10-Q 1 pi-10q_20220331.htm 10-Q pi-10q_20220331.htm
false 2022 Q1 0001114995 --12-31 true false P4Y3M18D P4Y4M24D 0001114995 2022-01-01 2022-03-31 xbrli:shares 0001114995 2022-04-15 iso4217:USD 0001114995 2022-03-31 0001114995 2021-12-31 iso4217:USD xbrli:shares 0001114995 2021-01-01 2021-03-31 0001114995 2020-12-31 0001114995 2021-03-31 0001114995 us-gaap:CommonStockMember 2021-12-31 0001114995 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001114995 us-gaap:RetainedEarningsMember 2021-12-31 0001114995 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001114995 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001114995 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001114995 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001114995 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001114995 us-gaap:CommonStockMember 2022-03-31 0001114995 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001114995 us-gaap:RetainedEarningsMember 2022-03-31 0001114995 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001114995 us-gaap:CommonStockMember 2020-12-31 0001114995 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001114995 us-gaap:RetainedEarningsMember 2020-12-31 0001114995 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001114995 us-gaap:AdditionalPaidInCapitalMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-31 0001114995 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-31 0001114995 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-31 0001114995 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001114995 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001114995 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001114995 us-gaap:CommonStockMember 2021-03-31 0001114995 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001114995 us-gaap:RetainedEarningsMember 2021-03-31 0001114995 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001114995 us-gaap:AccountingStandardsUpdate202006Member 2022-03-31 0001114995 us-gaap:AccountingStandardsUpdate202006Member srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember us-gaap:ChangeInAccountingMethodAccountedForAsChangeInEstimateMember 2021-01-01 0001114995 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel1Member us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel1Member us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:USTreasurySecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:USTreasurySecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:AssetBackedSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:AssetBackedSecuritiesMember us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:CorporateDebtSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:AssetBackedSecuritiesMember us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:OtherLongTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001114995 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001114995 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 xbrli:pure 0001114995 pi:MarketAndServiceConditionUnitsMember 2021-04-12 2021-05-20 0001114995 pi:MarketAndServiceConditionUnitsMember 2022-03-23 2022-03-23 0001114995 us-gaap:RestrictedStockUnitsRSUMember 2021-12-31 0001114995 pi:MarketAndServiceConditionUnitsMember 2021-12-31 0001114995 us-gaap:PerformanceSharesMember 2021-12-31 0001114995 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 2022-03-31 0001114995 pi:MarketAndServiceConditionUnitsMember 2022-01-01 2022-03-31 0001114995 us-gaap:PerformanceSharesMember 2022-01-01 2022-03-31 0001114995 us-gaap:RestrictedStockUnitsRSUMember 2022-03-31 0001114995 pi:MarketAndServiceConditionUnitsMember 2022-03-31 0001114995 us-gaap:PerformanceSharesMember 2022-03-31 0001114995 us-gaap:CostOfSalesMember 2022-01-01 2022-03-31 0001114995 us-gaap:CostOfSalesMember 2021-01-01 2021-03-31 0001114995 us-gaap:ResearchAndDevelopmentExpenseMember 2022-01-01 2022-03-31 0001114995 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-03-31 0001114995 us-gaap:SellingAndMarketingExpenseMember 2022-01-01 2022-03-31 0001114995 us-gaap:SellingAndMarketingExpenseMember 2021-01-01 2021-03-31 0001114995 us-gaap:GeneralAndAdministrativeExpenseMember 2022-01-01 2022-03-31 0001114995 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-03-31 0001114995 us-gaap:AccruedLiabilitiesMember 2022-03-31 0001114995 us-gaap:AccruedLiabilitiesMember 2021-12-31 pi:Patent 0001114995 pi:PatentInfringementClaimsMember 2019-06-06 2019-06-06 0001114995 