Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 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 | 21,577,709 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 49,121 | $ 51,608 |
Accounts receivable, net | 3,517 | 2,389 |
Unbilled receivables | 1,542 | 1,429 |
Prepaid expenses and other current assets | 224 | 216 |
Total current assets | 54,404 | 55,642 |
Property and equipment, net | 4,226 | 4,304 |
Deferred tax assets | 5,223 | 5,071 |
Other assets | 18 | |
Total assets | 63,853 | 65,035 |
Current liabilities: | ||
Accounts payable | 164 | 166 |
Accrued expenses | 1,366 | 1,401 |
Accrued income taxes | 15 | 2 |
Deferred revenue | 2,331 | 2,805 |
Total current liabilities | 3,876 | 4,374 |
Long-term deferred revenue | 90 | 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 21,520,117 as of June 30, 2018 and 21,493,440 as of December 31, 2017 | 215 | 215 |
Additional paid-in capital | 96,282 | 96,246 |
Accumulated deficit | (36,610) | (35,927) |
Total stockholders' equity | 59,887 | 60,534 |
Total liabilities and stockholders' equity | $ 63,853 | $ 65,035 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 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 | 21,520,117 | 21,493,440 |
Common stock, shares outstanding | 21,520,117 | 21,493,440 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 3,760 | $ 2,542 | $ 6,671 | $ 6,698 |
Costs and expenses: | ||||
Research and development | 1,887 | 1,876 | 3,762 | 3,733 |
Selling and marketing | 1,013 | 995 | 1,937 | 1,910 |
General and administrative | 871 | 816 | 1,656 | 1,605 |
Total costs and expenses | 4,141 | 3,791 | 7,775 | 7,815 |
Patent related income | 1,313 | 1,403 | ||
Operating income (loss) | (381) | 64 | (1,104) | 286 |
Other income | 36 | 36 | ||
Interest income | 201 | 88 | 363 | 172 |
Income (loss) before provision for income taxes | (180) | 188 | (741) | 494 |
Provision (benefit) for income taxes | 8 | 74 | (58) | 79 |
Net income (loss) | $ (188) | $ 114 | $ (683) | $ 415 |
Net income (loss) per share - basic (in dollars per share) | $ (0.01) | $ 0.01 | $ (0.03) | $ 0.02 |
Net income (loss) per share - diluted (in dollars per share) | $ (0.01) | $ 0.01 | $ (0.03) | $ 0.02 |
Weighted-average shares - basic (in shares) | 21,534 | 21,774 | 21,540 | 22,013 |
Weighted-average shares - diluted (in shares) | 21,534 | 21,919 | 21,540 | 22,119 |
Comprehensive income: | ||||
Net income (loss) | $ (188) | $ 114 | $ (683) | $ 415 |
Other comprehensive income (loss) (net of tax): | ||||
Unrealized gains (losses) on available for sale securities | (9) | 19 | ||
Comprehensive income (loss) | (188) | 105 | (683) | 434 |
Software licenses | ||||
Revenue: | ||||
Total revenue | 1,659 | 1,014 | 3,133 | 3,500 |
Costs and expenses: | ||||
Cost of software licenses and services | 247 | |||
Software maintenance | ||||
Revenue: | ||||
Total revenue | 1,402 | 1,282 | 2,696 | 2,534 |
Services | ||||
Revenue: | ||||
Total revenue | 699 | 206 | 842 | 580 |
Costs and expenses: | ||||
Cost of software licenses and services | $ 370 | 104 | $ 420 | 320 |
Royalties | ||||
Revenue: | ||||
Total revenue | $ 40 | $ 84 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (683) | $ 415 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 229 | 261 |
Stock-based compensation | 208 | 267 |
Deferred tax benefit on other comprehensive income | (10) | |
Amortization of discount on investments | (4) | |
Gain on sale of investments | (36) | |
Changes in assets and liabilities: | ||
Accounts receivable | (1,128) | (289) |
Unbilled receivables | (113) | 377 |
Prepaid expenses and other current assets | (8) | |
Deferred tax assets | (152) | (126) |
Accounts payable | (2) | 66 |
Accrued expenses | (35) | (11) |
Accrued income taxes | 13 | |
Deferred revenue | (511) | (642) |
Net cash provided by (used in) operating activities | (2,182) | 268 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (134) | (53) |
Sales of investments | 1,019 | |
Net cash provided by (used in) investing activities | (134) | 966 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 27 | 43 |
Payments made for taxes of employees who surrendered shares related to unrestricted stock | (61) | (119) |
Repurchase of common stock | (137) | (3,646) |
Net cash used in financing activities | (171) | (3,722) |
Decrease in cash and cash equivalents | (2,487) | (2,488) |
Cash and cash equivalents, beginning of period | 51,608 | 51,913 |
Cash and cash equivalents, end of period | 49,121 | 49,425 |
Supplemental disclosure: | ||
