mosy-10q_20210331.htm

10-Q 1 mosy-10q_20210331.htm 10-Q mosy-10q_20210331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark one)

☒

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

For the quarterly period ended March 31, 2021

☐

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

For the transition period from to

Commission file number 000-32929

MOSYS, INC.

(Exact name of registrant as specified in its charter)

Delaware		77-0291941
(State or other jurisdiction		(I.R.S. Employer
of Incorporation or organization)		Identification Number)

2309 Bering Drive

San Jose, California, 95131

(Address of principal executive office and zip code)

(408) 418-7500

(Registrant’s telephone number, including area code)

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

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

MOSY

The Nasdaq Stock Market, LLC

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

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

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

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

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

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 6,134,719 as of May 7, 2021.

MOSYS, INC.

FORM 10-Q

March 31, 2021

TABLE OF CONTENTS

PART I —	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (Unaudited):	3

	Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2021 and 2020	4

	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2021 and 2020	5

	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 4.	Controls and Procedures	21

PART II —	OTHER INFORMATION	21

Item 1.	Legal Proceedings	21

Item 1A.	Risk Factors	21

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 6.	Exhibits	23

	Signatures	24

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

MOSYS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

	March 31,			December 31,
	2021			2020
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	9,529		$	5,889
Short-term investments		1,610			—
Accounts receivable, net		375			701
Inventories		862			599
Prepaid expenses and other		534			668
Total current assets		12,910			7,857
Property and equipment, net		105			121
Right-of-use lease asset, net		254			303
Other		18			17
Total assets	$	13,287		$	8,298
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	81		$	76
Deferred revenue		15			15
Short-term lease liability		201			201
PPP note payable, current		434			244
Accrued expenses and other		1,291			1,300
Total current liabilities		2,022			1,836
Convertible notes payable		—			3,092
PPP note payable		145			335
Long-term lease liability		57			103
Total liabilities		2,224			5,366
Commitments and contingencies (Note 4)
Stockholders’ equity
Preferred stock, $0.01 par value; 20,000 shares authorized; none issued and outstanding		—			—
Common stock, $0.001 par value; 120,000 shares authorized; 6,134 shares and 3,554 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		6			3
Additional paid-in capital		255,046			245,548
Accumulated other comprehensive loss		(1	)		—
Accumulated deficit		(243,988	)		(242,619	)
Total stockholders’ equity		11,063			2,932
Total liabilities and stockholders’ equity	$	13,287		$	8,298

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

MOSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended
	March 31,
	2021			2020
Net revenue
Product	$	1,178		$	1,068
Royalty and other		160			192
Total net revenue		1,338			1,260
Cost of net revenue		495			530
Gross profit		843			730
Operating expenses
Research and development		1,159			961
Selling, general and administrative		1,071			1,135
Total operating expenses		2,230			2,096
Loss from operations		(1,387	)		(1,366	)
Interest expense		(30	)		(55	)
Other income, net		48			16
Net loss	$	(1,369	)	$	(1,405	)

Other comprehensive loss, net of tax:
Net unrealized loss on available-for-sale securities		(1	)		—
Comprehensive loss	$	(1,370	)	$	(1,405	)

Net loss per share
Basic and diluted	$	(0.28	)	$	(0.61	)

Shares used in computing net loss per share
Basic and diluted		4,862			2,295

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

MOSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands)

								Accumulated
					Additional			Other
	Common Stock				Paid-In			Comprehensive		Accumulated
	Shares		Amount		Capital			Loss		Deficit			Total
Balance as of December 31, 2020		3,554	$	3	$	245,548			—	$	(242,619	)	$	2,932
Issuance of common stock under stock plan, net		16		—		(2	)		—		—			(2	)
Exercise of warrants		1,033		1		2,477			—		—			2,478
Issuance of common stock for payment of accrued interest		43		—		140			—		—			140
Sale of common stock, net of placement costs		1,488		2		6,815

SEC Form 10-Q filed by MoSys, Inc.