Aware (AWRE) 10-Q 27 Oct 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 22, 2021
Cover [Abstract]
Entity Registrant Name	AWARE, INC.
Entity Central Index Key	0001015739
Trading Symbol	AWRE
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		21,559,483
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.01 par value per share
Security Exchange Name	NASDAQ
Entity File Number	000-21129
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2911026
Entity Address, Address Line One	40 Middlesex Turnpike
Entity Address, City or Town	Bedford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01730
City Area Code	781
Local Phone Number	276-4000
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 33,297	$ 38,565
Accounts receivable, net of allowance for doubtful accounts of $74 and $138 at September 30, 2021 and December 31, 2020	3,135	2,285
Unbilled receivables	3,272	2,229
Tax receivable	1,398	0
Prepaid expenses and other current assets	745	582
Total current assets	41,847	43,661
Property and equipment, net	3,333	3,701
Intangible assets, net	1,086	1,217
Goodwill	1,651	1,651
Long-term tax receivable	0	1,398
Total assets	47,917	51,628
Current liabilities:
Accounts payable	565	494
Accrued expenses	2,057	1,531
Deferred revenue	3,040	3,843
Total current liabilities	5,662	5,868
Long-term deferred revenue	106	90
Stockholders’ equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding	0	0
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding of 21,549,483 as of September 30, 2021 and 21,378,833 as of December 31, 2020	215	214
Additional paid-in capital	97,151	96,104
Accumulated deficit	(55,217)	(50,648)
Total stockholders’ equity	42,149	45,670
Total liabilities and stockholders’ equity	$ 47,917	$ 51,628

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts (in dollars)	$ 74	$ 138
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	21,549,483	21,378,833
Common stock, shares outstanding	21,549,483	21,378,833

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Total revenue	$ 4,175,000	$ 2,474,000	$ 12,857,000	$ 7,883,000
Costs and expenses:
Cost of sales	243,000	149,000	933,000	483,000
Research and development	2,307,000	2,332,000	7,067,000	7,027,000
Selling and marketing	1,631,000	1,306,000	4,785,000	3,771,000
General and administrative	1,574,000	1,207,000	4,644,000	4,170,000
Total costs and expenses	5,755,000	4,994,000	17,429,000	15,451,000
Operating loss	(1,580,000)	(2,520,000)	(4,572,000)	(7,568,000)
Interest income	1,000	7,000	3,000	174,000
Loss before benefit from income taxes	(1,579,000)	(2,513,000)	(4,569,000)	(7,394,000)
Benefit from income taxes	0	(736,000)	0	(1,416,000)
Net loss	$ (1,579,000)	$ (1,777,000)	$ (4,569,000)	$ (5,978,000)
Net loss per share – basic	$ (0.07)	$ (0.08)	$ (0.21)	$ (0.28)
Net loss per share – diluted	$ (0.07)	$ (0.08)	$ (0.21)	$ (0.28)
Weighted-average shares – basic	21,532	21,476	21,508	21,452
Weighted-average shares – diluted	21,532	21,476	21,508	21,452
Software licenses
Revenue:
Total revenue	$ 2,197,000	$ 796,000	$ 6,287,000	$ 3,176,000
Software maintenance
Revenue:
Total revenue	1,526,000	1,368,000	4,831,000	4,110,000
Services and other
Revenue:
Total revenue	$ 452,000	$ 310,000	$ 1,739,000	$ 597,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (4,569)	$ (5,978)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	520	401
Stock-based compensation	1,077	557
Changes in assets and liabilities:
Accounts receivable	(849)	416
Unbilled receivables	(1,044)	1,088
Prepaid expenses and other current assets	(163)	(369)
Tax receivable		(1,179)
Accounts payable	71	71
Accrued expenses	525	599
Deferred revenue	(786)	204
Net cash used in operating activities	(5,218)	(4,190)
Cash flows from investing activities:
Purchases of property and equipment	(21)	(464)
Net cash used in investing activities	(21)	(464)
Cash flows from financing activities:
Proceeds from issuance of common stock	25	23
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(54)	(89)
Repurchase of common stock		(704)
Net cash used in financing activities	(29)	(770)
Decrease in cash and cash equivalents	(5,268)	(5,424)
Cash and cash equivalents, beginning of period	38,565	47,742
Cash and cash equivalents, end of period	$ 33,297	$ 42,318