Cash paid for income taxes | $ 78 | $ 275 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | A) Nature of Business. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 June 30, 2018, and of operations and cash flows for the interim periods ended June 30, 2018 and 2017. The results of operations for the interim period ended June 30, 2018 are not necessarily indicative of the results to be expected for the year. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 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 June 30, 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 six months ended June 30, 2017 and 2018 (in thousands): Balance at Revenue Billings Balance at End of Three months ended June 30, 2017 Contract assets: Unbilled receivables $ 2,043 $ 83 $ (243 ) $ 1,883 Three months ended June 30, 2018 Contract assets: Unbilled receivables $ 1,233 $ 542 $ (233 ) $ 1,542 Balance at Billings Revenue Balance at End of Three months ended June 30, 2017 Contract liabilities: Deferred revenue $ 2,421 $ 1,152 $ (1,282 ) $ 2,291 Three months ended June 30, 2018 Contract liabilities: Deferred revenue $ 2,396 $ 1,427 $ (1,402 ) $ 2,421 Balance at Revenue Billings Balance at End of Six months ended June 30, 2017 Contract assets: Unbilled receivables $ 2,259 $ 126 $ (502 ) $ 1,883 Six months ended June 31, 2018 Contract assets: Unbilled receivables $ 1,429 $ 575 $ (462 ) $ 1,542 Balance at Billings Revenue Balance at End of Six months ended June, 2017 Contract liabilities: Deferred revenue $ 2,933 $ 1,903 $ (2,545 ) $ 2,291 Six months ended June 30, 2018 Contract liabilities: Deferred revenue $ 2,932 $ 2,185 $ (2,696 ) $ 2,421 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 73% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of June 30, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations for services and software maintenance contracts with a duration greater than one year was $0.3 million and $1.7 million, respectively. 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 | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | D) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $49.1 million and $51.6 million as of June 30, 2018 and December 31, 2017, respectively. We classified our cash equivalents of $48.7 million and $50.0 million as of June 30, 2018 and December 31, 2017 within Level 1 of the fair value hierarchy because they are valued using quoted market prices. As of June 30, 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 June 30, 2018 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 48,712 Total $ 48,712 $ - $ - 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2018 2017 2018 2017 Net income (loss) $ (188 ) $ 114 $ (683 ) $ 415 Shares outstanding: Weighted-average common shares outstanding 21,534 21,774 21,540 22,013 Additional dilutive common stock equivalents - 145 - 106 Diluted shares outstanding 21,534 21,919 21,540 22,119 Net income (loss) per share – basic $ (0.01 ) $ 0.01 $ (0.03 ) $ 0.02 Net income (loss) per share - diluted $ (0.01 ) $ 0.01 $ (0.03 ) $ 0.02 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock-based compensation | F) Stock-Based Compensation. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of services $ 8 $ 2 $ 8 $ 4 Research and development 32 36 37 48 Selling and marketing 4 4 5 6 General and administrative 140 154 158 209 Stock-based compensation expense $ 184 $ 196 $ 208 $ 267 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2018 and 2017 that affected financial results for the three and six month periods ended June 30, 2018 and 2017. These grants are described below. 2018 Grant. 2017 Grant |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 United States $ 1,522 $ 1,868 $ 3,591 $ 5,120 United Kingdom 1,374 42 1,508 190 Rest of World 864 632 1,572 1,388 $ 3,760 $ 2,542 $ 6,671 $ 6,698 Revenue by product group for the three and six months ended June 30, 2018 and 2017 was (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Biometrics $ 3,403 $ 2,288 $ 5,888 $ 6,091 Imaging 357 213 783 523 DSL royalties - 41 - 84 $ 3,760 $ 2,542 $ 6,671 $ 6,698 Revenue by timing of transfer of goods or services for the three and six months ended June 30, 2018 and 2017 was (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Goods or services transferred at a point in time $ 1,064 $ 1,054 $ 2,538 $ 3,583 Goods or services transferred over time 2,696 1,488 4,133 3,115 $ 3,760 $ 2,542 $ 6,671 $ 6,698 |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2017, adoption of the standard resulted in an aggregate decrease in revenue of $202,000 and $393,000, respectively, a decrease in costs and expenses of $29,000 and $56,000, respectively, and a decrease in the provision for income taxes