Aware (AWRE) 10-K 28 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 14, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	1,015,739
Trading Symbol	awre
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Well-Known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		21,546,818
Entity Public Float			$ 69,037,980
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 51,608	$ 51,913
Accounts receivable (less allowance for doubtful accounts of $20 at December 31, 2017 and 2016)	2,401	3,016
Prepaid expenses and other current assets	203	268
Total current assets	54,212	55,197
Property and equipment, net	4,304	4,634
Investments		951
Deferred tax assets	5,402	1,078
Other assets	18	124
Total assets	63,936	61,984
Current liabilities:
Accounts payable	166	135
Accrued expenses	1,184	1,075
Accrued income taxes	2
Deferred revenue	2,805	2,722
Total current liabilities	4,157	3,932
Long-term deferred revenue	127	211
Commitments and contingent liabilities (Note 8)
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; shares authorized, 70,000,000 in 2017 and 2016; issued and outstanding 21,493,440 as of December 31, 2017 and 22,370,713 as of December 31, 2016	215	224
Additional paid-in capital	96,246	100,485
Accumulated other comprehensive loss		(19)
Accumulated deficit	(36,809)	(42,849)
Total stockholders' equity	59,652	57,841
Total liabilities and stockholders' equity	$ 63,936	$ 61,984

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts (in dollars)	$ 20	$ 20
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	21,493,440	22,370,713
Common stock, shares outstanding	21,493,440	22,370,713

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Software licenses	$ 9,939	$ 14,093	$ 10,113
Software maintenance	4,923	5,126	4,706
Services	1,259	1,749	3,304
Hardware		317	1,094
Royalties	161	281	404
Total revenue	16,282	21,566	19,621
Costs and expenses:
Cost of software licenses	274	1,101
Cost of services	601	766	1,790
Cost of hardware		234	717
Research and development	7,769	6,938	5,800
Selling and marketing	4,021	4,142	3,945
General and administrative	3,389	3,286	3,497
Total costs and expenses	16,054	16,467	15,749
Patent related income	1,582	809	43
Operating income	1,810	5,908	3,915
Other income	36		12
Interest income	401	280	151
Income before provision for income taxes	2,247	6,188	4,078
Provision for (benefit from) income taxes	965	2,085	(536)
Net income	$ 1,282	$ 4,103	$ 4,614
Net income per share - basic (in dollars per share)	$ 0.06	$ 0.18	$ 0.20
Net income per share - diluted (in dollars per share)	$ 0.06	$ 0.18	$ 0.20
Weighted-average shares - basic (in shares)	21,814	22,829	22,899
Weighted-average shares - diluted (in shares)	21,877	22,898	22,965
Comprehensive income:
Net income	$ 1,282	$ 4,103	$ 4,614
Other comprehensive income (net of tax):
Unrealized gain/(loss) on available for sale securities	19	45	(35)
Comprehensive income	$ 1,301	$ 4,148	$ 4,579

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 1,282	$ 4,103	$ 4,614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	518	622	640
Stock-based compensation	663	558	689
Reversal of reserve for uncertain tax positions			(1,914)
Gain on sale of patent assets			(43)
Amortization of discount on investments	(4)	(13)	(11)
Gain on sale of investments	(36)		(12)
Deferred tax benefit (expense) on other comprehensive income	(9)	(24)	18
Increase (decrease) from changes in assets and liabilities:
Accounts receivable	615	1,727	(1,124)
Inventories			2
Prepaid expenses and other current assets	65	215	(82)
Deferred tax assets	434	(79)	(27)
Accounts payable	31	(99)	(24)
Accrued expenses	109	123	132
Accrued income taxes	2	(236)	236
Deferred revenue	(1)	(3,083)	3,590
Net cash provided by operating activities	3,669	3,814	6,684
Cash flows from investing activities:
Purchases of property and equipment	(82)	(87)	(127)
Sales of investments	1,019		529
Proceeds from sale of patent assets, net			43
Purchase of other assets			(320)
Net cash provided by (used in) investing activities	937	(87)	125
Cash flows from financing activities:
Proceeds from issuance of common stock	61	44	40
Proceeds from exercise of stock options	13
Excess tax benefits from stock-based compensation		701	554
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(186)	(136)	(156)
Repurchase of common stock	(4,799)	(3,655)
Net cash provided by (used in) financing activities	(4,911)	(3,046)	438
Increase/(decrease) in cash and cash equivalents	(305)	681	7,247
Cash and cash equivalents, beginning of year	51,913	51,232	43,985
Cash and cash equivalents, end of year	51,608	51,913	51,232
Supplemental disclosure:
Cash paid for income taxes	$ 488	$ 1,553	$ 571

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	(Accumulated Deficit)	Total
Balance at Dec. 31, 2014	$ 228	$ 103,756	$ (29)	$ (51,566)	$ 52,389
Balance (in shares) at Dec. 31, 2014	22,809,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	152,000
Shares surrendered by employees to pay taxes related to unrestricted stock		(156)			(156)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(36,000)
Issuance of common stock under employee stock purchase plan		40			40
Issuance of common stock under employee stock purchase plan (in shares)	11,000
Stock-based compensation expense		689			689
Tax benefits from stock-based awards		554			554
Reversal of reserve for uncertain tax positions		(1,914)			(1,914)
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities			(53)		(53)
Deferred tax benefit (expense) on unrealized gain (loss)			(18)		(18)
Net income				4,614	4,614
Balance at Dec. 31, 2015	$ 229	102,968	(64)	(46,952)	56,181
Balance (in shares) at Dec. 31, 2015	22,936,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of unrestricted stock	$ 2	(2)
Issuance of unrestricted stock (in shares)	152,000
Shares surrendered by employees to pay taxes related to unrestricted stock		(136)			(136)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(36,000)
Issuance of common stock under employee stock purchase plan		44			44
Issuance of common stock under employee stock purchase plan (in shares)	10,000
Stock-based compensation expense		558			558
Tax benefits from stock-based awards		701			701
Repurchase of common stock	$ (7)	(3,648)			(3,655)
Repurchase of common stock (in shares)	(691,000)
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities			69		69
Deferred tax benefit (expense) on unrealized gain (loss)			24		24
Net income				4,103	4,103
Balance at Dec. 31, 2016	$ 224	100,485	(19)	(42,849)	$ 57,841
Balance (in shares) at Dec. 31, 2016	22,371,000				22,370,713
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle (see Note 2)				4,758	$ 4,758
Exercise of common stock options		13			13
Exercise of common stock (in shares)	4,000
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	143,000
Shares surrendered by employees to pay taxes related to unrestricted stock		(186)			(186)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(33,000)
Issuance of common stock under employee stock purchase plan		61			61
Issuance of common stock under employee stock purchase plan (in shares)	13,000
Stock-based compensation expense		663			663
Repurchase of common stock	$ (10)	(4,789)			(4,799)
Repurchase of common stock (in shares)	(1,005,000)
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities			28		28
Deferred tax benefit (expense) on unrealized gain (loss)			$ (9)		(9)
Net income				1,282	1,282
Balance at Dec. 31, 2017	$ 215	$ 96,246		$ (36,809)	$ 59,652
Balance (in shares) at Dec. 31, 2017	21,493,000				21,493,440

