Aware (AWRE) 10-Q 27 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 23, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	1,015,739
Trading Symbol	awre
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		21,546,818
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 50,648	$ 51,608
Accounts receivable, net	2,265	2,389
Unbilled receivables	1,233	1,429
Prepaid expenses and other current assets	324	216
Total current assets	54,470	55,642
Property and equipment, net	4,295	4,304
Deferred tax assets	5,163	5,071
Other assets		18
Total assets	63,928	65,035
Current liabilities:
Accounts payable	234	166
Accrued expenses	1,281	1,401
Accrued income taxes	16	2
Deferred revenue	2,285	2,805
Total current liabilities	3,816	4,374
Long-term deferred revenue	111	127
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 21,546,818 as of March, 31, 2018 and 21,493,440 as of December 31, 2017	215	215
Additional paid-in capital	96,209	96,246
Accumulated deficit	(36,423)	(35,927)
Total stockholders' equity	60,001	60,534
Total liabilities and stockholders' equity	$ 63,928	$ 65,035

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
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	21,546,818	21,493,440
Common stock, shares outstanding	21,546,818	21,493,440

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Software licenses	$ 1,473	$ 2,486
Software maintenance	1,294	1,253
Services	144	374
Royalties		43
Total revenue	2,911	4,156
Costs and expenses:
Cost of software licenses		247
Cost of services	50	216
Research and development	1,875	1,857
Selling and marketing	924	915
General and administrative	785	790
Total costs and expenses	3,634	4,025
Patent related income		91
Operating income (loss)	(723)	222
Interest income	162	84
Income (loss) before provision for (benefit from) income taxes	(561)	306
Provision for (benefit from) income taxes	(66)	5
Net income (loss)	$ (495)	$ 301
Net income (loss) per share - basic (in dollars per share)	$ (0.02)	$ 0.01
Net income (loss) per share - diluted (in dollars per share)	$ (0.02)	$ 0.01
Weighted-average shares - basic (in shares)	21,547	22,255
Weighted-average shares - diluted (in shares)	21,573	22,321
Comprehensive income:
Net income (loss)	$ (495)	$ 301
Other comprehensive income (loss) (net of tax):
Unrealized gains on available for sale securities		28
Comprehensive income (loss)	$ (495)	$ 329

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ (495)	$ 301
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	122	133
Stock-based compensation	24	71
Deferred tax benefit on other comprehensive income		(14)
Amortization of discount on investments		(3)
Changes in assets and liabilities:
Accounts receivable	124	(400)
Unbilled receivables	196	216
Prepaid expenses and other current assets	(108)	(29)
Deferred tax assets	(92)	(25)
Accounts payable	68	270
Accrued expenses	(120)	(25)
Accrued income taxes	14	36
Deferred revenue	(536)	(512)
Net cash provided by (used in) operating activities	(803)	19
Cash flows from investing activities:
Purchases of property and equipment	(96)	(5)
Net cash used in investing activities	(96)	(5)
Cash flows from financing activities:
Proceeds from issuance of common stock		13
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(61)	(119)
Repurchase of common stock		(2,827)
Net cash used in financing activities	(61)	(2,933)
Decrease in cash and cash equivalents	(960)	(2,919)
Cash and cash equivalents, beginning of period	51,608	51,913
Cash and cash equivalents, end of period	50,648	48,994
Supplemental disclosure:
Cash paid for income taxes	$ 8	$ 12

