Aware (AWRE) 10-Q 1 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 27, 2020
Document and Entity Information
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	0001015739
Trading Symbol	awre
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		21,521,886
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 46,857,000	$ 47,742,000
Accounts receivable, net	1,939,000	2,487,000
Unbilled receivables	3,225,000	3,315,000
Prepaid expenses and other current assets	340,000	256,000
Total current assets	52,361,000	53,800,000
Property and equipment, net	3,909,000	3,755,000
Long-term tax receivable	146,000
Total assets	56,416,000	57,555,000
Current liabilities:
Accounts payable	215,000	187,000
Accrued expenses	1,176,000	1,096,000
Deferred revenue	2,573,000	2,777,000
Total current liabilities	3,964,000	4,060,000
Long-term deferred revenue	44,000	60,000
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 21,521,886 as of March 31, 2020 and 21,442,781 as of December 31, 2019	215,000	214,000
Additional paid-in capital	96,287,000	96,255,000
Accumulated deficit	(44,094,000)	(43,034,000)
Total stockholders' equity	52,408,000	53,435,000
Total liabilities and stockholders' equity	$ 56,416,000	$ 57,555,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	21,521,886	21,442,781
Common stock, shares outstanding	21,521,886	21,442,781

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 3,518,000	$ 3,732,000
Costs and expenses:
Research and development	2,272,000	1,760,000
Selling and marketing	1,285,000	826,000
General and administrative	1,138,000	721,000
Total costs and expenses	4,865,000	3,825,000
Patent related income	0	49,000
Operating loss	(1,347,000)	(44,000)
Interest income	148,000	275,000
Income (loss) before provision for (benefit from) income taxes	(1,199,000)	231,000
Provision for (benefit from) income taxes	(139,000)	3,000
Net income (loss)	$ (1,060,000)	$ 228,000
Net income (loss) per share - basic (in dollars per share)	$ (0.05)	$ 0.01
Net income (loss) per share - diluted (in dollars per share)	$ (0.05)	$ 0.01
Weighted-average shares - basic (in shares)	21,522	21,565
Weighted-average shares - diluted (in shares)	21,522	21,582
Software licenses
Revenue:
Total revenue	$ 1,969,000	$ 1,537,000
Software maintenance
Revenue:
Total revenue	1,362,000	1,355,000
Services
Revenue:
Total revenue	187,000	840,000
Costs and expenses:
Cost of revenue	$ 170,000	$ 518,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (1,060)	$ 228
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	132	110
Stock-based compensation	83	14
Deferred tax assets		(9)
Changes in assets and liabilities:
Accounts receivable	548	99
Unbilled receivables	90	(639)
Prepaid expenses and other current assets	(84)	(224)
Long-term tax receivable	(146)
Accounts payable	28	47
Accrued expenses	80	(105)
Accrued income taxes		11
Deferred revenue	(220)	(583)
Net cash used in operating activities	(549)	(1,051)
Cash flows from investing activities:
Purchases of property and equipment	(286)	(20)
Net cash used in investing activities	(286)	(20)
Cash flows from financing activities:
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(50)	(49)
Repurchase of common stock		(78)
Net cash used in financing activities	(50)	(127)
Decrease in cash and cash equivalents	(885)	(1,198)
Cash and cash equivalents, beginning of period	47,742	51,612
Cash and cash equivalents, end of period	46,857	$ 50,414
Supplemental disclosure:
Cash paid for income taxes	$ 1

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 215	$ 96,376	$ (34,694)	$ 61,897
Balance (in shares) at Dec. 31, 2018	21,516,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	69,000
Shares surrendered by employees to pay taxes related to unrestricted stock		(49)		(49)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(14,000)
Stock-based compensation expense		14		14
Repurchase of common stock		(78)		(78)
Repurchase of common stock (in shares)	(20,000)
Net income (loss)			228	228
Balance at Mar. 31, 2019	$ 216	96,262	(34,466)	62,012
Balance (in shares) at Mar. 31, 2019	21,551,000
Balance at Dec. 31, 2019	$ 214	96,255	(43,034)	$ 53,435
Balance (in shares) at Dec. 31, 2019	21,443,000			21,442,781
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	94,000
Shares surrendered by employees to pay taxes related to unrestricted stock		(50)		$ (50)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(15,000)
Stock-based compensation expense		83		83
Net income (loss)			(1,060)	(1,060)
Balance at Mar. 31, 2020	$ 215	$ 96,287	$ (44,094)	$ 52,408
Balance (in shares) at Mar. 31, 2020	21,522,000			21,521,886

