0001667011-22-000010 | 10-K | XBRL Viewer

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Consolidated Statements of Loss - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Loss - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Total revenue	$ 37,864	$ 31,812
Cost of revenue	3,731	1,491
Gross profit	34,133	30,321
Operating expenses:
Research and development	30,812	17,020
Sales and marketing	11,726	9,749
General and administrative	13,360	7,329
Total operating expenses	55,898	34,098
Loss from operations	(21,765)	(3,777)
Gain on extinguishment of debt	10	1,593
Interest and other expense, net	(589)	(50)
Loss before provision for income taxes	(22,344)	(2,234)
Provision for income taxes	1,040	1,026
Net loss	$ (23,384)	$ (3,260)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.06)	$ (0.19)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.06)	$ (0.19)
Weighted average shares used in computing per share amounts, basic (in shares)	21,972,101	17,577,846
Weighted average shares used in computing per share amounts, diluted (in shares)	21,972,101	17,577,846
Licensing, support and maintenance
Total revenue	$ 34,731	$ 27,408
Variable royalties and other
Total revenue	$ 3,133	$ 4,404

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash	$ 85,825	$ 11,744
Accounts receivable, net	13,873	14,350
Prepaid expenses and other current assets	6,949	2,858
Total current assets	106,647	28,952
Property and equipment-net	2,438	2,365
Operating lease right-of-use assets	2,765	2,753
Intangibles, net	2,959	3,409
Goodwill	2,677	2,677
Other assets	2,957	2,580
TOTAL ASSETS	120,443	42,736
Current liabilities:
Accounts payable	1,722	1,116
Accrued expenses and other current liabilities	10,573	7,249
Operating lease liabilities, current	961	767
Deferred revenue, current	28,403	17,894
Vendor financing arrangements, current	833	643
Term loan	0	557
Total current liabilities	42,492	28,226
Deferred revenue, noncurrent	20,773	15,014
Operating lease liabilities, noncurrent	1,851	2,079
Vendor financing arrangements, noncurrent	266	727
Other liabilities	2,157	2,986
Total liabilities	67,539	49,032
Commitments and contingencies (Note 11)
Redeemable convertible preferred stock:
Redeemable convertible preferred stock, par value of $0.001, no shares authorized, issued, and outstanding at December 31, 2021; 4,471,316 shares authorized, issued and outstanding at December 31, 2020 (aggregate liquidation preference of zero and $5,768 at December 31, 2021 and 2020, respectively)	0	5,712
Stockholders’ equity (deficit):
Preferred stock, par value of $0.001—10,000,000 and no shares authorized at December 31, 2021 and 2020, respectively; no shares issued and outstanding at December 31, 2021 and 2020	0	0
Common stock, par value of $0.001—300,000,000 and 31,525,154 shares authorized at December 31, 2021 and 2020, respectively; 31,530,682 and 18,486,989 shares issued and outstanding at December 31, 2021 and 2020, respectively	31	18
Additional paid-in capital	91,945	3,612
Accumulated other comprehensive loss	(81)	(31)
Accumulated deficit	(38,991)	(15,607)
Total stockholders’ equity (deficit)	52,904	(12,008)
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)	$ 120,443	$ 42,736

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Redeemable convertible preferred stock:
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Redeemable convertible preferred stock, authorized (in shares)	0	4,471,316
Redeemable convertible preferred stock, issued (in shares)	0	4,471,316
Redeemable convertible preferred stock, outstanding (in shares)	0	4,471,316
Redeemable convertible preferred stock, liquidation preference	$ 0	$ 5,768
Stockholders’ equity (deficit):
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	10,000,000	0
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	300,000,000	31,525,154
Common stock, issued (in shares)	31,530,682	18,486,989
Common stock, outstanding (in shares)	31,530,682	18,486,989

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (23,384)	$ (3,260)
Other comprehensive loss
Unrealized pension actuarial loss	(50)	(13)
Comprehensive loss	$ (23,434)	$ (3,273)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	IPO	Common Stock	Common Stock IPO	Additional Paid-In Capital	Additional Paid-In Capital IPO	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2019	4,471,316
Balance at beginning of period at Dec. 31, 2019	$ 5,712
Balance at end of period (in shares) at Dec. 31, 2020	4,471,316
Balance at end of period at Dec. 31, 2020	$ 5,712
Balance at beginning of period (in shares) at Dec. 31, 2019			17,349,695
Balance at beginning of period at Dec. 31, 2019	(9,430)		$ 17		$ 2,918		$ (18)	$ (12,347)
Stockholders’ Equity (Deficit)
Issuance of common stock for cash upon exercise of stock options (in shares)			1,002,039
Issuance of common stock for cash upon exercise of stock options	237		$ 1		236
Issuance of common stock for settlement of restricted stock (in shares)			135,255
Stock-based compensation expense	458				458
Unrealized pension actuarial loss	(13)						(13)
Net loss	$ (3,260)							(3,260)
Balance at end of period (in shares) at Dec. 31, 2020	18,486,989		18,486,989
Balance at end of period at Dec. 31, 2020	$ (12,008)		$ 18		3,612		(31)	(15,607)
Redeemable Convertible Preferred Stock
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)	(4,471,316)
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ (5,712)
Balance at end of period (in shares) at Dec. 31, 2021	0
Balance at end of period at Dec. 31, 2021	$ 0
Stockholders’ Equity (Deficit)
Issuance of common stock (in shares)			1,250,000	5,750,000
Issuance of common stock	5,437	$ 71,088	$ 2	$ 6	5,435	$ 71,082
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)			4,471,316
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ 5,712		$ 4		5,708
Issuance of common stock for cash upon exercise of stock options (in shares)	1,362,327		1,362,327
Issuance of common stock for cash upon exercise of stock options	$ 599		$ 1		598
Issuance of common stock for settlement of restricted stock (in shares)			210,050
Stock-based compensation expense	5,510				5,510
Unrealized pension actuarial loss	(50)						(50)
Net loss	$ (23,384)							(23,384)
Balance at end of period (in shares) at Dec. 31, 2021	31,530,682		31,530,682
Balance at end of period at Dec. 31, 2021	$ 52,904		$ 31		$ 91,945		$ (81)	$ (38,991)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (23,384)	$ (3,260)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,492	935
Stock-based compensation	5,510	458
Pension plan expenses	109	33
Operating non-cash lease expense	(12)	532
Gain on extinguishment of debt	(10)	(1,593)
Other	1	1
Changes in operating assets and liabilities:
Accounts receivable, net	477	(6,324)
Prepaid expenses and other assets	(4,418)	(2,608)
Accounts payable	350	414
Accrued expenses and other liabilities	2,836	3,016
Operating lease liabilities	(33)	(527)
Deferred revenue	16,268	11,086
Net cash (used in) provided by operating activities	(814)	2,163
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(808)	(654)
Payments for business acquisition	0	(4,500)
Payments of deferred consideration for business acquisition	(500)	0
Other	(51)	7
Net cash used in investing activities	(1,359)	(5,147)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon initial public offering, net of underwriting commissions and other issuance costs	71,344	0
Proceeds from issuance of common stock	5,435	0
Proceeds from PPP Loan	0	1,603
Payments of principal portion of Term loan	(550)	(600)
Principal payments under vendor financing arrangements	(574)	(441)
Proceeds from exercise of stock options	599	236
Other	0	(8)
Net cash provided by financing activities	76,254	790
NET INCREASE (DECREASE) IN CASH	74,081	(2,194)
CASH, beginning of period	11,744	13,938
CASH, end of period	85,825	11,744
Supplemental cash flow information:
Cash paid for interest	19	65
Cash paid for taxes	489	1,529
Noncash activities:
Conversion of redeemable convertible preferred stock to common stock	5,712	0
Unpaid deferred offering costs	256	0
PPP Loan forgiven	10	1,593
Property and equipment included in vendor financing	1,099	1,370
Recognition of new right-of-use assets and lease liabilities for the lease modification/obligation	749	165
Contingent and deferred consideration for business acquisition	$ 0	$ 3,342

DESCRIPTION OF BUSINESS	12 Months Ended
DESCRIPTION OF BUSINESS	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Arteris, Inc. and its subsidiaries (collectively, the “Company” or “Arteris”) was incorporated in Delaware on April 12, 2004. The Company develops, licenses, and supports the on-chip interconnect fabric technology used in System-on-Chip (SoC) designs for a variety of devices and in the development and distribution of Network-on-Chip (NoC) interconnect intellectual property (IP). The Company also provides software and services to enable efficient deployment of NoC IP, IP support & maintenance services, professional services and training and on-site support services. The Company is headquartered in Campbell, California and has offices in the United States, France, Japan, Korea and China. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic which has resulted in substantial global economic disruption and uncertainty. In response to the COVID-19 pandemic, the measures implemented by various authorities have caused us to change the Company’s business practices, including those related to where employees work, the distance between employees in the Company’s facilities, limitations on in-person meetings between employees and with customers, suppliers, service providers and stakeholders, as well as restrictions on business travel to domestic and international locations and to attend trade shows, technical conferences and other events. The extent and continued impact of the COVID-19 pandemic on our business will depend on certain developments including the duration and spread of the outbreak and new variant strains of the virus; the availability and distribution of effective vaccines; the severity of the economic decline attributable to the pandemic and timing, nature and sustainability of economic recovery; and government responses, including vaccination or testing mandates, all of which are highly uncertain and unpredictable. The Company is unable to accurately predict the full impact that COVID-19 will have on its future results of operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the duration and severity of the pandemic and containment measures. The Company will continue to monitor health orders issued by applicable governments to ensure compliance with evolving domestic and global COVID-19 guidelines. Initial Public Offering In October, 2021, the Company completed its initial public offering (IPO), in which it issued and sold 5,750,000 shares of its common stock at the public offering price of $14.00 per share, including 750,000 shares of its common stock upon the full exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $71.1 million after deducting underwriting discounts and commissions and offering expenses. In connection with the IPO, all of the shares of the Company’s outstanding redeemable convertible preferred stock prior to the IPO automatically converted into an aggregate of 4,471,316 shares of common stock. Deferred offering costs for the IPO were $3.8 million and consisted primarily of direct incremental accounting, legal and other fees related to the IPO. Prior to the IPO, all deferred offering costs were capitalized and included in other assets, non-current on the consolidated balance sheets. Upon completion of the IPO, deferred offering costs were reclassified into stockholders’ equity (deficit) as a reduction of the IPO proceeds.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

Principles of Consolidation

The consolidated financial statements include the accounts of Arteris, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.

Segment Information

The Company operates as a single operating segment. The chief operating decision maker is the Company’s Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated revenue information. Accordingly, the Company has determined that it has a single reportable segment and operating segment.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to, among others, revenue recognition, the useful lives of assets, assessment of recoverability of property, plant and equipment, fair values of goodwill and other intangible assets, including impairments, leases, allowances for doubtful accounts, deferred tax assets and related valuation allowance, stock-based compensation, potential reserves relating to litigation and tax matters, collectability of tax receivable, as well as other accruals or reserves. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements.

Foreign Currency

The Company and its foreign subsidiaries’ functional currency is the US dollar. Accordingly, monetary assets and liabilities of foreign subsidiaries are remeasured into US dollars at the exchange rates in effect at the balance sheet date, non-monetary assets and liabilities are recorded at historical rates, and revenue and expenses are remeasured at average rates during the period. Remeasurement adjustments are recognized as a component of interest and other income (expense), net within the consolidated statements of loss.

Comprehensive Loss

Comprehensive loss generally represents all changes in stockholders’ deficit during the period except those resulting from investments by, or distributions to, stockholders. For the years ended December 31, 2021 and 2020, the components of comprehensive loss consist of net loss and unrealized pension actuarial loss.

Net Loss per Share

Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock during the period, plus the dilutive effects of stock options, restricted stock units (RSU) and restricted stock awards (RSA). Dilutive shares of common stock are determined by applying the treasury stock method.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates their fair value. As of December 31, 2021 and 2020, cash and cash equivalents consist primarily of checking and savings deposits. There were no cash equivalents as of December 31, 2021 and 2020.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable, net consist of primarily billed and unbilled trade accounts receivable. Unbilled accounts receivable represents amounts recorded as royalty revenue which will be invoiced within a short period upon receipt of the royalty reports from the licensees. The Company records accounts receivable when it has an unconditional right to consideration. Trade accounts receivable are recorded at the invoiced amount. The Company maintains allowances for doubtful accounts to reduce its receivables to their estimated net realizable value. In general, the Company does not offer extended credit terms and also do not require any security or collateral to support its receivables. The Company performs ongoing credit evaluations of its customers and establishes allowances for potential credit losses by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The Company’s allowance for doubtful accounts activity has historically not been significant. Probable losses are recorded in general and administrative expense in the consolidated statements of income (loss).

Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentration of credit risk consist of cash and accounts receivable. The Company maintains cash in checking and savings deposits. Management believes no significant concentration risk exists with respect to cash as in management’s judgment the banks that hold the Company’s cash are financially stable. The Company deposits cash with high-credit-quality financial institutions which, at times, may exceed federally insured amounts.

The Company’s accounts receivable are derived principally from revenue earned from customers located in Americas and Asia Pacific regions.

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable was as follows:


	As of December 31,
	2021		2020
Customer A	12	%	*
Customer B	21	%	20	%
Customer C	33	%	31	%

* Customer accounted for less than 10% of total accounts receivable at period end.

Revenue from the Company’s major customers representing 10% or more of total revenue was as follows:


	Year Ended December 31,
	2021		2020
Customer C	23	%	15	%
Customer D	*		25	%

* Customer accounted for less than 10% of total revenue in the period.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives, generally ranging from one to seven years. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the remaining lease term.

Depreciation expenses are recorded in cost of revenue and operating expenses in the consolidated statements of loss. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is recorded as a component of operating expenses. Repairs and maintenance costs are expensed as incurred.

The Company evaluates the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by comparing their carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount is not recoverable, the carrying amount of such assets is reduced to fair value. No impairment was recognized during the years ended December 31, 2021 and 2020.

Business Combinations

The Company allocates the purchase price to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the purchase price over the fair value of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. These estimates are based on information obtained from management of the acquired companies, the Company’s assessment of this information, and historical experience. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customers, acquired technology, and trade names from a market participant perspective, useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. In addition, unanticipated events and circumstances may occur that may affect the accuracy or validity of such estimates, and if such events occur, the Company may be required to adjust the value allocated to acquired assets or assumed liabilities. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of income (loss). Acquisition costs, such as legal and consulting fees, are expensed as incurred.