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance at Dec. 31, 2019	$ 53,435	$ 214	$ 96,255	$ (43,034)
Balance (in shares) at Dec. 31, 2019		21,443,000
Issuance of unrestricted stock		$ 1	(1)
Issuance of unrestricted stock (in shares)		94,000
Shares surrendered by employees to pay taxes related to unrestricted stock	(50)		(50)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)		(15,000)
Stock-based compensation expense	83		83
Net loss	(1,060)			(1,060)
Balance at Mar. 31, 2020	52,408	$ 215	96,287	(44,094)
Balance (in shares) at Mar. 31, 2020		21,522,000
Balance at Dec. 31, 2019	53,435	$ 214	96,255	(43,034)
Balance (in shares) at Dec. 31, 2019		21,443,000
Net loss	(5,978)
Balance at Sep. 30, 2020	47,245	$ 214	96,044	(49,013)
Balance (in shares) at Sep. 30, 2020		21,437,000
Balance at Mar. 31, 2020	52,408	$ 215	96,287	(44,094)
Balance (in shares) at Mar. 31, 2020		21,522,000
Issuance of common stock under employee stock purchase plan	23		23
Issuance of common stock under employee stock purchase plan (in shares)		7,000
Stock-based compensation expense	230		230
Repurchase of common stock	(469)	$ (1)	(468)
Repurchase of common stock (in shares)		(139,000)
Net loss	(3,142)			(3,142)
Balance at Jun. 30, 2020	49,050	$ 214	96,072	(47,236)
Balance (in shares) at Jun. 30, 2020		21,390,000
Issuance of common stock under employee stock purchase plan		$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		142,000
Shares surrendered by employees to pay taxes related to unrestricted stock	(39)		(39)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)		(12,000)
Stock-based compensation expense	244		244
Repurchase of common stock	(233)	$ (1)	(232)
Repurchase of common stock (in shares)		(83,000)
Net loss	(1,777)			(1,777)
Balance at Sep. 30, 2020	47,245	$ 214	96,044	(49,013)
Balance (in shares) at Sep. 30, 2020		21,437,000
Balance at Dec. 31, 2020	$ 45,670	$ 214	96,104	(50,648)
Balance (in shares) at Dec. 31, 2020	21,378,833	21,379,000
Issuance of unrestricted stock		$ 1	(1)
Issuance of unrestricted stock (in shares)		131,000
Shares surrendered by employees to pay taxes related to unrestricted stock	$ (54)		(54)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)		(16,000)
Stock-based compensation expense	197		197
Net loss	(1,448)			(1,448)
Balance at Mar. 31, 2021	44,365	$ 215	96,246	(52,096)
Balance (in shares) at Mar. 31, 2021		21,494,000
Balance at Dec. 31, 2020	$ 45,670	$ 214	96,104	(50,648)
Balance (in shares) at Dec. 31, 2020	21,378,833	21,379,000
Net loss	$ (4,569)
Balance at Sep. 30, 2021	$ 42,149	$ 215	97,151	(55,217)
Balance (in shares) at Sep. 30, 2021	21,549,483	21,549,000
Balance at Mar. 31, 2021	$ 44,365	$ 215	96,246	(52,096)
Balance (in shares) at Mar. 31, 2021		21,494,000
Issuance of common stock under employee stock purchase plan	25		25
Issuance of common stock under employee stock purchase plan (in shares)		7,000
Stock-based compensation expense	439		439
Net loss	(1,542)			(1,542)
Balance at Jun. 30, 2021	43,287	$ 215	96,710	(53,638)
Balance (in shares) at Jun. 30, 2021		21,501,000
Issuance of unrestricted stock (in shares)		48,000
Stock-based compensation expense	441		441
Net loss	(1,579)			(1,579)
Balance at Sep. 30, 2021	$ 42,149	$ 215	$ 97,151	$ (55,217)
Balance (in shares) at Sep. 30, 2021	21,549,483	21,549,000