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2020
Nature of Business
Nature of Business	A) Nature of Business. We are a leading provider of software and services to the biometrics industry. Our software products are used in government and commercial biometrics systems, which are capable of determining or verifying an individual’s identity. We also offer engineering services related to software customization, integration, and installation, as well as complete systems development. We sell our biometrics software products and services globally through systems integrators, OEMs, and directly to end user customers. We also derive a portion of our revenue from the sale of imaging software.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Basis of Presentation
Basis of Presentation	B) Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10‑Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2019 in conjunction with our 2019 Annual Report on Form 10‑K. This Form 10‑Q should be read in conjunction with that Form 10‑K. The accompanying unaudited consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2020, and of operations and cash flows for the interim periods ended March 31, 2020 and 2019. The results of operations for the interim period ended March 31, 2020 are not necessarily indicative of the results to be expected for the year.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
Revenue Recognition
Revenue Recognition	C) Revenue Recognition. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The core principle of the standard is that we recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve that core principle, we apply the following five step model: 1. Identify the contract with the 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 revenue when (or as) each performance obligation is satisfied. 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s intent and ability to pay, which is based on a variety of factors including the customer’s historical payment experience, or in the case of a new customer, published credit and financial information pertaining to the customer. We evaluate contract modifications for the impact on revenue recognition if they have been approved by both parties such that the enforceable rights and obligations under the contract have changed. Contract modifications are either accounted for using a cumulative effect adjustment or prospectively over the remaining term of the arrangement. The determination of which method is more appropriate depends on the nature of the modification, which we evaluate on a case-by-case basis. We combine two or more contracts entered into at or near the same time with the same customer and account for them as a single contract if (i) the contracts are negotiated as a package with a common commercial objective, (ii) the amount of consideration to be paid in one contract depends on the price or performance of the other contract, or (iii) some or all of the goods or services in one contract would be combined with some or all of the goods and services in the other contract into a single performance obligation. If two or more contracts are combined, the consideration to be paid is aggregated and allocated to the individual performance obligations without regard to the consideration specified in the individual contracts. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. To identify performance obligations, we consider all of the goods or services promised in a contract regardless of whether they are explicitly stated or are implied by customary business practices. 3) Determine the transaction price The transaction price is determined based on the consideration we expect to be entitled in exchange for transferring promised goods and services to the customer. Determining the transaction price requires significant judgment. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period. The amount of consideration is not adjusted for a significant financing component if the time between payment and the transfer of the related good or service is expected to be one year or less under the practical expedient in ASC 606‑10‑32‑18. Our revenue arrangements are typically accounted for under such expedient, as payment is typically due within 30 to 60 days. As of March 31, 2020 and 2019, none of our contracts contained a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relative SSPs. The SSP is the price at which we would sell a promised good or service separately to a customer. The best estimate of SSP is the observable price of a good or service when we sell that good or service separately. A contractually stated price or a list price for a good or service may be the SSP of that good or service. We use a range of amounts to estimate SSP when we sell each of the goods and services separately and need to determine whether there is a discount that needs to be allocated based on the relative SSP of the various goods and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we typically determine the SSP using an adjusted market assessment approach using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual goods and services due to the stratification of those goods and services by customers and circumstances. In these instances, we may use information such as the nature of the customer and distribution channel in determining the SSP. 5) Recognize revenue when or as we satisfy a performance obligation We satisfy performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized over time if 1) the customer simultaneously receives and consumes the benefits provided by our performance, 2) our performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. If we do not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. We categorize revenue as software licenses, software maintenance, or services. In addition to the general revenue recognition policies described above, specific revenue recognition policies apply to each category of revenue. Software licenses Software licenses consist of revenue from the sale of software licenses for biometrics and imaging applications. Our software licenses are functional intellectual property and typically provide customers with the right to use our software under a perpetual license or subscription based model for either a fixed term or in perpetuity as it exists when made available to the customer. We recognize revenue from software licenses at a point in time upon delivery, provided all other revenue recognition criteria are met. Software maintenance Software maintenance consists of revenue from the sale of software maintenance contracts for biometrics and imaging software. Software maintenance contracts entitle customers to receive software support and software updates, if and when they become available, during