Goodwill and Intangible Assets

The Company performs its goodwill and other indefinite-lived intangible assets impairment tests annually or more frequently if events or changes in circumstances occur that would more likely than not reduce the fair value below its carrying value. For the years ended December 31, 2021 and 2020, the Company did not have any goodwill or other indefinite-lived intangible assets impairment.

Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets, which range from five to eight years, unless the lives are determined to be indefinite. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. Amortization expenses are recorded in operating expenses on the consolidated statements of income (loss).

Debt Issuance Costs

Costs incurred in connection with the issuance of long-term debt have been recorded as a direct reduction against the debt and are amortized over the life of the associated debt as a component of interest and other income (expense), net using the effective interest method.

Right-of-use Assets (ROU) and Lease Liabilities

The Company recognizes leases in accordance with Accounting Standard Codification (ASC) Topic 842, Leases, and subsequently issued additional related Accounting Standard Updates (ASU) (Topic 842).

The Company leases its offices at various locations under noncancelable operating lease agreements expiring at various dates through 2027. Under the terms of these agreements, the Company also bears the costs for certain insurance, property tax, and maintenance. The terms of certain lease agreements provide for increasing rental payments at fixed intervals.

At lease commencement, the Company measures and records a lease liability equal to the present value of the remaining lease payments, generally discounted using incremental borrowing rate as the implicit rate is not readily determinable on many of its leases. When determining the incremental borrowing rates, the Company considers information including, but not limited to, the lease term, the interest rates on its collateralized debt and incremental borrowing rates for its peer group.

On the lease commencement date, the amount of the ROU assets consists of the following:

■The amount of the initial measurement of the lease liability;

■Any lease payments made at or before the commencement date, minus any lease incentives received; and

■Any initial direct costs incurred.

The Company assesses the option for lease extensions, renewals, or terminations on individual leases, and generally considers the base term to be the term of lease contracts, unless it is reasonably certain that the Company will exercise such options. Lease agreements may contain other variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred in the consolidated statements of income (loss). The Company does not include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and lease liabilities. The lease agreements generally do not contain any residual guarantees or restrictive covenants.

Operating leases are included in operating lease ROU assets, operating lease liabilities, current and operating lease liabilities, noncurrent in the consolidated balance sheets. Finance leases are included in property and equipment, accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

Revenue Recognition

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued additional related ASUs (Topic 606). The Company recognizes revenues as it transfers control of deliverables (software and services) to its customers in an amount reflecting the consideration to which it expects to be entitled. To recognize revenues, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied. The Company accounts for a contract when it has approval and commitment from all parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay based on a variety of factors including the customer’s historical payment experience.

Nature of Products and Services

The Company’s revenue is primarily derived from licensing intellectual property, licensing software, support and maintenance services, professional services, training services, and royalties.

Design Solutions

Interconnect Solutions product arrangements provide customers the right to software licenses, services, software updates and technical support. The Company enters into licensing arrangements with customers that typically range from two to three years and generally consist of delivery of a design license that grants the customer the right to use the IP to design a contractually defined number of products and stand-ready support services that provide the customer a significant benefit from its proprietary software tool (RTL) as well as ongoing access to Corporate Application Engineers (CAE) and Field Application Engineers (FAE) (collectively, “application engineer support services”) to perform certain verifications including benchmark performance, simulations and ultimately, through the RTL, instantiate designs into silicon over the design term.

The support services, including access to application engineering support services and the benefits of the RTL, are integral and fundamental to the customer’s ability to derive its intended benefit from the IP. CAEs are part of the product development team providing detailed requirements for engineering projects, working very closely with a customer’s chief technology officer and the marketing department, and performing quality assurance testing of customer products prior to shipment to their customers. FAEs provide assistance to the customer’s engineering team in translating their desired SoC architecture into inputs for NoC IP configuration, assistance in optimizing the NoC configuration, answer to customer questions by the online support system or phone, constructive reviews of the progress achieved by the customer’s development team and provision of advice on how to best use the licensed IP, performance of design reviews before customer project RTL freeze and tape-out to ensure the customer used the licensed IP configuration tooling as intended so that the RTL output meets customer requirements and expectations. FAE reviews of the customer’s design are mandatory and consist of an understanding of the customer requirements and analysis of the adequacy of the contemplated IP considering the customer’s desired architecture and design goals and objectives, taking into consideration bandwidth, coherence/non-coherence, latency, clock and timing, areas, and any and all constraints, as identified and specific to the design under review.

Besides application engineer support services, support and maintenance services also consist of a stand-ready obligation to provide technical support and software updates over the support term. Generally, the first-year of technical support and software updates are bundled with and into the license fee with a customer option to renew additional years of support throughout the license term. However, the Company continues to provide technical support and software updates throughout the license term even if the customer does not renew these services in subsequent years, making the license term and support and maintenance term co-terminus.

Considering the nature of the combined design tool and assisting the Company’s customers in applying its IP technology in its customers’ development environment and the relative significance thereof, the Company has concluded that its Interconnect Solutions IP licensing arrangements are not distinct from its obligation to provide the application engineering support services and benefits of the RTL. The Interconnect Solutions IP, RTL, and the application engineering support services serve to fulfill its commitment to the customer, as they represent inputs to a single, combined performance obligation that commences upon the later of the arrangement effective date or transfer of the software license. The design license and the regular two-way interaction between the design tool, RTL, and the application engineering support services give the customer the intended benefit from the arrangement, which is the ability to commercialize their design. Customers cannot benefit from the design license on its own or together with other readily available resources as no other RTL or application engineer support service provides exists in the marketplace that a customer could use with the design license. Consequently, the RTL and application engineer support service cannot be used on its own or together with any other design license as the Company does not allow the use of the RTL or provide application engineer support services separately from the design license. Further, although technical support and software updates is a distinct performance obligation, it is accounted for as if it were part of a single performance obligation that includes the licenses, RTL and application engineer support services because the technical support and updates are provided in practice for the same period of time and have the same time-based pattern of transfer to the customer as the combined design license, RTL, and application support services.

Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the sale of the product incorporating the Company’s IP occurs. Royalties are calculated either as a percentage of the revenues received by a licensee’s sale of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. For a majority of the Company’s royalty revenues, it receives the actual sales data from its customers after the quarter ends and accounts for it as unbilled receivables. When the Company does not receive actual sales data from the customer prior to the finalization of its financial statements, royalty revenues are recognized based on its estimation of the customer’s sales during the quarter.

Deployment Solutions

Deployment Solutions product arrangements provide customers the right to software licenses, software updates and technical support. The software licenses are time-based licenses with terms generally ranging from one to three years. These arrangements generally have two distinct performance obligations that consist of transferring the licensed software and the support and maintenance service. Support and maintenance services consist of a stand-ready obligation to provide technical support and software updates over the support term. Revenue allocated to the software license is recognized at a point in time upon the later of the delivery date or the beginning of the license period, and revenue allocated to support services is recognized ratably over the support term.

A limited number of Deployment Solutions contracts include tokens, a mechanism used to both enable “peak” users to choose a combination of the software products on a monthly basis and restrict the number of users. The Company recognizes revenue related to these tokens at a point in time, upon delivery of monthly token license keys to the customer.

Professional Services

The Company’s agreements often include service elements (other than maintenance and support services). These services include training, design assistance, and consulting. Services performed on a time and materials basis are recognized over the period the services are provided either using an output method such as labor hours, or a method that is otherwise consistent with the way in which value is delivered to the customer. Services performed on a fixed price basis are recognized over time, generally using costs incurred or hours expended to measure progress.

Multiple Performance Obligations

Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately, if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis, which are estimated considering multiple factors including observable industry pricing practices and internal pricing strategies and objectives.. Standalone selling prices of software license are typically estimated using the residual approach. Standalone selling prices of professional services are typically estimated based on observable transactions when these services are sold on a standalone basis.

Transaction price

Revenue is recognized when, or as, control of a promised product or service transfers to a client, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. If the consideration promised in a contract includes a variable amount, the Company estimates the amount to which it expects to be entitled using either the expected value or most likely amount method, to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Generally, the transaction price of the Company’s contracts is fixed at the inception of the contract, except for variable royalties. The Company’s contracts generally do not include terms that could cause variability in the transaction price.

The Company assesses the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, the Company does not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or the Company, no financing component is deemed to exist. When contracts involve a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provide the customer with a significant benefit of financing.

The Company reports revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions.

In instances where foreign licensees withhold and remit taxes to local authorities in accordance with local laws and regulations, the Company recognizes and presents revenue on a gross basis, and includes the withholding tax in income tax expense.

Flexible Spending Accounts

Some customers enter into a non-cancelable flexible spending account agreements (FSA Agreements) whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of the Company’s products or services. These agreements do not meet the definition of a revenue contract until the customer executes a separate order to identify the required products and services that they are purchasing. The combination of the FSA agreement and the subsequent order creates enforceable rights and obligations, thus meeting the definition of a revenue contract. Each separate order under the agreement is treated as an individual contract and accounted for based on the respective performance obligations included within the FSA agreements.

Contract modifications

The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to the Company’s contracts involves assessing whether the products and services added to an existing contract are distinct and whether the pricing is at the standalone selling price. Products and services added that are not distinct are accounted for on a cumulative catch-up basis, while those that are distinct are accounted for prospectively, either as a separate contract if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price. The Company’s more significant contract modifications include extensions of the design license term and the purchase of additional years of support and maintenance.

Judgments

The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation.

Contract Balances

The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables (billed or unbilled), contract assets, or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to the right to invoice. The Company records deferred revenue when it invoices customers and revenue is not yet recognized. For time-based software agreements, customers are generally invoiced in single or annual amounts, although some customers are invoiced more frequently over time. The Company records an unbilled receivable when revenue is recognized and it has an unconditional right to invoice and receive payment.

The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and, if they are expected to be recovered, amortized in a manner consistent with the pattern of transfer of the good or service to which the asset relates.

Cost of Revenue

Cost of Revenues relates to costs associated with the Company’s IP licensing arrangements, deployment solution software and support activities, including applicable personnel related costs, travel, and overhead.

Research and Development

Research and development costs that do not meet the criteria for capitalization are expensed as incurred. Research and development costs consist primarily of compensation, stock-based compensation, and employee benefits of engineering and product development personnel, consulting services, and other direct expenses.

Software Development Costs

Software development costs are capitalized beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Arteris has not capitalized any software development costs as of and for the years ended December 31, 2021 and 2020 as the period between establishing technological feasibility and general customer release has historically been short and therefore capitalizable costs have been insignificant.

The Company has not capitalized any internal-use software development costs as these costs have historically been insignificant.

Sales and Marketing

Sales and marketing expenses consist of compensation and employee benefits of marketing and sales personnel and related support teams, and stock-based compensation, as well as travel, trade show sponsorships and events, conferences, and internet advertising costs. Advertising costs, included in sales and marketing expenses, are expensed as incurred. The Company incurred advertising costs of $0.4 million and $0.1 million for the years ended December 31, 2021 and 2020, respectively.

General and Administrative

General and administrative expenses include executive and administrative compensation and employee benefits, depreciation, professional services fees, insurance costs, bad debt, other allocated costs, such as facility-related expenses, supplies, other fixed costs, and stock-based compensation.

Stock-based Compensation

The Company measures equity classified stock-based awards, including stock options, RSUs, and RSAs granted to employees, directors, and non-employees based on the estimated fair values of the awards on the date of the grant. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period which is generally the vesting period of such awards, as a component of operating expenses within the consolidated statements of income (loss). For awards that include performance conditions stock-based compensation expense is recognized on a graded vesting basis over the requisite service period. Compensation expense is not recognized until the performance condition becomes probable. The Company accounts for forfeitures related to these awards as they occur.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. As a result, if the Company revises its assumptions and estimates, the Company’s stock-based compensation expense could change.

The fair value of RSUs and RSAs granted is measured as the fair value per share of the Company’s common stock on the date of grant.

Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company provides for a valuation allowance when it is more likely than not that some portion, or all of its deferred tax assets will not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. As of December 31, 2021, the Company recorded a full valuation allowance against its U.S. federal, state, and certain foreign jurisdiction net deferred tax assets. As of December 31, 2020, the Company recorded a full valuation allowance against its U.S. federal and state deferred tax assets.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were $3.1 million and $2.5 million unrecognized tax benefits as of December 31, 2021 and 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of December 31, 2021 and 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

Fair value of financials instruments

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact.

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances.

The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

■Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

■Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets).

■Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company’s own assumptions.

The Company determined the estimated fair value of financial instruments using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the cash, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company’s investments are recorded at fair value and Term loan, Revolving line of credit, and Vendor financing arrangements are recorded at net carrying value.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This Update removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The Company adopted ASU 2019-12 on January 1, 2021 and the adoption had no material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and in May 2019 issued ASU No. 2019-05, Credit Losses (Topic 326): Targeted Transition Relief (collectively referred to as Topic 326), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. Topic 326 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. Topic 326 is effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This standard requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures.

REVENUE

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

Disaggregated Revenue

The following table shows revenue by product and services groups (in thousands):


	Year Ended December 31,
	2021		2020
Licensing, support and maintenance	$	34,731	$	27,408
Variable royalties	2,647		3,470
Other	486		934
Total	$	37,864	$	31,812

Contract Balances

The following table provides information about accounts receivable, contract assets and deferred revenue (in thousands):


	As of December 31,
	2021		2020
Accounts receivable—net	$	13,873	$	14,350
Contract assets	$	1,486	$	1,359
Deferred revenue	$	(49,176)	$	(32,908)

During the years ended December 31, 2021 and 2020, the Company recognized revenue of $19.1 million and $15.7 million, respectively, that was included in the deferred revenue balance at the beginning of the fiscal year.

Contracted but unsatisfied performance obligations were $49.3 million and $37.6 million at the end of fiscal years 2021 and 2020, respectively, and include unearned revenue and non-cancelable FSA commitments from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. FSA commitments amounted to $0.2 million and $4.7 million at the end of fiscal years 2021 and 2020, respectively. The Company has elected to exclude the potential future royalty receipts from the remaining performance obligations. The contracted but unsatisfied or partially unsatisfied performance obligations, excluding non-cancelable FSA, expected to be recognized in revenue over the next 12 months at the end of fiscal year 2021 are $29.7 million, with the remainder recognized thereafter.

The following table is a roll forward of contract balances as of December 31, 2021 and 2020 (in thousands):


	As of December 31,
	2021		2020
Deferred revenue licensing, support and maintenance—beginning balance	$	32,908	$	23,116
Additions	51,485		37,200
Revenue recognized	(35,217)		(27,408)
Deferred revenue licensing, support and maintenance—ending balance	$	49,176	$	32,908

During fiscal years 2021 and 2020, the Company recognized $2.6 million and $3.5 million, respectively, from performance obligations satisfied from sales-based royalties earned during the periods.