Description of the Company and

Description of the Company and Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of the Company and Basis of Presentation	Note 1 – Description of the Company and Basis of Presentation Description of the Company We are a global leader in biometrics software offerings and solutions. Our portfolio enables government agencies and commercial entities to enroll, identify, authenticate and enable using biometrics, which comprise physiological characteristics, such as fingerprints, faces, irises and voices. • Enroll: Register biometric identities into an organization’s secure database • Identify: Utilize an organization’s secure database to accurately identify individuals using biometric data • Authenticate: Provide frictionless multi-factor, passwordless access to secured accounts and databases with biometric verification • Enable: Manage the lifecycle of secure identities through optimized biometric interchanges We have been engaged in this business since 1993. Our comprehensive portfolio of biometric solutions is based on innovative, robust products designed explicitly for ease of integration, including customer-managed and integration ready biometric frameworks, platforms, software development kits (SDKs) and services. Principal government applications of biometrics systems include border control, visa applicant screening, law enforcement, national defense, intelligence, secure credentialing, access control, and background checks. Principal commercial applications include mobile enrollment, user authentication, identity proofing, and secure transaction enablement. Our products span multiple biometric modalities including fingerprint, face, iris and voice, and provide interoperable, standards-compliant, field-proven biometric functionality. Our products are used to capture, verify, format, compress and decompress biometric images as well as aggregate, analyze, process, match and transport those images and templates within biometric systems. For large deployments, we may provide project management and software engineering services. We sell our biometrics software products and services globally through a multifaceted distribution strategy using systems integrators, original equipment manufacturers (OEMs), value added resellers (VARs), partners, and directly to end user customers. Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2020 in conjunction with our 2020 Annual Report on Form 10-K. This Form 10-Q should be read in conjunction with that Form 10-K. The accompanying unaudited consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at September 30, 2021, and of operations and cash flows for the interim periods ended September 30, 2021 and 2020. The results of operations for the interim periods ended September 30, 2021 are not necessarily indicative of the results to be expected for the year. Principles of Consolidation The consolidated financial statements include the accounts of Aware, Inc. and its subsidiary, Aware Security Corporation. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates included in the financial statements pertain to revenue recognition, reserves for doubtful accounts, valuation of intangible assets and goodwill recorded as part of the combinations and valuation allowance for deferred income tax assets. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates,