the term of the maintenance contract. Software support and software updates are considered distinct services. However, these distinct services are considered a single performance obligation consisting of a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. We recognize software maintenance revenue over time on a straight-line basis over the contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted), provided all other revenue recognition criteria are met. Refer to Note G – Business Segments for further information on the disaggregation of revenue, including revenue by geography and category. Arrangements with multiple performance obligations In addition to selling software licenses, software maintenance and software services on a standalone basis, a significant portion of our contracts include multiple performance obligations. The various combinations of multiple performance obligations and our revenue recognition for each are described as follows: · Software licenses and software maintenance. When software licenses and software maintenance contracts are sold together, the software licenses and software maintenance are generally considered distinct performance obligations. The transaction price is allocated to the software licenses and the software maintenance based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the software maintenance is recognized on a straight-line basis over the contract period. · Software licenses and services. When software licenses and significant customization engineering services are sold together, they are accounted for as a combined performance obligation, as the software licenses are generally highly dependent on, and interrelated with, the associated services and therefore are not distinct performance obligations. Revenue for the combined performance obligation is recognized over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). When software licenses and standard implementation or consulting-type services are sold together, they are generally considered distinct performance obligations as the software licenses are not dependent on or interrelated with the associated services. The transaction price in these arrangements is allocated to the software licenses and services based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the services is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). In arrangements with both software licenses and services, the software license portion of the arrangement is classified as software license revenue and the services portion is classified as services revenue in our consolidated statements of operations. · Software licenses, software maintenance and services. When we sell software licenses, software maintenance and software services together, we account for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery. Revenue allocated to the services is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). Revenue for the software maintenance is recognized on a straight-line basis over the contract period. However, if the software services are significant customization engineering services, they are accounted for with the software licenses as a combined performance obligation, as stated above. Revenue for the combined performance obligation is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). Returns We do not offer rights of return for our products and services in the normal course of business. Customer Acceptance Our contracts with customers generally do not include customer acceptance clauses. Contract Balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by the deferred revenue below until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consist of unbilled receivables. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software maintenance contracts. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The following table presents changes in our contract assets and liabilities during the three months ended March 31, 2019 and 2020 (in thousands): Revenue Balance at Recognized Beginning of In Advance of Balance at End of Period Billings Billings Period Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 3,279 $ 1,059 $ (420) $ 3,918 Three months ended March 31, 2020 Contract assets: Unbilled receivables $ 3,315 $ 183 $ (273) $ 3,225 Balance at Beginning of Revenue Balance at End of Period Billings Recognized Period Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 3,099 $ 772 $ (1,355) $ 2,516 Three months ended March 31, 2020 Contract liabilities: Deferred revenue $ 2,837 $ 1,148 $ (1,368) $ 2,617 Remaining Performance Obligations Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 66% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of March 31, 2020 the aggregate amount of the transaction price allocated to remaining performance obligations for software maintenance contracts with a duration greater than one year was $1.4 million. Contract Costs We recognize an other asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales commissions meet the requirements to be capitalized, and we amortize these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets. We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. These costs include sales commissions on software maintenance contracts with a contract period of one year or less as sales commissions paid on contract renewals are commensurate with those paid on the initial contract.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements
Fair Value Measurements	D) Fair Value Measurements. The Financial Accounting Standards Board (“FASB”) Codification defines fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to the unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the FASB Codification are: i) Level 1 – valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; ii) Level 2 – valuations that are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and iii) Level 3 – valuations that require inputs that are both significant to the fair value measurement and unobservable. Cash and cash equivalents, which primarily include money market mutual funds, were $46.9 million and $47.7 million as of March 31, 2020 and December 31, 2019, respectively. We classified our cash equivalents of $46.3 million and $46.2 million as of March 31, 2020 and December 31, 2019, respectively, within Level 1 of the fair value hierarchy because they are valued using quoted market prices. As of March 31, 2020, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at March 31, 2020 Using: Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 46,322 $ — $ — Total $ 46,322 $ — $ — As of December 31, 2019, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at December 31, 2019 Using: Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 46,174 $ — $ — Total $ 46,174 $ — $ —

