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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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, 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 000-38334

 

Immersion Corporation

(Exact name of registrant as specified in its charter)

Delaware

 

94-3180138

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

2999 N.E. 191st Street, Suite 610, Aventura, FL, 33180

(Address of principal executive offices, zip code)

(408) 467-1900

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report.)

 

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

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.001 par value

IMMR

NASDAQ Global Market

Series B Junior Participating Preferred Stock Purchase Rights

IMMR

NASDAQ Global 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, 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 Act). Yes   No

 

Number of shares of common stock outstanding at May 5, 2023 was 32,633,851.





 

IMMERSION CORPORATION

(In thousands)

(Unaudited)

 


March 31, 2023


 


December 31, 2022


ASSETS


Current assets:


 


 


 


Cash and cash equivalents

$ 

27,484


 

$ 

  48,820


Investments - current


 120,920


 


 100,918


Accounts and other receivables


 1,736


 


1,235


Prepaid expenses and other current assets


  8,925


 


 9,347


Total current assets


  159,065


 


160,320


Property and equipment, net


  272


 


 293


Investments - noncurrent


 25,604


 


 17,040


Long-term deposits


 4,306


 


  4,324


Deferred tax assets


 7,217


 


 7,217


Other assets


 654


 


 916


Total assets

$ 

197,118


 

$ 

190,110


LIABILITIES AND STOCKHOLDERS’ EQUITY


Current liabilities:


 


 


 


Accounts payable

$ 

 22


 

$ 

 86


Accrued compensation


 770


 


 2,029


Deferred revenue - current


 4,766


 


 4,766


Other current liabilities


 14,046


 


 12,465


Total current liabilities


19,604


 


 19,346


Deferred revenue - noncurrent 


 11,440


 


 12,629


Other long-term liabilities


 345


 


 435


Total liabilities


 31,389


 


32,410


Commitments and contingencies (Note 5)


 


 


 


Stockholders’ equity:


 


 


 


Common stock and additional paid-in capital


 322,847


 


 322,714


Accumulated other comprehensive income


 577


 


 202


Accumulated deficit


(61,738

)

 


(70,016

)

Treasury stock


(95,957

)

 


 (95,200

)

Total stockholders’ equity


 165,729


 


157,700


Total liabilities and stockholders’ equity

$ 

 197,118


 

$ 

   190,110


See accompanying Notes to Condensed Consolidated Financial Statements.

IMMERSION CORPORATION

AND COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(Unaudited)

 

 


Three Months Ended March 31,


 


2023


 


2022


Revenues:


 


 


 


Royalty and license

$

 7,009


 

$

 7,230


Development, services, and other


 65


 


 78


Total revenues


7,074


 


 7,308


Operating expenses:


 


 


 


Sales and marketing


 96


 


 486


Research and development


130


 


 513


General and administrative


 3,589


 


 2,706


Total operating expenses


 3,815


 


 3,705


Operating income


 3,259


 


 3,603


Interest and other income (loss), net


 6,526


 


 2,034


Income before provision for income taxes


 9,785


 


5,637


Provision for income taxes


(1,507

)

 


(561

)

Net income

$

8,278


 

$

 5,076


Basic net income per share

$

 0.25


 

$

 0.15


Shares used in calculating basic net income per share


 32,603


 


 33,996


Diluted net income per share

$

 0.25


 

$

 0.15


Shares used in calculating diluted net income per share


 33,085


 


 34,268


Other comprehensive income, net of tax


 


 


 


Deferred gains on available-for-sale marketable debt securities


 565


 


 530


Realized gains on available-for-sale marketable debt securities reclassified to net income


  (190

)

 

$

 (289

)

Total comprehensive income

$

 8,653


 

$

 5,317


 

See accompanying Notes to Condensed Consolidated Financial Statements.