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition	Note 2 – Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, 1. Identify the contract with the 2. Identify the performance obligations in the 3. Determine the transaction 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) each performance obligation is satisfied. We categorize revenue as software licenses, software maintenance, or services and other. Revenue from software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. 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, which require an allocation of the transaction price to each distinct performance obligation based on a relative standalone selling price (“SSP) basis. 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 within multi ple performance obligation arrangements . 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 customer. In these instances, we may use information such as the nature of the customer and distribution channel in determining the SSP. 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 customization 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 subscription-based software is sold, the subscription-based software and software maintenance are generally considered distinct performance obligations. The transaction price is allocated to subscription-based software and the software maintenance based on the relative SSP of each performance obligation. We sell subscription-based software for a fixed fee and/or a usage-based royalty fee, sometimes subject to a minimum guarantee. When the amount is in the form of a fixed fee, including the guaranteed minimum in subscription-based royalties, revenue is allocated to the subscription-based software and 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 the contract term on a straight-line basis. Any subscription-based software fees earned not subject to the guaranteed minimum or earned in excess of the minimum amount are recognized as revenue when the subsequent usage occurs. Our contracts can include variable fees, such as the option to purchase additional usage of a previously delivered software license. We may also provide pricing concessions to clients, a business practice that also gives rise to variable fees in contracts. We include variable fees in the determination of total transaction price if it is not probable that a future significant reversal of revenue will occur. We use the expected value or most likely value amount, whichever is more appropriate for specific circumstances, to estimate variable consideration, and the estimates are based on the level of historical price concessions offered to clients. 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 September 30, 2021 and 2020, none of our contracts contained a significant financing component. Disaggregation of Revenues We organize ourselves into a single segment that reports to the Chief Executive Officer who is our chief operating decision maker. We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 2,177 $ 1,484 $ 6,844 $ 4,652 United Kingdom 189 266 1,642 1,046 Brazil 687 239 1,333 730 Rest of World 1,122 485 3,038 1,455 $ 4,175 $ 2,474 $ 12,857 $ 7,883 Revenue by timing of transfer of goods or services for the three and nine months ended September 30, 2021 and 2020 was (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Goods or services transferred at a point in time $ 2,275 $ 896 $ 6,296 $ 3,258 Goods or services transferred over time 1,900 1,578 6,561 4,625 $ 4,175 $ 2,474 $ 12,857 $ 7,883 Revenue by contract type for the three and nine months ended September 30, 2021 and 2020 was (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 License and service contracts $ 3,114 $ 2,282 $ 10,675 $ 7,423 Subscription-based contracts 1,061 192 2,182 460 $ 4,175 $ 2,474 $ 12,857 $ 7,883 Revenue from subscription-based contracts include revenue that may be recognized at a point in time or over time and be part of a fixed fee and or minimum guarantee as well as fees earned and allocated to software maintenance. 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. Our contract assets consist of unbilled receivables. Our contract liabilities consist 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 tables present changes in our contract assets and liabilities during the three and nine months ended September 30, 2020 and 2021 (in thousands): Balance at Beginning of Period Revenue Recognized In Advance of Billings Billings Balance at End of Period Three months ended September 30, 2020 Contract assets: Unbilled receivables $ 2,018 $ 492 $ (283 ) $ 2,227 Three months ended September 30, 2021 Contract assets: Unbilled receivables $ 2,867 $ 1,660 $ (1,255 ) $ 3,272 Balance at Beginning of Period Billings Revenue Recognized Balance at End of Period Three months ended September 30, 2020 Contract liabilities: Deferred revenue $ 2,961 $ 1,400 $ (1,320 ) $ 3,041 Three months ended September 30, 2021 Contract liabilities: Deferred revenue $ 2,947 $ 1,725 $ (1,526 ) $ 3,146 Balance at Beginning of Period Revenue Recognized In Advance of Billings Billings Balance at End of Period Nine months ended September 30, 2020 Contract assets: Unbilled receivables $ 3,315 $ 752 $ (1,840 ) $ 2,227 Nine months ended September 30, 2021 Contract assets: Unbilled receivables $ 2,229 $ 3,739 $ (2,696 ) $ 3,272 Balance at Beginning of Period Billings Revenue Recognized Balance at End of Period Nine months ended September 30, 2020 Contract liabilities: Deferred revenue $ 2,837 $ 4,284 $ (4,080 ) $ 3,041 Nine months ended September 30, 2021 Contract liabilities: Deferred revenue $ 3,933 $ 4,043 $ (4,830 ) $ 3,146 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 67% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of September 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations for contracts with a duration greater than one year was $2.2 million.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3 – Fair Value Measurements The FASB Codification defines fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy under the FASB Codification are: Level 1 – valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; Level 2 – valuations that are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and Level 3 – valuations that require inputs that are both significant to the fair value measurement and unobservable. Cash and cash equivalents, which primarily include money market mutual funds, were $33.3 million and $38.6 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at September 30, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 32,451 $ — $ — Total $ 32,451 $ — $ — As of December 31, 2020, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at December 31, 2020 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 37,948 $ — $ — Total $ 37,948 $ — $ —

Acquisition

Acquisition	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Acquisition	Note 4 – Acquisition In November 2020 The acquisition was accounted for as a business combination, whereby all the assets acquired, and liabilities assumed were recognized at fair value on the acquisition date, with any excess of the consideration transferred over the fair value of the net assets acquired recognized as goodwill. Unaudited pro forma results of operations assuming the above acquisition had taken place at the beginning of each period are not provided because the historical operating results and pro forma results would not be materially different from reported results for the periods presented. The fair values recorded were based on a valuation and the estimates and assumptions used in such valuation are subject to change, within the measurement period (up to one year from the acquisition date). As of September 30, 2021, no measurement period adjustments have been recorded. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Net working capital, excluding deferred revenue $ 155 Customer relationships 940 Developed technology 280 Trade name / trademarks 20 Goodwill 1,651 Assets acquired 3,046 Deferred revenue (616 ) Net assets acquired $ 2,430 After allocating the purchase price to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, we recorded goodwill of approximately $1.7 million. Goodwill largely consists of expected synergies to be realized from combining operations. The goodwill is deductible for income tax purposes. The fair values of intangible assets were based on valuations using the income approach. The fair value of intangible assets and their estimated useful lives as of September 30, 2021 are as follows (dollars in thousands): Useful Life Gross Amount Accumulated Amortization Net Book Value Customer relationships 8 years $ 940 $ 102 $ 838 Developed technology 5 years 280 49 231 Trade name trademarks 7 years 20 3 17 $ 1,240 $ 154 $ 1,086 During the three and nine months ended September 30, 2021 we recorded $44 thousand and $131 thousand respectively, of intangible amortization. We expect to record amortization for the fourth quarter of 2021 and each subsequent year as follows (in thousands): 2021 $ 44 2022 176 2023 176 2024 176 2025 169 Thereafter 345 $ 1,086

