Price | 2.44 | EPS | -1 | |
Shares | 2 | P/E | -3 | |
MCap | 5 | P/FCF | -24 | |
Net Debt | -6 | EBIT | -2 | |
TEV | -1 | TEV/EBIT | 0 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-09-30 | Filed 2020-11-10 |
10-Q | 2020-06-30 | Filed 2020-08-12 |
10-Q | 2020-03-31 | Filed 2020-05-08 |
10-K | 2019-12-31 | Filed 2020-03-17 |
10-Q | 2019-09-30 | Filed 2019-11-13 |
10-Q | 2019-06-30 | Filed 2019-08-13 |
10-Q | 2019-03-31 | Filed 2019-05-15 |
10-K | 2018-12-31 | Filed 2019-03-12 |
10-Q | 2018-09-30 | Filed 2018-11-06 |
10-Q | 2018-06-30 | Filed 2018-08-08 |
S-1 | 2018-05-24 | Public Filing |
10-Q | 2018-03-31 | Filed 2018-05-11 |
S-1 | 2018-01-04 | Public Filing |
10-K | 2017-12-31 | Filed 2018-03-12 |
10-Q | 2017-09-30 | Filed 2017-11-14 |
10-Q | 2017-06-30 | Filed 2017-08-10 |
10-Q | 2017-03-31 | Filed 2017-05-12 |
10-K | 2016-12-31 | Filed 2017-03-30 |
10-Q | 2016-09-30 | Filed 2016-11-09 |
10-Q | 2016-06-30 | Filed 2016-08-09 |
10-Q | 2016-03-31 | Filed 2016-05-10 |
10-K | 2015-12-31 | Filed 2016-03-15 |
10-Q | 2015-09-30 | Filed 2015-11-06 |
10-Q | 2015-06-30 | Filed 2015-08-07 |
10-Q | 2015-03-31 | Filed 2015-05-11 |
10-K | 2014-12-31 | Filed 2015-03-13 |
10-Q | 2014-09-30 | Filed 2014-11-07 |
10-Q | 2014-06-30 | Filed 2014-08-08 |
10-Q | 2014-03-31 | Filed 2014-05-12 |
10-K | 2013-12-31 | Filed 2014-03-14 |
10-Q | 2013-09-30 | Filed 2013-11-08 |
10-Q | 2013-06-30 | Filed 2013-08-08 |
10-Q | 2013-03-31 | Filed 2013-05-03 |
10-K | 2012-12-31 | Filed 2013-03-12 |
10-Q | 2012-09-30 | Filed 2012-11-07 |
10-Q | 2012-06-30 | Filed 2012-08-09 |
10-Q | 2012-03-31 | Filed 2012-05-09 |
10-K | 2011-12-31 | Filed 2012-03-15 |
10-Q | 2011-09-30 | Filed 2011-11-09 |
10-Q | 2011-06-30 | Filed 2011-08-08 |
10-Q | 2011-03-31 | Filed 2011-05-10 |
10-K | 2010-12-31 | Filed 2011-03-15 |
10-Q | 2010-09-30 | Filed 2010-11-03 |
10-Q | 2010-06-30 | Filed 2010-08-13 |
10-Q | 2010-03-31 | Filed 2010-05-12 |
10-K | 2009-12-31 | Filed 2010-03-26 |
8-K | 2020-11-06 | |
8-K | 2020-08-06 | |
8-K | 2020-07-15 | |
8-K | 2020-06-25 | |
8-K | 2020-05-13 | |
8-K | 2020-05-07 | |
8-K | 2020-05-05 | |
8-K | 2020-04-17 | |
8-K | 2020-02-20 | |
8-K | 2019-11-06 | |
8-K | 2019-08-27 | |
8-K | 2019-08-23 | |
8-K | 2019-08-06 | |
8-K | 2019-05-24 | |
8-K | 2019-05-09 | |
8-K | 2019-04-15 | |
8-K | 2019-02-20 | |
8-K | 2018-12-28 | |
8-K | 2018-11-06 | |
8-K | 2018-10-12 | |
8-K | 2018-10-02 | |
8-K | 2018-09-21 | |
8-K | 2018-09-14 | |
8-K | 2018-09-13 | |
8-K | 2018-08-13 | |
8-K | 2018-08-13 | |
8-K | 2018-07-25 | |
8-K | 2018-05-10 | |
8-K | 2018-02-26 |
Part I - Financial Information |
Item 1. Financial Statements |
Note 1. The Company and Summary of Significant Accounting Policies |
Note 2: Fair Value of Financial Instruments |
Note 3. Balance Sheet Detail |
Note 4. Commitments and Contingencies |
Note 5. Business Segments, Concentration of Credit Risk and Significant Customers |
Note 6. Income Tax Provision |
Note 7. Stock - Based Compensation |
Note 8: Stockholders' Equity |
Note 9. Notes Payable |
Note 10. Leases |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 4. Controls and Procedures |
Part II - Other Information |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 6. Exhibits |
EX-31.1 | mosy-ex311_7.htm |
EX-31.2 | mosy-ex312_6.htm |
EX-32.1 | mosy-ex321_8.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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, 2020
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 000-32929
MOSYS, INC.