NATURE OF BUSINESS

NATURE OF BUSINESS	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
NATURE OF BUSINESS	1. 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Use of Estimates Fair Value Measurements Cash and cash equivalents, which primarily include money market mutual funds, were $51.6 million and $51.9 million as of December 31, 2017 and December 31, 2016, respectively. We classified our cash equivalents of $50.0 million and $49.8 million as of December 31, 2017 and 2016, respectively, within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our investments, which consisted of high yield corporate debt securities, were also classified within Level 1 of the fair value hierarchy because they were valued using quoted market prices. Debt securities with maturities greater than one year were classified as long term assets. We categorized our investments as available-for-sale securities, and carried them at fair value in our financial statements. We had $1.0 million of available-for-sale investments as of December 31, 2016. As of December 31, 2017, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at December 31, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ - $ - $ - Money market funds (included in cash and cash equivalents) 49,986 Total $ 49,986 $ - $ - As of December 31, 2016, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at December 31, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 951 $ - $ - Money market funds (included in cash and cash equivalents) 49,839 - - Total $ 50,790 $ - $ - Cash and Cash Equivalents Investments Realized gains on investments were $36,000 and $12,000 in the years ended December 31, 2017 and December 31, 2015. There were no realized gains or losses on investments in the year ended December 31, 2016. There were no unrealized gains or losses on investments at year ended December 31, 2017. Unrealized gains on investments were $69,000 in the year ended December 31, 2016. Unrealized losses on investments were $53,000 in the year ended December 31, 2015. Allowance for Doubtful Accounts Inventories Property and Equipment The estimated useful lives of assets used by us are: Building 30 years Building improvements 5 to 20 years Furniture and fixtures 5 years Computer, office & manufacturing equipment 3 years Purchased software 3 years Impairment of Long-Lived Assets Revenue Recognition Persuasive evidence of an arrangement: Product delivery: Fixed or determinable fee: Collection is deemed probable: We categorize revenue as software licenses, software maintenance, services, hardware, or royalties. 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 typically provide customers with the right to use our software in perpetuity. We recognize revenue from software licenses upon delivery when licenses are sold in single element arrangements, because we have no post-delivery obligations, including contractual or implied Post Contract Support (“PCS”). 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. We recognize software maintenance revenue ratably over the related contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue as services are delivered when services are sold in single element arrangements. Hardware Hardware revenue consists of sales of biometrics equipment to a single U.S. government customer. We recognize hardware revenue upon delivery and acceptance of the equipment by the customer. Royalties Royalties consist primarily of royalty payments we receive under DSL silicon contracts with two customers that incorporate our silicon intellectual property (“IP”) in their DSL chipsets. We sold the assets of our DSL IP business in 2009, but we continue to receive royalty payments from these customers. Royalties are reported in continuing operations in accordance with ASC 205, Reporting Discontinued Operations, because we have continuing ongoing cash flows from this business. Since we cannot reasonably estimate royalty revenue, such revenue is recognized in the quarter in which a final report is received from a customer. Royalty reports are typically received in the quarter immediately following the quarter in which sales of royalty-bearing products occur. Multiple element arrangements with software and software related elements In addition to selling software licenses, software maintenance and software services in single element arrangements, we also sell these three products as part of multiple element arrangements. We apply the provisions of ASC 985-605, Software Revenue Recognition, to these arrangements because all the elements are software or software related. The various combinations of multiple element arrangements and our revenue recognition for each are described as follows: · Software licenses and software maintenance · Software licenses and services. · Software licenses, software maintenance and services. Multiple element arrangement with hardware and software elements We also have a multiple element arrangement with one customer that involves the delivery of hardware, software maintenance, and software services. We determined that these elements qualified as separate units of accounting under ASC 605, Revenue Recognition, because they have value to the customer on a standalone basis. We recognize revenue from this arrangement as follows: i) hardware revenue is recognized upon delivery and acceptance of the equipment by the customer; ii) maintenance revenue is recognized ratably over the related contract period; and iii) service revenue is recognized as services are delivered. Income Taxes We recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the tax position. The evaluation of an uncertain tax position is based on factors that include, but are not limited to, changes in the tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, and changes in facts or circumstances related to a tax position. Any changes to these estimates, based on the actual results obtained and/or a change in assumptions, could impact our tax provision in future periods. Interest and penalty charges, if any, related to unrecognized tax benefits would be classified as a provision for income tax in the statement of income. Capitalization of Software Costs Research and Development Costs Concentration of Credit Risk Concentration of credit risk with respect to net accounts receivable consisted of amounts owed by the following customers that comprised more than 10% of net accounts receivable at December 31: 2017 2016 Customer A 11 % 17 % Customer B 10 % - % Customer C 9 % 13 % Customer D 2 % 13 % Concentration of credit risk with respect to our investment portfolio consisted of $0.5 million and $0.5 million with two issuers of corporate debt securities, respectively, at December 31, 2016. At December 31, 2017, there was no concentration of credit with respect to our investment portfolio as we had no corporate debt securities. Stock-Based Compensation For stock awards, we determine the fair value of the award by using 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. For stock options, we use the Black-Scholes option valuation model to estimate the fair value of the award. 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. Computation of Earnings per Share Fair Value of Financial Instruments Advertising Costs – Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements FASB ASU No. 2014-09 The new standard permits two methods of adoption: retrospective to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the new standard recognized at the date of initial application (modified retrospective method). The Company will adopt this guidance utilizing the full retrospective method and will adjust each comparative period financial statements to reflect the full retrospective method, beginning with the Quarterly Report on Form 10-Q for the first quarter of 2018. In preparation for adoption of the standard, we have implemented new internal controls for the implementation and modified and augmented our existing internal controls to enable the preparation of financial information and have reached conclusions on key accounting assessments related to the standard. Based on our assessment, the most significant impacts of adopting the new standard relate to the following: i) 2015 imaging software license contract ii) DSL royalty contracts iii) Minimum license/royalty payment contract iv) Sales commissions and other third-party acquisition costs Revenue recognition related to our other arrangements for software licenses, software maintenance, services, and hardware will remain substantially unchanged. Adoption of the standard will result in an aggregate decrease in revenue of $0.8 million and $2.8 million for fiscal year 2017 and 2016, respectively, a decrease in costs and expenses of $0.1 million and $0.3 million, respectively, a decrease in the provision for income taxes of $0.4 million and $1.0 million, respectively, and an increase in stockholders’ equity of $2.7 million, primarily due to the changes noted above. In addition, adoption of the standard will result in an increase in accounts receivable of $1.4 million and $2.2 million as of December 31, 2017 and 2016, respectively, driven by unbilled receivables from recognition of revenue from the estimate of variable consideration related to the minimum license/royalty payments in one of our contracts; a decrease in deferred tax assets of $0.3 million and $0.8 million as of December 31, 2017 and 2016, respectively, driven primarily by a difference in timing of revenue recognition and expenses for book and tax purposes; and an increase in accrued expenses of $0.2 million and $0.3 million as of December 31, 2017 and 2016, respectively, driven by sales commissions related to recognition of revenue from the estimate of variable consideration related to the minimum license/royalty payments in one of our contracts. See Expected Impacts of Topic 606 Adoption to Reported Results below for the impact of the adoption of the new standard on our consolidated financial statements. Expected Impacts of Topic 606 Adoption to Reported Results Adoption of the new revenue standard is expected to impact our reported results as follows: (In thousands, except per share data) Year ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 16,282 $ (817 ) $ 15,465 Costs and expenses 16,054 (114 ) 15,940 Provision for income taxes 965 (421 ) 544 Net income 1,282 (282 ) 1,000 Net income per share - basic and diluted 0.06 (0.01 ) 0.05 (In thousands, except per share data) Year ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 21,566 $ (2,804 ) $ 18,762 Costs and expenses 16,467 (294 ) 16,173 Provision for income taxes 2,085 (986 ) 1,099 Net income 4,103 (1,524 ) 2,579 Net income per share - basic and diluted 0.18 (0.07 ) 0.11 (In thousands) December 31, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 2,401 $ 1,417 $ 3,818 Prepaid expenses and other current assets 203 13 216 Deferred tax assets 5,402 (331 ) 5,071 Accrued expenses 1,184 217 1,401 Stockholders' equity 59,652 2,722 62,374 (In thousands) December 31, 2016 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,016 $ 2,234 $ 5,250 Prepaid expenses and other current assets 268 22 290 Deferred tax assets 1,078 (752 ) 326 Accrued expenses 1,075 341 1,416 Stockholders' equity 57,841 2,687 60,528 Adoption of the new revenue standard had no impact to cash from or used in operating, financing, or investing on our consolidated statements of cash flows. FASB ASU No. 2016-09. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. In addition, the new standard eliminates the limitation on recognition of excess stock compensation benefits until such benefits are actually realized, and instead applies the general recognition standard to these deferred tax assets. We adopted ASU 2016-09 in 2017 which was applied using a modified retrospective approach. Upon adoption, we recorded a deferred tax asset of $4.8 million with an offsetting adjustment to retained earnings related to excess stock compensation deductions that were not previously recorded as tax assets. For the year ended December 31, 2017, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. We have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. Recent Accounting Pronouncements Not Yet Adopted FASB ASU No. 2016-13. With the exception of the standards discussed above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of December 31, 2017. Segments