Computation of Earnings per Sha

Computation of Earnings per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Computation of Earnings per Share	Note 5 – Computation of Earnings per Share Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation. Potential common stock equivalents were not included in the per share calculation below for diluted earnings per share, because we had a net loss and the effect of their inclusion would be anti-dilutive. Net income (loss) per share is calculated as follows (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net loss $ (1,579 ) $ (1,777 ) $ (4,569 ) $ (5,978 ) Shares outstanding: Weighted-average common shares outstanding 21,532 21,476 21,508 21,452 Diluted shares outstanding 21,532 21,476 21,508 21,452 Net loss per share – basic $ (0.07 ) $ (0.08 ) $ (0.21 ) $ (0.28 ) Net loss per share - diluted $ (0.07 ) $ (0.08 ) $ (0.21 ) $ (0.28 )

Equity and Stock-based Compensa

Equity and Stock-based Compensation	9 Months Ended
	Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity and Stock-based Compensation	Note 6 – Equity and Stock-based compensation The following table presents stock-based compensation expenses included in our unaudited consolidated statements of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of services $ 5 $ 4 $ 13 $ 9 Research and development 67 53 169 108 Selling and marketing 74 48 176 121 General and administrative 295 139 719 319 Stock-based compensation expense $ 441 $ 244 $ 1,077 $ 557 Stock Options. We granted stock options for 2,875,000 and 50,000 shares in the nine months ended September 30, 2021 and 2020 respectively. Unrestricted Stock Grants . We grant unrestricted shares of stock under our 2001 Nonqualified Stock Plan. Stock-based compensation expense for stock grants is determined based on the fair market value of our stock on the date of grant, provided the number of shares in the grant is fixed on the grant date. In February 2021 we granted an aggregate 56,533 shares of unrestricted stock to directors. The shares are scheduled to be issued in two equal installments shortly after June 30, 2021 and December 31, 2021, provided each grantee is serving as a director, officer or employee on those dates. Total stock-based compensation expense related to these grants is $0.3 million, of which $0.1 million and $0.2 million was charged to expense in the three and nine months ended September 30, 2021 respectively. We anticipate the remaining $0.1 million will be charged to expense in the fourth quarter of 2021. In 2020 we granted 256,250 shares of unrestricted stock to directors, officers, and employees. I n March and May 2020, we granted 243,000 shares of unrestricted stock to directors, officers, and employees. The shares were issued in two equal installments shortly after June 30, 2020 and December 31, 2020. In October and November, we granted 13,250 shares of unrestricted stock to employees. In 2019 we granted 120,000 shares, of which 30,000 were issued in 2020 and which the rest will be issued in three equal installments on their anniversary in September and October of 2021, 2022, and 2023, provided the grantee is serving as a director, officer, or employee on those dates. The total stock-based compensation expense related to the 120,000 shares granted is $0.3 million of which $21,000 and $63,000 was charged to expense in the three and nine months ended September 30, 2020 and 2021 respectively. We anticipate the remaining $0.2 million will be charged to expense ratably through 2023. We issued 109,773 shares of common stock related to the March and May 2020 grant in early July 2020 after employees surrendered 11,727 shares for which we paid $0.1 million of withholding taxes on their behalf. We also issued 30,000 shares of common stock related to September and October 2019 grants in September and October 2020. We issued 115,403 shares of common stock related to the March, May and November 2020 grants in early January 2021 after employees surrendered 15,347 shares for which we paid $0.1 million of withholding taxes on their behalf. We issued 28,275 shares of common stock related to the February 2021 grant in early July 2021. We also issued 20,000 shares of common stock related to the September 2019 grant in September 2021. Performance Share Awards . In September 2019, we granted 20,000 shares of stock to an officer as a performance share award under our 2001 Nonqualified Stock Plan. The shares were issued in September 2019 and were forfeitable if the grantee was not serving as a director, officer or employee on March 19, 2020. Stock-based compensation expense for this stock grant was determined based on the fair market value of our stock on the date of grant, as the number of shares in the grant was fixed on the grant date. The total stock-based compensation expense related to this grant was $55,000, of which $0 and $24,000 was charged to expense in the three and nine months ended September 30, 2020, respectively. There was no expense related this grant in the three and nine months ended September 30, 2021. In October 2019, we granted 10,000 shares of stock to an officer as a performance share award under our 2001 Nonqualified Stock Plan. The shares were issued in October 2019 and were forfeitable if the grantee was not serving as a director, officer or employee on April 1, 2020. Stock-based compensation expense for this stock grant was determined based on the fair market value of our stock on the date of grant, as the number of shares in the grant was fixed on the grant date. The total stock-based compensation expense related to this grant was $29,000, of which $0 and $14,000 was charged to expense in the three and nine months ended September 30, 2020 respectively. There was no expense in the three and nine months ended September 30, 2021. Share Purchases - On April 30, 2020, our Board of Directors approved a program authorizing us to purchase up to $10 million of our common stock, of which $1.0 million had been utilized to repurchase shares as of September 30, 2021. During the three and nine months ended September 30, 2021 we did not repurchase any shares of our common stock. During the three and nine months ended September 30, 2020, we repurchased 83,000 and 222,000 shares of our common stock, respectively for $0.2 million and $0.7 million respectively. The shares may be purchased from time to time in the open market or through privately negotiated transactions at management’s discretion, depending upon market conditions and other factors. The authorization to repurchase shares of our common stock expires on December 31, 2021. Repurchases will be made under the program using our own cash resources and will been accordance with Rule 10b-18 under the Securities Exchange Act of 1934 and other applicable laws, rules and regulations. The program does not obligate us to acquire any particular amount of common stock and the program may be modified or suspended at any time at our Board of Director’s discretion