Computation of Earnings per Sha

Computation of Earnings per Share	3 Months Ended
	Mar. 31, 2020
Computation of Earnings per Share
Computation of Earnings per Share	E) Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation. Potential common stock equivalents of 68,681 for the three months ended March 31, 2020 were not included in the per share calculation for diluted earnings per share, because we had a net loss and the effect of their inclusion would be anti-dilutive. Net income (loss) per share is calculated as follows (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Net income (loss) $ (1,060) $ 228 Shares outstanding : Weighted-average common shares outstanding 21,522 21,565 Additional dilutive common stock equivalents — 17 Diluted shares outstanding 21,522 21,582 Net income (loss) per share – basic $ (0.05) $ 0.01 Net income (loss) per share - diluted $ (0.05) $ 0.01

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Stock-Based Compensation
Stock-Based Compensation	F) Stock-Based Compensation. The following table presents stock-based employee compensation expenses included in our unaudited consolidated statements of comprehensive income (in thousands): Three Months Ended March 31, 2020 2019 Cost of services $ 1 $ 1 Research and development 4 3 Selling and marketing 25 — General and administrative 53 10 Stock-based compensation expense $ 83 $ 14 Stock Option Grants . We may grant stock options under our 2001 Nonqualified Stock Plan. When we grant stock options, we estimate their fair value using the Black-Scholes valuation model. This valuation model takes into account the exercise price of the award, as well as a variety of significant assumptions. The assumptions used to estimate the fair value of stock options include the expected term, the expected volatility of our stock over the expected term, the risk-free interest rate over the expected term, and our expected annual dividend yield. We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair values of our stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards. We did not grant any stock options during the three months ended March 31, 2019 or 2020. Unrestricted Stock Grants . We also grant unrestricted shares of stock under our 2001 Nonqualified Stock Plan. Stock-based compensation expense for stock grants is determined based on the fair market value of our stock on the date of grant, provided the number of shares in the grant is fixed on the grant date. We granted shares of unrestricted stock in 2020 and 2019 that affected financial results for the three month periods ended March 31, 2020 and 2019. The accounting treatment of unrestricted stock awards is described below: On March 27, 2020, we granted 210,000 shares of unrestricted stock to directors, officers and employees. The shares will be issued in two equal installments shortly after June 30, 2020 and December 31, 2020, provided each grantee is serving as a director, officer or employee on those dates. The total stock-based compensation expense related to this grant is $533,000, of which $10,000 was charged to expense in the three months ended March 31, 2020. We anticipate the remaining $523,000 will be charged to expense ratably over the remaining three quarters of 2020. In September 2019, we granted 15,000 shares of unrestricted stock to an officer, which were issued in January 2020. The total stock-based compensation expense related to this grant was $41,000 and was expensed in 2019 In September 2019, we granted 80,000 shares of unrestricted stock to an officer, which are to be issued in four equal installments shortly after September 19, 2020, September 19, 2021, September 19, 2022 and September 19, 2023, provided the grantee is serving as a director, officer or employee on those dates. The total stock-based compensation expense related to this grant is $220,000, of which $16,000 was charged to expense in 2019 and $14,000 was charged to expense in the first quarter of 2020. We anticipate the remaining $190,000 will be charged to expense ratably over the next fourteen quarters. In October 2019, we granted 7,500 shares of unrestricted stock to an officer, which were issued in January 2020. The total stock-based compensation expense related to this grant was $22,000 and was expensed in 2019. In October 2019, we granted 40,000 shares of unrestricted stock to an officer, which are to be issued in four equal installments shortly after October 1, 2020, October 1, 2021, October 1, 2022 and October 1, 2023, provided the grantee is serving as a director, officer or employee on those dates. The total stock-based compensation expense related to this grant is $117,000, of which $7,000 was charged to expense in 2019 and $7,000 was charged to expense in the first quarter of 2020. We anticipate the remaining $103,000 will be charged to expense ratably over the next fourteen quarters. In March 2019, we granted 143,000 shares of unrestricted stock to directors, officers and employees. The shares were issued in two equal installments shortly after June 30, 2019 and December 31, 2019. We expensed $547,000 of stock-based compensation expense related to this grant in the year ended December 31, 2019. There was no unamortized stock-based compensation charge associated with this stock grant as of December 31, 2019. We issued shares of common stock related to the March 2019 grant as follows: i) 58,548 net shares of common stock were issued in early July 2019 after employees surrendered 12,952 shares for which we paid $43,000 of withholding taxes on their behalf; and ii) 56,605 net shares of common stock were issued in early January 2020 after employees surrendered 14,895 shares for which we paid $50,000 of withholding taxes on their behalf. Performance Share Award. In September 2019, we granted 20,000 shares of stock to an officer as a performance share award under our 2001 Nonqualified Stock Plan. The shares were issued in September 2019 and were forfeitable if the grantee was not serving as a director, officer or employee on March 19, 2020. Stock-based compensation expense for this stock grant was determined based on the fair market value of our stock on the date of grant, as the number of shares in the grant was fixed on the grant date. The total stock-based compensation expense related to this grant was $55,000, of which $31,000 was charged to expense in 2019 and $24,000 was charged to expense in the first quarter of 2020. In October 2019, we granted 10,000 shares of stock to an officer as a performance share award under our 2001 Nonqualified Stock Plan. The shares were issued in October 2019 and were forfeitable if the grantee was not serving as a director, officer or employee on April 1, 2020. Stock-based compensation expense for this stock grant was determined based on the fair market value of our stock on the date of grant, as the number of shares in the grant was fixed on the grant date. The total stock-based compensation expense related to this grant was $29,000, of which $15,000 was charged to expense in 2019 and $14,000 was charged to expense in the first quarter of 2020.