PATENT RELATED INCOME

PATENT RELATED INCOME	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
PATENT RELATED INCOME	3. PATENT RELATED INCOME The composition of patent related income in 2017, 2016 and 2015 was as follows: Years ended December 31, 2017 and 2016. 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. Year ended December 31, 2015. 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.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2017 2016 Land $ 1,056 $ 1,056 Building and improvements 9,060 9,060 Computer equipment 638 629 Purchased software 83 83 Furniture and fixtures 778 778 Office equipment 138 166 Total 11,753 11,772 Less accumulated depreciation and amortization (7,449 ) (7,138 ) Property and equipment, net $ 4,304 $ 4,634 Depreciation expense was $0.4 million, $0.4 million, and $0.4 million for the years ended December 31, 2017, 2016, and 2015, respectively. In 2017, 2016 and 2015, we identified $0.1 million, $0.1 million, and $0.1 million of assets no longer in use and retired the assets and related accumulated depreciation.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	5. INCOME TAXES We made provisions for income taxes in the years ended December 31, 2017 and 2016 of $1.0 million and $2.1 million, respectively. We recorded a benefit from income taxes of $0.5 million in the year ended December 31, 2015. The components of the provision for income taxes are as follows (in thousands): Year ended December 31, 2017 2016 2015 Current: Federal 470 $ 1,807 $ (807 ) State 70 410 280 540 2,217 (527 ) Deferred: Federal 436 (120 ) (16 ) State (11 ) (12 ) 7 425 (132 ) (9 ) Provision for (benefit from) income taxes $ 965 $ 2,085 $ (536 ) A reconciliation of the U.S. federal statutory rate to the effective tax rate is as follows: Year ended December 31, 2017 2016 2015 Federal statutory rate 34 % 34 % 34 % Enactment of the Tax Cuts and Jobs Act 16 - - State rate, net of federal benefit 5 5 5 Tax credits (11 ) (4 ) (4 ) Permanent adjustments (3 ) (1 ) (2 ) Reversal of reserve - - (47 ) Other 2 - 1 Effective tax rate 43 % 34 % (13 )% Total income tax expense for the year ended December 31, 2017 was $1.0 million. Income tax expense for 2017 was based on: i) the U.S. statutory rate of 34%, ii) increased by the impact of the federal rate change on deferred tax assets due to enactment of the Tax Cuts and Jobs Act, iii) increased by state income taxes; and iv) reduced by permanent adjustments and research tax credits. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act. This legislation makes significant change in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 34% to 21%. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the enacted rate. This revaluation resulted in a provision of $0.4 million to income tax expense in continuing operations and a corresponding reduction in the deferred tax assets. Total income tax expense for the year ended December 31, 2016 was $2.1 million. Income tax expense in 2016 was based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by permanent adjustments and research tax credits. We recorded a benefit from income taxes of $0.5 million for the year ended December 31, 2015. The benefit from income taxes was the result of a $1.9 million tax benefit from the reversal of a reserve for uncertain tax positions, which was partially offset by $1.4 million of income taxes on pre-tax income based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by research tax credits and permanent adjustments. As previously reported, the Internal Revenue Service (“IRS”) commenced an examination of our tax return for the year ended December 31, 2012 in September 2014. In July 2015, the IRS notified us that it had completed its examination and that it had no changes to our reported tax. As a result of the completion of the IRS examination, we determined that the $1.9 million reserve for uncertain tax positions we had established on federal research and development credits in 2012 was no longer required. We reversed the reserve in 2015. As of December 31, 2017 and 2016, we had deferred tax assets for which we had recorded no valuation allowance. The principal components of deferred tax assets were as follows at December 31 (in thousands): 2017 2016 Depreciation $ 330 $ 435 Stock compensation 103 225 Federal research and development credits 4,602 - Other 367 418 Total 5,402 1,078 Less valuation allowance (- ) (- ) Deferred tax assets, net $ 5,402 $ 1,078 As of December 31, 2017, we had a total of $5.4 million of deferred tax assets for which we had recorded no valuation allowance. We have assessed the need for a valuation allowance on our deferred tax assets. Based on our assessment of future sources of income, including reversing deferred tax liabilities, and future earnings, we have determined that it is more likely than not that the deferred tax assets will be realized, and therefore there is no valuation allowance required for the deferred tax assets. We will continue to assess the level of valuation allowance in future periods. Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly. A rollforward of the uncertain tax position related to our research and development tax credits is as follows (in thousands): Uncertain tax positions at December 31, 2014 $ 2,945 Decrease due to completion of IRS examination (1,913 ) Uncertain tax positions at December 31, 2015 1,032 Increase due to completion of IRS examination - Uncertain tax positions at December 31, 2016 1,032 Decrease due to positions taken in prior periods (34 ) Uncertain tax positions at December 31, 2017 $ 998 Uncertain tax positions of $0.7 million will impact our tax rate if realized. The difference between this amount and the total uncertain tax positions in the table above is the federal tax effect on state tax credits. At December 31, 2016, in addition to deferred tax assets carried on our balance sheet, we also had net federal research and development credit carryforwards available of $4.8 million. Under the income tax rules at that time, these credits were not recorded as tax assets as they relate to excess stock compensation deductions and could not be recorded as tax assets until the amounts had been utilized to reduce our tax liability. To the extent that these assets were used to reduce taxes in 2016, and 2015, the benefits were recorded as a reduction to additional paid-in capital. In 2016 and 2015, we recorded tax benefits to additional paid-in capital of $0.7 million, and $0.6 million, respectively. We adopted ASU 2016-09 in 2017 which was applied using a modified retrospective approach. Upon adoption, we recorded a deferred tax asset of $4.8 million with an offsetting adjustment to retained earnings related to excess stock compensation deductions that were not previously recorded as tax assets. We utilized $0.2 million of these tax assets in 2017. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2017, we had no accrued interest or penalties related to uncertain tax positions. The tax years from 2014 through 2017 are subject to examination by the IRS and the tax years 2001 through 2017 are subject to examination by state tax authorities. In the second quarter of 2017, the Internal Revenue Service commenced an examination of our tax return for the year ended December 31, 2015. The examination has just started and we do not have any indication of the outcome of this examination at this time.

EQUITY AND STOCK COMPENSATION P

EQUITY AND STOCK COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY AND STOCK COMPENSATION PLANS	6. EQUITY AND STOCK COMPENSATION PLANS Fixed Stock Option Plan Options are granted at exercise prices as determined by the Board of Directors and have terms ranging from four to a maximum of ten years. Options generally vest over three to five years. The following table presents stock-based employee compensation expenses included in our consolidated statements of income and comprehensive income (in thousands): Years ended December 31, 2017 2016 2015 Cost of services $ 9 $ 10 $ 28 Research and development 119 86 89 Selling and marketing 15 11 13 General and administrative 520 451 559 Stock-based compensation expense $ 663 $ 558 $ 689 Stock-based compensation expense in the preceding table includes expenses associated with grants of: i) stock options; and iii) unrestricted shares of our common stock. The methods used to determine stock-based compensation expense for each type of equity grant are described in the following paragraphs. Stock Option Grants. Unrestricted Stock Grants The accounting treatment of unrestricted stock awards in 2017, 2016 and 2015 is described below: Year ended December 31, 2017. We issued shares of common stock related to the February 2017 grant as follows: i) 54,014 net shares of common stock were issued in early July 2017 after employees surrendered 12,986 shares for which we paid $67,000 of withholding taxes on their behalf; and ii) 53,378 net shares of common stock were issued in early January 2018 after employees surrendered 13,622 shares for which we paid $64,000 of withholding taxes on their behalf. Year ended December 31, 2016. We issued shares of common stock related to the March 2016 grant as follows: i) 58,902 net shares of common stock were issued in early July 2016 after employees surrendered 17,098 shares for which we paid $74,000 of withholding taxes on their behalf; and ii) 56,443 net shares of common stock were issued in early January 2017 after employees surrendered 19,557 shares for which we paid $119,000 of withholding taxes on their behalf. Year ended December 31, 2015. We issued shares of common stock related to the March 2015 grant as follows: i) 58,862 net shares of common stock were issued in early July 2015 after employees surrendered 17,138 shares for which we paid $69,000 of withholding taxes on their behalf; and ii) 57,151 shares of common stock were issued in early January 2016 after employees surrendered 18,849 shares for which we paid $61,000 of withholding taxes on their behalf. A summary of stock option transactions for our fixed stock option plan for the years ended December 31, 2017, 2016, and 2015 are presented below: 2017 2016 2015 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year 86,202 $ 4.37 86,202 $ 4.37 106,202 $ 4.71 Granted - - - - - - Exercised (4,168 ) 3.09 - - - - Forfeited or cancelled (54,034 ) 5.20 - - (20,000 ) 6.18 Outstanding at end of year 28,000 $ 2.97 86,202 $ 4.37 86,202 $ 4.37 Exercisable at year end 28,000 $ 2.97 86,202 $ 4.37 86,202 $ 4.37 Total options outstanding at December 31, 2017 were 28,000. All of those options were vested and had a weighted average exercise price of $2.97. No stock options were granted in the years ended December 31, 2017, 2016 and 2015. For the year ended December 31, 2017, 4,168 options were exercised which generated proceeds of $13,000. No options were exercised in the years ended December 31, 2016 and 2015. At December 31, 2017, the weighted average remaining contractual term for total options outstanding and total options exercisable was approximately 0.9 years for each. At December 31, 2017, the aggregate intrinsic value of options outstanding and options exercisable was $43,000 for each. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The following table summarizes the stock options outstanding at December 31, 2017: Options Outstanding Options Exercisable Exercise Price Range Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Number Weighted Average Exercise Price $2 to $3 18,000 $ 2.52 1.39 18,000 $ 2.52 $3 to $4 10,000 3.77 .14 10,000 3.77 28,000 $ 2.97 .94 28,000 $ 2.97 At December 31, 2017, there was no unrecognized compensation expense related to non-vested stock options as there were no non-vested stock options. We issue common stock from previously authorized but unissued shares to satisfy option exercises and purchases under our Employee Stock Purchase Plan. Employee Stock Purchase Plan Share Purchases We repurchased 1,005,412 shares of common stock under this program for a total cost of $4.8 million during the year ended December 31, 2017. Included in the shares repurchased during 2017 were 210,000 shares repurchased through a privately negotiated transaction. On March 9, 2017, after approval by the Company's Audit Committee and Board of Directors, the Company repurchased 210,000 shares from Richard P. Moberg, the Company's former co-Chief Executive Officer, co-President and Chief Financial Officer and current member of the Board of Directors at a 10% discount off of the market closing price of the Company's stock on March 8, 2017. The closing price of our common stock on March 8, 2017 was $4.85. The resulting sale price, after calculating the ten percent (10%) discount was $4.36 and the total transaction cost was $915,600. We repurchased 690,801 shares for a total cost of $3.7 million during the year ended December 31, 2016. Since the program commenced in April 2016 and concluded in December 2017, we have repurchased 1,696,213 shares for a total cost of $8.5 million. Dividends –

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	7. COMMITMENTS AND CONTINGENT LIABILITIES Lease Commitments Litigation Guarantees and Indemnification Obligations We enter into agreements in the ordinary course of business that require us: i) to perform under the terms of the contracts, ii) to protect the confidentiality of our customers’ intellectual property, and iii) to indemnify customers, including indemnification against third party claims alleging infringement of intellectual property rights. We also have agreements with each of our directors and executive officers to indemnify such directors or executive officers, to the extent legally permissible, against all liabilities reasonably 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 of the Company. Given the nature of the above obligations and agreements, we are unable to make a reasonable estimate of the maximum potential amount that we could be required to pay. Historically, we have not made any significant payments on the above guarantees and indemnifications and no amount has been accrued in the accompanying consolidated financial statements with respect to these guarantees and indemnifications.