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 – Income Taxes During the three and nine months ended September 30, 2021, we recorded no income tax benefits for the net operating losses incurred or for the research and development tax credits generated due to the uncertainty of realizing a benefit from those items. During the three and nine months ended September 30, 2020, we recorded $0.7 million and $1.4. million, respectively, of income tax benefits related to the net operating loss. We have evaluated the positive and negative evidence bearing upon our ability to realize our deferred tax assets, which primarily consist of net operating loss carryforwards and research and development tax credits. We considered the history of cumulative net losses, estimated future taxable income and prudent and feasible tax planning strategies and we have concluded that it is more likely than not that we will not realize the benefits of deferred tax assts. As a result, as of September 30, 2021 and December 31, 2020, we recorded a full valuation allowance against our net deferred tax assts. The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The CARES Act contained specific relief and stimulus measures including allowing net operating losses originating in 2018 through 2020 to be carried back five years to offset taxable income in the carryback period. Separately, the enactment of the Tax Cut and Jobs Act in 2017 allowed taxpayers to claim a refund for alternative minimum tax credits over a period of years. The CARES Act enacted during the first quarter of 2020 allows for the entire amount of the credit to be refunded. We have reviewed the impact of the CARES Act enactment on the income tax provision and have determined that, as a result of the net operating loss carryback provision, we can obtain a tax benefit if we were to carry back the forecasted 2020 net operating loss to the five year carryback period. The carryback of the estimated loss would result in a refundable federal tax credit of approximately $1.5 million and an increase in research credit carryforwards previously utilized. The federal tax credit can be refunded in the future, as we decided to carry back the loss reported on the filed 2020 tax return. Upon filing our 2020 tax return, we reclassified the federal tax credit as a current receivable. Due to the recent loss history, continued investments in the Company, and our future projections of income, we will benefit from the 2020 loss to the extent of the available tax refund and will maintain a full valuation allowance on all other deferred tax assets, including any increase in research credit carryforward resulting from a potential carryback.