of $59,000 and $119,000, respectively, 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 June 30, 2017 As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 2,745 $ (203 ) $ 2,542 Costs and expenses 3,820 (29 ) 3,791 Provision for income taxes 134 (60 ) 74 Net income 228 (114 ) 114 Net income per share - basic and diluted 0.01 - 0.01 (In thousands, except per share data) Six Months Ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 7,092 $ (394 ) $ 6,698 Costs and expenses 7,871 (56 ) 7,815 Provision for income taxes 198 (119 ) 79 Net income 634 (219 ) 415 Net income per share - basic and diluted 0.03 (0.01 ) 0.02 (In thousands) June 30, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,321 $ 1,841 $ 5,162 Prepaid expenses and other current assets 272 18 290 Deferred tax assets 5,843 (634 ) 5,209 Accrued expenses 1,124 281 1,405 Stockholders' equity 59,796 944 60,740 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2018. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | J) Income Taxes . As of June 30, 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. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2018 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | K) Share Repurchase Program. |
Income from patent arrangement
Income from patent arrangement | 6 Months Ended |
Jun. 30, 2018 | |
Income From Patent Arrangement [Abstract] | |
Income from patent arrangement | L) Income from patent arrangement. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2018, and of operations and cash flows for the interim periods ended June 30, 2018 and 2017. The results of operations for the interim period ended June 30, 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 and six months ended June 30, 2017, adoption of the standard resulted in an aggregate decrease in revenue of $202,000 and $393,000, respectively, a decrease in costs and expenses of $29,000 and $56,000, respectively, and a decrease in the provision for income taxes of $59,000 and $119,000, respectively, 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 June 30, 2017 As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 2,745 $ (203 ) $ 2,542 Costs and expenses 3,820 (29 ) 3,791 Provision for income taxes 134 (60 ) 74 Net income 228 (114 ) 114 Net income per share - basic and diluted 0.01 - 0.01 (In thousands, except per share data) Six Months Ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 7,092 $ (394 ) $ 6,698 Costs and expenses 7,871 (56 ) 7,815 Provision for income taxes 198 (119 ) 79 Net income 634 (219 ) 415 Net income per share - basic and diluted 0.03 (0.01 ) 0.02 (In thousands) June 30, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,321 $ 1,841 $ 5,162 Prepaid expenses and other current assets 272 18 290 Deferred tax assets 5,843 (634 ) 5,209 Accrued expenses 1,124 281 1,405 Stockholders' equity 59,796 944 60,740 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) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of changes in contract assets and liabilities | Balance at Revenue Billings Balance at End of Three months ended June 30, 2017 Contract assets: Unbilled receivables $ 2,043 $ 83 $ (243 ) $ 1,883 Three months ended June 30, 2018 Contract assets: Unbilled receivables $ 1,233 $ 542 $ (233 ) $ 1,542 Balance at Billings Revenue Balance at End of Three months ended June 30, 2017 Contract liabilities: Deferred revenue $ 2,421 $ 1,152 $ (1,282 ) $ 2,291 Three months ended June 30, 2018 Contract liabilities: Deferred revenue $ 2,396 $ 1,427 $ (1,402 ) $ 2,421 Balance at Revenue Billings Balance at End of Six months ended June 30, 2017 Contract assets: Unbilled receivables $ 2,259 $ 126 $ (502 ) $ 1,883 Six months ended June 31, 2018 Contract assets: Unbilled receivables $ 1,429 $ 575 $ (462 ) $ 1,542 Balance at Billings Revenue Balance at End of Six months ended June, 2017 Contract liabilities: Deferred revenue $ 2,933 $ 1,903 $ (2,545 ) $ 2,291 Six months ended June 30, 2018 Contract liabilities: Deferred revenue $ 2,932 $ 2,185 $ (2,696 ) $ 2,421 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurement at June 30, 2018 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 48,712 Total $ 48,712 $ - $ - 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 S21