Costs of Obtaining a Contract with a Customer

Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs—Contracts With Customers, and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms. Total capitalized direct commission costs were as follows (in thousands):


	As of December 31,
	2021		2020
Short-term commission capitalized in prepaid expenses and other current assets	$	2,289	$	1,079
Long-term commission capitalized in other assets	1,719		1,479
Total	$	4,008	$	2,558

Amortization of capitalized sales commissions were $2.3 million and $2.2 million during fiscal 2021 and 2020, respectively, and are included in sales and marketing expense in the consolidated statements of loss.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

NET LOSS PER SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

NET LOSS PER SHARE

The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):


	Year Ended December 31,
	2021		2020
Numerator:
Net loss	$	(23,384)	$	(3,260)
Denominator:
Weighted-average shares outstanding—Basic and diluted	21,972,101		17,577,846

Net loss per share, basic and diluted	$	(1.06)	$	(0.19)

Since the Company was in a loss position for the years ended December 31, 2021 and 2020, the diluted earnings per share is equal to the basic earnings per share as the effect of potentially dilutive securities would have been antidilutive.

The following table summarizes the potentially dilutive securities that were excluded from the calculation of diluted earnings per share because they would be anti-dilutive were as follows:


	As of December 31,
	2021	2020
Stock options	5,407,170	7,073,584
Restricted stock units	3,925,097	843,095
Redeemable convertible preferred stock	—	4,471,316
Total	9,332,267	12,387,995

FAIR VALUE MEASUREMENTS	12 Months Ended
FAIR VALUE MEASUREMENTS	Dec. 31, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Certain non-financial assets, such as intangible assets and property, plant and equipment, are remeasured at fair value only if an impairment or observable price adjustment is recognized in the current period. Financial Instruments Not Recorded at Fair Value Financial instruments not recorded at fair value include the term loan and vendor financing arrangements. The carrying value of the vendor financing agreements was $1.1 million as of December 31, 2021. The term loan was fully repaid in November 2021. The aggregate carrying value of the term loan and vendor financing agreements was $1.9 million as of December 31, 2020. The Company’s borrowings under its term loan facility and vendor financing arrangements are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. The estimated fair values of these financial instruments approximate their carrying values

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Intangible assets, net

Intangible assets, net consisted of the following as of December 31, 2021 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value
Developed technology	$	1,700	$	(368)	$	1,332
Customer relationships	1,100		(149)		951
IPR&D	500		—		500
Trade name and other	176		—		176
Total intangibles	$	3,476	$	(517)	$	2,959

Intangible assets, net consisted of the following as of December 31, 2020 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value
Developed technology	$	1,700	$	(28)	$	1,672
Customer relationships	1,100		(13)		1,087
IPR&D	500		—		500
Trade name	150		—		150
Total intangibles	$	3,450	$	(41)	$	3,409

Amortization expense of intangible assets was $0.5 million and less than $0.1 million for the years ended December 31, 2021 and 2020, respectively.

The expected future amortization expense of these intangible assets as of December 31, 2021 is as follows (in thousands):


2022	$	478
2023	478
2024	478
2025	449
2026 and thereafter	400
Total future amortization expense	$	2,283

Goodwill

As of December 31, 2021 and 2020, goodwill was $2.7 million. No goodwill impairments were recorded during the years ended December 31, 2021 and 2020.

BALANCE SHEET COMPONENTS

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

Accounts Receivable, net

The following table represents the components of accounts receivable, net, (in thousands):


	As of December 31,
	2021		2020
Accounts receivable	$	13,674	$	13,927
Unbilled accounts receivable	509		812
Total accounts receivable	14,183		14,739
Less: allowance for doubtful accounts and allowance for foreign withholding tax	(310)		(389)
Total accounts receivable, net	$	13,873	$	14,350

The allowance for doubtful accounts was $0.3 million as of both December 31, 2021 and 2020. The allowance for foreign withholding tax was nil and $0.1 million as of December 31, 2021 and 2020, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	As of December 31,
	2021		2020
Research tax credit	$	2,828	$	523
Capitalized commissions asset, net	2,289		1,079
Contract assets	634		551
Software & subscriptions	388		158
Other	810		547
Total prepaid expenses and other current assets	$	6,949	$	2,858

Property and Equipment, net

Property and equipment consisted of the following (in thousands):


	As of December 31,
	2021		2020
Software and technology equipment	$	4,067	$	3,209
Office furniture and hardware equipment	305		271
Leasehold improvements	295		100
Vehicles	7		7
Finance lease right-of-use assets	—		7
Total property and equipment	4,674		3,594
Less: accumulated depreciation and amortization	(2,236)		(1,229)
Total property and equipment—net	$	2,438	$	2,365

Depreciation and amortization expenses related to property and equipment for the years ended December 31, 2021 and 2020, was $1.0 million and $0.9 million, respectively.

Other Assets

Other assets consisted of the following (in thousands):


	As of December 31,
	2021		2020
Capitalized commissions asset, net	$	1,576	$	1,479
Contract assets	852		808
Security deposits	190		102
Capitalized third party commissions asset, net	143		123
Other	196		68
Total other assets	$	2,957	$	2,580

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	As of December 31,
	2021		2020
Payroll and related benefits	$	6,616	$	5,303
Deferred and contingent consideration	1,668		1,074
Accrued professional fees	1,292		678
Other accrued liabilities	997		194
Total accrued expenses and other current liabilities	$	10,573	$	7,249

Other Liabilities

Other liabilities consist of the following (in thousands):


	As of December 31,
	2021		2020
Contingent consideration	$	1,269	$	2,268
Pension accrual	820		718
Other	68		—
Total other liabilities	$	2,157	$	2,986

ACQUISITION

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

ACQUISITION

On November 30, 2020, the Company, through Arteris IP SAS, its wholly owned subsidiary, completed the acquisition of Magillem Design Services SA (Magillem), by acquiring certain assets and assumed liabilities of Magillem in an all-cash transaction to expand the Company’s IP deployment technology. Magillem is a leading provider of complex design flow and content management software solutions. In accordance with the terms of the asset purchase agreement, the consideration transferred for the acquisition is as follows (in thousands).


	NOVEMBER 30, 2020
Cash consideration paid at closing	$	4,500
Deferred consideration	500
Estimated contingent consideration	2,842
	$	7,842

The deferred consideration represents a consideration holdback, in connection with a separate arrangement between Magillem and a third party, which was settled after the acquisition. The estimated contingent consideration represents the fair value of additional consideration payable to the seller upon (a) the achievement of specified milestones, estimated using the income approach and (b) in relation to potential indemnity claims. The contingent consideration payments are tied to a number of metrics, including claims received by the Company and certain product development, customer and revenue metrics in the next one to three years.

The Company incurred acquisition-related expenses associated with the Magillem transaction in a total amount of $1.4 million, which were included in general and administrative expenses in the consolidated statements of income (loss). These acquisition-related costs included legal, accounting, and other professional and consulting fees.

Additionally, in connection with the acquisition of Magillem, the Company issued 0.6 million RSUs and 0.6 million stock options to Magillem employees that transferred to us, all of which vest over four years from the date of acquisition of Magillem. These awards have been accounted for separately from the business combination and are recognized by the Company as compensation cost.

The acquisition of Magillem has been accounted for in accordance with the acquisition method of accounting for business combinations with the Company, as the accounting acquirer. Under the acquisition method of accounting, the purchase price is allocated to identifiable assets acquired and liabilities assumed based on their fair values on the acquisition date.

The following table provides the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands):


	FAIR VALUE
Accounts receivable	$	968
Unbilled revenue	1,424
Intangible assets	3,450
Operating lease right-of-use	1,222
Other assets	567
Operating lease liability	(1,222)
Other liabilities	(1,244)
Total identifiable net assets	5,165
Goodwill	2,677
Total purchase price	$	7,842

The following table summarizes the fair value of the identifiable intangible assets acquired (in thousands) and weighted-average useful life:


	2020		WEIGHTED AVERAGE USEFUL LIFE
Developed Technology	$	1,700	5 years
Customer Relationships	1,100		8 years
IPR&D	500		N/A
Trade Name	150		N/A
Estimated fair value of intangible assets	$	3,450

Goodwill generated from this business combination is attributed to synergies between the Company’s and Magillem’s respective products and services, and it is not tax deductible for income tax purposes.

The following table provides unaudited pro forma condensed consolidated results of operations information for the year ended December 31, 2020 assuming the Magillem acquisition was completed as of January 1, 2020 (in thousands):


	PRO FORMA COMBINED
Total revenue	$	39,726
Net loss	$	(4,456)
Net loss attributable to common stockholders	$	(4,456)
Net loss per share attributable to common stockholders—basic and diluted	$	(0.25)

The unaudited pro forma results above include adjustments related to the purchase price allocation primarily to decrease revenue for amortization of the deferred revenue fair value adjustment, to increase amortization of identifiable intangible assets, to increase the non-recurring transaction costs, and to reflect the related income tax effect of the adjustments. The unaudited pro forma condensed combined financial information has been prepared by management for illustrative purposes only and are not necessarily indicative of the consolidated financial position or results of operations in future periods or the results that would have been realized had the Company and Magillem been combined during the specified period. The unaudited pro forma condensed combined financial information does not reflect any operating efficiencies and/or cost savings that the Company may achieve with respect to the combined companies, or any liabilities that may result from integration activities.

LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

The Company leases its offices and data center hosting space at various locations under noncancelable operating lease agreements expiring at various dates through 2027. Under the terms of these agreements, the Company also bears the costs for certain insurance, property tax, and maintenance. The terms of certain lease agreements provide for increasing rental payments at fixed intervals.

Total operating lease related costs were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Operating lease cost	$	1,096	$	684
Short-term lease cost	134		90
Total lease cost	$	1,230	$	774

The weighted-average remaining term of the Company’s operating leases was 3.6 years and 4.4 years as of December 31, 2021 and 2020, respectively, and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 7.5% as of December 31, 2021 and 2020.

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):


Fiscal year ending December 31,
2022	$	1,113
2023	953
2024	449
2025	278
2026 and thereafter	424
Total undiscounted cash flows	3,217
Less: Imputed interest	(405)
Present value of lease liabilities	$	2,812

Lease liabilities, current	$	961
Lease liabilities, noncurrent	1,851
Total lease liabilities	$	2,812

BORROWINGS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

BORROWINGS

Term loans—In November 2018, the Company entered into a business financing agreement (2018 Term Loan) of $1.5 million with Western Alliance Bank which matured in November 2021, and was payable on a monthly basis of less than $0.1 million with the beginning six months being interest only payments. The interest rate on the 2018 Term Loan was prime plus 2%. Debt issuance costs were immaterial. The 2018 Term Loan was fully repaid in November 2021 and was not renewed. As of December 31, 2020, the Company had $0.6 million outstanding balance, net of debt issuance costs, and was classified as current liabilities.

Revolving line of credit—The Company had a revolving line of credit, under the business financing agreement dated August 2015, with a lender for $1.5 million (2015 Revolver) that matured in August 2018 and renewed in November 2018 for another three years that matured in November 2021 for $2.0 million (2018 Revolver). The interest rate for the 2018 Revolver was prime plus 1%. The 2018 Revolver was not renewed in November 2021 and was not used for the year ending December 31, 2021 and 2020.

Vendor financing arrangements—The Company has various vendor financing arrangements with extended payment terms on the purchase of software licenses and equipment. In order to determine the present value of the commitments, the Company used an imputed interest rate of 7.5%, which is reflective of its collateralized borrowing rate with similar terms to that of the software licenses and equipment transactions.

Vendor financing arrangements were as follows (in thousands):


	Amount
2022	$	833
2023	319

Total undiscounted cash flows	1,152
Less: Imputed interest	(53)
Present value of vendor financing arrangements	$	1,099
Vendor financing arrangements, current	$	833
Vendor financing arrangements, noncurrent	266
	$	1,099

Interest expense from Term Loan and Vendor financing arrangements was $0.1 million and $0.1 million for the years ended December 31, 2021 and 2020, respectively.

Borrowing Arrangement—In April 2020 and under the CARES Act, the Company entered into a loan agreement known as the Paycheck Protection Program (PPP) with a lender for $1.6 million (the PPP Loan) with 1% interest due per annum and repayable in two years. The Company applied for forgiveness of amounts due under the Loan, with the amount of potential loan forgiveness to be calculated in accordance with the requirements of the PPP based on payroll costs, any mortgage interest payments, any covered rent payments and any covered utilities payments during the 8-week period after the origination date of the PPP Loan. The Company used proceeds of the PPP Loan to fund payroll and other qualifying expenses. On December 8, 2020, the full amount of the PPP Loan, including principal and accrued interest, was forgiven.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Indemnifications—The Company often enters into limited indemnification provisions in license agreements in the ordinary course of the Company’s licensing business. Pursuant to these provisions, which are often inserted into license agreements in the semiconductor IP and software licensing industries, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties up to a capped amount for losses suffered or incurred by such indemnified parties due to third party claims if such claims are determined to be caused by the Company. The term of these indemnification provisions is generally either for a term of years or perpetual, in each case beginning on the execution date of the agreement. The Company has also agreed to indemnify under indemnity agreements with its directors and officers, to the extent legally permissible, against liabilities incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer, other than certain liabilities arising from willful misconduct of the individual. The Company has incurred no actual payment obligations from these above-noted indemnification provisions and director and officer indemnity agreements during 2021 and 2020, and the consolidated financial statements do not include liabilities for any potential indemnity-related obligations as of December 31, 2021 and 2020. Legal—In the normal course of business, the Company may receive inquiries or become involved in legal disputes regarding various litigation matters. Although claims are inherently unpredictable, the Company currently is not aware of any such matters that may have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company has no other material contractual noncancelable commitments as of December 31, 2021 and December 31, 2020.