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2020
Business Segments
Business Segments	G) Business Segments . We organize ourselves into a single segment that reports to the chief operating decision maker. We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 United States $ 2,011 $ 1,723 United Kingdom 687 880 Rest of World 820 1,129 $ 3,518 $ 3,732 Revenue by product group for the three months ended March 31, 2020 and 2019 was (in thousands): Three Months Ended March 31, 2020 2019 Biometrics $ 3,263 $ 3,472 Imaging 255 260 $ 3,518 $ 3,732 Revenue by timing of transfer of goods or services for the three months ended March 31, 2020 and 2019 was (in thousands): Three Months Ended March 31, 2020 2019 Goods or services transferred at a point in time $ 1,952 $ 1,172 Goods or services transferred over time 1,566 2,560 $ 3,518 $ 3,732

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Taxes
Income Taxes	H) Income Taxes . Income tax benefit was $0.1 million for the three months ended March 31, 2020. Income tax benefit for the three month period ended March 31, 2020 and income tax expense for the three month period ended March 31, 2019 were based on the U.S. statutory rate of 21%, increased by state income taxes, and reduced by permanent adjustments and research tax credits. The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The Act contained specific relief and stimulus measures including allowing net operating losses originating in 2018 through 2020 to be carried back five years to offset taxable income in the carryback period. Separately, the enactment of the Tax Cut and Jobs Act in 2017 allowed taxpayers to claim a refund for alternative minimum tax credits over a period of years. The CARES Act enacted during the quarter allows for the entire amount of the credit to be refunded in 2020. We have reviewed the impact of the CARES Act enactment on the income tax provision and have determined that, as a result of the net operating loss carryback provision, we can obtain a tax benefit if we were to carry back the forecasted 2020 net operating loss to the five year carryback period. The carryback of the estimated loss would result in a refundable alternative minimum tax credit of approximately $736,000 and an increase in research credit carryforwards previously utilized. The alternative minimum tax credit can be refunded in the future, if we decide to carry back the loss reported on the filed 2020 tax return instead of electing to carry the loss forward. Due to the recent loss history and continued uncertainty surrounding our future projections of income, we will benefit from the current year loss to the extent of the available tax refund and will maintain a full valuation allowance on all other deferred tax assets, including any increase in research credit carryforward resulting from a potential carryback. As of the end of the period, we have not made a determination on whether to elect to carry forward the 2020 operating loss, however, the alternative minimum tax refund potential on carryback represents a minimum tax benefit we can obtain from the estimated 2020 loss. We can realize a tax benefit to the extent of the carryback refund potential as it is considered a source of income against which to utilize the 2020 estimated loss. The total estimated benefit of the alternative minimum tax refund of $736,000 is included in our projection of our annual effective rate and results in a year to date benefit of approximately $146,000 as of March 31, 2020. We recorded the year to date tax benefit as a long term tax receivable.