Computation of Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) per share | Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ (188 ) $ 114 $ (683 ) $ 415 Shares outstanding: Weighted-average common shares outstanding 21,534 21,774 21,540 22,013 Additional dilutive common stock equivalents - 145 - 106 Diluted shares outstanding 21,534 21,919 21,540 22,119 Net income (loss) per share – basic $ (0.01 ) $ 0.01 $ (0.03 ) $ 0.02 Net income (loss) per share - diluted $ (0.01 ) $ 0.01 $ (0.03 ) $ 0.02 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of services $ 8 $ 2 $ 8 $ 4 Research and development 32 36 37 48 Selling and marketing 4 4 5 6 General and administrative 140 154 158 209 Stock-based compensation expense $ 184 $ 196 $ 208 $ 267 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of revenues generated from geographic regions | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 United States $ 1,522 $ 1,868 $ 3,591 $ 5,120 United Kingdom 1,374 42 1,508 190 Rest of World 864 632 1,572 1,388 $ 3,760 $ 2,542 $ 6,671 $ 6,698 |
Schedule of revenue by product group | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Biometrics $ 3,403 $ 2,288 $ 5,888 $ 6,091 Imaging 357 213 783 523 DSL royalties - 41 - 84 $ 3,760 $ 2,542 $ 6,671 $ 6,698 |
Schedule of revenue by timing of transfer of goods or services | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Goods or services transferred at a point in time $ 1,064 $ 1,054 $ 2,538 $ 3,583 Goods or services transferred over time 2,696 1,488 4,133 3,115 $ 3,760 $ 2,542 $ 6,671 $ 6,698 |
Recently Adopted Accounting P24
Recently Adopted Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of adoption to reported results | (In thousands, except per share data) Three Months Ended June 30, 2017 As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 2,745 $ (203 ) $ 2,542 Costs and expenses 3,820 (29 ) 3,791 Provision for income taxes 134 (60 ) 74 Net income 228 (114 ) 114 Net income per share - basic and diluted 0.01 - 0.01 (In thousands, except per share data) Six Months Ended As Reported New Revenue As Adjusted Consolidated Statements of Income: Revenue $ 7,092 $ (394 ) $ 6,698 Costs and expenses 7,871 (56 ) 7,815 Provision for income taxes 198 (119 ) 79 Net income 634 (219 ) 415 Net income per share - basic and diluted 0.03 (0.01 ) 0.02 (In thousands) June 30, 2017 As Reported New Revenue As Adjusted Consolidated Balance Sheets: Accounts receivable, net $ 3,321 $ 1,841 $ 5,162 Prepaid expenses and other current assets 272 18 290 Deferred tax assets 5,843 (634 ) 5,209 Accrued expenses 1,124 281 1,405 Stockholders' equity 59,796 944 60,740 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Contract assets: | ||||
Unbilled receivables, Balance at Beginning of Period | $ 1,233 | $ 2,043 | $ 1,429 | $ 2,259 |
Unbilled receivables, Revenue Recognized In Advance of Billings | 542 | 83 | 575 | 126 |
Unbilled receivables, Billings | (233) | (243) | (462) | (502) |
Unbilled receivables, Balance at End of Period | $ 1,542 | $ 1,883 | $ 1,542 | $ 1,883 |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Contract liabilities: | ||||
Deferred revenue, Balance at Beginning of Period | $ 2,396 | $ 2,421 | $ 2,932 | $ 2,933 |
Deferred revenue, Billings | 1,427 | 1,152 | 2,185 | 1,903 |
Deferred revenue, Revenue Recognized | (1,402) | (1,282) | (2,696) | (2,545) |
Deferred revenue, Balance at End of Period | $ 2,421 | $ 2,291 | $ 2,421 | $ 2,291 |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textuals) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue Recognition [Abstract] | ||
Percentage of remaining performance obligations expected to be recognized as revenue | 73.00% | |
Minimum period of remaining performance obligations | 1 year | |
Long-term deferred revenue | $ 90 | $ 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 | Jun. 30, 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 | $ 48,712 | $ 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) | 48,712 | 49,986 |
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Money market funds (included in cash and cash equivalents) | 0 | 0 |
Total | 0 | 0 |
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Money market funds (included in cash and cash equivalents) | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail Textuals) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, primarily include money market funds | $ 49,121 | $ 51,608 | $ 49,425 | $ 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 | $ 48,700 | $ 50,000 |
Computation of Earnings per S30
Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (188) | $ 114 | $ (683) | $ 415 |
Shares outstanding: | ||||
Weighted-average common shares outstanding (in shares) | 21,534 | 21,774 | 21,540 | 22,013 |
Additional dilutive common stock equivalents (in shares) | 0 | 145 | 0 | 106 |
Diluted shares outstanding (in shares) | 21,534 | 21,919 | 21,540 | 22,119 |
Net income (loss) per share - basic (in dollars per share) | $ (0.01) | $ 0.01 | $ (0.03) | $ 0.02 |