(Exact name of registrant as specified in its charter)
Delaware |
| 77-0291941 |
(State or other jurisdiction |
| (I.R.S. Employer |
of Incorporation or organization) |
| Identification Number) |
2309 Bering Drive
San Jose, California, 95131
(Address of principal executive office and zip code)
(408) 418-7500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
| Trading symbol(s)
| Name of each exchange on which registered
|
Common Stock, par value $0.001 per share | MOSY | 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 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 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 ☒
The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 3,553,184 as of November 5, 2020.
FORM 10-Q
September 30, 2020
PART I — | 3 | |
|
|
|
Item 1. | 3 | |
|
|
|
| Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 | 3 |
|
|
|
| 4 | |
|
|
|
| 5 | |
|
|
|
| 6 | |
|
|
|
| 7 | |
|
|
|
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18 |
|
|
|
Item 4. | 24 | |
|
|
|
PART II — | 24 | |
|
|
|
Item 1. | 24 | |
|
|
|
Item 1A. | 24 | |
|
|
|
Item 6. | 26 | |
|
|
|
| 27 |
MOSYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
|
| September 30, |
|
| December 31, |
| ||
|
| 2020 |
|
| 2019 |
| ||
|
| (unaudited) |
|
|
|
|
| |
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 6,921 |
|
| $ | 6,053 |
|
Short-term investments |
|
| — |
|
|
| 300 |
|
Accounts receivable |
|
| 790 |
|
|
| 1,175 |
|
Inventories |
|
| 713 |
|
|
| 968 |
|
Prepaid expenses and other |
|
| 359 |
|
|
| 472 |
|
Total current assets |
|
| 8,783 |
|
|
| 8,968 |
|
Property and equipment, net |
|
| 86 |
|
|
| 197 |
|
Right-of-use lease asset, net |
|
| 352 |
|
|
| 156 |
|
Other |
|
| 17 |
|
|
| 78 |
|
Total assets |
| $ | 9,238 |
|
| $ | 9,399 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 80 |
|
| $ | 218 |
|
Deferred revenue |
|
| — |
|
|
| 166 |
|
Short-term lease liability |
|
| 201 |
|
|
| 166 |
|
PPP note payable, current |
|
| 171 |
|
|
| — |
|
Accrued expenses and other |
|
| 1,233 |
|
|
| 1,155 |
|
Total current liabilities |
|
| 1,685 |
|
|
| 1,705 |
|
Convertible notes payable |
|
| 3,092 |
|
|
| 2,858 |
|
PPP note payable |
|
| 408 |
|
|
| — |
|
Long-term lease liability |
|
| 152 |
|
|
| — |
|
Total liabilities |
|
| 5,337 |
|
|
| 4,563 |
|
Commitments and contingencies (Note 4) |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value; 20,000 shares authorized; none issued and outstanding |
|
| — |
|
|
| — |
|
Common stock, $0.001 par value; 120,000 shares authorized; 3,553 shares and 2,179 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively |
|
| 3 |
|
|
| 2 |
|
Additional paid-in capital |
|
| 245,488 |
|
|
| 243,281 |
|
Accumulated deficit |
|
| (241,590 | ) |
|
| (238,447 | ) |
Total stockholders’ equity |
|
| 3,901 |
|
|
| 4,836 |
|
Total liabilities and stockholders’ equity |
| $ | 9,238 |
|
| $ | 9,399 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except per share data)
|
| Three Months Ended |
|
| Nine Months Ended |
| ||||||||||
|
| September 30, |
|
| September 30, |
| ||||||||||
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
| $ | 1,803 |
|
| $ | 1,037 |
|
| $ | 4,550 |
|
| $ | 7,233 |
|
Royalty and other |
|
| 168 |
|
|
| 169 |
|
|
| 649 |
|
|
| 559 |
|
Total net revenue |
|
| 1,971 |
|
|
| 1,206 |
|
|
| 5,199 |
|
|
| 7,792 |
|
Cost of net revenue |
|
| 677 |
|
|
| 407 |
|
|
| 1,811 |
|
|
| 2,989 |
|
Gross profit |
|
| 1,294 |
|
|
| 799 |
|
|
| 3,388 |
|
|
| 4,803 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
| 972 |
|
|
| 1,097 |
|
|
| 2,918 |
|
|
| 3,231 |
|
Selling, general and administrative |
|
| 955 |
|
|
| 1,059 |
|
|
| 3,054 |
|
|
| 2,963 |
|
Impairment of goodwill |
|
| — |
|
|
| 420 |
|
|
| — |
|
|
| 420 |
|
Total operating expenses |
|
| 1,927 |
|
|
| 2,576 |
|
|
| 5,972 |
|
|
| 6,614 |
|
Loss from operations |
|
| (633 | ) |
|
| (1,777 | ) |
|
| (2,584 | ) |