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	A) Nature of Business.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Basis of Accounting [Abstract]
Basis of Presentation	B) Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of operations and comprehensive income (loss), and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2018, and of operations and cash flows for the interim periods ended March 31, 2018 and 2017. The results of operations for the interim period ended March 31, 2018 are not necessarily indicative of the results to be expected for the year.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Revenue Recognition	C) Revenue Recognition. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The core principle of the standard is that we should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve that core principle, we should apply the following five step model: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) each performance obligation is satisfied. 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s intent and ability to pay, which is based on a variety of factors including the customer’s historical payment experience, or in the case of a new customer, published credit and financial information pertaining to the customer. We evaluate contract modifications for the impact on revenue recognition if they have been approved by both parties such that the enforceable rights and obligations under the contract have changed. Contract modifications are either accounted for using a cumulative effect adjustment or prospectively over the remaining term of the arrangement. The determination of which method is more appropriate depends on the nature of the modification, which we evaluate on a case-by-case basis. We combine two or more contracts entered into at or near the same time with the same customer and account for them as a single contract if (i) the contracts are negotiated as a package with a common commercial objective, (ii) the amount of consideration to be paid in one contract depends on the price or performance of the other contract, or (iii) some or all of the goods or services in one contract would be combined with some or all of the goods and services in the other contract into a single performance obligation. If two or more contracts are combined, the consideration to be paid is aggregated and allocated to the individual performance obligations without regard to the consideration specified in the individual contracts. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. To identify performance obligations, we consider all of the goods or services promised in a contract regardless of whether they are explicitly stated or are implied by customary business practices. 3) Determine the transaction price The transaction price is determined based on the consideration we expect to be entitled in exchange for transferring promised goods and services to the customer. Determining the transaction price requires significant judgment. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period. The amount of consideration is not adjusted for a significant financing component if the time between payment and the transfer of the related good or service is expected to be one year or less under the practical expedient in ASC 606-10-32-18. Our revenue arrangements are typically accounted for under such expedient, as payment is typically due within 30 to 60 days. As of March 31, 2018, none of our contracts contained a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relative SSPs. The SSP is the price at which we would sell a promised good or service separately to a customer. The best estimate of SSP is the observable price of a good or service when we sell that good or service separately. A contractually stated price or a list price for a good or service may be the SSP of that good or service. We use a range of amounts to estimate SSP when we sell each of the goods and services separately and need to determine whether there is a discount that needs to be allocated based on the relative SSP of the various goods and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we typically determine the SSP using an adjusted market assessment approach using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual goods and services due to the stratification of those goods and services by customers and circumstances. In these instances, we may use information such as the nature of the customer and distribution channel in determining the SSP. 5) Recognize revenue when or as we satisfy a performance obligation We satisfy performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized over time if 1) the customer simultaneously receives and consumes the benefits provided by our performance, 2) our performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. If we do not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. We categorize revenue as software licenses, software maintenance, services, 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 are functional intellectual property and typically provide customers with the right to use our software in perpetuity as it exists when made available to the customer. We recognize revenue from software licenses at a point in time upon delivery, provided all other revenue recognition criteria are met. Software maintenance Software maintenance consists of revenue from the sale of software maintenance contracts for biometrics and imaging software. Software maintenance contracts entitle customers to receive software support and software updates, if and when they become available, during the term of the maintenance contract. Software support and software updates are considered distinct services. However, these distinct services are considered a single performance obligation consisting of a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. We recognize software maintenance revenue over time on a straight-line basis over the contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted), provided all other revenue recognition criteria are met. 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 continued 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. We recognize revenue from sales-based royalties at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Refer to Note G – Business Segments for further information on the disaggregation of revenue, including revenue by geography and category. Arrangements with multiple performance obligations In addition to selling software licenses, software maintenance and software services on a standalone basis, a significant portion of our contracts include multiple performance obligations. The various combinations of multiple performance obligations and our revenue recognition for each are described as follows: • Software licenses and software maintenance. When software licenses and software maintenance contracts are sold together, the software licenses and software maintenance are generally considered distinct performance obligations. The transaction price is allocated to the software licenses and the software maintenance based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the software maintenance is recognized over time on a straight-line basis over the contract period. • Software licenses and services. When software licenses and significant customization engineering services are sold together, they are accounted for as a combined performance obligation, as the software licenses are generally highly dependent on, and interrelated with, the associated services and therefore are not distinct performance obligations. Revenue for the combined performance obligation is recognized over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). When software licenses and standard implementation or consulting-type services are sold together, they are generally considered distinct performance obligations as the software licenses are not dependent on or interrelated with the associated services. The transaction price in these arrangements is allocated to the software licenses and services based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the services is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). In arrangements with both software licenses and services, the software license portion of the arrangement is classified as software license revenue and the services portion is classified as services revenue in our consolidated statements of income and comprehensive income. • Software licenses, software maintenance and services. When we sell software licenses, software maintenance and software services together, we account for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery. Revenue allocated to the services is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). Revenue for the software maintenance is recognized over time on a straight-line basis over the contract period. However, if the software services are significant customization engineering services, they are accounted for with the software licenses as a combined performance obligation, as stated above. Revenue for the combined performance obligation is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). Returns We do not offer rights of return for our products and services in the normal course of business. Customer Acceptance Our contracts with customers generally do not include customer acceptance clauses. Contract Balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by the deferred revenue below until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consist of unbilled receivables. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software maintenance contracts. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The following table presents changes in our contract assets and liabilities during the three months ended March 31, 2017 and 2018 (in thousands): Balance at Beginning of Period Revenue Recognized In Advance of Billings Billings Balance at End of Period Three months ended March 31, 2017 Contract assets: Unbilled receivables $ 2,259 $ 43 $ (259 ) $ 2,043 Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 1,429 $ 33 $ (229 ) $ 1,233 Balance at Beginning of Period Billings Revenue Recognized Balance at End of Period Three months ended March 31, 2017 Contract liabilities: Deferred revenue $ 2,933 $ 750 $ (1,262 ) $ 2,421 Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 2,932 $ 758 $ (1,294 ) $ 2,396 Remaining Performance Obligations Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 95% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of March 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations for software maintenance contracts with a duration greater than one year was $111,000. This does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. Contract Costs We recognize an other asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales commissions meet the requirements to be capitalized, and we amortize these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets. We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. These costs include sales commissions on software maintenance contracts with a contract period of one year or less as sales commissions paid on contract renewals are commensurate with those paid on the initial contract.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	D) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $50.6 million and $51.6 million as of March 31, 2018 and December 31, 2017, respectively. We classified our cash equivalents of $50.1 million and $50.0 million as of March 31, 2018 and December 31, 2017 within Level 1 of the fair value hierarchy because they are valued using quoted market prices. As of March 31, 2018, 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 March 31, 2018 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 50,148 Total $ 50,148 $ - $ - 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) Money market funds (included in cash and cash equivalents) $ 49,986 Total $ 49,986 $ - $ -