pi:PatentInfringementClaimsMember 2019-06-06 0001114995 pi:PatentInfringementClaimsMember 2020-02-01 2020-02-29 0001114995 pi:PatentInfringementClaimsMember 2020-08-01 2020-09-30 0001114995 pi:PatentInfringementClaimsMember 2020-10-27 2020-10-27 0001114995 pi:PatentInfringementClaimsMember 2020-09-24 2020-09-24 0001114995 pi:PatentInfringementClaimsMember 2021-09-03 2021-09-03 0001114995 pi:PatentInfringementClaimsMember 2019-10-04 2019-10-04 0001114995 pi:PatentInfringementClaimsMember 2020-12-10 2020-12-11 0001114995 pi:PatentInfringementClaimsMember 2020-12-11 0001114995 pi:PatentInfringementClaimsMember 2021-02-12 0001114995 pi:PatentInfringementClaimsMember 2021-03-09 0001114995 pi:PatentInfringementClaimsMember 2021-05-25 2021-05-25 0001114995 pi:PatentInfringementClaimsMember 2021-07-26 2021-07-26 0001114995 2021-07-26 2021-07-26 0001114995 pi:PatentInfringementClaimsMember 2022-02-10 2022-02-10 pi:Trial 0001114995 pi:PatentInfringementClaimsMember 2020-12-07 2020-12-07 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember 2022-03-31 0001114995 us-gaap:ShortTermDebtMember 2022-03-31 0001114995 us-gaap:LongTermDebtMember 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2021-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember 2021-12-31 0001114995 us-gaap:ShortTermDebtMember 2021-12-31 0001114995 us-gaap:LongTermDebtMember 2021-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember pi:TwoThousandNineteenNoteRepurchaseMember 2021-11-01 2021-11-30 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember pi:TwoThousandNineteenNoteRepurchaseMember 2021-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2019-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember 2021-11-30 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2019-12-01 2019-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember 2021-11-01 2021-11-30 utr:D 0001114995 us-gaap:ConvertibleDebtMember srt:MinimumMember 2022-01-01 2022-03-31 0001114995 us-gaap:ConvertibleDebtMember 2022-01-01 2022-03-31 0001114995 us-gaap:ConvertibleDebtMember srt:MaximumMember 2022-01-01 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2022-01-01 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember 2022-01-01 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2021-01-01 2021-03-31 0001114995 us-gaap:ConvertibleDebtMember 2021-01-01 2021-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2021-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember us-gaap:FairValueInputsLevel2Member 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySevenMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember us-gaap:FairValueInputsLevel2Member 2022-03-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2019-12-11 2019-12-11 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2019-12-11 0001114995 2019-12-01 2019-12-31 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2021-11-01 2021-11-30 0001114995 pi:ConvertibleSeniorNotesDueTwoThousandTwentySixMember 2021-11-30 0001114995 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-03-31 0001114995 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-03-31 0001114995 pi:RestrictedStockUnitsMarketAndServiceConditionUnitsAndPerformanceStockUnitsMember 2022-01-01 2022-03-31 0001114995 pi:RestrictedStockUnitsMarketAndServiceConditionUnitsAndPerformanceStockUnitsMember 2021-01-01 2021-03-31 0001114995 pi:EmployeeStockPurchasePlanSharesMember 2022-01-01 2022-03-31 0001114995 pi:EmployeeStockPurchasePlanSharesMember 2021-01-01 2021-03-31 0001114995 pi:TwoThousandNineteenNotesMember 2022-01-01 2022-03-31 0001114995 pi:TwoThousandNineteenNotesMember 2021-01-01 2021-03-31 0001114995 pi:TwoThousandTwentyOneNotesMember 2022-01-01 2022-03-31 pi:Segment 0001114995 pi:EndpointICsMember 2022-01-01 2022-03-31 0001114995 pi:EndpointICsMember 2021-01-01 2021-03-31 0001114995 pi:SystemsMember 2022-01-01 2022-03-31 0001114995 pi:SystemsMember 2021-01-01 2021-03-31 0001114995 2021-06-30 0001114995 srt:DirectorMember pi:AdvisoryAndConsultingServicesMember 2022-01-01 2022-03-31 0001114995 srt:DirectorMember pi:AdvisoryAndConsultingServicesMember 2021-01-01 2021-03-31 pi:Position 0001114995 2021-01-02 2021-02-02 0001114995 us-gaap:OneTimeTerminationBenefitsMember 2021-01-01 2021-12-31 0001114995 us-gaap:OtherRestructuringMember 2021-01-01 2021-12-31 0001114995 2021-01-01 2021-12-31 0001114995 us-gaap:OneTimeTerminationBenefitsMember 2022-01-01 2022-03-31 0001114995 us-gaap:OneTimeTerminationBenefitsMember 2022-03-31