Net income (loss) per share - diluted (in dollars per share) | $ (0.01) | $ 0.01 | $ (0.03) | $ 0.02 |
Computation of Earnings per S31
Computation of Earnings per Share (Detail Textuals) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock shares (in shares) | 144,727 | 85,657 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 184 | $ 196 | $ 208 | $ 267 |
Cost of services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 8 | 2 | 8 | 4 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 32 | 36 | 37 | 48 |
Selling and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 4 | 4 | 5 | 6 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 140 | $ 154 | $ 158 | $ 209 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail Textuals) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 20, 2018Installmentshares | Jan. 31, 2018USD ($)shares | Jul. 31, 2017USD ($)shares | Feb. 28, 2017USD ($)Installmentshares | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 184,000 | $ 196,000 | $ 208,000 | $ 267,000 | ||||
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 | 184,000 | 208,000 | ||||||
Remaining stock based compensation expense | $ 372,000 | $ 372,000 | ||||||
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 3,760 | $ 2,542 | $ 6,671 | $ 6,698 |
Operating Segments | United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,522 | 1,868 | 3,591 | 5,120 |
Operating Segments | United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,374 | 42 | 1,508 | 190 |
Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 864 | $ 632 | $ 1,572 | $ 1,388 |
Business Segments - Summary of
Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 3,760 | $ 2,542 | $ 6,671 | $ 6,698 |
Operating Segments | Biometrics | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,403 | 2,288 | 5,888 | 6,091 |
Operating Segments | Imaging | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 357 | 213 | 783 | 523 |
Operating Segments | DSL royalties | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 0 | $ 41 | $ 0 | $ 84 |
Business Segments - Revenue by
Business Segments - Revenue by timing of transfer of goods or services (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 3,760 | $ 2,542 | $ 6,671 | $ 6,698 |
Goods or services transferred at a point in time | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,064 | 1,054 | 2,538 | 3,583 |
Goods or services transferred over time | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,696 | $ 1,488 | $ 4,133 | $ 3,115 |
Business Segments (Detail Textu
Business Segments (Detail Textuals) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Recently Adopted Accounting P38
Recently Adopted Accounting Pronouncements - Adoption of the new revenue standard Income Statement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total revenue | $ 3,760,000 | $ 2,542,000 | $ 6,671,000 | $ 6,698,000 | ||
Costs and expenses | 4,141,000 | 3,791,000 | 7,775,000 | 7,815,000 | ||
Provision for income taxes | 8,000 | 74,000 | (58,000) | 79,000 | ||
Net income | $ (188,000) | 114,000 | $ (683,000) | 415,000 | ||
Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total revenue | (202,000) | (393,000) | $ (800,000) | $ (2,800,000) | ||
Costs and expenses | (29,000) | (56,000) | (100,000) | (300,000) | ||
Provision for income taxes | (59,000) | (119,000) | $ (400,000) | $ (1,000,000) | ||
Accounting Standards Update 2014-09 | As Reported | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total revenue | 2,745,000 | 7,092,000 | ||||
Costs and expenses | 3,820,000 | 7,871,000 | ||||
Provision for income taxes | 134,000 | 198,000 | ||||
Net income | $ 228,000 | $ 634,000 | ||||
Net income per share - basic and diluted (in dollars per share) | $ 0.01 | $ 0.03 | ||||
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total revenue | $ (203,000) | $ (394,000) | ||||
Costs and expenses | (29,000) | (56,000) | ||||
Provision for income taxes | (60,000) | (119,000) | ||||
Net income | $ (114,000) | $ (219,000) | ||||
Net income per share - basic and diluted (in dollars per share) | $ 0 | $ (0.01) | ||||
Accounting Standards Update 2014-09 | As Adjusted | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total revenue | $ 2,542,000 | $ 6,698,000 | ||||
Costs and expenses | 3,791,000 | 7,815,000 | ||||
Provision for income taxes | 74,000 | 79,000 | ||||
Net income | $ 114,000 | $ 415,000 | ||||
Net income per share - basic and diluted (in dollars per share) | $ 0.01 | $ 0.02 |
Recently Adopted Accounting P39
