity

 

Balances, July 1, 2022

 

 

5,000

 

 

$

5

 

 

 

22,444

 

 

$

24

 

 

$

494,370

 

 

$

(11,757

)

 

$

(410,239

)

 

$

1,103

 

 

$

73,506

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

519

 

 

 

 

 

 

519

 

Unrealized loss from foreign
   currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(644

)

 

 

(644

)

Issuance of common stock in connection
   with vesting of stock awards

 

 

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

852

 

 

 

 

 

 

 

 

 

 

 

 

852

 

Shares withheld in payment of taxes in
   connection with net share settlement of
   restricted stock units

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(273

)

 

 

 

 

 

 

 

 

(273

)

Balances, September 30, 2022

 

 

5,000

 

 

$

5

 

 

 

22,490

 

 

$

24

 

 

$

495,222

 

 

$

(12,030

)

 

$

(409,720

)

 

$

459

 

 

$

73,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022

 

 

 

Series B
Convertible Preferred Stock

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Treasury

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Income

 

 

Equity

 

Balances, January 1, 2022

 

 

5,000

 

 

$

5

 

 

 

22,230

 

 

$

24

 

 

$

492,657

 

 

$

(11,134

)

 

$

(408,989

)

 

$

1,949

 

 

$

74,512

<