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

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

For the quarterly period ended March 31, 2022

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

Commission File Number: 001-37824

 

IMPINJ, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

91-2041398

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

400 Fairview Avenue North, Suite 1200, Seattle, Washington

 

98109

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (206) 517-5300

 

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

PI

The Nasdaq Global Select Market

 

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 April 15, 2022, 25,380,764 shares of common stock were outstanding.

 

 


Table of Contents

 

IMPINJ, INC.

QUARTERLY REPORT ON FORM 10-Q

 

Table of Contents

 

 

 

 

 

Page

 

 

Risk Factor Summary

 

3  

 

 

 

 

 

 

 

PART I. — FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements (Unaudited)

 

4

 

 

Condensed Consolidated Balance Sheets

 

4

 

 

Condensed Consolidated Statements of Operations

 

5

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

6

 

 

Condensed Consolidated Statements of Cash Flows

 

7

 

 

Condensed Consolidated Statements of Changes in Stockholders' Equity

 

8

 

 

Notes to Condensed Consolidated Financial Statements

 

9

Item 2.

 

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

 

20

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

30

Item 4.

 

Controls and Procedures

 

31

 

 

PART II. — OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings

 

32

Item 1A.

 

Risk Factors

 

32

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

53

Item 3.

 

Defaults Upon Senior Securities

 

53

Item 4.

 

Mine Safety Disclosures

 

53

Item 5.

 

Other Information

 

53

Item 6.

 

Exhibits

 

54

 

 

Signatures

 

55

 

 

2


Table of Contents

 

 

Risk Factor Summary

 

Our business is subject to numerous risks and uncertainties, including those highlighted in the section of this report captioned “Risk

Factors.” These risks include the following:

 

 

if RAIN market adoption does not continue to develop, or develops slower than we expect, or if RAIN adoption by retailers does not continue at the rate we expect, our business will suffer;

 

our market is very competitive, and if we fail to compete successfully, our business and operating results will suffer;

 

an inability or limited ability of enterprise systems to exploit RAIN information may adversely affect the market for our products;

 

if end users or our direct customers fail to design our products into their products and systems, our operating results and prospects will be adversely affected;

 

alternative technologies or standards, or changes in existing technologies or standards, may adversely affect RAIN market growth and our business;

 

we obtain products we sell through third parties who operate outside of United States and with whom we do not have long-term supply contracts, and if we are unable to effectively manage our relationships with suppliers our operating results and financial condition would be adversely affected;

 

we are vulnerable to silicon wafer shortages, which may adversely affect our ability to meet demand for our products;

 

our products must meet demanding technical and quality specifications and failure of our products to operate as expected could have an adverse effect on our operating results;

 

Covid-19 has adversely affected our business, and the magnitude and duration of future Covid-19 effects on our business are uncertain;

 

we rely on a small number of customers for a large share of our revenues;

 

because we sell and fulfill through channel partners, our ability to affect or determine end-user demand is limited;

 

our growth strategy depends in part on the success of strategic relationships with third parties and their continued performance and alignment;

 

if we are unable to protect our intellectual property, then our business could be adversely affected;

 

we may become party to intellectual property disputes, which could be time consuming, costly to prosecute, defend or settle, result in the loss of significant rights, and adversely affect RAIN adoption generally;

 

we have a history of losses and have only achieved profitability intermittently, and we cannot be certain that we will attain or sustain profitability in the future;

 

we have a history of significant fluctuations in our quarterly and annual operating results;

 

servicing $287.5 million aggregate principal amount 1.125% convertible senior notes due 2027, or the 2021 Notes, and $9.85 million aggregate principal amount 2.0% convertible senior notes due 2026, or the 2019 Notes, together the Notes, may require a significant amount of cash, and we may not have sufficient cash flow or the ability to raise the funds necessary to satisfy our obligations under the Notes, in which case our indebtedness may limit our operating flexibility or otherwise affect our business; and

 

our executive officers, directors, principal stockholders, together with their affiliates, beneficially owned approximately 25.5% of our outstanding common stock as of March 31, 2022, and as a result are able to exercise significant influence over matters subject to stockholder approval.

 

3


Table of Contents

 

 

PART I — FINANCIAL INFORMATION

 

Item 1.