Computation of Earnings per Sha

Computation of Earnings per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Computation of Earnings per Share	E) Computation of Earnings per Share. Net income (loss) per share is calculated as follows (in thousands, except per share data): Three Months Ended 2018 2017 Net income (loss) $ (495 ) $ 301 Shares outstanding: Weighted-average common shares outstanding 21,547 22,255 Additional dilutive common stock equivalents 26 66 Diluted shares outstanding 21,573 22,321 Net income (loss) per share – basic $ (0.02 ) $ 0.01 Net income (loss) per share - diluted $ (0.02 ) $ 0.01 For the three month period ended March 31, 2017, options to purchase 20,834 shares of common stock 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 stock and thus would be anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock-based compensation	F) Stock-Based Compensation. Three Months Ended 2018 2017 Cost of services $ - $ 2 Research and development 5 12 Selling and marketing 1 1 General and administrative 18 56 Stock-based compensation expense $ 24 $ 71 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2018 and 2017 that affected financial results for the three month periods ended March 31, 2018 and 2017. These grants are described below. 2018 Grant. 2017 Grant

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Business Segments	G) Business Segments We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 United States $ 2,069 $ 3,252 Rest of World 842 904 $ 2,911 $ 4,156 Revenue by product group for the three months ended March 31, 2018 and 2017 was (in thousands): Three Months Ended March 31, 2018 2017 Biometrics $ 2,485 $ 3,803 Imaging 426 310 DSL royalties - 43 $ 2,911 $ 4,156 Revenue by timing of transfer of goods or services for the three months ended March 31, 2018 and 2017 was (in thousands): Three Months Ended March 31, 2018 2017 Goods or services transferred at a point in time 1,474 2,529 Goods or services transferred over time 1,437 1,627 $ 2,911 $ 4,156