REDEEMABLE CONVERTIBLE PREFERRED STOCK, PREFERRED STOCK AND COMMON STOCK	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
REDEEMABLE CONVERTIBLE PREFERRED STOCK, PREFERRED STOCK AND COMMON STOCK	REDEEMABLE CONVERTIBLE PREFERRED STOCK, PREFERRED STOCK AND COMMON STOCK Redeemable Convertible Preferred Stock Immediately prior to the closing of the IPO, all shares of the Company’s redeemable convertible preferred stock outstanding, totaling 4,471,316, were automatically converted into an equal number of shares of common stock and their carrying value of $5.7 million was reclassified into stockholders’ equity. As of December 31, 2021 and 2020, there were zero and 4,471,316 shares of redeemable convertible preferred stock issued and outstanding, respectively. Preferred Stock In connection with the IPO, the Company amended and restated its certificate of incorporation to authorize 10,000,000 shares of preferred stock with a par value of $0.001, which shares of preferred stock are currently undesignated. Common Stock Holders of common stock are entitled to one vote per share and to receive dividends and, upon liquidation or dissolution, are entitled to receive all assets available for distribution to common stockholders. The common stock has no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Common stock is subordinate to the preferred stock and redeemable convertible preferred stock with respect to dividend rights and rights upon liquidation, winding-up, and dissolution of the Company. In connection with the IPO, the Company amended and restated its certificate of incorporation to authorize 300,000,000 shares of common stock. During the year ended December 31, 2021, 1,250,000 shares of the Company’s common stock were sold to third-party investors for an aggregate amount of $5.4 million. Stock Repurchases There were no repurchased shares for the years ended December 31, 2021 and 2020.

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

2013 Stock Plan

The Board adopted and the Company’s stockholders approved the 2013 Equity Incentive Plan (the 2013 Plan) during the year ended December 31, 2013.

2016 Stock Plan

On October 10, 2016, the Company amended and restated the 2013 Equity Incentive Plan and changed the name of the plan to Arteris, Inc. 2016 Incentive Plan (the 2016 Plan). Adoption of the 2016 Plan provides for participation by foreign nationals or those employed outside of the United States.

The 2016 Plan provides for the granting of the following types of stock awards: incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and other stock awards. The number of shares authorized for award is 20,803,838. The Company has granted awards of common stock in the form of 14,142,208 shares as of December 31, 2021 with none remaining available for future grant. Following the Company’s IPO in October 2021, all future grants will be made under the 2021 Plan (as defined below).

2021 Stock Plan

The Company adopted the 2021 Incentive Award Plan (the 2021 Plan) effective October 26, 2021. The 2021 Plan provides for a variety of stock-based compensation awards, including stock options, stock appreciation rights, or SARs, restricted stock awards, restricted stock unit awards, performance bonus awards, performance stock unit awards, dividend equivalents, or other stock or cash based awards. The Company has granted 228,185 shares subject to awards as of December 31, 2021 with 3,493,240 remaining available for future grant.

Following the effectiveness of the 2021 Plan, the Company will not make any further grants under the 2016 Plan. However, the 2016 Plan will continue to govern the terms and conditions of the outstanding awards granted under this plan. Shares of common stock subject to awards granted under the 2016 Plan that are forfeited or lapse unexercised and which following the effective date of the 2021 Plan are not issued under the 2016 Plan will be available for issuance under the 2021 Plan.

2021 Employee stock purchase plan

The Company adopted the 2021 Employee Stock Purchase Plan (the 2021 ESPP) effective on October 26, 2021. The 2021 ESPP will enable eligible employees of the Company to purchase shares of common stock at a discount to fair market value. The Company has initially reserved for issuance 607,000 shares of common stock pursuant to the 2021 ESPP. As of December 31, 2021, there had been no offering period under the ESPP.

Shares Available for Future Grant

Shares available for future grant under the Company’s 2016 and 2021 Plan consist of the following:


	As of December 31,
	2021	2020
Shares available for future grant	3,493,240	650,170

The Company issues new shares upon a share option exercise or release.

Stock Options

The following table summarizes the stock option activities under the Company’s 2013 and 2016 Plans:


	Options Outstanding
	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Values ($‘000s)




Balances—December 31, 2020	7,073,584	$	0.85	7.90	$	13,348
Granted	—	—
Exercised	(1,362,327)	0.44
Canceled	(304,087)	0.84
Balance—December 31, 2021	5,407,170	$	0.96	7.16	$	108,964
Options vested and exercisable—December 31, 2021	3,209,726	$	0.62	6.36	$	65,752
Options vested and exercisable—December 31, 2020	3,157,172	$	0.40	6.45	$	7,398

The aggregate intrinsic value of the options exercised for the years ended December 31, 2021 and 2020 was $9.0 million and $0.4 million, respectively. The total grant-date fair value of awards vested was $0.5 million and $0.3 million for the years ended December 31, 2021 and 2020, respectively.

The amount of cash received by the Company for the exercise of stock options was $0.6 million and $0.2 million for the years ended December 31, 2021 and 2020, respectively.

As of December 31, 2021, there was $0.9 million of unamortized stock-based compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.6 years.

Stock options granted generally have a maximum term of ten years from the grant date and generally vest over a period of four years with 25% vesting after one year and then monthly thereafter for three years.

The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model. The Company determines valuation assumptions for Black-Scholes as follows:

Risk-Free Interest Rate—The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on US Treasury zero coupon issues with an equivalent expected term of the options for each option group.

Expected Term—The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The expected term assumption is based on the simplified method. The Company expects to continue using the simplified method until sufficient information about the Company’s historical behavior is available.

Volatility—The Company determines the price volatility factor based on the historical volatilities of the Company’s peer group as the Company does not have sufficient trading history for its common stock.

Dividend Yield—The Company has never declared or paid any cash dividend and does not currently plan to pay a cash dividend in the foreseeable future. Consequently, the Company used an expected dividend yield of zero.

The following table summarizes the stock option valuation assumptions:


			Year Ended December 31,
			2020
Fair value of common stock			$0.60 - $2.74
Expected volatility			33.9% - 39.9%
Expected term (in years)			5.4 - 6.1
Risk-free interest rate			0.3% - 1.5%
Expected dividend yield			—%

The Company had no stock option grants during the year ended December 31, 2021.

Restricted Stock Units and Awards

The following table summarizes the restricted stock units activities under the Company’s 2013, 2016 and 2021 Plans:


	Restricted Stock Units
	Number of Shares	Weighted-Average Grant Date Fair Value




Unvested—December 31, 2020	843,095	2.25
Granted	3,607,652	6.09
Vested	(210,050)	1.82
Canceled	(315,600)	4.72
Unvested—December 31, 2021	3,925,097	5.60

The total grant-date fair value of restricted stock units vested was $0.4 million and less than $0.1 million during the years ended December 31, 2021 and 2020.

As of December 31, 2021, there was $17.1 million of unamortized stock-based compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.9 years.

For RSUs granted under the 2016 Stock Plan, it contains both a service-based vesting condition and a performance-based vesting condition. The service-based vesting condition for these awards is generally satisfied by rendering continuous service for approximately four years, during which time the grants will vest periodically. The performance-based vesting condition of certain awards is satisfied in connection with the Company becoming a publicly listed company or a change in control.

For RSUs granted under the 2021 Stock Plan, it contains the service-based vesting condition for these awards and is generally satisfied by rendering continuous service for typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter.

Stock-based Compensation

Stock-based compensation expense is recorded on a departmental basis, based on the classification of the award holder. The following table presents the amount of stock-based compensation, inclusive of the cumulative stock-based compensation expense recognize upon the effectiveness of the Company’s IPO, related to stock-based awards to employees and non-employees on the Company’s consolidated statements of income (loss) (in thousands):


	Year Ended December 31,
	2021		2020
Research and development	$	3,495	$	263
Sales and marketing	797		92
General and administrative	1,218		103
Total stock-based compensation	$	5,510	$	458

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

For financial reporting purposes, loss before provision for income taxes, includes the following components (in thousands):


	Year Ended December 31,
	2021		2020
Domestic	$	(11,253)	$	(1,307)
Foreign	(11,091)		(927)
Loss before provision for income taxes	$	(22,344)	$	(2,234)

Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2021		2020
Current:
Federal	$	13	$	—
State	17		18
Foreign	904		1,008
Total current	$	934	$	1,026
Deferred:
Federal	—		—
State	—		—
Foreign	106		—
Total Deferred tax	106		—
Provision for income taxes	$	1,040	$	1,026

Income tax (provision) benefit related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21% to pretax loss as follows (in thousands):


	Year Ended December 31,
	2021		2020
U.S. Federal (provision) benefit
At Statutory Rate	21.0	%	21.0	%
State Taxes	0.6	%	10.0	%
Valuation Allowance	(33.1)	%	(86.7)	%
Foreign Tax Differential	6.0	%	6.8	%
Tax Credits	2.0	%	72.7	%
Stock Based Compensation	(1.0)	%	1.2	%
M&A Transaction Costs	0.0	%	(8.2)	%
Foreign Earnings and Adjustments	(0.2)	%	(11.0)	%
Foreign Withholding Tax	(0.8)	%	(67.1)	%
CARES Act	0.0	%	15.0	%
Other	0.8	%	0.4	%
Total	(4.7)	%	(45.9)	%

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):


	Year Ended December 31,
	2021		2020
Deferred Tax Assets:
Federal & State NOL carryforward	$	853	$	831
Research & Other credits	5,598		5,042
Deferred revenue	8,380		3,140
Reserves and accruals	1,000		510
Stock-based compensation	953		41
Other intangibles	327		172
Lease liabilities	279		350
Total Gross Deferred tax asset	$	17,390	$	10,086
Less: Valuation allowance	(16,390)		(9,019)
Total Deferred tax assets	$	1,000	$	1,067
Deferred Tax Liabilities:
Property and equipment	(290)		(134)
Prepaid expenses	(447)		(499)
Right-of-use assets	(263)		(329)
Total Gross Deferred tax liabilities	$	(1,000)	$	(962)
Net Deferred tax assets	$	—	$	105

The provisions of ASC Topic 740, Accounting for Income Taxes (ASC 740), require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. For the years ended December 31, 2021 and 2020, based on all available objective evidence, including the existence of cumulative losses, the Company determined that it was not more likely than not that the net deferred tax assets were fully realizable. Accordingly, the Company determined that a full valuation allowance against its U.S. (federal and state), French and China deferred tax assets is appropriate. The Company intends to maintain a full valuation allowance on net deferred tax assets until sufficient positive evidence exists to support reversal of the valuation allowance. During the years ended December 31, 2021 and 2020, the valuation allowance was $16.4 million and $9.0 million, respectively.

The valuation allowance increased by $7.4 million and $2.0 million during the years ended December 31, 2021 and 2020, respectively, primarily due to changes in the U.S. and foreign deferred revenue and stock compensation deferred tax assets.

Net Operating Loss and Tax Credit Carryforwards

As of December 31, 2021, the Company had nil net operating loss carryforward for federal income tax purposes. The Company had a total state net operating loss carryforward of approximately $3.7 million, which will begin to expire in 2030. Utilization of some of the federal and state net operating loss and credit carryforwards are subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before utilization.

The Company has federal research and development tax credits of approximately $3.6 million, which will begin to expire in 2035 and California research and development tax credits of approximately $2.6 million which can be carried forward indefinitely. These tax credits are subject to the same limitations discussed above.

On December 27, 2020, the U.S. government enacted the Consolidated Appropriations Act, 2021, which enhances and expands certain provisions of the CARES Act. This legislative act did not have a material impact on the Company’s consolidated financial results.

On March 11, 2021, the American Rescue Plan Act of 2021 (American Rescue Plan) was signed into law to provide additional relief in connection with the ongoing COVID-19 pandemic. The American Rescue Plan includes, among other things, provisions relating to PPP loan expansion, defined pension contributions, excessive employee remuneration, and the repeal of the election to allocate interest expense on a worldwide basis. Under ASC 740, the effects of new legislation are recognized upon enactment. Accordingly, the American Rescue Plan is effective beginning in the quarter that includes March 11, 2021. These provisions did not have a material impact on the Company’s consolidated financial statements.

Unrecognized Tax Benefits

The Company adopted the provisions of ASC 740, which requires companies to determine whether it is “more likely than not” that a tax position will be sustained upon examination by the appropriate taxing authorities before any tax benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement, classification and interest and penalties related to uncertain tax positions.

The Company has the following activity relating to unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2021		2020
Beginning balance	$	2,522	$	1,921
Gross decreases—Tax Positions in Prior Periods	(25)		—
Gross increases—Tax Positions in Current Period	614		601
Ending balance	$	3,111	$	2,522

The unrecognized tax benefits, if recognized, would not affect the effective income tax rate due to the valuation allowance that currently offsets deferred tax assets. Interest and penalties were nil. The Company does not expect the unrecognized tax benefits to change significantly over the next twelve months.

The Company files federal and state income tax returns. For U.S. federal and state income tax purposes, the statute of limitations currently remains open for the years ending December 31, 2018 to present and December 31, 2017 to present, respectively. In addition, all of the net operating losses and research and development credit carryforwards since inception that could be utilized in future years may be subject to examination.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANSThe Company has a 401(k) plan to provide defined contribution retirement benefits for all employees. Employees may elect to contribute a portion of their pretax compensation to the 401(k) plan, subject to the U.S. Internal Revenue Service annual contribution limit. Employee contributions are fully vested at all times. For the year ended December 31, 2021, the Company contributed $0.4 million to the 401(k) plan. The Company did not provide any matching contributions under its 401(k) plan for the year ended December 31, 2020.

The Company has two defined benefit pension plans (the “Plans”), and both Plans are outside the United States. One of the defined benefit plans was assumed as a result of the acquisition of Magillem during the year ended December 31, 2020. The Plans cover all employees of the Company’s French subsidiary in accordance with French regulations. The Plans are unfunded and accounted for under the credit method and is subject to an actuarial measurement of what the Company needs at the present time to cover the future pension liabilities, including expected future salary increases.

Components of the net periodic pension costs and changes in benefit obligations under the Plan were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Service costs	$	106	$	33
Interest costs	3		2
Total net periodic pension cost	$	109	$	35


	As of December 31,
	2021		2020
Benefit obligation, beginning of year	$	717	$	194
Assumption of pension liability due to acquisition	—		449
Service costs	106		33
Interest costs	3		2
Net actuarial loss	50		11
Foreign exchange (gain) loss	(56)		28
Benefit obligation, end of year, included as part of other liabilities	$	820	$	717

Weighted-average assumptions used to determine benefit obligations were as follows:


	As of December 31,
	2021		2020
Discount rate	0.98	%	0.45	%
Rate of compensation increase	3.00	%	3.00	%

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company defines related parties as directors, executive officers, nominees for director, stockholders that have significant influence over the Company, or are a greater than 10% beneficial owner of the Company’s capital and their affiliates or immediate family members. In November 2020, the Company entered into a lease agreement with Isabelle Geday, a member of the Board of Directors. The lease payments were $0.2 million and less than $0.1 million for the years ended December 31, 2021 and 2020, respectively. In addition, the Company signed a consulting agreement with Ms. Geday on December 1, 2021, which was subsequently assigned to Magillem Design Services S.A., effective January 10, 2022. Prior to signing the consulting agreement, Ms. Geday was paid as an executive employee of the Company from December 1, 2020 through November 30, 2021. As a consultant, Ms. Geday will provide services for an initial three-year term and is eligible to receive $26,445 per month for the first 12 months of the consulting term and $19,445 per month for the remaining 24 months of the consulting term. For the year ended December 31, 2021, the Company paid Ms. Geday less than $0.1 million for consulting services. Lastly, the 455,000 stock options and 62,200 RSUs granted in connection with Ms. Geday’s prior employment and 6,250 RSUs granted as a member of the Board of Directors of the Company continue to vest.

SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATIONThe Company’s CODM, reviews operating results on an aggregate basis and manages the Company’s operations as a whole for the purpose of evaluating financial performance and allocating resources. The Company thus operates in one reportable segment which, as more fully described in Note 2, provides NoC interconnect semiconductor IP and IP deployment technology for a wide range of applications.

Refer to Note 2 for information about customers which account for more than 10% of total revenue. Refer to Note 3 for a summary of revenue by major product and service group.

The following table summarizes revenues by geographic area based on customer location (in thousands):


	Year Ended December 31,
	2021					2020
Americas	$	16,433	43.4	%	(1)	$	10,459	32.9	%	(1)
Asia Pacific	16,748		44.2		(2)	18,896		59.4		(2)
Europe, Middle East	4,683		12.4			2,457		7.7
	$	37,864	100.0	%		$	31,812	100.0	%
(1) United States	$	16,311	43.1	%		$	10,135	31.9	%
(1) Other Americas *	122		0.3	%		324		1.0	%
(2) China	10,257		27.1	%		14,283		44.9	%
(2) Other Asia *	6,491		17.1	%		4,613		14.5	%

*Other countries individually less than 10%

The following table summarizes property and equipment, net by geographic area (in thousands):


	As of December 31,
	2021				2020
United States	$	1,626	66.7	%	$	1,834	77.5	%
France	803		32.9	%	517		21.9	%
Other	9		0.4	%	14		0.6	%
	$	2,438	100.0	%	$	2,365	100.0	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On February 21, 2022, Arteris IP (Hong Kong) Ltd. (AHK), a wholly-owned subsidiary of the Company, entered into a Share Purchase and Shareholders Agreement (the SPA) with SME Development (Shaoxing) Venture Fund, LLP, Jiaxing Luojia Chuangzhi Investment Partnership Enterprise (Limited Partnership), Gongqing City Guinie Zhuyu No. 3 Investment Partnership (Limited Partnership) (the Investors) and Ningbo Transchip Information Consulting Partnership (Limited Partnership) (Management Co). The Company, the Investors and Management Co, pursuant to the SPA, will subscribe for the registered capital of TransChip Technology (Nanjing) Co., Ltd. (Transchip), a wholly-owned subsidiary of the Company. The registered capital of Transchip will increase from RMB 200,000 to RMB 196,500,000 (or approximately $31.0 million). The Company will subscribe for the registered capital of RMB 79,230,000 (or approximately $12.5 million), of which RMB 77,330,000 (or approximately $12.2 million) of the contribution will be contributed in-kind by way of a technology license by the Company pursuant to a five-year technology license agreement and the remaining in cash. Following the consummation of the foregoing transactions, and subject to closing terms and conditions in the SPA, it is currently anticipated that the Company will hold a 40.321% equity interest in Transchip and that Transchip will receive aggregate cash proceeds from the Investors of RMB 76,500,000 (or approximately $12.1 million).

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Arteris, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.
Segment Information	Segment Information The Company operates as a single operating segment. The chief operating decision maker is the Company’s Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated revenue information. Accordingly, the Company has determined that it has a single reportable segment and operating segment.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to, among others, revenue recognition, the useful lives of assets, assessment of recoverability of property, plant and equipment, fair values of goodwill and other intangible assets, including impairments, leases, allowances for doubtful accounts, deferred tax assets and related valuation allowance, stock-based compensation, potential reserves relating to litigation and tax matters, collectability of tax receivable, as well as other accruals or reserves. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements.
Foreign Currency	Foreign Currency The Company and its foreign subsidiaries’ functional currency is the US dollar. Accordingly, monetary assets and liabilities of foreign subsidiaries are remeasured into US dollars at the exchange rates in effect at the balance sheet date, non-monetary assets and liabilities are recorded at historical rates, and revenue and expenses are remeasured at average rates during the period. Remeasurement adjustments are recognized as a component of interest and other income (expense), net within the consolidated statements of loss.
Comprehensive Loss	Comprehensive Loss Comprehensive loss generally represents all changes in stockholders’ deficit during the period except those resulting from investments by, or distributions to, stockholders. For the years ended December 31, 2021 and 2020, the components of comprehensive loss consist of net loss and unrealized pension actuarial loss.
Net Loss per Share	Net Loss per Share Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock during the period, plus the dilutive effects of stock options, restricted stock units (RSU) and restricted stock awards (RSA). Dilutive shares of common stock are determined by applying the treasury stock method.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates their fair value. As of December 31, 2021 and 2020, cash and cash equivalents consist primarily of checking and savings deposits.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable, net consist of primarily billed and unbilled trade accounts receivable. Unbilled accounts receivable represents amounts recorded as royalty revenue which will be invoiced within a short period upon receipt of the royalty reports from the licensees. The Company records accounts receivable when it has an unconditional right to consideration. Trade accounts receivable are recorded at the invoiced amount. The Company maintains allowances for doubtful accounts to reduce its receivables to their estimated net realizable value. In general, the Company does not offer extended credit terms and also do not require any security or collateral to support its receivables. The Company performs ongoing credit evaluations of its customers and establishes allowances for potential credit losses by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The Company’s allowance for doubtful accounts activity has historically not been significant. Probable losses are recorded in general and administrative expense in the consolidated statements of income (loss). Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash and accounts receivable. The Company maintains cash in checking and savings deposits. Management believes no significant concentration risk exists with respect to cash as in management’s judgment the banks that hold the Company’s cash are financially stable. The Company deposits cash with high-credit-quality financial institutions which, at times, may exceed federally insured amounts. The Company’s accounts receivable are derived principally from revenue earned from customers located in Americas and Asia Pacific regions.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives, generally ranging from one to seven years. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the remaining lease term. Depreciation expenses are recorded in cost of revenue and operating expenses in the consolidated statements of loss. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is recorded as a component of operating expenses. Repairs and maintenance costs are expensed as incurred. The Company evaluates the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by comparing their carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount is not recoverable, the carrying amount of such assets is reduced to fair value.
Business Combinations	Business Combinations The Company allocates the purchase price to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the purchase price over the fair value of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. These estimates are based on information obtained from management of the acquired companies, the Company’s assessment of this information, and historical experience. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customers, acquired technology, and trade names from a market participant perspective, useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. In addition, unanticipated events and circumstances may occur that may affect the accuracy or validity of such estimates, and if such events occur, the Company may be required to adjust the value allocated to acquired assets or assumed liabilities. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of income (loss). Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company performs its goodwill and other indefinite-lived intangible assets impairment tests annually or more frequently if events or changes in circumstances occur that would more likely than not reduce the fair value below its carrying value. For the years ended December 31, 2021 and 2020, the Company did not have any goodwill or other indefinite-lived intangible assets impairment. Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets, which range from five to eight years, unless the lives are determined to be indefinite. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. Amortization expenses are recorded in operating expenses on the consolidated statements of income (loss).
Debt Issuance Costs	Debt Issuance Costs Costs incurred in connection with the issuance of long-term debt have been recorded as a direct reduction against the debt and are amortized over the life of the associated debt as a component of interest and other income (expense), net using the effective interest method.
Right-of-use Assets ("ROU") and Lease Liabilities	Right-of-use Assets (ROU) and Lease Liabilities The Company recognizes leases in accordance with Accounting Standard Codification (ASC) Topic 842, Leases, and subsequently issued additional related Accounting Standard Updates (ASU) (Topic 842). The Company leases its offices at various locations under noncancelable operating lease agreements expiring at various dates through 2027. Under the terms of these agreements, the Company also bears the costs for certain insurance, property tax, and maintenance. The terms of certain lease agreements provide for increasing rental payments at fixed intervals. At lease commencement, the Company measures and records a lease liability equal to the present value of the remaining lease payments, generally discounted using incremental borrowing rate as the implicit rate is not readily determinable on many of its leases. When determining the incremental borrowing rates, the Company considers information including, but not limited to, the lease term, the interest rates on its collateralized debt and incremental borrowing rates for its peer group. On the lease commencement date, the amount of the ROU assets consists of the following: ■The amount of the initial measurement of the lease liability; ■Any lease payments made at or before the commencement date, minus any lease incentives received; and ■Any initial direct costs incurred. The Company assesses the option for lease extensions, renewals, or terminations on individual leases, and generally considers the base term to be the term of lease contracts, unless it is reasonably certain that the Company will exercise such options. Lease agreements may contain other variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred in the consolidated statements of income (loss). The Company does not include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and lease liabilities. The lease agreements generally do not contain any residual guarantees or restrictive covenants. Operating leases are included in operating lease ROU assets, operating lease liabilities, current and operating lease liabilities, noncurrent in the consolidated balance sheets. Finance leases are included in property and equipment, accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.
Revenue Recognition and Nature of Products and Services	Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued additional related ASUs (Topic 606). The Company recognizes revenues as it transfers control of deliverables (software and services) to its customers in an amount reflecting the consideration to which it expects to be entitled. To recognize revenues, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied. The Company accounts for a contract when it has approval and commitment from all parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay based on a variety of factors including the customer’s historical payment experience. Nature of Products and Services The Company’s revenue is primarily derived from licensing intellectual property, licensing software, support and maintenance services, professional services, training services, and royalties. Design Solutions Interconnect Solutions product arrangements provide customers the right to software licenses, services, software updates and technical support. The Company enters into licensing arrangements with customers that typically range from two to three years and generally consist of delivery of a design license that grants the customer the right to use the IP to design a contractually defined number of products and stand-ready support services that provide the customer a significant benefit from its proprietary software tool (RTL) as well as ongoing access to Corporate Application Engineers (CAE) and Field Application Engineers (FAE) (collectively, “application engineer support services”) to perform certain verifications including benchmark performance, simulations and ultimately, through the RTL, instantiate designs into silicon over the design term. The support services, including access to application engineering support services and the benefits of the RTL, are integral and fundamental to the customer’s ability to derive its intended benefit from the IP. CAEs are part of the product development team providing detailed requirements for engineering projects, working very closely with a customer’s chief technology officer and the marketing department, and performing quality assurance testing of customer products prior to shipment to their customers. FAEs provide assistance to the customer’s engineering team in translating their desired SoC architecture into inputs for NoC IP configuration, assistance in optimizing the NoC configuration, answer to customer questions by the online support system or phone, constructive reviews of the progress achieved by the customer’s development team and provision of advice on how to best use the licensed IP, performance of design reviews before customer project RTL freeze and tape-out to ensure the customer used the licensed IP configuration tooling as intended so that the RTL output meets customer requirements and expectations. FAE reviews of the customer’s design are mandatory and consist of an understanding of the customer requirements and analysis of the adequacy of the contemplated IP considering the customer’s desired architecture and design goals and objectives, taking into consideration bandwidth, coherence/non-coherence, latency, clock and timing, areas, and any and all constraints, as identified and specific to the design under review. Besides application engineer support services, support and maintenance services also consist of a stand-ready obligation to provide technical support and software updates over the support term. Generally, the first-year of technical support and software updates are bundled with and into the license fee with a customer option to renew additional years of support throughout the license term. However, the Company continues to provide technical support and software updates throughout the license term even if the customer does not renew these services in subsequent years, making the license term and support and maintenance term co-terminus. Considering the nature of the combined design tool and assisting the Company’s customers in applying its IP technology in its customers’ development environment and the relative significance thereof, the Company has concluded that its Interconnect Solutions IP licensing arrangements are not distinct from its obligation to provide the application engineering support services and benefits of the RTL. The Interconnect Solutions IP, RTL, and the application engineering support services serve to fulfill its commitment to the customer, as they represent inputs to a single, combined performance obligation that commences upon the later of the arrangement effective date or transfer of the software license. The design license and the regular two-way interaction between the design tool, RTL, and the application engineering support services give the customer the intended benefit from the arrangement, which is the ability to commercialize their design. Customers cannot benefit from the design license on its own or together with other readily available resources as no other RTL or application engineer support service provides exists in the marketplace that a customer could use with the design license. Consequently, the RTL and application engineer support service cannot be used on its own or together with any other design license as the Company does not allow the use of the RTL or provide application engineer support services separately from the design license. Further, although technical support and software updates is a distinct performance obligation, it is accounted for as if it were part of a single performance obligation that includes the licenses, RTL and application engineer support services because the technical support and updates are provided in practice for the same period of time and have the same time-based pattern of transfer to the customer as the combined design license, RTL, and application support services. Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the sale of the product incorporating the Company’s IP occurs. Royalties are calculated either as a percentage of the revenues received by a licensee’s sale of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. For a majority of the Company’s royalty revenues, it receives the actual sales data from its customers after the quarter ends and accounts for it as unbilled receivables. When the Company does not receive actual sales data from the customer prior to the finalization of its financial statements, royalty revenues are recognized based on its estimation of the customer’s sales during the quarter. Deployment Solutions Deployment Solutions product arrangements provide customers the right to software licenses, software updates and technical support. The software licenses are time-based licenses with terms generally ranging from one to three years. These arrangements generally have two distinct performance obligations that consist of transferring the licensed software and the support and maintenance service. Support and maintenance services consist of a stand-ready obligation to provide technical support and software updates over the support term. Revenue allocated to the software license is recognized at a point in time upon the later of the delivery date or the beginning of the license period, and revenue allocated to support services is recognized ratably over the support term. A limited number of Deployment Solutions contracts include tokens, a mechanism used to both enable “peak” users to choose a combination of the software products on a monthly basis and restrict the number of users. The Company recognizes revenue related to these tokens at a point in time, upon delivery of monthly token license keys to the customer. Professional Services The Company’s agreements often include service elements (other than maintenance and support services). These services include training, design assistance, and consulting. Services performed on a time and materials basis are recognized over the period the services are provided either using an output method such as labor hours, or a method that is otherwise consistent with the way in which value is delivered to the customer. Services performed on a fixed price basis are recognized over time, generally using costs incurred or hours expended to measure progress. Multiple Performance Obligations Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately, if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis, which are estimated considering multiple factors including observable industry pricing practices and internal pricing strategies and objectives.. Standalone selling prices of software license are typically estimated using the residual approach. Standalone selling prices of professional services are typically estimated based on observable transactions when these services are sold on a standalone basis. Transaction price Revenue is recognized when, or as, control of a promised product or service transfers to a client, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. If the consideration promised in a contract includes a variable amount, the Company estimates the amount to which it expects to be entitled using either the expected value or most likely amount method, to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Generally, the transaction price of the Company’s contracts is fixed at the inception of the contract, except for variable royalties. The Company’s contracts generally do not include terms that could cause variability in the transaction price. The Company assesses the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, the Company does not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or the Company, no financing component is deemed to exist. When contracts involve a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provide the customer with a significant benefit of financing. The Company reports revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. In instances where foreign licensees withhold and remit taxes to local authorities in accordance with local laws and regulations, the Company recognizes and presents revenue on a gross basis, and includes the withholding tax in income tax expense. Flexible Spending Accounts Some customers enter into a non-cancelable flexible spending account agreements (FSA Agreements) whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of the Company’s products or services. These agreements do not meet the definition of a revenue contract until the customer executes a separate order to identify the required products and services that they are purchasing. The combination of the FSA agreement and the subsequent order creates enforceable rights and obligations, thus meeting the definition of a revenue contract. Each separate order under the agreement is treated as an individual contract and accounted for based on the respective performance obligations included within the FSA agreements. Contract modifications The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to the Company’s contracts involves assessing whether the products and services added to an existing contract are distinct and whether the pricing is at the standalone selling price. Products and services added that are not distinct are accounted for on a cumulative catch-up basis, while those that are distinct are accounted for prospectively, either as a separate contract if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price. The Company’s more significant contract modifications include extensions of the design license term and the purchase of additional years of support and maintenance. Judgments The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables (billed or unbilled), contract assets, or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to the right to invoice. The Company records deferred revenue when it invoices customers and revenue is not yet recognized. For time-based software agreements, customers are generally invoiced in single or annual amounts, although some customers are invoiced more frequently over time. The Company records an unbilled receivable when revenue is recognized and it has an unconditional right to invoice and receive payment. The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and, if they are expected to be recovered, amortized in a manner consistent with the pattern of transfer of the good or service to which the asset relates. Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs—Contracts With Customers, and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms.
Cost of Revenue	Cost of Revenue Cost of Revenues relates to costs associated with the Company’s IP licensing arrangements, deployment solution software and support activities, including applicable personnel related costs, travel, and overhead.
Research and Development	Research and Development Research and development costs that do not meet the criteria for capitalization are expensed as incurred. Research and development costs consist primarily of compensation, stock-based compensation, and employee benefits of engineering and product development personnel, consulting services, and other direct expenses.
Software Development Costs	Software Development Costs Software development costs are capitalized beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Arteris has not capitalized any software development costs as of and for the years ended December 31, 2021 and 2020 as the period between establishing technological feasibility and general customer release has historically been short and therefore capitalizable costs have been insignificant. The Company has not capitalized any internal-use software development costs as these costs have historically been insignificant.
Sales and Marketing	Sales and MarketingSales and marketing expenses consist of compensation and employee benefits of marketing and sales personnel and related support teams, and stock-based compensation, as well as travel, trade show sponsorships and events, conferences, and internet advertising costs. Advertising costs, included in sales and marketing expenses, are expensed as incurred.
General and Administrative	General and Administrative General and administrative expenses include executive and administrative compensation and employee benefits, depreciation, professional services fees, insurance costs, bad debt, other allocated costs, such as facility-related expenses, supplies, other fixed costs, and stock-based compensation.
Stock-based Compensation	Stock-based Compensation The Company measures equity classified stock-based awards, including stock options, RSUs, and RSAs granted to employees, directors, and non-employees based on the estimated fair values of the awards on the date of the grant. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period which is generally the vesting period of such awards, as a component of operating expenses within the consolidated statements of income (loss). For awards that include performance conditions stock-based compensation expense is recognized on a graded vesting basis over the requisite service period. Compensation expense is not recognized until the performance condition becomes probable. The Company accounts for forfeitures related to these awards as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. As a result, if the Company revises its assumptions and estimates, the Company’s stock-based compensation expense could change. The fair value of RSUs and RSAs granted is measured as the fair value per share of the Company’s common stock on the date of grant.
Income Taxes	Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company provides for a valuation allowance when it is more likely than not that some portion, or all of its deferred tax assets will not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. As of December 31, 2021, the Company recorded a full valuation allowance against its U.S. federal, state, and certain foreign jurisdiction net deferred tax assets. As of December 31, 2020, the Company recorded a full valuation allowance against its U.S. federal and state deferred tax assets. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were $3.1 million and $2.5 million unrecognized tax benefits as of December 31, 2021 and 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense.
Fair value of financial instruments	Fair value of financials instruments The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: ■Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. ■Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). ■Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company’s own assumptions. The Company determined the estimated fair value of financial instruments using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the cash, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company’s investments are recorded at fair value and Term loan, Revolving line of credit, and Vendor financing arrangements are recorded at net carrying value.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This Update removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The Company adopted ASU 2019-12 on January 1, 2021 and the adoption had no material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and in May 2019 issued ASU No. 2019-05, Credit Losses (Topic 326): Targeted Transition Relief (collectively referred to as Topic 326), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. Topic 326 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. Topic 326 is effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This standard requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures.
Indemnifications	The Company often enters into limited indemnification provisions in license agreements in the ordinary course of the Company’s licensing business. Pursuant to these provisions, which are often inserted into license agreements in the semiconductor IP and software licensing industries, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties up to a capped amount for losses suffered or incurred by such indemnified parties due to third party claims if such claims are determined to be caused by the Company. The term of these indemnification provisions is generally either for a term of years or perpetual, in each case beginning on the execution date of the agreement. The Company has also agreed to indemnify under indemnity agreements with its directors and officers, to the extent legally permissible, against liabilities incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer, other than certain liabilities arising from willful misconduct of the individual.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedules of Concentration of Risk