Recently Adopted Accounting Pronouncements - Adoption of the new revenue standard Balance Sheet (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net | $ 3,517 | $ 2,389 | ||
Prepaid expenses and other current assets | 224 | 216 | ||
Accrued expenses | 1,366 | 1,401 | ||
Stockholders' equity | $ 59,887 | 60,534 | ||
Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net | 1,400 | $ 2,200 | ||
Deferred tax assets | (300) | (800) | ||
Stockholders' equity | $ 900 | $ 1,200 | ||
Accounting Standards Update 2014-09 | As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net | $ 3,321 | |||
Prepaid expenses and other current assets | 272 | |||
Deferred tax assets | 5,843 | |||
Accrued expenses | 1,124 | |||
Stockholders' equity | 59,796 | |||
Accounting Standards Update 2014-09 | New Revenue Standard Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net | 1,841 | |||
Prepaid expenses and other current assets | 18 | |||
Deferred tax assets | (634) | |||
Accrued expenses | 281 | |||
Stockholders' equity | 944 | |||
Accounting Standards Update 2014-09 | As Adjusted | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net | 5,162 | |||
Prepaid expenses and other current assets | 290 | |||
Deferred tax assets | 5,209 | |||
Accrued expenses | 1,405 | |||
Stockholders' equity | $ 60,740 |
Recently Adopted Accounting P40
Recently Adopted Accounting Pronouncements (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 13 Months Ended | |||
Oct. 31, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | $ 3,760,000 | $ 2,542,000 | $ 6,671,000 | $ 6,698,000 | ||||
Unbilled receivables | 1,400,000 | 1,400,000 | $ 2,200,000 | |||||
Stockholders' equity | 59,887,000 | 59,887,000 | 60,534,000 | |||||
Costs and expenses | 4,141,000 | 3,791,000 | 7,775,000 | 7,815,000 | ||||
Provision for income taxes | 8,000 | 74,000 | (58,000) | 79,000 | ||||
Accrued expenses | 1,366,000 | 1,366,000 | 1,401,000 | |||||
Accounts receivable, net | 3,517,000 | 3,517,000 | 2,389,000 | |||||
Software licenses | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | 1,659,000 | 1,014,000 | 3,133,000 | 3,500,000 | ||||
Software maintenance | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | $ 1,402,000 | 1,282,000 | $ 2,696,000 | 2,534,000 | ||||
Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | (202,000) | (393,000) | (800,000) | $ (2,800,000) | ||||
Stockholders' equity | 900,000 | 1,200,000 | ||||||
Costs and expenses | (29,000) | (56,000) | (100,000) | (300,000) | ||||
Provision for income taxes | (59,000) | (119,000) | (400,000) | (1,000,000) | ||||
Deferred tax assets | (300,000) | (800,000) | ||||||
Accounts receivable, net | 1,400,000 | 2,200,000 | ||||||
2015 imaging software license contract | Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Consummated license contract | $ 4,625,000 | |||||||
Total revenue | (3,600,000) | |||||||
2015 imaging software license contract | Accounting Standards Update 2014-09 | Software licenses | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | $ 4,500,000 | |||||||
2015 imaging software license contract | Accounting Standards Update 2014-09 | Software maintenance | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | $ 125,000 | |||||||
DSL royalty contracts | Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | (2,000) | 7,000 | (17,000) | (39,000) | ||||
Minimum license/royalty payment contract | Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total revenue | (200,000) | (400,000) | (800,000) | 860,000 | ||||
Unbilled receivables | 1,400,000 | 2,200,000 | ||||||
Stockholders' equity | 2,200,000 | |||||||
Accrued expenses | 200,000 | 300,000 | ||||||
Sales commissions and other third-party acquisition costs | Accounting Standards Update 2014-09 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Stockholders' equity | (300,000) | |||||||
Costs and expenses | $ (29,000) | $ (56,000) | $ (114,000) | $ (294,000) |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 8 | $ 74 | $ (58) | $ 79 | |
U.S. statutory tax rate | 21.00% | 34.00% | |||
Deferred tax assets | $ 5,223 | $ 5,223 | $ 5,071 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - Board of Directors - Common Stock - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Apr. 24, 2018 | |
Share Repurchase Program [Line Items] | ||
Share repurchase program authorized to repurchase amount | $ 10,000,000 | |
Number of shares repurchased during period | 33,771 | |
Total cost of shares repurchased during period | $ 137,000 |
Income from patent arrangement
Income from patent arrangement (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Income From Patent Arrangement [Abstract] | ||
Income from intangible assets | $ 1,313 | $ 1,403 |