Recently Adopted Accounting Pro

Recently Adopted Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Recently Adopted Accounting Pronouncements	H) Recently Adopted Accounting Pronouncements. FASB ASU No. 2014-09. We implemented new internal controls for the implementation and modified and augmented our existing internal controls to enable the preparation of financial information on adoption. The most significant impacts of adopting the new standard related 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 remained substantially unchanged. As a practical expedient, for contracts that were modified before the earliest reporting period of application of the standard, we have not retrospectively restated the contracts for those contract modifications. Instead we have reflected the aggregate effect of all modifications that occurred before the earliest reporting period of application when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We have not restated contracts that began and were completed within the same annual reporting periods. For completed contracts that have variable consideration, we have used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in comparative reporting periods. For fiscal years 2017 and 2016, adoption of the standard resulted in an aggregate decrease in revenue of $0.8 million and $2.8 million, 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 $0.9 million and $1.2 million respectively, primarily due to the changes noted above. In addition, adoption of the standard resulted 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. For the three months ended March 31, 2017, adoption of the standard resulted in an aggregate decrease in revenue of $191,000, a decrease in costs and expenses of $27,000, and a decrease in the provision for income taxes of $59,000 primarily due to the same reasons noted above. See Impacts of Topic 606 Adoption to Reported Results below for the impact of the adoption of the new standard on our consolidated financial statements. Impacts of Topic 606 Adoption to Reported Results Adoption of the new revenue standard impacted our reported results as follows: (In thousands, except per share data) Three Months Ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 4,347 $ (191 ) $ 4,156 Costs and expenses 4,052 (27 ) 4,025 Provision for income taxes 64 (59 ) 5 Net income 405 (104 ) 301 Net income per share - basic and diluted 0.02 (0.01 ) 0.01 (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) March 31, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,391 $ 2,043 $ 5,434 Prepaid expenses and other current assets 299 20 319 Deferred tax assets 5,802 (693 ) 5,109 Accrued expenses 1,080 311 1,391 Stockholders’ equity 60,169 1,059 61,228 (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 59,652 882 60,534 (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 1,163 59,004 Adoption of the new revenue standard had no impact on total cash provided from or used in operating, financing, or investing in our consolidated statements of cash flows.

Recent Accounting Pronouncement

Recent Accounting Pronouncements Not Yet Adopted	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements Not Yet Adopted	I) Recent Accounting Pronouncements Not Yet Adopted. FASB ASU No. 2016-13. With the exception of the standard 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 March 31, 2018.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	J) Income Taxes Income tax benefit was $66,000 for the three months ended March 31, 2018. Income tax benefit in the three month period ended March 31, 2018 was based on the U.S. statutory rate of 21%, increased by state income taxes, and reduced by permanent adjustments and research tax credits. Income tax expense was $5,000 for the three months ended March 31, 2017. Income tax expense in the three month period ended 2017 was based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by permanent adjustments and research tax credits. As of March 31, 2018, we had a total of $5.2 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. In the second quarter of 2017, the Internal Revenue Service commenced an examination of our tax return for the year ended December 31, 2015. In February 2018, the IRS notified us that it had completed its examination and that it had no changes to our reported tax.