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable was as follows:


	As of December 31,
	2021		2020
Customer A	12	%	*
Customer B	21	%	20	%
Customer C	33	%	31	%

* Customer accounted for less than 10% of total accounts receivable at period end.

Revenue from the Company’s major customers representing 10% or more of total revenue was as follows:


	Year Ended December 31,
	2021		2020
Customer C	23	%	15	%
Customer D	*		25	%

* Customer accounted for less than 10% of total revenue in the period.

REVENUE (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table shows revenue by product and services groups (in thousands):


	Year Ended December 31,
	2021		2020
Licensing, support and maintenance	$	34,731	$	27,408
Variable royalties	2,647		3,470
Other	486		934
Total	$	37,864	$	31,812

Contract Balances on Condensed Consolidated Balance Sheet

The following table provides information about accounts receivable, contract assets and deferred revenue (in thousands):


	As of December 31,
	2021		2020
Accounts receivable—net	$	13,873	$	14,350
Contract assets	$	1,486	$	1,359
Deferred revenue	$	(49,176)	$	(32,908)

The following table is a roll forward of contract balances as of December 31, 2021 and 2020 (in thousands):


	As of December 31,
	2021		2020
Deferred revenue licensing, support and maintenance—beginning balance	$	32,908	$	23,116
Additions	51,485		37,200
Revenue recognized	(35,217)		(27,408)
Deferred revenue licensing, support and maintenance—ending balance	$	49,176	$	32,908

Capitalized Direct Commission Costs

Total capitalized direct commission costs were as follows (in thousands):


	As of December 31,
	2021		2020
Short-term commission capitalized in prepaid expenses and other current assets	$	2,289	$	1,079
Long-term commission capitalized in other assets	1,719		1,479
Total	$	4,008	$	2,558

NET LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Net Income (Loss) Per Share

The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):


	Year Ended December 31,
	2021		2020
Numerator:
Net loss	$	(23,384)	$	(3,260)
Denominator:
Weighted-average shares outstanding—Basic and diluted	21,972,101		17,577,846

Net loss per share, basic and diluted	$	(1.06)	$	(0.19)

Schedule of Potentially Dilutive Securities Excluded from the Calculation of Diluted Earnings Per Share

The following table summarizes the potentially dilutive securities that were excluded from the calculation of diluted earnings per share because they would be anti-dilutive were as follows:


	As of December 31,
	2021	2020
Stock options	5,407,170	7,073,584
Restricted stock units	3,925,097	843,095
Redeemable convertible preferred stock	—	4,471,316
Total	9,332,267	12,387,995

INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets, net consisted of the following as of December 31, 2021 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value
Developed technology	$	1,700	$	(368)	$	1,332
Customer relationships	1,100		(149)		951
IPR&D	500		—		500
Trade name and other	176		—		176
Total intangibles	$	3,476	$	(517)	$	2,959

Intangible assets, net consisted of the following as of December 31, 2020 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value
Developed technology	$	1,700	$	(28)	$	1,672
Customer relationships	1,100		(13)		1,087
IPR&D	500		—		500
Trade name	150		—		150
Total intangibles	$	3,450	$	(41)	$	3,409

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net consisted of the following as of December 31, 2021 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value
Developed technology	$	1,700	$	(368)	$	1,332
Customer relationships	1,100		(149)		951
IPR&D	500		—		500
Trade name and other	176		—		176
Total intangibles	$	3,476	$	(517)	$	2,959

Intangible assets, net consisted of the following as of December 31, 2020 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value
Developed technology	$	1,700	$	(28)	$	1,672
Customer relationships	1,100		(13)		1,087
IPR&D	500		—		500
Trade name	150		—		150
Total intangibles	$	3,450	$	(41)	$	3,409

Schedule of Future Amortization Expense

The expected future amortization expense of these intangible assets as of December 31, 2021 is as follows (in thousands):


2022	$	478
2023	478
2024	478
2025	449
2026 and thereafter	400
Total future amortization expense	$	2,283

BALANCE SHEET COMPONENTS (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, net

The following table represents the components of accounts receivable, net, (in thousands):


	As of December 31,
	2021		2020
Accounts receivable	$	13,674	$	13,927
Unbilled accounts receivable	509		812
Total accounts receivable	14,183		14,739
Less: allowance for doubtful accounts and allowance for foreign withholding tax	(310)		(389)
Total accounts receivable, net	$	13,873	$	14,350

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	As of December 31,
	2021		2020
Research tax credit	$	2,828	$	523
Capitalized commissions asset, net	2,289		1,079
Contract assets	634		551
Software & subscriptions	388		158
Other	810		547
Total prepaid expenses and other current assets	$	6,949	$	2,858

Property and Equipment, net

Property and equipment consisted of the following (in thousands):


	As of December 31,
	2021		2020
Software and technology equipment	$	4,067	$	3,209
Office furniture and hardware equipment	305		271
Leasehold improvements	295		100
Vehicles	7		7
Finance lease right-of-use assets	—		7
Total property and equipment	4,674		3,594
Less: accumulated depreciation and amortization	(2,236)		(1,229)
Total property and equipment—net	$	2,438	$	2,365

Other Assets

Other assets consisted of the following (in thousands):


	As of December 31,
	2021		2020
Capitalized commissions asset, net	$	1,576	$	1,479
Contract assets	852		808
Security deposits	190		102
Capitalized third party commissions asset, net	143		123
Other	196		68
Total other assets	$	2,957	$	2,580

Accrued Expenses and Other Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	As of December 31,
	2021		2020
Payroll and related benefits	$	6,616	$	5,303
Deferred and contingent consideration	1,668		1,074
Accrued professional fees	1,292		678
Other accrued liabilities	997		194
Total accrued expenses and other current liabilities	$	10,573	$	7,249

Other Liabilities

Other liabilities consist of the following (in thousands):


	As of December 31,
	2021		2020
Contingent consideration	$	1,269	$	2,268
Pension accrual	820		718
Other	68		—
Total other liabilities	$	2,157	$	2,986

ACQUISITION (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Consideration Transferred for the Acquisition

In accordance with the terms of the asset purchase agreement, the consideration transferred for the acquisition is as follows (in thousands).


	NOVEMBER 30, 2020
Cash consideration paid at closing	$	4,500
Deferred consideration	500
Estimated contingent consideration	2,842
	$	7,842

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table provides the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands):


	FAIR VALUE
Accounts receivable	$	968
Unbilled revenue	1,424
Intangible assets	3,450
Operating lease right-of-use	1,222
Other assets	567
Operating lease liability	(1,222)
Other liabilities	(1,244)
Total identifiable net assets	5,165
Goodwill	2,677
Total purchase price	$	7,842

The following table summarizes the fair value of the identifiable intangible assets acquired (in thousands) and weighted-average useful life:


	2020		WEIGHTED AVERAGE USEFUL LIFE
Developed Technology	$	1,700	5 years
Customer Relationships	1,100		8 years
IPR&D	500		N/A
Trade Name	150		N/A
Estimated fair value of intangible assets	$	3,450

Pro Forma Information


	PRO FORMA COMBINED
Total revenue	$	39,726
Net loss	$	(4,456)
Net loss attributable to common stockholders	$	(4,456)
Net loss per share attributable to common stockholders—basic and diluted	$	(0.25)

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Operating Lease Costs

Total operating lease related costs were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Operating lease cost	$	1,096	$	684
Short-term lease cost	134		90
Total lease cost	$	1,230	$	774

Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):


Fiscal year ending December 31,
2022	$	1,113
2023	953
2024	449
2025	278
2026 and thereafter	424
Total undiscounted cash flows	3,217
Less: Imputed interest	(405)
Present value of lease liabilities	$	2,812

Lease liabilities, current	$	961
Lease liabilities, noncurrent	1,851
Total lease liabilities	$	2,812

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Vendor Financing Arrangements

Vendor financing arrangements were as follows (in thousands):


	Amount
2022	$	833
2023	319

Total undiscounted cash flows	1,152
Less: Imputed interest	(53)
Present value of vendor financing arrangements	$	1,099
Vendor financing arrangements, current	$	833
Vendor financing arrangements, noncurrent	266
	$	1,099

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Shares Available for Future Grant

Shares available for future grant under the Company’s 2016 and 2021 Plan consist of the following:


	As of December 31,
	2021	2020
Shares available for future grant	3,493,240	650,170

Summary of Stock Options Activity

The following table summarizes the stock option activities under the Company’s 2013 and 2016 Plans:


	Options Outstanding
	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Values ($‘000s)