BUSINESS SEGMENTS AND MAJOR CUS

BUSINESS SEGMENTS AND MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
BUSINESS SEGMENTS AND MAJOR CUSTOMERS	8. BUSINESS SEGMENTS AND MAJOR CUSTOMERS We organize ourselves into a single segment that reports to the chief operating decision makers. 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 (in thousands): Year ended December 31, 2017 2016 2015 United States $ 12,430 $ 17,806 $ 11,737 Brazil 1,079 1,302 2,163 Rest of world 2,773 2,458 5,721 $ 16,282 $ 21,566 $ 19,621 Revenue by product group was (in thousands): Year ended December 31, 2017 2016 2015 Biometrics $ 12,753 $ 16,546 $ 16,916 Imaging 3,368 4,739 2,301 DSL royalties 161 281 404 $ 16,282 $ 21,566 $ 19,621 The portion of total revenue that was derived from major customers was as follows: Year ended December 31, 2017 2016 2015 Customer A 16 % 2 % 4 % Customer B 8 % 18 % 3 % Customer C 7 % 12 % 2 % Customer D 6 % 5 % 10 % Customer E 2 % 18 % 6 %

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2017
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLAN	9. EMPLOYEE BENEFIT PLAN In 1994, we established a qualified 401(k) Retirement Plan (the “Plan”) under which employees are allowed to contribute certain percentages of their pay, up to the maximum allowed under Section 401(k) of the Internal Revenue Code. Our contributions to the Plan are at the discretion of the Board of Directors. Our contributions were approximately $223,000, $225,000, and $216,000 in 2017, 2016 and 2015, respectively.

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
NET INCOME PER SHARE	10. NET INCOME PER SHARE Net income per share is calculated as follows (in thousands, except per share data): Year ended December 31, 2017 2016 2015 Net income $ 1,282 $ 4,103 $ 4,614 Shares outstanding: Weighted-average common shares outstanding 21,814 22,829 22,899 Additional dilutive common stock equivalents 63 69 66 Diluted shares outstanding 21,877 22,898 22,965 Net income per share – basic $ 0.06 $ 0.18 $ 0.20 Net income per share - diluted $ 0.06 $ 0.18 $ 0.20 For both of the years ended December 31, 2016 and 2015, options to purchase 54,034 shares of common stock at weighted average exercise prices of $5.20 per share were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common shares and thus would be anti-dilutive.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	12 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	11. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss and activity were as follows (in thousands): December 31, Increase/ Reclassification December 31, 2016 Decrease Adjustments 2017 Unrealized losses on available for sale securities $ (45 ) $ 21 $ 24 $ - Unrealized gains on available for sale securities 17 21 (38 ) - Net unrealized gains (losses) on available for sale securities (28 ) 42 (14 ) - Income tax benefit (expense) on other comprehensive loss 9 (14 ) 5 - Total accumulated other comprehensive loss, net of taxes $ (19 ) $ 28 $ (9 ) -

OFF-BALANCE SHEET ARRANGEMENTS

OFF-BALANCE SHEET ARRANGEMENTS	12 Months Ended
	Dec. 31, 2017
Off Balance Sheet Arrangements [Abstract]
OFF-BALANCE SHEET ARRANGEMENTS	12. OFF-BALANCE SHEET ARRANGEMENTS We do not currently have any arrangements with unconsolidated entities, such as entities often referred to as structured finance, special purpose entities, or variable interest entities which are often established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Accordingly, we are not exposed to any financing, liquidity, market or credit risk if we had such relationships.

QUARTERLY RESULTS OF OPERATIONS

QUARTERLY RESULTS OF OPERATIONS UNAUDITED	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY RESULTS OF OPERATIONS - UNAUDITED	13. QUARTERLY RESULTS OF OPERATIONS – UNAUDITED The following table is a summary of certain items in the consolidated statements of income and comprehensive income for each of our quarters in the two-year period ended December 31, 2017 (in thousands, except per share data). 2017 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 4,347 $ 2,745 $ 5,905 $ 3,286 Operating income (loss) 386 238 1,665 (478 ) Net income (loss) 405 228 1,229 (580 ) Net income (loss) per share – basic $ 0.02 $ 0.01 $ 0.06 $ (0.03 ) Net income (loss) per share – diluted $ 0.02 $ 0.01 $ 0.06 $ (0.03 ) 2016 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 4,834 $ 6,904 $ 5,899 $ 3,929 Operating income 880 2,074 2,313 641 Net income 635 1,436 1,573 460 Net income per share – basic $ 0.03 $ 0.06 $ 0.07 $ 0.02 Net income per share – diluted $ 0.03 $ 0.06 $ 0.07 $ 0.02 Quarterly amounts may not sum to annual amounts due to rounding and dilution.

Schedule of valuation and quali

Schedule of valuation and qualifying accounts	12 Months Ended
	Dec. 31, 2017
Valuation and Qualifying Accounts [Abstract]
Schedule II - Valuation and Qualifying Accounts	Schedule II - Valuation and Qualifying Accounts – Years ended December 31, 2017, 2016, and 2015 (in thousands) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Additions Balance at Charged to Charged Deductions Balance Beginning Costs and to Other Charged to at End of Period Expenses Accounts Reserves of Period Allowance for doubtful accounts receivable: 2017 $ 20 $ 19 $ - $ (19 ) $ 20 2016 $ 20 $ - $ - $ - $ 20 2015 $ 20 $ - $ - $ - $ 20 Inventory reserves: 2017 $ - $ - $ - $ - $ - 2016 $ - $ - $ - $ - $ - 2015 $ - $ - $ - $ - $ - Warranty reserves: 2017 $ - $ - $ - $ - $ - 2016 $ - $ - $ - $ - $ - 2015 $ - $ - $ - $ - $ - Deferred tax asset valuation allowance: 2017 $ - $ - $ - $ - $ - 2016 $ - $ - $ - $ - $ - 2015 $ - $ - $ - $ - $ -