Income from patent arrangement

Income from patent arrangement	3 Months Ended
	Mar. 31, 2020
Income from patent arrangement
Income from patent arrangement	I) Income from patent arrangement. We entered into an arrangement with an unaffiliated third party in 2010 under which we assigned certain patents in return for royalties on proceeds from patent monetization efforts by the third party. The third party has engaged in various patent monetization activities, including enforcement, litigation and licensing. In the three months ended March 31, 2020, there was no revenue from this arrangement. In the three months ended March 31, 2019, the third party reported and we recorded $49,000 of income from this arrangement. We continue to have a contractual relationship with this third party. However, we are unable to predict how much more income we might receive from this arrangement, if any, because we do not know whether any patent monetization efforts by the third party will be successful. Future patent sales are likely to be minimal as our remaining patents and patent applications pertain primarily to biometrics and imaging compression. Our current intent is to retain these patents for use in the business.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2020
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements	J) Recently Adopted Accounting Pronouncements . FASB ASU No. 2019-12. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU was issued to reduce the complexity of the reporting information for financial statement users. We adopted the standard on January 1, 2020. The adoption of the standard does not result in any adjustment to our financial statements.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements Not Yet Adopted	3 Months Ended
	Mar. 31, 2020
Recent Accounting Pronouncements Not Yet Adopted
Recent Accounting Pronouncements Not Yet Adopted	K) Recent Accounting Pronouncements Not Yet Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This guidance was to be effective for reporting periods beginning after December 15, 2019, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates, which deferred the effective dates for us, as a smaller reporting company, until fiscal year 2023. We are continuing to assess the impact of the standard on our consolidated financial statements.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Basis of Presentation
Basis of Presentation	Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10‑Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2019 in conjunction with our 2019 Annual Report on Form 10‑K. This Form 10‑Q should be read in conjunction with that Form 10‑K. The accompanying unaudited consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2020, and of operations and cash flows for the interim periods ended March 31, 2020 and 2019. The results of operations for the interim period ended March 31, 2020 are not necessarily indicative of the results to be expected for the year.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue Recognition
Schedule of changes in contract assets and liabilities	The following table presents changes in our contract assets and liabilities during the three months ended March 31, 2019 and 2020 (in thousands): Revenue Balance at Recognized Beginning of In Advance of Balance at End of Period Billings Billings Period Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 3,279 $ 1,059 $ (420) $ 3,918 Three months ended March 31, 2020 Contract assets: Unbilled receivables $ 3,315 $ 183 $ (273) $ 3,225 Balance at Beginning of Revenue Balance at End of Period Billings Recognized Period Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 3,099 $ 772 $ (1,355) $ 2,516 Three months ended March 31, 2020 Contract liabilities: Deferred revenue $ 2,837 $ 1,148 $ (1,368) $ 2,617

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements
Schedule of assets measured at fair value on a recurring basis	As of March 31, 2020, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at March 31, 2020 Using: Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 46,322 $ — $ — Total $ 46,322 $ — $ — As of December 31, 2019, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at December 31, 2019 Using: Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 46,174 $ — $ — Total $ 46,174 $ — $ —

Computation of Earnings per S_2

Computation of Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Computation of Earnings per Share
Schedule of net loss per share	Net income (loss) per share is calculated as follows (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Net income (loss) $ (1,060) $ 228 Shares outstanding : Weighted-average common shares outstanding 21,522 21,565 Additional dilutive common stock equivalents — 17 Diluted shares outstanding 21,522 21,582 Net income (loss) per share – basic $ (0.05) $ 0.01 Net income (loss) per share - diluted $ (0.05) $ 0.01

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Stock-Based Compensation
Schedule of stock-based employee compensation expense included in unaudited consolidated statements of comprehensive income	The following table presents stock-based employee compensation expenses included in our unaudited consolidated statements of comprehensive income (in thousands): Three Months Ended March 31, 2020 2019 Cost of services $ 1 $ 1 Research and development 4 3 Selling and marketing 25 — General and administrative 53 10 Stock-based compensation expense $ 83 $ 14