|
| (1,811 | ) |
Interest expense |
|
| (70 | ) |
|
| (54 | ) |
|
| (181 | ) |
|
| (164 | ) |
Other income (expense), net |
|
| (4 | ) |
|
| 30 |
|
|
| 14 |
|
|
| 81 |
|
Net loss |
|
| (707 | ) |
|
| (1,801 | ) |
|
| (2,751 | ) |
|
| (1,894 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend for warrant exercise price adjustment |
|
| — |
|
|
| — |
|
|
| (392 | ) |
|
| — |
|
Net loss attributable to common stockholders |
| $ | (707 | ) |
| $ | (1,801 | ) |
| $ | (3,143 | ) |
| $ | (1,894 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | (0.20 | ) |
| $ | (0.83 | ) |
| $ | (1.03 | ) |
| $ | (0.88 | ) |
Shares used in computing net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
| 3,546 |
|
|
| 2,171 |
|
|
| 3,037 |
|
|
| 2,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
| $ | (707 | ) |
| $ | (1,801 | ) |
| $ | (2,751 | ) |
| $ | (1,894 | ) |
Net unrealized gains on available-for-sale securities |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
Comprehensive loss |
| $ | (707 | ) |
| $ | (1,801 | ) |
| $ | (2,751 | ) |
| $ | (1,893 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Additional |
|
| Other |
|
|
|
|
|
|
|
|
| ||
|
| Common Stock |
|
| Paid-In |
|
| Comprehensive |
|
| Accumulated |
|
|
|
|
| ||||||||
|
| Shares |
|
| Amount |
|
| Capital |
|
| Income |
|
| Deficit |
|
| Total |
| ||||||
Balance as of December 31, 2019 |
|
| 2,179 |
|
| $ | 2 |
|
| $ | 243,281 |
|
|
| — |
|
| $ | (238,447 | ) |
| $ | 4,836 |
|
Issuance of common stock for release of awards |
|
| 20 |
|
|
| — |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| (1 | ) |
Exercise of pre-funded warrants |
|
| 116 |
|
|
| — |
|
|
| 2 |
|
|
| — |
|
|
| — |
|
|
| 2 |
|
Stock-based compensation |
|
| — |
|
|
| — |
|
|
| 68 |
|
|
| — |
|
|
| — |
|
|
| 68 |
|
Net loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,405 | ) |
|
| (1,405 | ) |
Balance as of March 31, 2020 |
|
| 2,315 |
|
|
| 2 |
|
|
| 243,350 |
|
|
| — |
|
|
| (239,852 | ) |
|
| 3,500 |
|
Issuance of common stock for release of awards |
|
| 1 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Sale of common stock, net of financing costs |
|
| 1,218 |
|
|
| 1 |
|
|
| 1,618 |
|
|
| — |
|
|
| — |
|
|
| 1,619 |
|
Deemed dividend for warrant exercise price adjustment |
|
| — |
|
|
| — |
|
|
| 392 |
|
|
| — |
|
|
| (392 | ) |
|
| — |
|
Stock-based compensation |
|
| — |
|
|
| — |
|
|
| 66 |
|
|
| — |
|
|
| — |
|
|
| 66 |
|
Net loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (639 | ) |
|
| (639 | ) |
Balance as of June 30, 2020 |
|
| 3,534 |
|
|
| 3 |
|
|
| 245,426 |
|
|
| — |
|
|
| (240,883 | ) |
|
| 4,546 |
|
Issuance of common stock for release of awards |
|
| 19 |
|
|
| — |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| (1 | ) |
Stock-based compensation |
|
| — |
|
|
| — |
|
|
| 63 |
|
|
| — |
|
|
| — |
|
|
| 63 |
|
Net loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (707 | ) |
|
| (707 | ) |
Balance as of September 30, 2020 |
|
| 3,553 |
|
| $ | 3 |
|
| $ | 245,488 |
|
| $ | — |
|
| $ | (241,590 | ) |
| $ | 3,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Additional |
|
| Other |
|
|
|
|
|
|
|
|
| ||
|
| Common Stock |
|
| Paid-In |
|
| Comprehensive |
|
| Accumulated |
|
|
|
|
| ||||||||
|
| Shares |
|
| Amount |
|
| Capital |
|
| Income |
|
| Deficit |
|
| Total |
| ||||||
Balance as of December 31, 2018 |
|
| 2,148 |
|
| $ | 2 |
|
| $ | 243,022 |
|
|
| — |
|
| $ | (235,867 | ) |
| $ | 7,157 |
|
Issuance of common stock for release of awards |
|
| 9 |
|
|
| — |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| (1 | ) |
Stock-based compensation |
|
| — |
|
|
| — |
|
|
| (4 | ) |
|
| — |
|
|
| — |
|
|
| (4 | ) |
Net income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 10 |
|
|
| 10 |
|
Balance as of March 31, 2019 |
|
| 2,157 |
|
|
| 2 |
|
|
| 243,017 |
|
|
| — |
|
|
| (235,857 | ) |
|
| 7,162 |
|
Issuance of common stock for release of awards |