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Use of Estimates	Use of Estimates
Fair Value Measurements	Fair Value Measurements Cash and cash equivalents, which primarily include money market mutual funds, were $51.6 million and $51.9 million as of December 31, 2017 and December 31, 2016, respectively. We classified our cash equivalents of $50.0 million and $49.8 million as of December 31, 2017 and 2016, respectively, within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our investments, which consisted of high yield corporate debt securities, were also classified within Level 1 of the fair value hierarchy because they were valued using quoted market prices. Debt securities with maturities greater than one year were classified as long term assets. We categorized our investments as available-for-sale securities, and carried them at fair value in our financial statements. We had $1.0 million of available-for-sale investments as of December 31, 2016. As of December 31, 2017, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at December 31, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ - $ - $ - Money market funds (included in cash and cash equivalents) 49,986 Total $ 49,986 $ - $ - As of December 31, 2016, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at December 31, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 951 $ - $ - Money market funds (included in cash and cash equivalents) 49,839 - - Total $ 50,790 $ - $ -
Cash and Cash Equivalents	Cash and Cash Equivalents
Investments	Investments Realized gains on investments were $36,000 and $12,000 in the years ended December 31, 2017 and December 31, 2015. There were no realized gains or losses on investments in the year ended December 31, 2016. There were no unrealized gains or losses on investments at year ended December 31, 2017. Unrealized gains on investments were $69,000 in the year ended December 31, 2016. Unrealized losses on investments were $53,000 in the year ended December 31, 2015.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
Inventories	Inventories
Property and Equipment	Property and Equipment The estimated useful lives of assets used by us are: Building 30 years Building improvements 5 to 20 years Furniture and fixtures 5 years Computer, office & manufacturing equipment 3 years Purchased software 3 years
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Revenue Recognition	Revenue Recognition Persuasive evidence of an arrangement: Product delivery: Fixed or determinable fee: Collection is deemed probable: We categorize revenue as software licenses, software maintenance, services, hardware, or royalties. 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 typically provide customers with the right to use our software in perpetuity. We recognize revenue from software licenses upon delivery when licenses are sold in single element arrangements, because we have no post-delivery obligations, including contractual or implied Post Contract Support (“PCS”). 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. We recognize software maintenance revenue ratably over the related contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue as services are delivered when services are sold in single element arrangements. Hardware Hardware revenue consists of sales of biometrics equipment to a single U.S. government customer. We recognize hardware revenue upon delivery and acceptance of the equipment by the customer. Royalties Royalties consist primarily of royalty payments we receive under DSL silicon contracts with two customers that incorporate our silicon intellectual property (“IP”) in their DSL chipsets. We sold the assets of our DSL IP business in 2009, but we continue to receive royalty payments from these customers. Royalties are reported in continuing operations in accordance with ASC 205, Reporting Discontinued Operations, because we have continuing ongoing cash flows from this business. Since we cannot reasonably estimate royalty revenue, such revenue is recognized in the quarter in which a final report is received from a customer. Royalty reports are typically received in the quarter immediately following the quarter in which sales of royalty-bearing products occur. Multiple element arrangements with software and software related elements In addition to selling software licenses, software maintenance and software services in single element arrangements, we also sell these three products as part of multiple element arrangements. We apply the provisions of ASC 985-605, Software Revenue Recognition, to these arrangements because all the elements are software or software related. The various combinations of multiple element arrangements and our revenue recognition for each are described as follows: · Software licenses and software maintenance · Software licenses and services. · Software licenses, software maintenance and services. Multiple element arrangement with hardware and software elements We also have a multiple element arrangement with one customer that involves the delivery of hardware, software maintenance, and software services. We determined that these elements qualified as separate units of accounting under ASC 605, Revenue Recognition, because they have value to the customer on a standalone basis. We recognize revenue from this arrangement as follows: i) hardware revenue is recognized upon delivery and acceptance of the equipment by the customer; ii) maintenance revenue is recognized ratably over the related contract period; and iii) service revenue is recognized as services are delivered.
Income Taxes	Income Taxes We recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the tax position. The evaluation of an uncertain tax position is based on factors that include, but are not limited to, changes in the tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, and changes in facts or circumstances related to a tax position. Any changes to these estimates, based on the actual results obtained and/or a change in assumptions, could impact our tax provision in future periods. Interest and penalty charges, if any, related to unrecognized tax benefits would be classified as a provision for income tax in the statement of income.
Capitalization of Software Costs	Capitalization of Software Costs
Research and Development Costs	Research and Development Costs
Concentration of Credit Risk	Concentration of Credit Risk Concentration of credit risk with respect to net accounts receivable consisted of amounts owed by the following customers that comprised more than 10% of net accounts receivable at December 31: 2017 2016 Customer A 11 % 17 % Customer B 10 % - % Customer C 9 % 13 % Customer D 2 % 13 % Concentration of credit risk with respect to our investment portfolio consisted of $0.5 million and $0.5 million with two issuers of corporate debt securities, respectively, at December 31, 2016. At December 31, 2017, there was no concentration of credit with respect to our investment portfolio as we had no corporate debt securities.
Stock-based compensation	Stock-Based Compensation For stock awards, we determine the fair value of the award by using 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. For stock options, we use the Black-Scholes option valuation model to estimate the fair value of the award. 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.
Computation of Earnings per Share	Computation of Earnings per Share
Fair Value of Financial Instruments	Fair Value of Financial Instruments
Advertising Costs	Advertising Costs –
Recent Accounting Pronouncements	Recent Accounting Pronouncements: Recently Adopted Accounting Pronouncements FASB ASU No. 2014-09 The new standard permits two methods of adoption: retrospective to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the new standard recognized at the date of initial application (modified retrospective method). The Company will adopt this guidance utilizing the full retrospective method and will adjust each comparative period financial statements to reflect the full retrospective method, beginning with the Quarterly Report on Form 10-Q for the first quarter of 2018. In preparation for adoption of the standard, we have implemented new internal controls for the implementation and modified and augmented our existing internal controls to enable the preparation of financial information and have reached conclusions on key accounting assessments related to the standard. Based on our assessment, the most significant impacts of adopting the new standard relate to the following: i) 2015 imaging software license contract ii) DSL royalty contracts iii) Minimum license/royalty payment contract iv) Sales commissions and other third-party acquisition costs Revenue recognition related to our other arrangements for software licenses, software maintenance, services, and hardware will remain substantially unchanged. Adoption of the standard will result in an aggregate decrease in revenue of $0.8 million and $2.8 million for fiscal year 2017 and 2016, respectively, a decrease in costs and expenses of $0.1 million and $0.3 million, respectively, a decrease in the provision for income taxes of $0.4 million and $1.0 million, respectively, and an increase in stockholders’ equity of $2.7 million, primarily due to the changes noted above. In addition, adoption of the standard will result in an increase in accounts receivable of $1.4 million and $2.2 million as of December 31, 2017 and 2016, respectively, driven by unbilled receivables from recognition of revenue from the estimate of variable consideration related to the minimum license/royalty payments in one of our contracts; a decrease in deferred tax assets of $0.3 million and $0.8 million as of December 31, 2017 and 2016, respectively, driven primarily by a difference in timing of revenue recognition and expenses for book and tax purposes; and an increase in accrued expenses of $0.2 million and $0.3 million as of December 31, 2017 and 2016, respectively, driven by sales commissions related to recognition of revenue from the estimate of variable consideration related to the minimum license/royalty payments in one of our contracts. See Expected Impacts of Topic 606 Adoption to Reported Results below for the impact of the adoption of the new standard on our consolidated financial statements. Expected Impacts of Topic 606 Adoption to Reported Results Adoption of the new revenue standard is expected to impact our reported results as follows: (In thousands, except per share data) Year ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 16,282 $ (817 ) $ 15,465 Costs and expenses 16,054 (114 ) 15,940 Provision for income taxes 965 (421 ) 544 Net income 1,282 (282 ) 1,000 Net income per share - basic and diluted 0.06 (0.01 ) 0.05 (In thousands, except per share data) Year ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 21,566 $ (2,804 ) $ 18,762 Costs and expenses 16,467 (294 ) 16,173 Provision for income taxes 2,085 (986 ) 1,099 Net income 4,103 (1,524 ) 2,579 Net income per share - basic and diluted 0.18 (0.07 ) 0.11 (In thousands) December 31, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 2,401 $ 1,417 $ 3,818 Prepaid expenses and other current assets 203 13 216 Deferred tax assets 5,402 (331 ) 5,071 Accrued expenses 1,184 217 1,401 Stockholders' equity 59,652 2,722 62,374 (In thousands) December 31, 2016 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,016 $ 2,234 $ 5,250 Prepaid expenses and other current assets 268 22 290 Deferred tax assets 1,078 (752 ) 326 Accrued expenses 1,075 341 1,416 Stockholders' equity 57,841 2,687 60,528 Adoption of the new revenue standard had no impact to cash from or used in operating, financing, or investing on our consolidated statements of cash flows. FASB ASU No. 2016-09. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. In addition, the new standard eliminates the limitation on recognition of excess stock compensation benefits until such benefits are actually realized, and instead applies the general recognition standard to these deferred tax assets. We adopted ASU 2016-09 in 2017 which was applied using a modified retrospective approach. Upon adoption, we recorded a deferred tax asset of $4.8 million with an offsetting adjustment to retained earnings related to excess stock compensation deductions that were not previously recorded as tax assets. For the year ended December 31, 2017, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. We have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. Recent Accounting Pronouncements Not Yet Adopted FASB ASU No. 2016-13. With the exception of the standards discussed above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of December 31, 2017.
Segments	Segments

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at December 31, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ - $ - $ - Money market funds (included in cash and cash equivalents) 49,986 Total $ 49,986 $ - $ - Fair Value Measurement at December 31, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 951 $ - $ - Money market funds (included in cash and cash equivalents) 49,839 - - Total $ 50,790 $ - $ -
Schedule of estimated useful lives assets	Building 30 years Building improvements 5 to 20 years Furniture and fixtures 5 years Computer, office & manufacturing equipment 3 years Purchased software 3 years
Schedules of concentration of credit risk with respect to net accounts receivable	2017 2016 Customer A 11 % 17 % Customer B 10 % - % Customer C 9 % 13 % Customer D 2 % 13 %
Schedule of adoption of the new revenue standard	(In thousands, except per share data) Year ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 16,282 $ (817 ) $ 15,465 Costs and expenses 16,054 (114 ) 15,940 Provision for income taxes 965 (421 ) 544 Net income 1,282 (282 ) 1,000 Net income per share - basic and diluted 0.06 (0.01 ) 0.05 (In thousands, except per share data) Year ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 21,566 $ (2,804 ) $ 18,762 Costs and expenses 16,467 (294 ) 16,173 Provision for income taxes 2,085 (986 ) 1,099 Net income 4,103 (1,524 ) 2,579 Net income per share - basic and diluted 0.18 (0.07 ) 0.11 (In thousands) December 31, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 2,401 $ 1,417 $ 3,818 Prepaid expenses and other current assets 203 13 216 Deferred tax assets 5,402 (331 ) 5,071 Accrued expenses 1,184 217 1,401 Stockholders' equity 59,652 2,722 62,374 (In thousands) December 31, 2016 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,016 $ 2,234 $ 5,250 Prepaid expenses and other current assets 268 22 290 Deferred tax assets 1,078 (752 ) 326 Accrued expenses 1,075 341 1,416 Stockholders' equity 57,841 2,687 60,528

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	2017 2016 Land $ 1,056 $ 1,056 Building and improvements 9,060 9,060 Computer equipment 638 629 Purchased software 83 83 Furniture and fixtures 778 778 Office equipment 138 166 Total 11,753 11,772 Less accumulated depreciation and amortization (7,449 ) (7,138 ) Property and equipment, net $ 4,304 $ 4,634

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of components of the provision for income taxes	Year ended December 31, 2017 2016 2015 Current: Federal 470 $ 1,807 $ (807 ) State 70 410 280 540 2,217 (527 ) Deferred: Federal 436 (120 ) (16 ) State (11 ) (12 ) 7 425 (132 ) (9 ) Provision for (benefit from) income taxes $ 965 $ 2,085 $ (536 )
Schedule of reconciliation of the U.S. federal statutory rate to the effective tax rate	Year ended December 31, 2017 2016 2015 Federal statutory rate 34 % 34 % 34 % Enactment of the Tax Cuts and Jobs Act 16 - - State rate, net of federal benefit 5 5 5 Tax credits (11 ) (4 ) (4 ) Permanent adjustments (3 ) (1 ) (2 ) Reversal of reserve - - (47 ) Other 2 - 1 Effective tax rate 43 % 34 % (13 )%
Schedule of components of deferred tax assets	2017 2016 Depreciation $ 330 $ 435 Stock compensation 103 225 Federal research and development credits 4,602 - Other 367 418 Total 5,402 1,078 Less valuation allowance (- ) (- ) Deferred tax assets, net $ 5,402 $ 1,078
Schedule of roll forward of the uncertain tax position related to research and development tax credits	Uncertain tax positions at December 31, 2014 $ 2,945 Decrease due to completion of IRS examination (1,913 ) Uncertain tax positions at December 31, 2015 1,032 Increase due to completion of IRS examination - Uncertain tax positions at December 31, 2016 1,032 Decrease due to positions taken in prior periods (34 ) Uncertain tax positions at December 31, 2017 $ 998