Potential Sale of Building

Potential Sale of Building	9 Months Ended
	Sep. 30, 2021
Potential Sale Of Building [Abstract]
Potential Sale of Building	Note 8 – Potential Sale of Building On April 26, 2021 (the “Contract Date”), we entered into an Agreement of Purchase and Sale (the “Purchase and Sale Agreement”) with FDS Bedford, LLC or its designee (the “Purchaser”). The Purchase and Sale Agreement provides that Aware is obligated to sell the property it owns at 40 Middlesex Turnpike, Bedford, Massachusetts (the “Property”) to the Purchaser for $8,000,000 (the “Transaction”), subject to the Purchaser notifying Aware within 180 days after the Contract Date that it wishes to proceed with the closing of the Transaction (the “Closing”) and further subject to the satisfaction or waiver on or before the Closing of the conditions set forth in the Purchase and Sale Agreement. Until such time, if ever, that the Purchaser delivers to us a written notice indicating its intention to proceed with the Transaction (the “Affirmation Notice”), which Affirmation Notice must be given on or prior to the date that is 180 days after the Contract Date (the “Due Diligence Period”). During third quarter of 2021, the 180 day contemplation period was extended to December 31, 2021. The Purchaser is under no obligation to complete the Transaction. The Purchaser may choose not to complete the Transaction for any or no reason, including as a result of its due diligence review of the Property, as a result of changes in the Purchaser’s business plans or as a result of the Purchaser not winning certain business it may be bidding for. The Purchaser is obligated to deposit $125,000 with a title company within five days following the Contract Date. The deposit will be credited against the $8,000,000 purchase price at the Closing. If the Purchaser delivers the Affirmation Notice to us, the Closing will occur 45 days after the expiration of the Due Diligence Period. The Closing is subject to the satisfaction or waiver on or before the Closing of the conditions set forth in the Purchase and Sale Agreement, including (a) our representations and warranties in the Purchase and Sale Agreement being true and correct in all material respects as of the Closing; (b) our having performed all of its obligations under the Purchase and Sale Agreement; (c) good and marketable fee simple title to the land and improvements forming part of the Property being insurable at standard rates; (d) our delivering a quitclaim deed to the Property; and (e) the Property being free and clear of all tenants, occupants and licensees other than us . We currently occupy the Property. We are entitled to continue to occupy the Property for a period of approximately 90 days following the Closing at no cost to us. We are obligated to maintain the Property it occupies in first class condition and repair during this period. We will be obligated to pay certain brokerage commissions at the Closing.

Description of the Company an_2

Description of the Company and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2020 in conjunction with our 2020 Annual Report on Form 10-K. This Form 10-Q should be read in conjunction with that Form 10-K. The accompanying unaudited consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at September 30, 2021, and of operations and cash flows for the interim periods ended September 30, 2021 and 2020. The results of operations for the interim periods ended September 30, 2021 are not necessarily indicative of the results to be expected for the year.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Aware, Inc. and its subsidiary, Aware Security Corporation. Intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates included in the financial statements pertain to revenue recognition, reserves for doubtful accounts, valuation of intangible assets and goodwill recorded as part of the combinations and valuation allowance for deferred income tax assets.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates,

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue From Contract With Customer [Abstract]
Schedule of Revenues Generated from Geographic Regions	Revenues were generated from the following geographic regions for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 2,177 $ 1,484 $ 6,844 $ 4,652 United Kingdom 189 266 1,642 1,046 Brazil 687 239 1,333 730 Rest of World 1,122 485 3,038 1,455 $ 4,175 $ 2,474 $ 12,857 $ 7,883
Schedule of Revenue by Timing of Transfer of Goods or Services	Revenue by timing of transfer of goods or services for the three and nine months ended September 30, 2021 and 2020 was (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Goods or services transferred at a point in time $ 2,275 $ 896 $ 6,296 $ 3,258 Goods or services transferred over time 1,900 1,578 6,561 4,625 $ 4,175 $ 2,474 $ 12,857 $ 7,883
Schedule of Revenue by Contract Type	Revenue by contract type for the three and nine months ended September 30, 2021 and 2020 was (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 License and service contracts $ 3,114 $ 2,282 $ 10,675 $ 7,423 Subscription-based contracts 1,061 192 2,182 460 $ 4,175 $ 2,474 $ 12,857 $ 7,883
Schedule of Changes in Contract Assets and Liabilities	The following tables present changes in our contract assets and liabilities during the three and nine months ended September 30, 2020 and 2021 (in thousands): Balance at Beginning of Period Revenue Recognized In Advance of Billings Billings Balance at End of Period Three months ended September 30, 2020 Contract assets: Unbilled receivables $ 2,018 $ 492 $ (283 ) $ 2,227 Three months ended September 30, 2021 Contract assets: Unbilled receivables $ 2,867 $ 1,660 $ (1,255 ) $ 3,272 Balance at Beginning of Period Billings Revenue Recognized Balance at End of Period Three months ended September 30, 2020 Contract liabilities: Deferred revenue $ 2,961 $ 1,400 $ (1,320 ) $ 3,041 Three months ended September 30, 2021 Contract liabilities: Deferred revenue $ 2,947 $ 1,725 $ (1,526 ) $ 3,146 Balance at Beginning of Period Revenue Recognized In Advance of Billings Billings Balance at End of Period Nine months ended September 30, 2020 Contract assets: Unbilled receivables $ 3,315 $ 752 $ (1,840 ) $ 2,227 Nine months ended September 30, 2021 Contract assets: Unbilled receivables $ 2,229 $ 3,739 $ (2,696 ) $ 3,272 Balance at Beginning of Period Billings Revenue Recognized Balance at End of Period Nine months ended September 30, 2020 Contract liabilities: Deferred revenue $ 2,837 $ 4,284 $ (4,080 ) $ 3,041 Nine months ended September 30, 2021 Contract liabilities: Deferred revenue $ 3,933 $ 4,043 $ (4,830 ) $ 3,146