Financial Statements (unaudited)

IMPINJ, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value, unaudited)

 

 

March 31, 2022

 

 

December 31, 2021

 

Assets:

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

63,543

 

 

$

123,903

 

Short-term investments

 

101,724

 

 

 

69,443

 

Accounts receivable, net

 

38,533

 

 

 

35,449

 

Inventory

 

31,561

 

 

 

21,958

 

Prepaid expenses and other current assets

 

7,195

 

 

 

5,049

 

Total current assets

 

242,556

 

 

 

255,802

 

Long-term investments

 

28,144

 

 

 

14,225

 

Property and equipment, net

 

29,133

 

 

 

27,500

 

Operating lease right-of-use assets

 

10,863

 

 

 

11,667

 

Other non-current assets

 

2,365

 

 

 

2,462

 

Goodwill

 

3,881

 

 

 

3,881

 

Total assets

$

316,942

 

 

$

315,537

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

9,103

 

 

$

11,732

 

Accrued compensation and employee related benefits

 

4,590

 

 

 

6,365

 

Accrued and other current liabilities

 

3,878

 

 

 

2,481

 

Current portion of operating lease liabilities

 

3,967

 

 

 

4,143

 

Restructuring liabilities

 

554

 

 

 

591

 

Current portion of long-term debt

 

9,643

 

 

 

9,633

 

Current portion of deferred revenue

 

907

 

 

 

558

 

Total current liabilities

 

32,642

 

 

 

35,503

 

Long-term debt, net of current portion

 

279,054

 

 

 

278,661

 

Operating lease liabilities, net of current portion

 

11,102

 

 

 

11,934

 

Other long-term liabilities

 

113

 

 

 

279

 

Deferred revenue, net of current portion

 

320

 

 

 

236

 

Total liabilities

 

323,231

 

 

 

326,613

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Preferred stock, $0.001 par value — 5,000 shares authorized, no shares issued and outstanding at March 31, 2022 and December 31, 2021

 

 

 

 

 

Common stock, $0.001 par value — 495,000 shares authorized, 25,220 and 24,737 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

25

 

 

 

25

 

Additional paid-in capital

 

367,347

 

 

 

351,422

 

Accumulated other comprehensive (loss) income

 

(716

)

 

 

(39

)

Accumulated deficit

 

(372,945

)

 

 

(362,484

)

Total stockholders' equity

 

(6,289

)

 

 

(11,076

)

Total liabilities and stockholders' equity

$

316,942

 

 

$

315,537

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


Table of Contents

 

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Revenue

 

$

53,144

 

 

$

45,248

 

Cost of revenue

 

 

24,365

 

 

 

23,267

 

Gross profit

 

 

28,779

 

 

 

21,981

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

17,989

 

 

 

13,791

 

Sales and marketing

 

 

9,299

 

 

 

7,645

 

General and administrative

 

 

10,806

 

 

 

8,154

 

Restructuring costs

 

 

 

 

 

1,263

 

Total operating expenses

 

 

38,094

 

 

 

30,853

 

Loss from operations

 

 

(9,315

)

 

 

(8,872

)

Other income, net

 

 

164

 

 

 

23

 

Interest expense

 

 

(1,261

)

 

 

(525

)

Loss before income taxes

 

 

(10,412

)

 

 

(9,374

)

Income tax expense

 

 

(49

)

 

 

(42

)

Net loss

 

$

(10,461

)

 

$

(9,416

)

 

 

 

 

 

 

 

 

 

Net loss per share — basic and diluted

 

$

(0.42

)

 

$

(0.40

)

Weighted-average shares outstanding — basic and diluted

 

 

24,980

 

 

 

23,671

 

 

See accompanying notes to condensed consolidated financial statements.

 

5


Table of Contents

 

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands, unaudited)

 

 

Three Months Ended March 31,

 

 

2022

 

 

2021

 

Net loss

$

(10,461

)

 

$

(9,416

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

Unrealized loss on investments

 

(677

)

 

 

 

Total other comprehensive loss

 

(677

)

 

 

 

Comprehensive loss

$

(11,138

)

 

$

(9,416

)

 

See accompanying notes to condensed consolidated financial statements.