EQUITY AND STOCK COMPENSATION25

EQUITY AND STOCK COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based employee compensation expense included in consolidated statements of income and comprehensive income	Years ended December 31, 2017 2016 2015 Cost of services $ 9 $ 10 $ 28 Research and development 119 86 89 Selling and marketing 15 11 13 General and administrative 520 451 559 Stock-based compensation expense $ 663 $ 558 $ 689
Schedule of the summary of stock option transactions for one fixed stock option plans	2017 2016 2015 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year 86,202 $ 4.37 86,202 $ 4.37 106,202 $ 4.71 Granted - - - - - - Exercised (4,168 ) 3.09 - - - - Forfeited or cancelled (54,034 ) 5.20 - - (20,000 ) 6.18 Outstanding at end of year 28,000 $ 2.97 86,202 $ 4.37 86,202 $ 4.37 Exercisable at year end 28,000 $ 2.97 86,202 $ 4.37 86,202 $ 4.37
Schedule of the summary of stock options outstanding	Options Outstanding Options Exercisable Exercise Price Range Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Number Weighted Average Exercise Price $2 to $3 18,000 $ 2.52 1.39 18,000 $ 2.52 $3 to $4 10,000 3.77 .14 10,000 3.77 28,000 $ 2.97 .94 28,000 $ 2.97

BUSINESS SEGMENTS AND MAJOR C26

BUSINESS SEGMENTS AND MAJOR CUSTOMERS (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Year ended December 31, 2017 2016 2015 United States $ 12,430 $ 17,806 $ 11,737 Brazil 1,079 1,302 2,163 Rest of world 2,773 2,458 5,721 $ 16,282 $ 21,566 $ 19,621
Schedule of revenue by product group	Year ended December 31, 2017 2016 2015 Biometrics $ 12,753 $ 16,546 $ 16,916 Imaging 3,368 4,739 2,301 DSL royalties 161 281 404 $ 16,282 $ 21,566 $ 19,621
Schedule of total revenue that was derived from major customers	Year ended December 31, 2017 2016 2015 Customer A 16 % 2 % 4 % Customer B 8 % 18 % 3 % Customer C 7 % 12 % 2 % Customer D 6 % 5 % 10 % Customer E 2 % 18 % 6 %

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Schedule of net income per share	Year ended December 31, 2017 2016 2015 Net income $ 1,282 $ 4,103 $ 4,614 Shares outstanding: Weighted-average common shares outstanding 21,814 22,829 22,899 Additional dilutive common stock equivalents 63 69 66 Diluted shares outstanding 21,877 22,898 22,965 Net income per share – basic $ 0.06 $ 0.18 $ 0.20 Net income per share - diluted $ 0.06 $ 0.18 $ 0.20

ACCUMULATED OTHER COMPREHENSI28

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of accumulated other comprehensive loss and activity	December 31, Increase/ Reclassification December 31, 2016 Decrease Adjustments 2017 Unrealized losses on available for sale securities $ (45 ) $ 21 $ 24 $ - Unrealized gains on available for sale securities 17 21 (38 ) - Net unrealized gains (losses) on available for sale securities (28 ) 42 (14 ) - Income tax benefit (expense) on other comprehensive loss 9 (14 ) 5 - Total accumulated other comprehensive loss, net of taxes $ (19 ) $ 28 $ (9 ) -

QUARTERLY RESULTS OF OPERATIO29

QUARTERLY RESULTS OF OPERATIONS UNAUDITED (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	2017 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 4,347 $ 2,745 $ 5,905 $ 3,286 Operating income (loss) 386 238 1,665 (478 ) Net income (loss) 405 228 1,229 (580 ) Net income (loss) per share – basic $ 0.02 $ 0.01 $ 0.06 $ (0.03 ) Net income (loss) per share – diluted $ 0.02 $ 0.01 $ 0.06 $ (0.03 ) 2016 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 4,834 $ 6,904 $ 5,899 $ 3,929 Operating income 880 2,074 2,313 641 Net income 635 1,436 1,573 460 Net income per share – basic $ 0.03 $ 0.06 $ 0.07 $ 0.02 Net income per share – diluted $ 0.03 $ 0.06 $ 0.07 $ 0.02

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets measured at fair value on recurring basis (Details) - Fair value on recurring basis - Fair Value - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities [Line Items]
Total assets measured at fair value	$ 49,986	$ 50,790
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Corporate debt securities	0	951
Fair Value Measurement, 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 [Line Items]
Money market funds (included in cash and cash equivalents)	49,986	49,839
Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities [Line Items]
Total assets measured at fair value	0	0
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Corporate debt securities	0	0
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Money market funds (included in cash and cash equivalents)
Schedule of Available-for-sale Securities [Line Items]
Money market funds (included in cash and cash equivalents)		0
Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities [Line Items]
Total assets measured at fair value	0	0
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Corporate debt securities	$ 0	0
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Money market funds (included in cash and cash equivalents)
Schedule of Available-for-sale Securities [Line Items]
Money market funds (included in cash and cash equivalents)		$ 0

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of assets (Details 1)	12 Months Ended
	Dec. 31, 2017
Building
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	30 years
Building improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	5 years
Building improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	20 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	5 years
Computer, office & manufacturing equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	3 years
Purchased software
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	3 years

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of credit risk (Details 2) - Accounts Receivable - Credit Concentration Risk	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	11.00%	17.00%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%	0.00%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage	9.00%	13.00%
Customer D
Concentration Risk [Line Items]
Concentration risk, percentage	2.00%	13.00%

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of the new revenue standard Income Statement (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 3,286	$ 5,905	$ 2,745	$ 4,347	$ 3,929	$ 5,899	$ 6,904	$ 4,834	$ 16,282	$ 21,566	$ 19,621
Costs and expenses									16,054	16,467	15,749
Provision for income taxes									965	2,085	(536)
Net income	$ (580)	$ 1,229	$ 228	$ 405	$ 460	$ 1,573	$ 1,436	$ 635	$ 1,282	$ 4,103	$ 4,614
Net income per share - basic and diluted (in dollars per share)									$ 0.06	$ 0.18
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue									$ (817)	$ (2,804)
Costs and expenses									(114)	(294)
Provision for income taxes									(421)	(986)
Net income									$ (282)	$ (1,524)
Net income per share - basic and diluted (in dollars per share)									$ (0.01)	$ (0.07)
Accounting Standards Update 2014-09 | As Adjusted
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue									$ 15,465	$ 18,762
Costs and expenses									15,940	16,173
Provision for income taxes									544	1,099
Net income									$ 1,000	$ 2,579
Net income per share - basic and diluted (in dollars per share)									$ 0.05	$ 0.11

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of the new revenue standard Balance Sheet(Details 4) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 2,401	$ 3,016
Prepaid expenses and other current assets	203	268
Deferred tax assets	5,402	1,078
Accrued expenses	1,184	1,075
Stockholders' equity	59,652	57,841	$ 56,181	$ 52,389
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	1,417	2,234
Prepaid expenses and other current assets	13	22
Deferred tax assets	(331)	(752)
Accrued expenses	217	341
Stockholders' equity	2,722	2,687
Accounting Standards Update 2014-09 | As Adjusted
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	3,818	5,250
Prepaid expenses and other current assets	216	290
Deferred tax assets	5,071	326
Accrued expenses	1,401	1,416
Stockholders' equity	$ 62,374	$ 60,528

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, which primarily include money market funds	$ 51,608	$ 51,913	$ 51,232	$ 43,985
Fair value on recurring basis | Fair Value | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investments	0	951
Fair value on recurring basis | Fair Value | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds (included in cash and cash equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	$ 49,986	$ 49,839

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Realized gains (losses) on investments	$ 36,000		$ 12,000
Unrealized gain (loss) on securities		$ 69,000	$ (53,000)

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 2) - Software licenses and software maintenance - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Deferred revenue		$ 3.6
Licenses revenue	$ 3.6

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 3) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)Issuer	Dec. 31, 2016USD ($)
Concentration Risk [Line Items]
Cash and cash equivalents, in excess of federally insured deposit limits	$ 51.4	$ 51.7
Investment Portfolio | Credit Concentration Risk | Corporate debt securities
Concentration Risk [Line Items]
Number of issuer | Issuer	2
Investment Portfolio | Credit Concentration Risk | Corporate debt securities | Issuer One
Concentration Risk [Line Items]
Concentration of risk, amount		0.5
Investment Portfolio | Credit Concentration Risk | Corporate debt securities | Issuer Two
Concentration Risk [Line Items]
Concentration of risk, amount		$ 0.5