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2020
Business Segments
Schedule of revenues generated from geographic regions	We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 United States $ 2,011 $ 1,723 United Kingdom 687 880 Rest of World 820 1,129 $ 3,518 $ 3,732
Schedule of revenue by product group	Revenue by product group for the three months ended March 31, 2020 and 2019 was (in thousands): Three Months Ended March 31, 2020 2019 Biometrics $ 3,263 $ 3,472 Imaging 255 260 $ 3,518 $ 3,732
Schedule of revenue by timing of transfer of goods or services	Revenue by timing of transfer of goods or services for the three months ended March 31, 2020 and 2019 was (in thousands): Three Months Ended March 31, 2020 2019 Goods or services transferred at a point in time $ 1,952 $ 1,172 Goods or services transferred over time 1,566 2,560 $ 3,518 $ 3,732

Revenue Recognition - Changes i

Revenue Recognition - Changes in contract assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Contract assets:
Unbilled receivables, Balance at Beginning of Period	$ 3,315	$ 3,279
Unbilled receivables, Revenue Recognized In Advance of Billings	183	1,059
Unbilled receivables, Billings	(273)	(420)
Unbilled receivables, Balance at End of Period	$ 3,225	$ 3,918

Revenue Recognition - Changes_2

Revenue Recognition - Changes in contract liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Contract liabilities:
Deferred revenue, Balance at Beginning of Period	$ 2,837	$ 3,099
Deferred revenue, Billings	1,148	772
Deferred revenue, Revenue Recognized	(1,368)	(1,355)
Deferred revenue, Balance at End of Period	$ 2,617	$ 2,516

Revenue Recognition - Additiona

Revenue Recognition - Additional information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Practical expedient for financing components	true
Percentage of remaining performance obligations expected to be recognized as revenue	66.00%
Minimum period of remaining performance obligations	12 months
Revenue recognition performance obligation transaction price	$ 1.4	$ 1.4
Minimum period expect the benefit of the incremental costs	1 year
Practical expedient for cost of obtaining contract	true
Maximum contract period for sales commissions on software maintenance contracts to be included in costs	1 year
Minimum
Disaggregation of Revenue [Line Items]
Minimum period of remaining performance obligations	30 days
Maximum
Disaggregation of Revenue [Line Items]
Minimum period of remaining performance obligations	60 days

Fair Value Measurements - Asset

Fair Value Measurements - Assets measured at fair value on a recurring basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities
Total	$ 46,322	$ 46,174
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds (included in cash and cash equivalents)
Schedule of Available-for-sale Securities
Money market funds (included in cash and cash equivalents)	46,322	46,174
Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities
Total	0	0
Significant Other Observable Inputs (Level 2) | Money market funds (included in cash and cash equivalents)
Schedule of Available-for-sale Securities
Money market funds (included in cash and cash equivalents)	0	0
Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities
Total	0	0
Significant Unobservable Inputs (Level 3) | Money market funds (included in cash and cash equivalents)
Schedule of Available-for-sale Securities
Money market funds (included in cash and cash equivalents)	$ 0	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional information (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities
Cash and cash equivalents, primarily include money market funds	$ 46,857	$ 47,742	$ 50,414	$ 51,612
Fair Value, Measurements, Recurring [Member] | Money market funds (included in cash and cash equivalents) | Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities
Cash equivalents, primarily include money market funds	$ 46,300	$ 46,200

Computation of Earnings per S_3

Computation of Earnings per Share - Net loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Computation of Earnings per Share
Net income (loss)	$ (1,060)	$ 228
Shares outstanding:
Weighted-average common shares outstanding (in shares)	21,522	21,565
Additional dilutive common stock equivalents (in shares)		17
Diluted shares outstanding (in shares)	21,522	21,582
Net income (loss) per share - basic (in dollars per share)	$ (0.05)	$ 0.01
Net income (loss) per share - diluted (in dollars per share)	$ (0.05)	$ 0.01

Computation of Earnings per S_4

Computation of Earnings per Share - Additional information (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2020shares
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents that are anti-dilutive and excluded from the calculation of earnings per share	68,681

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 83	$ 14
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1	1
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	4	3
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	25
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 53	$ 10