 

6


Table of Contents

 

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

Three Months Ended March 31,

 

 

2022

 

 

2021

 

Operating activities:

 

 

 

 

 

 

 

Net loss

$

(10,461

)

 

$

(9,416

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation

 

1,508

 

 

 

1,040

 

Stock-based compensation

 

11,314

 

 

 

7,449

 

Accretion of discount or amortization of premium on investments

 

301

 

 

 

218

 

Amortization of debt issuance costs

 

403

 

 

 

94

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(3,084

)

 

 

1,498

 

Inventory

 

(9,603

)

 

 

8,262

 

Prepaid expenses and other assets

 

(2,142

)

 

 

880

 

Accounts payable

 

(2,768

)

 

 

(2,137

)

Accrued compensation and employee related benefits

 

(1,775

)

 

 

345

 

Accrued and other liabilities

 

1,279

 

 

 

722

 

Operating lease right-of-use assets

 

804

 

 

 

723

 

Operating lease liabilities

 

(1,008

)

 

 

(911

)

Restructuring liabilities

 

(37

)

 

 

1,235

 

Deferred revenue

 

433

 

 

 

(633

)

Net cash provided by (used in) operating activities

 

(14,836

)

 

 

9,369

 

Investing activities:

 

 

 

 

 

 

 

Purchases of investments

 

(67,085

)

 

 

(12,333

)

Proceeds from maturities of investments

 

20,000

 

 

 

25,000

 

Purchases of property and equipment

 

(3,050

)

 

 

(4,398

)

Net cash provided by (used in) investing activities

 

(50,135

)

 

 

8,269

 

Financing activities:

 

 

 

 

 

 

 

Principal payments on finance lease obligations

 

 

 

 

(2

)

Proceeds from exercise of stock options and employee stock purchase plan

 

4,611

 

 

 

8,524

 

Net cash provided by financing activities

 

4,611

 

 

 

8,522

 

Net increase (decrease) in cash and cash equivalents

 

(60,360

)

 

 

26,160

 

Cash and cash equivalents

 

 

 

 

 

 

 

Beginning of period

 

123,903

 

 

 

23,636

 

End of period

$

63,543

 

 

$

49,796

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cashflow information:

 

 

 

 

 

 

 

Purchases of property and equipment not yet paid

$

508

 

 

$

1,984

 

 

See accompanying notes to condensed consolidated financial statements.

 


7


Table of Contents

 

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balance at December 31, 2021

 

 

24,737

 

 

$

25

 

 

$

351,422

 

 

$

(362,484

)

 

$

(39

)

 

$

(11,076

)

Issuance of common stock

 

 

483

 

 

 

 

 

 

4,611

 

 

 

 

 

 

 

 

 

4,611

 

Stock-based compensation

 

 

 

 

 

 

 

 

11,314

 

 

 

 

 

 

 

 

 

11,314

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(10,461

)

 

 

 

 

 

(10,461

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(677

)

 

 

(677

)

Balance at March 31, 2022

 

 

25,220

 

 

$

25

 

 

$

367,347

 

 

$

(372,945

)

 

$

(716

)

 

$

(6,289

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income

 

 

Equity

 

Balance at December 31, 2020

 

 

23,350

 

 

$

23

 

 

$

423,759

 

 

$

(314,666

)

 

$

3

 

 

$

109,119

 

Cumulative-effect adjustment from adoption of ASU 2020-06

 

 

 

 

 

 

 

 

(32,743

)

 

 

3,442

 

 

 

 

 

 

(29,301

)

Issuance of common stock

 

 

702

 

 

 

1

 

 

 

8,523

 

 

 

 

 

 

 

 

 

8,524

 

Stock-based compensation

 

 

 

 

 

 

 

 

7,449

 

 

 

 

 

 

 

 

 

7,449

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(9,416

)

 

 

 

 

 

(9,416

)

Balance at March 31, 2021

 

 

24,052

 

 

$

24

 

 

$

406,988

 

 

$

(320,640

)

 

$

3

 

 

$

86,375

 

 

See accompanying notes to condensed consolidated financial statements.

8


Table of Contents

 

IMPINJ, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2021 included in Impinj, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on February 14, 2022. The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited consolidated financial statements of Impinj, Inc.

The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position, results of operations, and our cash flows for the periods presented. Interim results are not necessarily indicative of the results for a full year or for any other future period.