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 4)	1 Months Ended	3 Months Ended								12 Months Ended
	Oct. 31, 2015USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)Segment	Dec. 31, 2016USD ($)	Oct. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of operating segment | Segment										1
Consumated license contract	$ 4,625,000
License fee	4,500,000
Software maintenance fee	$ 125,000
Revenue		$ 3,286,000	$ 5,905,000	$ 2,745,000	$ 4,347,000	$ 3,929,000	$ 5,899,000	$ 6,904,000	$ 4,834,000	$ 16,282,000	$ 21,566,000		$ 19,621,000
Stockholders' equity		59,652,000				57,841,000				59,652,000	57,841,000		56,181,000	$ 52,389,000
Costs and expenses										16,054,000	16,467,000		15,749,000
Provision for income taxes										965,000	2,085,000		$ (536,000)
Accounts receivable, net		2,401,000				3,016,000				2,401,000	3,016,000
Deferred tax assets		5,402,000				1,078,000				5,402,000	1,078,000
Accrued expenses		1,184,000				1,075,000				1,184,000	1,075,000
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										(817,000)	(2,804,000)
Stockholders' equity		2,722,000				2,687,000				2,722,000	2,687,000
Costs and expenses										(114,000)	(294,000)
Provision for income taxes										(421,000)	(986,000)
Accounts receivable, net		1,417,000				2,234,000				1,417,000	2,234,000
Deferred tax assets		(331,000)				(752,000)				(331,000)	(752,000)
Accrued expenses		217,000				341,000				217,000	341,000
Accounting Standards Update 2014-09 | Software License Arrangement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred revenue recognized												$ 4,500,000
Accounting Standards Update 2014-09 | Software Maintenance Arrangement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred revenue recognized												$ 125,000
Accounting Standards Update 2014-09 | 2015 imaging software license contract | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue											(3,600,000)
Stockholders' equity						3,600,000					3,600,000
Accounting Standards Update 2014-09 | DSL royalty contracts | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										(17,000)	(39,000)
Accounting Standards Update 2014-09 | Minimum license/royalty payment contract | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										(800,000)	860,000
Stockholders' equity						1,300,000					1,300,000
Unbilled receivables		$ 1,400,000				2,200,000				1,400,000	2,200,000
Accounting Standards Update 2014-09 | Sales commissions and other third-party acquisition costs | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity						$ (600,000)					(600,000)
Costs and expenses										$ (114,000)	$ (294,000)

PATENT RELATED INCOME (Detail T

PATENT RELATED INCOME (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Income from patent arrangement	$ 1,600,000	$ 800,000
Gain on sale of patent assets			$ 43,000
Home networking technology
Finite-Lived Intangible Assets [Line Items]
Sale of patent to unrelated third party			50,000
Transaction cost			$ 7,000

PROPERTY AND EQUIPMENT - Summar

PROPERTY AND EQUIPMENT - Summary of property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Public Utility, Property, Plant and Equipment [Line Items]
Total	$ 11,753	$ 11,772
Less accumulated depreciation and amortization	(7,449)	(7,138)
Property and equipment, net	4,304	4,634
Land
Public Utility, Property, Plant and Equipment [Line Items]
Total	1,056	1,056
Building and improvements
Public Utility, Property, Plant and Equipment [Line Items]
Total	9,060	9,060
Computer equipment
Public Utility, Property, Plant and Equipment [Line Items]
Total	638	629
Purchased software
Public Utility, Property, Plant and Equipment [Line Items]
Total	83	83
Furniture and fixtures
Public Utility, Property, Plant and Equipment [Line Items]
Total	778	778
Office equipment
Public Utility, Property, Plant and Equipment [Line Items]
Total	$ 138	$ 166

PROPERTY AND EQUIPMENT (Detail

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 0.4	$ 0.4	$ 0.4
Retired assets	$ 0.1	$ 0.1	$ 0.1

INCOME TAXES - Components of pr

INCOME TAXES - Components of provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ 470	$ 1,807	$ (807)
State	70	410	280
Total current tax	540	2,217	(527)
Deferred:
Federal	436	(120)	(16)
State	(11)	(12)	7
Total deferred tax	425	(132)	(9)
Provision for (benefit from) income taxes	$ 965	$ 2,085	$ (536)

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of U.S. federal statutory rate (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal statutory rate	34.00%	34.00%	34.00%
Enactment of the Tax Cuts and Jobs Act	16.00%	0.00%	0.00%
State rate, net of federal benefit	5.00%	5.00%	5.00%
Tax credits	(11.00%)	(4.00%)	(4.00%)
Permanent adjustments	(3.00%)	(1.00%)	(2.00%)
Reversal of reserve	(0.00%)	(0.00%)	(47.00%)
Other	2.00%	0.00%	1.00%
Effective tax rate	43.00%	34.00%	(13.00%)

INCOME TAXES - Principal compon

INCOME TAXES - Principal components of deferred tax assets (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Depreciation	$ 330	$ 435
Stock compensation	103	225
Federal research and development credits	4,602	0
Other	367	418
Total	5,402	1,078
Less valuation allowance	0	0
Deferred tax assets, net	$ 5,402	$ 1,078

INCOME TAXES - Rollforward of u

INCOME TAXES - Rollforward of uncertain tax position (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Uncertain tax positions [Roll Forward]
Uncertain tax positions	$ 1,032	$ 1,032	$ 2,945
Decrease due to completion of IRS examination			(1,913)
Increase due to completion of IRS examination		0
Decrease due to positions taken in prior periods	(34)
Uncertain tax positions	$ 998	$ 1,032	$ 1,032

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Tax Credit Carryforward [Line Items]
Income tax expense (benefit) of continuing operations	$ 965	$ 2,085	$ (536)
U.S. statutory rate	34.00%	34.00%	34.00%
Future federal statutory income tax rate	21.00%
Reduction in deferred tax assets	$ 400
Reversal of reserve for uncertain tax positions			$ 1,914
Income taxes on pre-tax income based on the U.S. statutory rate			1,400
Deferred tax assets	5,402	$ 1,078
Uncertain tax positions	700
Tax benefits to additional paid-in capital		701	$ 554
Deferred tax assets utilized	$ 200
Federal | Research and development tax credits
Tax Credit Carryforward [Line Items]
Net federal credit carryforwards		$ 4,800

EQUITY AND STOCK COMPENSATION48

EQUITY AND STOCK COMPENSATION PLANS - Stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 663	$ 558	$ 689
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	9	10	28
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	119	86	89
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	15	11	13
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 520	$ 451	$ 559

EQUITY AND STOCK COMPENSATION49

EQUITY AND STOCK COMPENSATION PLANS - Summary of stock option transactions (Details 1) - Stock Option - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shares
Outstanding at beginning of year	86,202	86,202	106,202
Granted	0	0	0
Exercised	(4,168)	0	0
Forfeited or cancelled	(54,034)	0	(20,000)
Outstanding at end of year	28,000	86,202	86,202
Exercisable at year end	28,000	86,202	86,202
Weighted Average Exercise Price
Outstanding at beginning of year	$ 4.37	$ 4.37	$ 4.71
Granted	0	0	0
Exercised	3.09	0	0
Forfeited or cancelled	5.20	0	6.18
Outstanding at end of year	2.97	4.37	4.37
Exercisable at year end	$ 2.97	$ 4.37	$ 4.37

EQUITY AND STOCK COMPENSATION50

EQUITY AND STOCK COMPENSATION PLANS - Summarizes of stock options outstanding (Details 2) - Stock Option - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, Number	28,000	86,202	86,202	106,202
Options outstanding, Weighted average exercise price	$ 2.97	$ 4.37	$ 4.37	$ 4.71
Options outstanding, Weighted average remaining contractual term (in years)	11 months 9 days
Options exercisable, Number	28,000	86,202	86,202
Options exercisable, Weighted average exercise price	$ 2.97	$ 4.37	$ 4.37
Exercise price range $2 to $3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range (lower)	2
Exercise price range (upper)	$ 3
Options outstanding, Number	18,000
Options outstanding, Weighted average exercise price	$ 2.52
Options outstanding, Weighted average remaining contractual term (in years)	1 year 4 months 21 days
Options exercisable, Number	18,000
Options exercisable, Weighted average exercise price	$ 2.52
Exercise price range $3 to $4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range (lower)	3
Exercise price range (upper)	$ 4
Options outstanding, Number	10,000
Options outstanding, Weighted average exercise price	$ 3.77
Options outstanding, Weighted average remaining contractual term (in years)	1 month 21 days
Options exercisable, Number	10,000
Options exercisable, Weighted average exercise price	$ 3.77

EQUITY AND STOCK COMPENSATION51

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals) - 2001 Nonqualified Stock Plan - Stock Options	12 Months Ended
	Dec. 31, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock awards authorized to grant	8,000,000
Number of stock awards available for grant	4,803,239
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options granted at exercise prices	4 years
Term of options vested	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options granted at exercise prices	10 years
Term of options vested	5 years

EQUITY AND STOCK COMPENSATION52

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 1)	1 Months Ended						12 Months Ended
	Jan. 31, 2018USD ($)shares	Jul. 31, 2017USD ($)shares	Jan. 31, 2017USD ($)shares	Jul. 31, 2016USD ($)shares	Jan. 31, 2016USD ($)shares	Jul. 31, 2015USD ($)shares	Dec. 31, 2017USD ($)Installmentshares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $							$ 663,000	$ 558,000	$ 689,000
2001 Nonqualified Stock Plan | Unrestricted Stock | February 2017 grant | Directors, Officers and Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issued | shares		54,014					134,000
Stock-based compensation expense | $							$ 663,000
Number of equal installments for shares issuance | Installment							2
Number of common stock shares surrendered by employees withholding taxes | shares		12,986
Common stock value surrendered by employees withholding taxes | $		$ 67,000
2001 Nonqualified Stock Plan | Unrestricted Stock | February 2017 grant | Directors, Officers and Employees | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issued | shares	53,378
Number of common stock shares surrendered by employees withholding taxes | shares	13,622
Common stock value surrendered by employees withholding taxes | $	$ 64,000
2001 Nonqualified Stock Plan | Unrestricted Stock | March 2016 grant | Directors, Officers and Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issued | shares			56,443	58,902				152,000
Stock-based compensation expense | $								$ 558,000
Number of common stock shares surrendered by employees withholding taxes | shares			19,557	17,098
Common stock value surrendered by employees withholding taxes | $			$ 119,000	$ 74,000
2001 Nonqualified Stock Plan | Unrestricted Stock | March 2015 grant | Directors, Officers and Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issued | shares					57,151	58,862			152,000
Stock-based compensation expense | $									$ 682,000
Number of common stock shares surrendered by employees withholding taxes | shares					18,849	17,138
Common stock value surrendered by employees withholding taxes | $					$ 61,000	$ 69,000