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Grants and Unrestricted Stock Grants (Details)	Mar. 27, 2020USD ($)installmentshares	Jan. 31, 2020USD ($)shares	Oct. 31, 2019USD ($)installmentshares	Sep. 30, 2019USD ($)installmentshares	Jul. 31, 2019USD ($)shares	Mar. 31, 2019USD ($)installmentshares	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense							$ 83,000	$ 14,000
2001 Nonqualified Stock Plan | 2019 Grant | Directors, officers and employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted | shares		56,605			58,548
Number of common stock shares surrendered by employees withholding taxes | shares		14,895			12,952
Common stock value surrendered by employees withholding taxes		$ 50,000			$ 43,000
2001 Nonqualified Stock Plan | Unrestricted Stock | March 27, 2020 Grant | Directors, officers and employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unrestricted stock granted | shares	210,000
Number of installment | installment	2
Total stock-based compensation expense	$ 533,000
Stock-based compensation expense charged to expense							10,000
Remaining stock based compensation expense	$ 523,000
2001 Nonqualified Stock Plan | Unrestricted Stock | September 19, 2019 Grants one | Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unrestricted stock granted | shares				15,000
Total stock-based compensation expense				$ 41,000
2001 Nonqualified Stock Plan | Unrestricted Stock | September 19, 2019 Grants two | Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unrestricted stock granted | shares				80,000
Number of installment | installment				4
Total stock-based compensation expense				$ 220,000
Stock-based compensation expense charged to expense							14,000		$ 16,000
Remaining stock based compensation expense				$ 190,000
2001 Nonqualified Stock Plan | Unrestricted Stock | 2019 Grant | Directors, officers and employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unrestricted stock granted | shares						143,000
Number of installment | installment						2
Total stock-based compensation expense									547,000
Unamortized share-based compensation charges						$ 0
2001 Nonqualified Stock Plan | Unrestricted Stock | 2019 Grant one | Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unrestricted stock granted | shares			7,500
Total stock-based compensation expense			$ 22,000
2001 Nonqualified Stock Plan | Unrestricted Stock | 2019 Grant two | Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unrestricted stock granted | shares			40,000
Number of installment | installment			4
Total stock-based compensation expense			$ 117,000
Stock-based compensation expense charged to expense							$ 7,000		$ 7,000
Remaining stock based compensation expense			$ 103,000

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance Share Award (Details) - USD ($)	1 Months Ended		3 Months Ended
	Oct. 31, 2019	Sep. 30, 2019	Mar. 31, 2020	Mar. 31, 2019
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Total stock-based compensation expense			$ 83,000	$ 14,000
Performance Share Awards | 2001 Nonqualified Stock Plan | Officer
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of shares granted	10,000	20,000
Total stock-based compensation expense	$ 15,000	$ 31,000
Share Based Compensation Expense for the Total Grant	29,000	55,000
Unamortized Share Based Compensation Charges	$ 14,000	$ 24,000

Business Segments - Revenues ge

Business Segments - Revenues generated following geographic regions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 3,518	$ 3,732
Operating Segments | United States
Segment Reporting Information [Line Items]
Total revenue	2,011	1,723
Operating Segments | United Kingdom
Segment Reporting Information [Line Items]
Total revenue	687	880
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Total revenue	$ 820	$ 1,129

Business Segments - Summary of

Business Segments - Summary of revenue by product group (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 3,518	$ 3,732
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Total revenue	3,263	3,472
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Total revenue	$ 255	$ 260

Business Segments - Revenue by

Business Segments - Revenue by timing of transfer of goods or services (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 3,518	$ 3,732
Goods or services transferred at a point in time
Segment Reporting Information [Line Items]
Total revenue	1,952	1,172
Goods or services transferred over time
Segment Reporting Information [Line Items]
Total revenue	$ 1,566	$ 2,560

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Taxes
Income tax expense (Benefit)	$ (139,000)	$ 3,000
U.S. statutory rate		21.00%
Estimated aggregate alternative minimum tax refund receivable	736,000
Alternative minimum tax refund receivable recorded	$ 146,000

Income from patent arrangement

Income from patent arrangement (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income from patent arrangement
Income from intangible assets	$ 0	$ 49,000