|
| 5 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Stock-based compensation |
|
| — |
|
|
| — |
|
|
| 119 |
|
|
| — |
|
|
| — |
|
|
| 119 |
|
Unrealized gain on available-for-sale investments |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 1 |
|
Net loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (103 | ) |
|
| (103 | ) |
Balance as of June 30, 2019 |
|
| 2,162 |
|
|
| 2 |
|
|
| 243,136 |
|
|
| 1 |
|
|
| (235,960 | ) |
|
| 7,179 |
|
Issuance of common stock for release of awards |
|
| 16 |
|
|
| — |
|
|
| (3 | ) |
|
| — |
|
|
| — |
|
|
| (3 | ) |
Stock-based compensation |
|
| — |
|
|
| — |
|
|
| 84 |
|
|
| — |
|
|
| — |
|
|
| 84 |
|
Net loss |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,801 | ) |
|
| (1,801 | ) |
Balance as of September 30, 2019 |
|
| 2,178 |
|
| $ | 2 |
|
| $ | 243,217 |
|
| $ | 1 |
|
| $ | (237,761 | ) |
| $ | 5,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
| Nine Months Ended |
| |||||
|
| September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
| $ | (2,751 | ) |
| $ | (1,894 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 121 |
|
|
| 148 |
|
Stock-based compensation |
|
| 197 |
|
|
| 199 |
|
Impairment of goodwill |
|
| — |
|
|
| 420 |
|
Accrued interest |
|
| 181 |
|
|
| 164 |
|
Other |
|
| (5 | ) |
|
| (11 | ) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| 385 |
|
|
| 729 |
|
Inventories |
|
| 255 |
|
|
| (67 | ) |
Prepaid expenses and other assets |
|
| 174 |
|
|
| 448 |
|
Accounts payable |
|
| (138 | ) |
|
| (105 | ) |
Deferred revenue and other liabilities |
|
| (35 | ) |
|
| (257 | ) |
Net cash used in operating activities |
|
| (1,616 | ) |
|
| (226 | ) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
| (14 | ) |
|
| (62 | ) |
Proceeds from maturities of short-term investments |
|
| 300 |
|
|
| 925 |
|
Purchases of short-term investments |
|
| — |
|
|
| (1,567 | ) |
Net cash provided by (used in) investing activities |
|
| 286 |
|
|
| (704 | ) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from PPP note |
|
| 579 |
|
|
| — |
|
Proceeds from sale of common stock, net of financing costs |
|
| 1,619 |
|
|
| — |
|
Net proceeds from exercise of pre-funded warrants |
|
| 2 |
|
|
| — |
|
Taxes paid to net share settle equity awards |
|
| (2 | ) |
|
| (4 | ) |
Net cash provided by (used in) financing activities |
|
| 2,198 |
|
|
| (4 | ) |
Net increase (decrease) in cash and cash equivalents |
|
| 868 |
|
|
| (934 | ) |
Cash and cash equivalents at beginning of period |
|
| 6,053 |
|
|
| 7,104 |
|
Cash and cash equivalents at end of period |
| $ | 6,921 |
|
| $ | 6,170 |
|
Supplemental disclosure: |
|
|
|
|
|
|
|
|
Issuance of convertible notes in settlement of accrued interest |
| $ | 234 |
|
| $ | 187 |
|
Fair value of warrant exercise price adjustment considered as deemed dividend |
| $ | 392 |
|
| $ | — |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. The Company and Summary of Significant Accounting Policies
MoSys, Inc. (the Company) was incorporated in California in September 1991 and reincorporated in September 2000 in Delaware. The Company’s strategy and primary business objective is to be an IP-rich fabless semiconductor company focused on the development and sale of integrated circuit (IC) and related software and firmware products.
The accompanying condensed consolidated financial statements of the Company have been prepared without audit.
The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted in accordance with these rules and regulations of the Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for any other future period.
Basis of Presentation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year.
Risks and Uncertainties
The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.
COVID-19
The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in-place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cann