Income from patent arrangement

Income from patent arrangement	3 Months Ended
	Mar. 31, 2018
Income From Patent Arrangement [Abstract]
Income from patent arrangement	K) Income from patent arrangement.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of operations and comprehensive income (loss), and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2018, and of operations and cash flows for the interim periods ended March 31, 2018 and 2017. The results of operations for the interim period ended March 31, 2018 are not necessarily indicative of the results to be expected for the year.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements. FASB ASU No. 2014-09. We implemented new internal controls for the implementation and modified and augmented our existing internal controls to enable the preparation of financial information on adoption. The most significant impacts of adopting the new standard related 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 remained substantially unchanged. As a practical expedient, for contracts that were modified before the earliest reporting period of application of the standard, we have not retrospectively restated the contracts for those contract modifications. Instead we have reflected the aggregate effect of all modifications that occurred before the earliest reporting period of application when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We have not restated contracts that began and were completed within the same annual reporting periods. For completed contracts that have variable consideration, we have used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in comparative reporting periods. For fiscal years 2017 and 2016, adoption of the standard resulted in an aggregate decrease in revenue of $0.8 million and $2.8 million, 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 $0.9 million and $1.2 million respectively, primarily due to the changes noted above. In addition, adoption of the standard resulted 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. For the three months ended March 31, 2017, adoption of the standard resulted in an aggregate decrease in revenue of $191,000, a decrease in costs and expenses of $27,000, and a decrease in the provision for income taxes of $59,000 primarily due to the same reasons noted above. See Impacts of Topic 606 Adoption to Reported Results below for the impact of the adoption of the new standard on our consolidated financial statements. Impacts of Topic 606 Adoption to Reported Results Adoption of the new revenue standard impacted our reported results as follows: (In thousands, except per share data) Three Months Ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 4,347 $ (191 ) $ 4,156 Costs and expenses 4,052 (27 ) 4,025 Provision for income taxes 64 (59 ) 5 Net income 405 (104 ) 301 Net income per share - basic and diluted 0.02 (0.01 ) 0.01 (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) March 31, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,391 $ 2,043 $ 5,434 Prepaid expenses and other current assets 299 20 319 Deferred tax assets 5,802 (693 ) 5,109 Accrued expenses 1,080 311 1,391 Stockholders’ equity 60,169 1,059 61,228 (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 59,652 882 60,534 (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 1,163 59,004 Adoption of the new revenue standard had no impact on total cash provided from or used in operating, financing, or investing in our consolidated statements of cash flows.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Schedule of changes in contract assets and liabilities	Balance at Revenue Billings Balance at End of Three months ended March 31, 2017 Contract assets: Unbilled receivables $ 2,259 $ 43 $ (259 ) $ 2,043 Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 1,429 $ 33 $ (229 ) $ 1,233 Balance at Billings Revenue Balance at End of Three months ended March 31, 2017 Contract liabilities: Deferred revenue $ 2,933 $ 750 $ (1,262 ) $ 2,421 Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 2,932 $ 758 $ (1,294 ) $ 2,396

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at March 31, 2018 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 50,148 Total $ 50,148 $ - $ - Fair Value Measurement at December 31, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 49,986 Total $ 49,986 $ - $ -

Computation of Earnings per S20

Computation of Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of net income (loss) per share	Three Months Ended 2018 2017 Net income (loss) $ (495 ) $ 301 Shares outstanding: Weighted-average common shares outstanding 21,547 22,255 Additional dilutive common stock equivalents 26 66 Diluted shares outstanding 21,573 22,321 Net income (loss) per share – basic $ (0.02 ) $ 0.01 Net income (loss) per share - diluted $ (0.02 ) $ 0.01

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of stock-based employee compensation expense included in unaudited consolidated statements of comprehensive income	Three Months Ended 2018 2017 Cost of services $ - $ 2 Research and development 5 12 Selling and marketing 1 1 General and administrative 18 56 Stock-based compensation expense $ 24 $ 71

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Three Months Ended March 31, 2018 2017 United States $ 2,069 $ 3,252 Rest of World 842 904 $ 2,911 $ 4,156
Schedule of revenue by product group	Three Months Ended March 31, 2018 2017 Biometrics $ 2,485 $ 3,803 Imaging 426 310 DSL royalties - 43 $ 2,911 $ 4,156
Schedule of revenue by timing of transfer of goods or services	Three Months Ended March 31, 2018 2017 Goods or services transferred at a point in time 1,474 2,529 Goods or services transferred over time 1,437 1,627 $ 2,911 $ 4,156

Recently Adopted Accounting P23

Recently Adopted Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Schedule of adoption to reported results	(In thousands, except per share data) Three Months Ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 4,347 $ (191 ) $ 4,156 Costs and expenses 4,052 (27 ) 4,025 Provision for income taxes 64 (59 ) 5 Net income 405 (104 ) 301 Net income per share - basic and diluted 0.02 (0.01 ) 0.01 (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) March 31, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,391 $ 2,043 $ 5,434 Prepaid expenses and other current assets 299 20 319 Deferred tax assets 5,802 (693 ) 5,109 Accrued expenses 1,080 311 1,391 Stockholders’ equity 60,169 1,059 61,228 (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 59,652 882 60,534 (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 1,163 59,004

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Contract assets:
Unbilled receivables, Balance at Beginning of Period	$ 1,429	$ 2,259
Unbilled receivables, Revenue Recognized In Advance of Billings	33	43
Unbilled receivables, Billings	(229)	(259)
Unbilled receivables, Balance at End of Period	$ 1,233	$ 2,043