EQUITY AND STOCK COMPENSATION53

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 2)	12 Months Ended
	Dec. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from stock options	$ 13,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding | shares	28,000
Weighted average exercise price of options outstanding | $ / shares	$ 2.97
Exercised | shares	(4,168)
Proceeds from stock options	$ 13,000
Weighted average remaining contractual term	10 months 24 days
Unrecognized compensation expense	$ 0
Aggregate intrinsic value of options outstanding	43,000
Aggregate intrinsic value of options exercisable	$ 43,000

EQUITY AND STOCK COMPENSATION54

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 3) - Employee Stock Purchase Plan - shares	1 Months Ended		12 Months Ended
	Nov. 29, 2005	Jun. 30, 1996	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock at a price lower of the fair market value	95.00%	85.00%
Period of common stock offering	6 months	6 months
Minimal discount of fair market value of the common stock	5.00%
Percentage of employee's compensation	6.00%
Total number of common stock shares reserved for issuance			350,000
Number of common stock shares reserved for issuance			66,389
Issuance of common stock under employee stock purchase plan (in shares)			13,514	9,473	11,561

EQUITY AND STOCK COMPENSATION55

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 4) - USD ($)	Mar. 09, 2017	Mar. 08, 2017	Apr. 26, 2016	Dec. 31, 2017	Dec. 31, 2016
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of stock repurchased (in shares)				1,696,213	690,801
Value of stock repurchased				$ 8,500,000	$ 3,700,000
Share Purchases
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of common stock authorized for repurchase			$ 10,000,000
Number of stock repurchased (in shares)				1,005,412
Value of stock repurchased				$ 4,800,000
Number of share repurchase through a privately negotiated transaction (in shares)				210,000
Stock repurchase program expiration date			Dec. 31, 2017
Stock repurchase program percentage discount on market closing market price		10.00%
Sale of stock, price per share (in dollars per share)		$ 4.85
Sale of stock, price per share after discount (in dollars per share)	$ 4.36
Transaction cost on repurchase of stock	$ 915,600
Share Purchases | Richard P. Moberg
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Number of share repurchase through a privately negotiated transaction (in shares)	210,000

BUSINESS SEGMENTS AND MAJOR C56

BUSINESS SEGMENTS AND MAJOR CUSTOMERS - Revenues generated from geographic regions (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 3,286	$ 5,905	$ 2,745	$ 4,347	$ 3,929	$ 5,899	$ 6,904	$ 4,834	$ 16,282	$ 21,566	$ 19,621
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue									12,430	17,806	11,737
Operating Segments | Brazil
Segment Reporting Information [Line Items]
Revenue									1,079	1,302	2,163
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue									$ 2,773	$ 2,458	$ 5,721

BUSINESS SEGMENTS AND MAJOR C57

BUSINESS SEGMENTS AND MAJOR CUSTOMERS - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 3,286	$ 5,905	$ 2,745	$ 4,347	$ 3,929	$ 5,899	$ 6,904	$ 4,834	$ 16,282	$ 21,566	$ 19,621
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue									12,753	16,546	16,916
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue									3,368	4,739	2,301
Operating Segments | DSL royalties
Segment Reporting Information [Line Items]
Revenue									$ 161	$ 281	$ 404

BUSINESS SEGMENTS AND MAJOR C58

BUSINESS SEGMENTS AND MAJOR CUSTOMERS - Revenue derived from major customers (Details 2) - Sales revenue	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Customer A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	16.00%	2.00%	4.00%
Customer B
Revenue, Major Customer [Line Items]
Concentration risk, percentage	8.00%	18.00%	3.00%
Customer C
Revenue, Major Customer [Line Items]
Concentration risk, percentage	7.00%	12.00%	2.00%
Customer D
Revenue, Major Customer [Line Items]
Concentration risk, percentage	6.00%	5.00%	10.00%
Customer E
Revenue, Major Customer [Line Items]
Concentration risk, percentage	2.00%	18.00%	6.00%

BUSINESS SEGMENTS AND MAJOR C59

BUSINESS SEGMENTS AND MAJOR CUSTOMERS (Detail Textuals)	12 Months Ended
	Dec. 31, 2017Segment
Segment Reporting [Abstract]
Number of operating segment	1

EMPLOYEE BENEFIT PLAN (Detail T

EMPLOYEE BENEFIT PLAN (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Retirement Plans 401 K Defined Benefit
Defined Contribution Plan Disclosure [Line Items]
Discretionary contribution by employer	$ 223,000	$ 225,000	$ 216,000

NET INCOME PER SHARE - Calculat

NET INCOME PER SHARE - Calculation of net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net income	$ (580)	$ 1,229	$ 228	$ 405	$ 460	$ 1,573	$ 1,436	$ 635	$ 1,282	$ 4,103	$ 4,614
Shares outstanding:
Weighted-average common shares outstanding (in shares)									21,814	22,829	22,899
Additional dilutive common stock equivalents (in shares)									63	69	66
Diluted shares outstanding (in shares)									21,877	22,898	22,965
Net income per share - basic (in dollars per share)	$ (0.03)	$ 0.06	$ 0.01	$ 0.02	$ 0.02	$ 0.07	$ 0.06	$ 0.03	$ 0.06	$ 0.18	$ 0.20
Net income per share - diluted (in dollars per share)	$ (0.03)	$ 0.06	$ 0.01	$ 0.02	$ 0.02	$ 0.07	$ 0.06	$ 0.03	$ 0.06	$ 0.18	$ 0.20

NET INCOME PER SHARE (Detail Te

NET INCOME PER SHARE (Detail Textuals) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	54,034	54,034
Weighted average price of anti-dilutive options (in dollars per shares)	$ 5.20	$ 5.20

ACCUMULATED OTHER COMPREHENSI63

ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of accumulated other comprehensive loss and activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	$ (28)
Beginning balance Income tax benefit (expense) on other comprehensive loss	9
Beginning balance Total accumulated other comprehensive loss, net of taxes	(19)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	42
Increase/Decrease Income tax benefit (expense) on other comprehensive loss	(14)
Increase/Decrease Total accumulated other comprehensive loss, net of taxes	28
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities	(14)
Reclassification Adjustments Income tax benefit (expense) on other comprehensive loss	5
Reclassification Adjustments Total accumulated other comprehensive loss, net of taxes	(9)
Ending balance Net unrealized gains (losses) on available for sale securities	0
Ending balance Income tax benefit (expense) on other comprehensive loss	0
Ending balance Total accumulated other comprehensive loss, net of taxes	0
Unrealized losses on available for sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	(45)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	21
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities	24
Ending balance Net unrealized gains (losses) on available for sale securities	0
Unrealized gains on available for sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	17
Increase/Decrease Net unrealized gains (losses) on available for sale securities	21
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities	(38)
Ending balance Net unrealized gains (losses) on available for sale securities	$ 0

QUARTERLY RESULTS OF OPERATIO64

QUARTERLY RESULTS OF OPERATIONS - UNAUDITED - Summary of consolidated statements of comprehensive income (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 3,286	$ 5,905	$ 2,745	$ 4,347	$ 3,929	$ 5,899	$ 6,904	$ 4,834	$ 16,282	$ 21,566	$ 19,621
Operating income (loss)	(478)	1,665	238	386	641	2,313	2,074	880	1,810	5,908	3,915
Net income (loss)	$ (580)	$ 1,229	$ 228	$ 405	$ 460	$ 1,573	$ 1,436	$ 635	$ 1,282	$ 4,103	$ 4,614
Net income (loss) per share - basic (in dollars per share)	$ (0.03)	$ 0.06	$ 0.01	$ 0.02	$ 0.02	$ 0.07	$ 0.06	$ 0.03	$ 0.06	$ 0.18	$ 0.20
Net income (loss) per share - diluted (in dollars per share)	$ (0.03)	$ 0.06	$ 0.01	$ 0.02	$ 0.02	$ 0.07	$ 0.06	$ 0.03	$ 0.06	$ 0.18	$ 0.20

Schedule of valuation and qua65

Schedule of valuation and qualifying accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts receivable
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 20	$ 20	$ 20
Charged to Cost and Expense	19	0	0
Charged to Other Accounts	0	0	0
Deductions Charged to Reserves	19	0	0
Balance at End of Period	20	20	20
Inventory reserves
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	0	0	0
Charged to Cost and Expense	0	0	0
Charged to Other Accounts	0	0	0
Deductions Charged to Reserves	0	0	0
Balance at End of Period	0	0	0
Warranty reserves
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	0	0	0
Charged to Cost and Expense	0	0	0
Charged to Other Accounts	0	0	0
Deductions Charged to Reserves	0	0	0
Balance at End of Period	0	0	0
Deferred tax asset valuation allowance
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	0	0	0
Charged to Cost and Expense	0	0	0
Charged to Other Accounts	0	0	0
Deductions Charged to Reserves	0	0	0
Balance at End of Period	$ 0	$ 0	$ 0