Balances—December 31, 2020	7,073,584	$	0.85	7.90	$	13,348
Granted	—	—
Exercised	(1,362,327)	0.44
Canceled	(304,087)	0.84
Balance—December 31, 2021	5,407,170	$	0.96	7.16	$	108,964
Options vested and exercisable—December 31, 2021	3,209,726	$	0.62	6.36	$	65,752
Options vested and exercisable—December 31, 2020	3,157,172	$	0.40	6.45	$	7,398

Stock Options Valuations Assumptions

The following table summarizes the stock option valuation assumptions:


			Year Ended December 31,
			2020
Fair value of common stock			$0.60 - $2.74
Expected volatility			33.9% - 39.9%
Expected term (in years)			5.4 - 6.1
Risk-free interest rate			0.3% - 1.5%
Expected dividend yield			—%

Summary of Restricted Stock Units and Awards Activity

The following table summarizes the restricted stock units activities under the Company’s 2013, 2016 and 2021 Plans:


	Restricted Stock Units
	Number of Shares	Weighted-Average Grant Date Fair Value




Unvested—December 31, 2020	843,095	2.25
Granted	3,607,652	6.09
Vested	(210,050)	1.82
Canceled	(315,600)	4.72
Unvested—December 31, 2021	3,925,097	5.60

Stock-Based Compensation Related to Stock-Based Awards to Employees

The following table presents the amount of stock-based compensation, inclusive of the cumulative stock-based compensation expense recognize upon the effectiveness of the Company’s IPO, related to stock-based awards to employees and non-employees on the Company’s consolidated statements of income (loss) (in thousands):


	Year Ended December 31,
	2021		2020
Research and development	$	3,495	$	263
Sales and marketing	797		92
General and administrative	1,218		103
Total stock-based compensation	$	5,510	$	458

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Provision for Income Taxes

For financial reporting purposes, loss before provision for income taxes, includes the following components (in thousands):


	Year Ended December 31,
	2021		2020
Domestic	$	(11,253)	$	(1,307)
Foreign	(11,091)		(927)
Loss before provision for income taxes	$	(22,344)	$	(2,234)

Schedule of Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2021		2020
Current:
Federal	$	13	$	—
State	17		18
Foreign	904		1,008
Total current	$	934	$	1,026
Deferred:
Federal	—		—
State	—		—
Foreign	106		—
Total Deferred tax	106		—
Provision for income taxes	$	1,040	$	1,026

Schedule of Effective Income Tax Rate Reconciliation

Income tax (provision) benefit related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21% to pretax loss as follows (in thousands):


	Year Ended December 31,
	2021		2020
U.S. Federal (provision) benefit
At Statutory Rate	21.0	%	21.0	%
State Taxes	0.6	%	10.0	%
Valuation Allowance	(33.1)	%	(86.7)	%
Foreign Tax Differential	6.0	%	6.8	%
Tax Credits	2.0	%	72.7	%
Stock Based Compensation	(1.0)	%	1.2	%
M&A Transaction Costs	0.0	%	(8.2)	%
Foreign Earnings and Adjustments	(0.2)	%	(11.0)	%
Foreign Withholding Tax	(0.8)	%	(67.1)	%
CARES Act	0.0	%	15.0	%
Other	0.8	%	0.4	%
Total	(4.7)	%	(45.9)	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):


	Year Ended December 31,
	2021		2020
Deferred Tax Assets:
Federal & State NOL carryforward	$	853	$	831
Research & Other credits	5,598		5,042
Deferred revenue	8,380		3,140
Reserves and accruals	1,000		510
Stock-based compensation	953		41
Other intangibles	327		172
Lease liabilities	279		350
Total Gross Deferred tax asset	$	17,390	$	10,086
Less: Valuation allowance	(16,390)		(9,019)
Total Deferred tax assets	$	1,000	$	1,067
Deferred Tax Liabilities:
Property and equipment	(290)		(134)
Prepaid expenses	(447)		(499)
Right-of-use assets	(263)		(329)
Total Gross Deferred tax liabilities	$	(1,000)	$	(962)
Net Deferred tax assets	$	—	$	105

Schedule of Unrecognized Tax Benefits

The Company has the following activity relating to unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2021		2020
Beginning balance	$	2,522	$	1,921
Gross decreases—Tax Positions in Prior Periods	(25)		—
Gross increases—Tax Positions in Current Period	614		601
Ending balance	$	3,111	$	2,522

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Schedule of Net Periodic Pension Costs

Components of the net periodic pension costs and changes in benefit obligations under the Plan were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Service costs	$	106	$	33
Interest costs	3		2
Total net periodic pension cost	$	109	$	35

Schedule of Changes in Benefit Obligations


	As of December 31,
	2021		2020
Benefit obligation, beginning of year	$	717	$	194
Assumption of pension liability due to acquisition	—		449
Service costs	106		33
Interest costs	3		2
Net actuarial loss	50		11
Foreign exchange (gain) loss	(56)		28
Benefit obligation, end of year, included as part of other liabilities	$	820	$	717

Schedule of Weighted-Average Assumptions

Weighted-average assumptions used to determine benefit obligations were as follows:


	As of December 31,
	2021		2020
Discount rate	0.98	%	0.45	%
Rate of compensation increase	3.00	%	3.00	%

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Summary of Revenue by Geographic Area

The following table summarizes revenues by geographic area based on customer location (in thousands):


	Year Ended December 31,
	2021					2020
Americas	$	16,433	43.4	%	(1)	$	10,459	32.9	%	(1)
Asia Pacific	16,748		44.2		(2)	18,896		59.4		(2)
Europe, Middle East	4,683		12.4			2,457		7.7
	$	37,864	100.0	%		$	31,812	100.0	%
(1) United States	$	16,311	43.1	%		$	10,135	31.9	%
(1) Other Americas *	122		0.3	%		324		1.0	%
(2) China	10,257		27.1	%		14,283		44.9	%
(2) Other Asia *	6,491		17.1	%		4,613		14.5	%

*Other countries individually less than 10%

Summary of Property and Equipment by Geographic Areas

The following table summarizes property and equipment, net by geographic area (in thousands):


	As of December 31,
	2021				2020
United States	$	1,626	66.7	%	$	1,834	77.5	%
France	803		32.9	%	517		21.9	%
Other	9		0.4	%	14		0.6	%
	$	2,438	100.0	%	$	2,365	100.0	%

DESCRIPTION OF BUSINESS (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Oct. 31, 2021 USD ($) $ / shares shares
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	5,750,000
Sale of stock (in dollars per share) \| $ / shares	$ 14.00
Sale of stock, consideration received on transaction \| $	$ 71.1
Common shares issued upon conversion (in shares)	4,471,316
Deferred offering costs \| $	$ 3.8
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	750,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Cash equivalents	$ 0	$ 0
Impairment of property and equipment	0	0
Goodwill and intangible asset impairment	0	0
Capitalized software development costs	0	0
Advertising costs	400,000	100,000
Unrecognized tax benefits	3,111,000	2,522,000	$ 1,921,000
Income tax penalties and interest accrued	$ 0	$ 0
Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	1 year
Finite-lived intangible asset, useful life	5 years
Licensing arrangement, period	2 years
Software license, period	1 year
Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Finite-lived intangible asset, useful life	8 years
Licensing arrangement, period	3 years
Software license, period	3 years

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable Concentration Risk (Details) - Accounts Receivable - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	21.00%	20.00%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage	33.00%	31.00%

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Concentration Risk (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage	23.00%	15.00%
Customer D
Concentration Risk [Line Items]
Concentration risk, percentage		25.00%

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 37,864	$ 31,812
Licensing, support and maintenance
Disaggregation of Revenue [Line Items]
Total revenue	34,731	27,408
Variable royalties
Disaggregation of Revenue [Line Items]
Total revenue	2,647	3,470
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 486	$ 934

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

REVENUE - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
REVENUE - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 19.1	$ 15.7
Unsatisfied performance obligations	49.3	37.6
Flexible spending account commitment	0.2	4.7
Amortization of capitalized sales commissions	$ 2.3	2.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation, expected timing of satisfaction, excluding flexible spending account	12 months
Unsatisfied performance obligations, excluding flexible spending account commitment	$ 29.7
Sales-Based Royalties
Disaggregation of Revenue [Line Items]
Revenue recognized	$ 2.6	$ 3.5

REVENUE - Contract Balances on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 13,873	$ 14,350
Contract assets	1,486	1,359
Deferred revenue	$ (49,176)	$ (32,908)	$ (23,116)

REVENUE - Roll Forward of Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Change in Contract with Customer, Liability [Roll Forward]
Balance at beginning of period	$ 32,908	$ 23,116
Additions	51,485	37,200
Revenue recognized	(35,217)	(27,408)
Balance at end of period	$ 49,176	$ 32,908

REVENUE - Capitalized Direct Commission Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Short-term commission capitalized in prepaid expenses and other current assets	$ 2,289	$ 1,079
Capitalized commissions asset, net	1,719	1,479
Total	$ 4,008	$ 2,558

NET LOSS PER SHARE - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net loss	$ (23,384)	$ (3,260)
Denominator:
Weighted-average shares outstanding—Basic (in shares)	21,972,101	17,577,846
Weighted-average shares outstanding—Diluted (in shares)	21,972,101	17,577,846
Net loss per share, basic (in dollars per share)	$ (1.06)	$ (0.19)
Net loss per share, diluted (in dollars per share)	$ (1.06)	$ (0.19)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

NET LOSS PER SHARE - Schedule of Potentially Dilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	9,332,267	12,387,995
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,407,170	7,073,584
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	3,925,097	843,095
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	4,471,316

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Reported Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Carrying value of term loan and vendor financing agreements	$ 1.1	$ 1.9

INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 3,476	$ 3,450
Finite-lived intangible assets, accumulated amortization	(517)	(41)
Total future amortization expense	2,283
Intangible assets, net	2,959	3,409
IPR&D
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, gross	500	500
Trade name and other
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, gross	176	150
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	1,700	1,700
Finite-lived intangible assets, accumulated amortization	(368)	(28)
Total future amortization expense	1,332	1,672
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	1,100	1,100
Finite-lived intangible assets, accumulated amortization	(149)	(13)
Total future amortization expense	$ 951	$ 1,087

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 500,000	$ 100,000
Goodwill	2,677,000	2,677,000
Goodwill impairments	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022	$ 478
2023	478
2024	478
2025	449
2026 and thereafter	400
Total future amortization expense	$ 2,283

BALANCE SHEET COMPONENTS - Accounts Receivable, net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 14,183	$ 14,739
Less: allowance for doubtful accounts and allowance for foreign withholding tax	(310)	(389)
Total accounts receivable, net	13,873	14,350
Allowance for doubtful accounts	300	300
Allowance for foreign withholding tax	0	100
Accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	13,674	13,927
Unbilled accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 509	$ 812

BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Research tax credit	$ 2,828	$ 523
Capitalized commissions asset, net	2,289	1,079
Contract assets	634	551
Software & subscriptions	388	158
Other	810	547
Prepaid expenses and other current assets	$ 6,949	$ 2,858

BALANCE SHEET COMPONENTS - Property and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Finance lease right-of-use assets	$ 0	$ 7
Total property and equipment	4,674	3,594
Less: accumulated depreciation and amortization	(2,236)	(1,229)
Total property and equipment—net	2,438	2,365
Depreciation	1,000	900
Software and technology equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,067	3,209
Office furniture and hardware equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	305	271
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	295	100
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7	$ 7

BALANCE SHEET COMPONENTS - Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Capitalized commissions asset, net	$ 1,576	$ 1,479
Contract assets	852	808
Security deposits	190	102
Capitalized third party commissions asset, net	143	123
Other	196	68
Other assets	$ 2,957	$ 2,580

BALANCE SHEET COMPONENTS - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Payroll and related benefits	$ 6,616	$ 5,303
Deferred and contingent consideration	1,668	1,074
Accrued professional fees	1,292	678
Other accrued liabilities	997	194
Accrued expenses and other current liabilities	$ 10,573	$ 7,249

BALANCE SHEET COMPONENTS - Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Contingent consideration	$ 1,269	$ 2,268
Pension accrual	820	718
Other	68	0
Other liabilities	$ 2,157	$ 2,986

ACQUISITION - Schedule of Consideration Transferred for the Acquisition (Details) - Magillem $ in Thousands	Nov. 30, 2020 USD ($)
Business Acquisition [Line Items]
Cash consideration paid at closing	$ 4,500
Deferred consideration	500
Estimated contingent consideration	2,842
Total purchase price	$ 7,842

ACQUISITION - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
ACQUISITION - Narrative (Details) - USD ($) $ in Millions	Nov. 30, 2020	Dec. 31, 2021
Business Acquisition [Line Items]
Granted (in shares)		0
Restricted stock units
Business Acquisition [Line Items]
Granted (in shares)		3,607,652
Stock options
Business Acquisition [Line Items]
Award vesting period		4 years
Magillem
Business Acquisition [Line Items]
Business combination, acquisition related costs	$ 1.4
Award vesting period	4 years
Magillem \| Minimum
Business Acquisition [Line Items]
Contingent consideration, period of recognition	1 year
Magillem \| Maximum
Business Acquisition [Line Items]
Contingent consideration, period of recognition	3 years
Magillem \| Restricted stock units
Business Acquisition [Line Items]
Granted (in shares)	600,000
Magillem \| Stock options
Business Acquisition [Line Items]
Granted (in shares)	600,000

ACQUISITION - Summary of Preliminary Estimated Fair Values of the Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Nov. 30, 2020	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 2,677	$ 2,677
Magillem
Business Acquisition [Line Items]
Accounts receivable	$ 968
Unbilled revenue	1,424
Intangible assets	3,450
Operating lease right-of-use	1,222
Other assets	567
Operating lease liability	(1,222)
Other liabilities	(1,244)
Total identifiable net assets	5,165
Goodwill	2,677
Total purchase price	$ 7,842

ACQUISITION - Summary of Fair Value of the Identifiable Intangible Assets Acquired (Details) - Magillem $ in Thousands	Nov. 30, 2020 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 3,450
IPR&D
Business Acquisition [Line Items]
Indefinite-lived intangible assets	500
Trade Name
Business Acquisition [Line Items]
Indefinite-lived intangible assets	150
Developed technology
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 1,700
Acquired finite-lived intangible assets, weighted average useful life	5 years
Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 1,100
Acquired finite-lived intangible assets, weighted average useful life	8 years

