Related Party Transactions

12 Months Ended

Dec. 31, 2019

13. Related Party Transactions

The Company entered into a distribution agreement with MegaChips, whereby the Company appointed MegaChips as the exclusive distributor of its products in Japan. The Company sells products through MegaChips to distributors, resellers, or direct customers in Japan. The Company pays MegaChips a fixed percentage of the revenue as sales commission, which is recorded as commission expense and included in sales and marketing in the consolidated statements of operations and comprehensive income (loss).

See Note 7, “Debt Obligations” for more information regarding the Company’s loan agreement with MegaChips.

The following is a summary of significant balances, transactions and payments with the related parties.

	December 31, 2019		December 31, 2018
	(in thousands)
MegaChips
Accounts receivable	$	1,073	$	1,436
Prepaid expenses and other current assets		18		—
Accounts payable		220		194
Loan from MegaChips		—		3,000

	Year ended December 31,
	2019		2018
	(in thousands)
MegaChips
Sales through distribution agreement	$	5,071	$	5,810
License expense		158		—
Commission expense		202		368
Interest expense		94		95

	Year Ended December 31,
	2019		2018
	(in thousands)
MegaChips
Cash paid for principal	$	3,000	$	—
Cash paid for interest		94		95
Cash paid for commissions		202		368
Cash paid for licenses		329		—