IMMERSION CORPORATION

(In thousands, except number of shares)

(Unaudited)

  Three Months Ended March 31, 2023
 

Common Stock and Additional Paid-In Capital


 

Accumulated Other Comprehensive Income


 

Accumulated Deficit


  Treasury Stock
 

Total

Stockholders’ Equity


  Shares
 
Amount
  Shares
 
Amount
 
Balances at December 31, 2022

46,974,598


$

 322,714


$

202


$

(70,016

)


 14,727,582


$

 (95,200

)


$

157,700


Net income




8,278




8,278


Unrealized gain on available-for-sale securities, net of taxes



375





375


Release of restricted stock units and awards, net of shares withheld

401,955





97,936



  (757

)


(757

)
Issuance of stock for ESPP purchase

1,298


6






6


Shares issued to an employee in lieu of cash compensation

50,643


385






385


Dividends declared


(1,204

)










(1,204

)
Stock-based compensation


946






946


Balances at March 31, 2023

47,428,494


$

 322,847


$

577


$

(61,738

)


14,825,518


$

(95,957

)


$

165,729



  Three Months Ended March 31, 2022
  Common Stock and Additional Paid-In Capital
 

Accumulated Other Comprehensive Income


 

Accumulated Deficit



Treasury Stock
 

Total Stockholders’ Equity


  Shares
 
Amount
 
Shares
 
Amount
 
Balances at December 31, 2021 46,534,198
  $   323,296
  $ 412
  $ (100,680 )
12,143,433
  $ (81,733 )   $ 141,295
Net income
 
 
 

 
5,076


 

 
5,076
Unrealized gain on available-for-sale securities, net of taxes 
 

 
241
 



 

 
241
Stock repurchases

 
 
 
 
 
 

 938,781
 
(4,442 )  
(4,442 )
Release of restricted stock units and awards 116,811
 

 

 



 

 

Issuance of stock for ESPP purchase 7,725
 
34
 

 



 

 
34
Shares issued in connection with public offering, net of issuance costs
 
5
 

 



 

 
5
Stock-based compensation
 
1,141
 

 



 

 
1,141
Balances at March 31, 2022 46,658,734
  $ 324,476
  $  653
  $ (95,604 )
13,082,214
  $ (86,175 )   $ 143,350

 

See accompanying Notes to Condensed Consolidated Financial Statements.




IMMERSION CORPORATION

(In thousands)

(Unaudited)

  


Three Months Ended

March 31,


 


2023


 


2022


Cash flows provided by (used in) operating activities:


 


 


 


Net income

$

   8,278


 

$

5,076


Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:


 


 


 


Depreciation of property and equipment


  21


 


35


Reduction in carrying value of right of use assets


151


 


171


Stock-based compensation


946


 


1,141


Net gains on investment in marketable securities


    (3,683

)

 


(3,534

)

Net (gain) loss on derivative instruments


(615

)

 


2,795


Foreign currency remeasurement losses



 


131


Shares issued to an employee in lieu of cash compensation


   385


 



Other


   (26

)

 


(17

)

Changes in operating assets and liabilities:


 


 


 


Accounts and other receivables


    (501

)

 


(109

)

Prepaid expenses and other current assets


383


 


1,644


Long-term deposits


      18


 


4,611


Other assets


     113


 


757


Accounts payable


       (68

)

 


52


Accrued compensation


(1,259

)

 


12


Other current liabilities


602


 


(77

)

Deferred revenue


(1,189

)

 


(1,295

)

Other long-term liabilities


(33

)

 


(355

)

Net cash and cash equivalents provided by operating activities


     3,523


 


   11,038


Cash flows provided by (used in) investing activities:


 


 


 


Purchases of marketable securities and other investments


  (54,954

)

 


    (36,778

)

Proceeds from sale or maturities of marketable securities and other investments


     30,771


 


39,899


Proceeds from sale of derivative instruments


5,844

 


6,817


Payments for settlement of derivative instruments


(1,369)


 


(5,105

)

Net cash and cash equivalents provided by (used in) investing activities


(19,708

)

 


     4,833


Cash flows provided by (used in) financing activities:


 


 


 


Dividends payments to stockholders


(4,400

)

 


 


Payment for purchases of treasury stock


             


 


(4,442

)

Shares withheld to cover payroll taxes


(757

)

 



Other financing activities


6 


 


39


Net cash and cash equivalents used in financing activities


(5,151

)

 


(4,403

)

Net increase (decrease) in cash and cash equivalents


(21,336

)

 


11,468


Cash and cash equivalents:


 


 


 


Beginning of period


    48,820


 


51,490


End of period

$

     27,484


 

$

62,958


 See accompanying Notes to Condensed Consolidated Financial Statements.