ACQUISITION - Pro Forma Information (Details) - Magillem $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares
Business Acquisition [Line Items]
Total revenue	$ 39,726
Net loss	(4,456)
Net loss attributable to common stockholders	$ (4,456)
Net loss per share attributable to common stockholders—basic (in dollars per share) \| $ / shares	$ (0.25)
Net loss per share attributable to common stockholders—diluted (in dollars per share) \| $ / shares	$ (0.25)

LEASES - Operating Lease Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 1,096	$ 684
Short-term lease cost	134	90
Total lease cost	$ 1,230	$ 774

LEASES - Narrative (Details)	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted average remaining lease term, operating lease	3 years 7 months 6 days	4 years 4 months 24 days
Weighted average discount rate, operating lease	7.50%	7.50%

LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
2022	$ 1,113
2023	953
2024	449
2025	278
2026 and thereafter	424
Total undiscounted cash flows	3,217
Less: Imputed interest	(405)
Present value of lease liabilities	2,812
Lease liabilities, current	961	$ 767
Lease liabilities, noncurrent	$ 1,851	$ 2,079

BORROWINGS - Narrative (Details) - USD ($)	1 Months Ended		12 Months Ended
BORROWINGS - Narrative (Details) - USD ($)	Apr. 30, 2020	Nov. 30, 2018	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Interest expense			$ 100,000	$ 100,000
Secured Debt
Debt Instrument [Line Items]
Debt instrument, face amount		$ 1,500,000
Periodic monthly payment		$ 100,000
Interest only payments, period		6 months
Term loan, net of interest and debt issuance cost				$ 600,000
Secured Debt \| Paycheck Protection Program
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,600,000
Credit facility renewal term	2 years
Interest rate, stated percentage	1.00%
Secured Debt \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Line of Credit \| Revolving Credit Facility \| Revolving Line of Credit Due August 2018
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			1,500,000
Line of Credit \| Revolving Credit Facility \| Revolving Line of Credit Due November 2018
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 2,000,000
Credit facility renewal term			3 years
Line of Credit \| Revolving Credit Facility \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Vendor Financing Arrangements
Debt Instrument [Line Items]
Term loan, net of interest and debt issuance cost			$ 1,099,000
Interest rate, effective percentage			7.50%

BORROWINGS - Schedule of Vendor Financing Arrangements (Details) - Vendor Financing Arrangements $ in Thousands	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
2022	$ 833
2023	319
Total undiscounted cash flows	1,152
Less: Imputed interest	(53)
Present value of vendor financing arrangements	1,099
Vendor financing arrangements, current	833
Vendor financing arrangements, noncurrent	$ 266

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

REDEEMABLE CONVERTIBLE PREFERRED STOCK, PREFERRED STOCK AND COMMON STOCK (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) vote $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Oct. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) shares
Temporary Equity [Line Items]
Common stock carrying value reclassified into stockholders' equity \| $	$ 0	$ 5,712	$ 5,700	$ 5,712
Redeemable convertible preferred stock, issued (in shares)	0	4,471,316
Redeemable convertible preferred stock, outstanding (in shares)	0	4,471,316		4,471,316
Preferred stock, authorized (in shares)	10,000,000	0	10,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Number of votes per common share \| vote	1
Common stock, authorized (in shares)	300,000,000	31,525,154
Common stock, sale to third party investor (in shares)	1,250,000
Common stock, sale to third party investor \| $	$ 5,400
Stock repurchased during period (in shares)	0	0
IPO
Temporary Equity [Line Items]
Common shares issued upon conversion (in shares)			4,471,316
Common stock, authorized (in shares)	300,000,000

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Oct. 26, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant (in shares)	3,493,240	650,170
Exercises in period, intrinsic value	$ 9,000	$ 400
Aggregate intrinsic value, vested	500	300
Proceeds from exercise of stock options	599	$ 236
Option, cost not yet recognized	$ 900
Nonvested award, unrecognized, period for recognition	2 years 7 months 6 days
Expected dividend yield	0.00%
Granted (in shares)	0
Award requisite service period	4 years
2016 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for award (in shares)	20,803,838
Employee stock, shares granted (in shares)	14,142,208
Shares available for future grant (in shares)	0
2021 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant (in shares)	3,493,240
Shares issued in period (in shares)	228,185
2021 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capital shares reserved for future issuance			607,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options expiration period	10 years
Award vesting period	4 years
Expected dividend yield		0.00%
Stock options \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Award vesting rights, percentage	25.00%
Stock options \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested award, unrecognized, period for recognition	2 years 10 months 24 days
Grants in period, vested, grant date fair value	$ 400	$ 100
Nonvested award, excluding options, unrecognized	$ 17,100

STOCK-BASED COMPENSATION - Shares Available for Future Grant (Details) - shares	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Shares available for future grant (in shares)	3,493,240	650,170

STOCK-BASED COMPENSATION - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Balance at beginning of period (in shares)	7,073,584
Granted (in shares)	0
Exercised (in shares)	(1,362,327)
Canceled (in shares)	(304,087)
Balance at end of period (in shares)	5,407,170	7,073,584
Number of Shares, Options vested and exercisable (in shares)	3,209,726	3,157,172
Weighted-Average Exercise Price
Balance at beginning of period (in dollars per share)	$ 0.85
Granted (in dollars per share)	0
Exercised (in dollars per share)	0.44
Canceled (in dollars per share)	0.84
Balance at end of period (in dollars per share)	0.96	$ 0.85
Weighted-Average Exercise Price, Options vested and exercisable (in dollars per share)	$ 0.62	$ 0.40
Stock Options Additional Disclosures
Weighted-Average Remaining Contractual Term, Balance	7 years 1 month 28 days	7 years 10 months 24 days
Weighted-Average Remaining Contractual Term, Options vested and exercisable	6 years 4 months 9 days	6 years 5 months 12 days
Aggregate Intrinsic Value, Balance	$ 108,964	$ 13,348
Aggregate Intrinsic Value, Options vested and exercisable	$ 65,752	$ 7,398

STOCK-BASED COMPENSATION - Stock Options Valuations Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum		33.90%
Expected volatility, maximum		39.90%
Risk-free interest rate, minimum		0.30%
Risk-free interest rate, maximum		1.50%
Expected dividend yield		0.00%
Minimum \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of common stock (in dollars per share)		$ 0.60
Expected term		5 years 4 months 24 days
Maximum \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of common stock (in dollars per share)		$ 2.74
Expected term		6 years 1 month 6 days

STOCK-BASED COMPENSATION - Summary of Restricted Stock Units and Awards Activity (Details) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Number of Shares
Unvested, Balance at beginning of period (in shares) \| shares	843,095
Granted (in shares) \| shares	3,607,652
Vested (in shares) \| shares	(210,050)
Cancelled (in shares) \| shares	(315,600)
Unvested, Balance at end of period (in shares) \| shares	3,925,097
Weighted-Average Grant Date Fair Value
Unvested, Balance at beginning of period (in dollars per share) \| $ / shares	$ 2.25
Granted (in dollars per share) \| $ / shares	6.09
Vested (in dollars per share) \| $ / shares	1.82
Cancelled (in dollars per share) \| $ / shares	4.72
Unvested, Balance at end of period (in dollars per share) \| $ / shares	$ 5.60

STOCK-BASED COMPENSATION - Stock-Based Compensation Related to Stock-Based Awards to Employees (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 5,510	$ 458
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	3,495	263
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	797	92
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,218	$ 103

INCOME TAXES - Schedule of Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ (11,253)	$ (1,307)
Foreign	(11,091)	(927)
Loss before provision for income taxes	$ (22,344)	$ (2,234)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 13	$ 0
State	17	18
Foreign	904	1,008
Total current	934	1,026
Deferred:
Federal	0	0
State	0	0
Foreign	106	0
Total Deferred tax	106	0
Provision for income taxes	$ 1,040	$ 1,026

INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
At Statutory Rate	21.00%	21.00%
State Taxes	0.60%	10.00%
Valuation Allowance	(33.10%)	(86.70%)
Foreign Tax Differential	6.00%	6.80%
Tax Credits	2.00%	72.70%
Stock Based Compensation	(1.00%)	1.20%
M&A Transaction Costs	0.00%	(8.20%)
Foreign Earnings and Adjustments	(0.20%)	(11.00%)
Foreign Withholding Tax	(0.80%)	(67.10%)
CARES Act	0.00%	15.00%
Other	0.80%	0.40%
Total	(4.70%)	(45.90%)

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Tax Assets:
Federal & State NOL carryforward	$ 853	$ 831
Research & Other credits	5,598	5,042
Deferred revenue	8,380	3,140
Reserves and accruals	1,000	510
Stock-based compensation	953	41
Other intangibles	327	172
Lease liabilities	279	350
Total Gross Deferred tax asset	17,390	10,086
Less: Valuation allowance	(16,390)	(9,019)
Total Deferred tax assets	1,000	1,067
Deferred Tax Liabilities:
Property and equipment	(290)	(134)
Prepaid expenses	(447)	(499)
Right-of-use assets	(263)	(329)
Total Gross Deferred tax liabilities	(1,000)	(962)
Net Deferred tax assets	$ 0	$ 105

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Valuation Allowance [Line Items]
Valuation allowance	$ 16,390	$ 9,019
Valuation allowance, increase (decrease)	7,400	$ 2,000
Operating loss carryforwards, federal	0
Operating loss carryforwards, state	3,700
Research Tax Credit Carryforward \| Domestic Tax Authority
Valuation Allowance [Line Items]
Tax credit carryforward, amount	3,600
Research Tax Credit Carryforward \| State and Local Jurisdiction
Valuation Allowance [Line Items]
Tax credit carryforward, amount	$ 2,600

INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 2,522	$ 1,921
Gross decreases—Tax Positions in Prior Periods	(25)	0
Gross increases—Tax Positions in Current Period	614	601
Ending balance	$ 3,111	$ 2,522

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) plan	Dec. 31, 2020 USD ($)
Retirement Benefits [Abstract]
Contributions to 401(k) plan \| $	$ 400,000	$ 0
Number of defined benefit pension plans \| plan	2

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS - Schedule of Net Periodic Pension Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Service costs	$ 106	$ 33
Interest costs	3	2
Total net periodic pension cost	$ 109	$ 35

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS - Schedule of Changes in Benefit Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Balance at beginning of period	$ 717	$ 194
Assumption of pension liability due to acquisition	0	449
Service costs	106	33
Interest costs	3	2
Net actuarial loss	50	11
Foreign exchange (gain) loss	(56)	28
Balance at end of period	$ 820	$ 717

DEFINED CONTRIBUTION PLAN AND BENEFIT PLANS - Schedule of Weighted-Average Assumptions (Details)	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Discount rate	0.98%	0.45%
Rate of compensation increase	3.00%	3.00%

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Granted (in shares)	0
Restricted stock units
Related Party Transaction [Line Items]
Granted (in shares)	3,607,652
Isabelle Geday \| Affiliated Entity \| Restricted stock units
Related Party Transaction [Line Items]
Granted (in shares)	6,250
Isabelle Geday \| Lease Agreements \| Affiliated Entity
Related Party Transaction [Line Items]
Lease payment due to related party	$ 200,000	$ 100,000
Isabelle Geday \| Consulting Agreement \| Affiliated Entity
Related Party Transaction [Line Items]
Consulting agreement, term	3 years
Expenses from transactions with related party	$ 100,000
Isabelle Geday \| Consulting Agreement \| Affiliated Entity \| Tranche One
Related Party Transaction [Line Items]
Consulting agreement, term	12 months
Due to related parties, monthly amount	$ 26,445
Isabelle Geday \| Consulting Agreement \| Affiliated Entity \| Tranche Two
Related Party Transaction [Line Items]
Consulting agreement, term	24 months
Due to related parties, monthly amount	$ 19,445
Isabelle Geday \| Prior Employment \| Affiliated Entity
Related Party Transaction [Line Items]
Granted (in shares)	455,000
Isabelle Geday \| Prior Employment \| Affiliated Entity \| Restricted stock units
Related Party Transaction [Line Items]
Granted (in shares)	62,200

SEGMENT AND GEOGRAPHIC INFORMATION - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	1

SEGMENT AND GEOGRAPHIC INFORMATION - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue, Major Customer [Line Items]
Revenue	$ 37,864	$ 31,812
Americas
Revenue, Major Customer [Line Items]
Revenue	$ 16,433	$ 10,459
Americas \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	43.40%	32.90%
Asia Pacific
Revenue, Major Customer [Line Items]
Revenue	$ 16,748	$ 18,896
Asia Pacific \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	44.20%	59.40%
Europe, Middle East
Revenue, Major Customer [Line Items]
Revenue	$ 4,683	$ 2,457
Europe, Middle East \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	12.40%	7.70%
United States
Revenue, Major Customer [Line Items]
Revenue	$ 16,311	$ 10,135
United States \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	43.10%	31.90%
Other Americas
Revenue, Major Customer [Line Items]
Revenue	$ 122	$ 324
Other Americas \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	0.30%	1.00%
China
Revenue, Major Customer [Line Items]
Revenue	$ 10,257	$ 14,283
China \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	27.10%	44.90%
Other Asia
Revenue, Major Customer [Line Items]
Revenue	$ 6,491	$ 4,613
Other Asia \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	17.10%	14.50%

SEGMENT AND GEOGRAPHIC INFORMATION - Summary of Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue, Major Customer [Line Items]
Total property and equipment—net	$ 2,438	$ 2,365
United States
Revenue, Major Customer [Line Items]
Total property and equipment—net	$ 1,626	$ 1,834
United States \| Property, Plant and Equipment \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	66.70%	77.50%
France
Revenue, Major Customer [Line Items]
Total property and equipment—net	$ 803	$ 517
France \| Property, Plant and Equipment \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	32.90%	21.90%
Other
Revenue, Major Customer [Line Items]
Total property and equipment—net	$ 9	$ 14
Other \| Property, Plant and Equipment \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	0.40%	0.60%

SUBSEQUENT EVENTS (Details) - Subsequent Event - TransChip ¥ in Thousands, $ in Millions	Feb. 21, 2022 USD ($)	Feb. 21, 2022 CNY (¥)	Feb. 21, 2022 CNY (¥)	Feb. 20, 2022 CNY (¥)
Subsequent Event [Line Items]
Share purchase agreement, increase in registered capital	$ 31.0		¥ 196,500	¥ 200
Share purchase agreement, amount of registered capital to be subscribed	12.5		79,230
Share purchase agreement, amount of contributed in-kind	$ 12.2		¥ 77,330
Share purchase agreement, agreement term	5 years	5 years
Cash consideration paid at closing	$ 12.1	¥ 76,500
TransChip
Subsequent Event [Line Items]
Percentage of voting interests acquired	40.321%		40.321%