Revenue Recognition (Details 1)

Revenue Recognition (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Contract liabilities:
Deferred revenue, Balance at Beginning of Period	$ 2,932	$ 2,933
Deferred revenue, Billings	758	750
Deferred revenue, Revenue Recognized	(1,294)	(1,262)
Deferred revenue, Balance at End of Period	$ 2,396	$ 2,421

Revenue Recognition (Detail Tex

Revenue Recognition (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Revenue Recognition [Abstract]
Percentage of remaining performance obligations expected to be recognized as revenue	95.00%
Minimum period of remaining performance obligations	1 year
Long-term deferred revenue	$ 111	$ 127

Fair Value Measurements - Asset

Fair Value Measurements - Assets measured at fair value on a recurring basis (Details) - Fair value on recurring basis - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities [Line Items]
Total	$ 50,148	$ 49,986
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)	50,148	49,986
Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities [Line Items]
Total	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	0
Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities [Line Items]
Total	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	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Detail Textuals) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Cash and cash equivalents, primarily include money market funds	$ 50,648	$ 51,608	$ 48,994	$ 51,913
Fair value on recurring basis | Money market funds (included in cash and cash equivalents) | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents, primarily include money market funds	$ 50,100	$ 50,000

Computation of Earnings per S29

Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ (495)	$ 301
Shares outstanding:
Weighted-average common shares outstanding (in shares)	21,547	22,255
Additional dilutive common stock equivalents (in shares)	26	66
Diluted shares outstanding (in shares)	21,573	22,321
Net income (loss) per share - basic (in dollars per share)	$ (0.02)	$ 0.01
Net income (loss) per share - diluted (in dollars per share)	$ (0.02)	$ 0.01

Computation of Earnings per S30

Computation of Earnings per Share (Detail Textuals)	3 Months Ended
	Mar. 31, 2017shares
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	20,834

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 24	$ 71
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	0	2
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	5	12
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1	1
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 18	$ 56

Stock-Based Compensation (Detai

Stock-Based Compensation (Detail Textuals)	1 Months Ended				3 Months Ended
	Mar. 20, 2018Installmentshares	Jan. 31, 2018USD ($)shares	Jul. 31, 2017USD ($)shares	Feb. 27, 2017USD ($)Installmentshares	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense					$ 24,000	$ 71,000
2001 Nonqualified Stock Plan | Unrestricted Stock | 2018 Grant | Directors, officers and employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares) | shares	138,000
Number of installment | Installment	2
Stock-based compensation expense					580,000
Stock based compensation expense charged					24,000
Remaining stock based compensation expense					$ 556,000
2001 Nonqualified Stock Plan | Unrestricted Stock | 2017 Grant | Directors, officers and employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares) | shares				134,000
Number of installment | Installment				2
Stock-based compensation expense				$ 663,000
Number of shares issued (in shares) | shares		53,378	54,014
Number of common stock shares surrendered by employees withholding taxes | shares		13,622	12,986
Common stock value surrendered by employees withholding taxes		$ 64,000	$ 67,000

Business Segments - Revenues ge

Business Segments - Revenues generated following geographic regions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenue	$ 2,911	$ 4,156
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue	2,069	3,252
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 842	$ 904

Business Segments - Summary of

Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenue	$ 2,911	$ 4,156
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue	2,485	3,803
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue	426	310
Operating Segments | DSL royalties
Segment Reporting Information [Line Items]
Revenue	$ 0	$ 43

Business Segments - Revenue by

Business Segments - Revenue by timing of transfer of goods or services (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenue	$ 2,911	$ 4,156
Goods or services transferred at a point in time
Segment Reporting Information [Line Items]
Revenue	1,474	2,529
Goods or services transferred over time
Segment Reporting Information [Line Items]
Revenue	$ 1,437	$ 1,627

Business Segments (Detail Textu

Business Segments (Detail Textuals)	3 Months Ended
	Mar. 31, 2018Segment
Segment Reporting [Abstract]
Number of operating segment	1