 

IMMERSION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


  


Three Months Ended March 31,


 


2023


 


2022


Supplemental disclosure of cash flow information:


 


 


 


Cash paid for income taxes

$

    19


 

$

17


Supplemental disclosure of non-cash investing, and financing activities:


 


 


 


Dividends declared but not yet paid

$

1,015


 

$


Leased assets obtained in exchange for new operating lease liabilities

$


 

$

120


 



1.   SIGNIFICANT ACCOUNTING POLICIES

 

Description of Business

Immersion Corporation (the “Company”, “Immersion”, “we” or “us”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. We focus on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. We have adopted a business model under which we provide advanced tactile software, related tools and technical assistance designed to help integrate our patented technology into our customers’ products or enhance the functionality of our patented technology to certain customers, and offer licenses for our patented technology to other customers.

 

Impact of COVID-19

The outbreak of a novel strain of coronavirus (“COVID-19”) caused governments and public health officials around the world to implement stringent measures to help control the spread of the virus. In response to the COVID-19 pandemic, we implemented work-from-home and restricted travel policies in the first quarter of 2020, but have since lifted our travel restriction and our employees now work either from the office or from home.

 

Principles of Consolidation and Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Immersion and our wholly-owned subsidiaries. All intercompany accounts, transactions, and balances have been eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with U.S. GAAP and should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included. Certain prior year amounts have been reclassified to conform with the current year presentation. 

 

Use of Estimates

The preparation of condensed consolidated financial statements and related disclosures requires management to make estimates and assumptions that affect the reported amounts of the condensed consolidated financial statements. Significant estimates include revenue recognition, fair value of financial instruments, useful lives of property and equipment, valuation of income taxes including uncertain tax provisions, stock-based compensation and long-term deposits for withholding taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year. 

 

Segment Information

We develop, license, and support a wide range of software and intellectual property (“IP”) that more fully engage users’ sense of touch when operating digital devices. We focus on the following target application areas: mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical; and commercial. We manage these application areas in one operating and reporting segment with only one set of management, development, and administrative personnel.

Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of our business using information about our revenue and operating loss. There is only one segment that is reported to management. 

 

Recent Account Pronouncements

We do not expect recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2023, to have significant impact on our financial positions and results of operations.

 

2. REVENUE RECOGNITION

Disaggregated Revenue

 

The following table presents the disaggregation of our revenue for the three months ended March 31, 2023, and 2022 (in thousands):


 


Three Months Ended March 31,

 


2023


 


2022


Fixed fee license revenue

$

1,214


 

$

1,745


Per-unit royalty revenue


5,795


 


5,485


Total royalty and license revenue


 7,009


 


7,230


Development, services, and other revenue


65


 


78


Total revenues

$

7,074


 

$

7,308

Per-unit Royalty Revenue

We record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. When we do not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows us to adequately review the reports and include the actual amounts in our quarterly results for such quarter, we accrue the related revenue based on estimates of our licensees’ underlying sales, subject to certain constraints on our ability to estimate such amounts. We develop such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a look back at historical royalty reporting for each of our customers, and industry information available for the licensed products. 

As a result of accruing per-unit royalty revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true up revenue to the actual amounts reported by our licensees. In the three months ended March 31, 2023, we recorded adjustments of $0.4 million to increase royalty revenue. We recorded adjustments of $0.3 million to increase royalty revenue during the three months ended March 31, 2022.

Contract Assets

As of March 31, 2023, we had contract assets of $6.8 million included within Prepaid expenses and other current assets, and $0.4 million included within Other assets on the Condensed Consolidated Balance Sheets. As of December 31, 2022, we had contract assets of $7.7 million included within Prepaid expenses and other current assets, and $0.5 million included within Other assets on the Condensed Consolidated Balance Sheets.


Contract assets decreased by $1.1 million from January 1, 2023, to March 31, 2023, primarily due to actual royalties billed during the quarter.

Deferred Revenue

We recognize revenue from a fixed fee license agreement when we have satisfied our performance obligations, which typically occurs upon the transfer of rights to our technology upon the execution of the license agreement. However, in certain contracts, we grant a license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term. For such arrangements, we have concluded that there are two separate performance obligations:

          Performance Obligation A: Transfer of rights to our patent portfolio as it exists when the contract is executed; and

          Performance Obligation B: Transfer of rights to our patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract.