Use of Estimates

Preparing financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, sales incentives, estimates to complete development contracts, deferred revenue, inventory excess and obsolescence, income taxes, determination of the fair value of stock awards and compensation and employee-related benefits. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. Covid-19 has introduced significant additional uncertainty with respect to estimates, judgments and assumptions about current and forecasted demand, which may materially impact the estimates previously listed, among others.

Recently Adopted Accounting Standards

In August 2020, the FASB issued guidance on debt with conversion and other options, or ASU 2020-06. This guidance eliminates the beneficial- and cash-conversion accounting models for convertible instruments and amends the derivative scope exception for contracts in an entity’s own equity. Additionally, this guidance requires the application of the “if-converted” method to calculate the impact of convertible instruments on diluted earnings per share. We adopted ASU 2020-06 on January 1, 2021 using the modified retrospective transition method and accounted for the 2019 Notes on a whole-instrument basis. Upon adoption, we recorded a $29.3 million increase to long-term debt, a $32.7 million decrease to additional paid-in capital and a $3.4 million decrease to accumulated deficit on January 1, 2021. We had no changes to net deferred tax liabilities with a decrease in deferred tax liability offset by a corresponding increase in valuation allowance upon adoption. We use the “if-converted” method to calculate the impact of convertible instruments on diluted earnings per share for the three months ended March 31, 2022 and 2021, upon adoption of this guidance.

The condensed consolidated financial statements as of and for the three months ended March 31, 2022, and 2021, are presented under ASU 2020-06.

Recently Issued Accounting Standards Not Yet Adopted

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not have, or are not expected to have, a material impact on our present or future consolidated financial statements.

 

 

9


Table of Contents

 

 

Note 2. Fair Value Measurements

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents consist of highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets.

Investments Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Long-term Debt — See Note 6 for the carrying amount and estimated fair value of the Notes.

The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

56,283

 

 

$

 

 

$

56,283

 

 

$

113,058

 

 

$

 

 

$

113,058

 

Total cash equivalents

 

 

56,283

 

 

 

 

 

 

56,283

 

 

 

113,058

 

 

 

 

 

 

113,058

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

 

 

 

 

21,086

 

 

 

21,086

 

 

 

 

 

 

4,066

 

 

 

4,066

 

Corporate notes and bonds

 

 

 

 

 

38,379

 

 

 

38,379

 

 

 

 

 

 

36,966

 

 

 

36,966

 

Commercial paper

 

 

 

 

 

21,420

 

 

 

21,420

 

 

 

 

 

 

16,489

 

 

 

16,489

 

Treasury bill

 

 

 

 

 

18,447

 

 

 

18,447

 

 

 

 

 

 

4,490

 

 

 

4,490

 

Asset-backed securities

 

 

 

 

 

2,392

 

 

 

2,392

 

 

 

 

 

 

7,432

 

 

 

7,432

 

Total short-term investments

 

 

 

 

 

101,724

 

 

 

101,724

 

 

 

 

 

 

69,443

 

 

 

69,443

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

 

 

 

 

20,722

 

 

 

20,722

 

 

 

 

 

 

14,225

 

 

 

14,225

 

Corporate notes and bonds

 

 

 

 

 

6,448

 

 

 

6,448

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

 

 

 

 

974

 

 

 

974

 

 

 

 

 

 

 

 

 

 

Total long-term investments

 

 

 

 

 

28,144

 

 

 

28,144

 

 

 

 

 

 

14,225

 

 

 

14,225

 

Total

 

$

56,283

 

 

$

129,868

 

 

$

186,151

 

 

$

113,058

 

 

$

83,668

 

 

$

196,726

 

 

We did not have any Level 3 assets nor did we measure any liabilities at fair value as of March 31, 2022 or December 31, 2021. Short-term investments are expected to mature within 1 year from the reporting date. Long-term investments are expected to mature between 1 and 2 years from the reporting date. Amortized Cost of all investments by category does not materially differ from fair value. See Note 6 for the carrying amount and estimated fair value of the Notes.

 

 

10


Table of Contents

 

 

Note 3. Inventory

The following table presents the detail of inventories as of the dates presented (in thousands):

 

 

 

 

 

 

 

 

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Raw materials

 

$

9,308

 

 

$

6,305

 

Work-in-process

 

 

12,625