Recently Adopted Accounting P37

Recently Adopted Accounting Pronouncements - Adoption of the new revenue standard Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 2,911	$ 4,156
Costs and expenses	3,634	4,025
Provision for income taxes	(66)	5
Net income	$ (495)	301
Accounting Standards Update 2014-09 | As Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		4,347	$ 16,282	$ 21,566
Costs and expenses		4,052	16,054	16,467
Provision for income taxes		64	965	2,085
Net income		$ 405	$ 1,282	$ 4,103
Net income per share - basic and diluted (in dollars per share)		$ 0.02	$ 0.06	$ 0.18
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		$ (191)	$ (817)	$ (2,804)
Costs and expenses		(27)	(114)	(294)
Provision for income taxes		(59)	(421)	(986)
Net income		$ (104)	$ (282)	$ (1,524)
Net income per share - basic and diluted (in dollars per share)		$ (0.01)	$ (0.01)	$ (0.07)
Accounting Standards Update 2014-09 | As Adjusted
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		$ 4,156	$ 15,465	$ 18,762
Costs and expenses		4,025	15,940	16,173
Provision for income taxes		5	544	1,099
Net income		$ 301	$ 1,000	$ 2,579
Net income per share - basic and diluted (in dollars per share)		$ 0.01	$ 0.05	$ 0.11

Recently Adopted Accounting P38

Recently Adopted Accounting Pronouncements - Adoption of the new revenue standard Balance Sheet(Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 2,265	$ 2,389
Prepaid expenses and other current assets	324	216
Deferred tax assets	5,163	5,071
Accrued expenses	1,281	1,401
Stockholders' equity	$ 60,001	60,534
Accounting Standards Update 2014-09 | As Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net		2,401	$ 3,391	$ 3,016
Prepaid expenses and other current assets		203	299	268
Deferred tax assets		5,402	5,802	1,078
Accrued expenses		1,184	1,080	1,075
Stockholders' equity		59,652	60,169	57,841
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net		1,417	2,043	2,234
Prepaid expenses and other current assets		13	20	22
Deferred tax assets		(331)	(693)	(752)
Accrued expenses		217	311	341
Stockholders' equity		882	1,059	1,163
Accounting Standards Update 2014-09 | As Adjusted
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net		3,818	5,434	5,250
Prepaid expenses and other current assets		216	319	290
Deferred tax assets		5,071	5,109	326
Accrued expenses		1,401	1,391	1,416
Stockholders' equity		$ 60,534	$ 61,228	$ 59,004

Recently Adopted Accounting P39

Recently Adopted Accounting Pronouncements (Detail Textuals)	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2015USD ($)	Mar. 31, 2018USD ($)Segment	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of operating segment | Segment		1
Deferred revenue recognized		$ 1,294,000	$ 1,262,000
Revenue		2,911,000	4,156,000
Stockholders' equity		60,001,000		$ 60,534,000
Costs and expenses		3,634,000	4,025,000
Provision for income taxes		(66,000)	5,000
Deferred tax assets		5,163,000		5,071,000
Accrued expenses		$ 1,281,000		1,401,000
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Consumated license contract	$ 4,625,000
License fee	4,500,000
Software maintenance fee	125,000
Revenue			(191,000)	(817,000)	$ (2,804,000)
Stockholders' equity			1,059,000	882,000	1,163,000
Costs and expenses			(27,000)	(114,000)	(294,000)
Provision for income taxes			(59,000)	(421,000)	(986,000)
Deferred tax assets			(693,000)	(331,000)	(752,000)
Accrued expenses			311,000	217,000	341,000
Accounting Standards Update 2014-09 | Software License Arrangement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 4,500,000
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)
Accounting Standards Update 2014-09 | DSL royalty contracts | New Revenue Standard Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue			9,000	(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			(200,000)	(800,000)	860,000
Stockholders' equity					2,200,000
Unbilled receivables				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					(300,000)
Costs and expenses			$ (27,000)	$ (114,000)	$ (294,000)

Income Taxes (Detail Textuals)

Income Taxes (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense	$ (66)	$ 5
U.S. statutory tax rate	21.00%	34.00%
Deferred tax assets	$ 5,163		$ 5,071

Income from patent arrangement

Income from patent arrangement (Detail Textuals) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Income From Patent Arrangement [Abstract]
Income from intangible assets	$ 91