If a fixed fee license agreement contains only Performance Obligation A, we recognize the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, we allocate the transaction price based on the standalone price for each of the two performance obligations. We use a number of factors primarily related to the attributes of our patent portfolio to estimate standalone prices related to Performance Obligation A and B. Once the transaction price is allocated, the portion of the transaction price allocable to Performance Obligation A is recognized in the period the license agreement is signed and the customer can benefit from rights provided in the contract. The portion allocable to Performance Obligation B is recognized on a straight-line basis over the contract term which best represents the ongoing and continuous nature of the patent prosecution process. For such contracts, a contract liability account is established and included within Deferred revenue on the Condensed Consolidated Balance Sheets. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. 

Based on contracts signed and payments received as of March 31, 2023, we expect to recognize $16.2 million in revenue related to Performance Obligation B under our fixed fee license agreements, which are satisfied over time, including $10.5 million over one to three years and $5.7 million over more than three years.

As of December 31, 2022, total deferred revenue was $17.4 million. We recognized $1.2 million of deferred revenue during the three months ended March 31, 2023.

 

3.  INVESTMENTS AND FAIR VALUE MEASUREMENTS

Marketable Securities

We invest surplus funds in excess of operational requirements in a diversified portfolio of marketable securities, with the objectives of delivering competitive returns, maintaining a high degree of liquidity, and seeking to avoid the permanent impairment of principal.

We regularly review our investment portfolio to identify and evaluate investments that have indicators of possible impairment. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, we will record an impairment charge and establish a new cost basis for the investment.


 

Marketable securities as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands):

 

 


March 31, 2023


 


Cost or Amortized Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value

Marketable equity securities


 


 


 


 


 


 


 


Mutual funds

$

26,683


 

$

 


 

$

(2,988

)

 

$

      23,695


Equity securities


56,485


 


4,877


 


     (6,077

)

 


55,285


Total marketable equity securities


83,168


 


   4,877


 


    (9,065

)

 


            78,980


Marketable debt securities


 


 


 


 


 


 


 


U.S. treasury securities


48,534


 


413


 


         (13

)

 


           48,934


Corporate bonds


18,555


 


  211


 


  (156

)

 


       18,610


Total marketable debt securities


67,089


 


 624


 


     (169

)

 


          67,544



$

150,257


 

$

  5,501


 

$

 (9,234

)

 

$

    146,524


 

 


December 31, 2022


 


Cost or Amortized Cost


 


Unrealized Gains


 


Unrealized Losses


 


Fair Value


Marketable equity securities


 


 


 


 


 


 


 


Mutual funds

$

26,352


 

$

     


 

$

  (3,143

)

 

$

    23,209


Equity securities


 53,273


 


2,776


 


   (5,836

)

 


   50,213


Total marketable equity securities


79,625


 


   2,776


 


  (8,979

)

 


   73,422


Marketable debt securities


 


 


 


 


 


 


 


U.S. treasury securities


  25,640


 


  182


 


  (24

)

 


  25,798


Corporate bonds


13,496


 


   48


 


        (106

)

 


   13,438


Total marketable debt securities


 39,136


 


   230


 


       (130

)

 


   39,236


 

$

118,761


 

$

    3,006


 

$

       (9,109

)

 

$

    112,658


 

The amortized costs and fair value of our marketable debt securities, by contractual maturity, as of March 31, 2023 (in thousands) are as follows: 

 

 


March 31, 2023


 


Amortized Cost


 


Fair Value


Less than 1 year

$

 41,559


 

$

     41,939


1 to 5 years


20,247


 


20,204


More than 5 years


   5,283


 


  5,400


Total

$

    67,089


 

$

67,543



 

Derivative Financial Instruments

 

Our derivative instruments consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on our Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (in thousands):


 


March 31, 2023


 


Cost


 


Unrealized Losses


 


Fair Value


Derivative instruments

$

6,848


 

$

662


 

$

7,510


 

$

6,848


 

$

 662


 

$

      7,510


 

 


December 31, 2022


 


Cost


 


Unrealized Losses


 


Fair Value


Derivative instruments

$

   2,987


 

$

   662


 

$

      3,649


 

$

 2,987


 

$

     662


 

$

      3,649



A summary of realized and unrealized gains and losses from our equity securities and derivative instruments are as follows (in thousands):


 


Three Months Ended March 31,


 


2023


 


2022


Net unrealized gains recognized on marketable equity securities

$

2,014


 

