and cost-efficient 5G/4G semiconductor solutions, allowing us to
target a wide range of wireless Broadband, Critical and Massive IoT
devices. In the Broadband IoT data device market, our solutions
serve as the core wireless communications platform in these
devices, including portable routers; embedded wireless modems for
computing and multimedia devices; and customer-premises equipment,
such as fixed wireless broadband access modems, routers, industrial
and residential gateways. In the Critical IoT device markets, our
solutions will provide connectivity for public safety, industrial
automation and banking to name a few. In the Massive IoT devices
market, our solutions provide connectivity for industrial
applications such as transportation, asset and people tracking,
retail, smart energy, smart city, agriculture, healthcare and other
applications. We also expect to see strong growth in the IoT market
in consumer applications such as wearables, hearables and personal
and property trackers.
From 2005 through December 31, 2019, we shipped approximately
31.8 million 4G baseband-based semiconductor solutions, which
have been deployed by leading wireless carriers around the world.
We successfully formed multiple important partnerships in 2019 that
resulted in an $8.4 million strategic investment, as well as
two non-exclusive
multi-year licensing and services deals with strategic partners
totaling over $40 million.
Our LTE solutions are currently in commercial deployments in the
United States, Canada, Italy, France, Germany, United Kingdom,
Nordic countries, Eastern Europe, the Middle East, Indonesia,
Malaysia, Philippines, Vietnam, Japan, China, South Korea, India,
Australia, Brazil and elsewhere.
Our LTE solutions are incorporated into devices sold by many
leading OEMs and ODMs, including in the Verizon Wireless Ellipsis
Jetpack MHS900L portable router, the Thales IoT (ex Gemalto) ELS31
LTE Category 1 and EMS31 Category M1 industrial M2M modules, the
AT&T IMS2 module and in a variety of devices and modules
produced by AsiaTEL, Connected Holdings, Daatrics, Foxconn, Gemtek,
Geotab, Geotraq, Inseego, Invoxia, LinkLabs, Lockheed Martin,
Multitech, Netcomm, Nimbelink, Pebblebee, Polymer Logistics, PoLTE,
Positioning Universal Inc., Pycom, Sercomm, Seongji, USI,
Technicolor, Tozed, Trackimo, Wistron NeWeb, ZMTel, ZTEWeLink and
others.
Recent Developments
Note Amendments
In March 2020, our convertible notes issued in April 2015, April
2016, September 2018, May 2019 and August 2019 were amended to
grant us three options to extend the term of each note, except for
the August 2019 note which has two options to extend. Each option
will give us the right to extend the term of such note by one year
and consequently reset the conversion price to a 20% premium above
the 20-day volume weighted
average price (VWAP) if it is lower than the existing conversion
price. On the first option exercise, the payment-in-kind interest (PIK)
will stay at 7% but the holder, Nokomis Capital, L.L.C.
(“Nokomis”), will be granted a warrant for 10% of the value of the
note with a three year term, at an exercise price of 20% premium
above 20-day VWAP. On the
second option exercise, the PIK will be adjusted to 9.5%, the
previous warrants granted on the first option exercise will be
extended by one year and the holder will be granted an additional
warrant for 15% of the value of the note with a three year term, at
an exercise price of 20% premium above 20-day VWAP. On the third option
exercise, the PIK will be adjusted to 13.5%, and the holder will be
granted an additional warrant for 20% of the value of the note with
a three year term, at an exercise price of 20% premium above
20-day VWAP. If at any
time, the holder converts a note prior to the date of April 2022,
it will receive an extra year’s worth of PIK so as to incentivize
early conversion. In consideration for entering into the
amendments, the warrants that Nokomis owns that were scheduled to
expire April 2021 were extended to April 2024.