$

      2,140


Net realized gains  recognized on marketable equity securities


 1,669


 


     1,026


Net unrealized losses recognized on derivative instruments


   (102

)

 


       (2,661

)

Net realized gains (losses) recognized on derivative instruments


717


 


           (134

)

Net realized gains recognized on marketable debt securities


 


 


        368


Total net gains recognized in interest and other income (loss), net

$

 4,298


 

$

        739



Fair Value Measurements


Our financial instruments measured at fair value on a recurring basis consisted of money-market funds, mutual funds, equity securities, corporate debt securities and derivatives.  Equity securities are classified within Level 1 of the fair value hierarchy as they are valued based on quoted market price in an active market. Corporate debt securities and derivative instruments are valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy.


Financial instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. We did not hold Level 3 financial instruments as of March 31, 2023, and December 31, 2022.


 

Financial instruments measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 are classified based on the valuation technique in the table below (in thousands):

 

 


March 31, 2023


 


 


 


Fair Value Measurements Using


 


 


 


Quoted Prices in Active Markets for Identical Assets (Level 1)


 


Significant Other Observable Inputs (Level 2)


 


Significant Unobservable Inputs (Level 3)


 


Total


Assets:


 


 


 


 


 


 


 


U.S. treasury securities 

$

 


 

$

  48,934


 

$

        


 

$

       48,934


Mutual funds


    23,695


 


      


 


      


 


 23,695


Equity securities


55,285


 


        


 


         


 


   55,285


Corporate bonds


     


 


  18,610


 


      


 


 18,610


Total assets at fair value

$

78,980


 

$

  67,544


 

$

       


 

$

146,524


 


 


 


 


 


 


 


 


Liabilities


 


 


 


 


 


 


 


Derivative instruments

$

   


 

$

 7,510


 

$

         


 

$

   7,510


Total liabilities at fair value

$

        


 

$

      7,510


 

$

   


 

$

      7,510



 


December 31, 2022


 


 


 


Fair Value Measurements Using


 


 


 


Quoted Prices in Active Markets for Identical Assets (Level 1)


 


Significant Other Observable Inputs (Level 2)


 


Significant Unobservable Inputs (Level 3)


 


Total


Assets:


 


 


 


 


 


 


 


Certificate of deposit $

$ 5,300

$

$ 5,300

U.S.treasury securities



 


       25,798


 


 


25,798


Mutual funds


  23,209


 



 


 


   23,209


Equity securities


   50,213


 


         


 


          


 


 50,213


Corporate bonds


      


 


  13,438


 


        


 


    13,438


Total assets at fair value

$

     73,422


 

$

     44,536


 

$

         


 

$

117,958


 


 


 


 


 


 


 


 


Liabilities


 


 


 


 


 


 


 


Derivative instruments

$

 


 

$

      3,649


 

$

        


 

$

    3,649


Total liabilities at fair value

$

    


 

$

    3,649


 

$

          


 

$

   3,649


 

 

4.   BALANCE SHEETS DETAILS

Cash and Cash Equivalents

 

Cash and cash equivalents were as follows (in thousands): 


 


March 31,

2023


 


December 31,

2022


Cash

$

7,972


 

$

      9,630


Money market funds


19,512


 


    13,586


Certificates of deposit (1)



 


  25,604


Cash and cash equivalents

$

   27,484


 

$

   48,820


(1) Represents certificates of deposit with initial maturity days of 90 days or less.

Investments - Current

 

Investments - current were as follows (in thousands):


 


March 31,

2023


 


December 31,

2022


Certificates of deposit (2)

$


 

$

     5,300


Marketable securities


78,981


 


  73,422


U.S. treasury securities


41,939


 


  22,196


Short-term investments

$

  120,920


 

$

   100,918


(2) Represents investments with initial maturity days between 91 days and one year.

Accounts and Other Receivables

 

Accounts and other receivables were as follows (in thousands):


 


March 31,

2023


 


December 31,

2022


Trade accounts receivables

$

491


 

$

       1,003


Other receivables


  1,245


 


       232


Accounts and other receivables

$

      1,736


 

$

       1,235


Allowance for credit losses as of March 31, 2023 and December 31, 2022 were not material. 

Prepaid Expenses and Other Current Assets

 

Prepaid expenses and other current assets were as follows (in thousands): 


 


March 31,

2023