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	As of September 30, 2021, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at September 30, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 32,451 $ — $ — Total $ 32,451 $ — $ — As of December 31, 2020, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values included the following (in thousands): Fair Value Measurement at December 31, 2020 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 37,948 $ — $ — Total $ 37,948 $ — $ —

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Summary of Fair Value of Assets Acquired and Liabilities Assumed At Date of Acquisition	The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Net working capital, excluding deferred revenue $ 155 Customer relationships 940 Developed technology 280 Trade name / trademarks 20 Goodwill 1,651 Assets acquired 3,046 Deferred revenue (616 ) Net assets acquired $ 2,430
Summary of Fair Value of Intangible Assets and Estimated Useful Lives	The fair values of intangible assets were based on valuations using the income approach. The fair value of intangible assets and their estimated useful lives as of September 30, 2021 are as follows (dollars in thousands): Useful Life Gross Amount Accumulated Amortization Net Book Value Customer relationships 8 years $ 940 $ 102 $ 838 Developed technology 5 years 280 49 231 Trade name trademarks 7 years 20 3 17 $ 1,240 $ 154 $ 1,086
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	During the three and nine months ended September 30, 2021 we recorded $44 thousand and $131 thousand respectively, of intangible amortization. We expect to record amortization for the fourth quarter of 2021 and each subsequent year as follows (in thousands): 2021 $ 44 2022 176 2023 176 2024 176 2025 169 Thereafter 345 $ 1,086

Computation of Earnings per S_2

Computation of Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Net Income (Loss) Per Share	Net income (loss) per share is calculated as follows (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net loss $ (1,579 ) $ (1,777 ) $ (4,569 ) $ (5,978 ) Shares outstanding: Weighted-average common shares outstanding 21,532 21,476 21,508 21,452 Diluted shares outstanding 21,532 21,476 21,508 21,452 Net loss per share – basic $ (0.07 ) $ (0.08 ) $ (0.21 ) $ (0.28 ) Net loss per share - diluted $ (0.07 ) $ (0.08 ) $ (0.21 ) $ (0.28 )

Equity and Stock-based Compen_2

Equity and Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock-based Compensation Expenses Included in Unaudited Consolidated Statements of Operations	The following table presents stock-based compensation expenses included in our unaudited consolidated statements of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of services $ 5 $ 4 $ 13 $ 9 Research and development 67 53 169 108 Selling and marketing 74 48 176 121 General and administrative 295 139 719 319 Stock-based compensation expense $ 441 $ 244 $ 1,077 $ 557

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Revenue From Contract With Customer [Abstract]
Practical expedient for financing components	true
Minimum period of payment of transaction price in contract with customer	30 days
Maximum period of payment of transaction price in contract with customer	60 days
Percentage of remaining performance obligations expected to be recognized as revenue	67.00%
Minimum period of remaining performance obligations	12 months
Revenue recognition performance obligation transaction price	$ 2.2
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true

Revenue Recognition - Revenues

Revenue Recognition - Revenues Generated Following Geographic Regions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,175	$ 2,474	$ 12,857	$ 7,883
Operating Segments
Disaggregation of Revenue [Line Items]
Total revenue	4,175	2,474	12,857	7,883
Operating Segments | United States
Disaggregation of Revenue [Line Items]
Total revenue	2,177	1,484	6,844	4,652
Operating Segments | United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	189	266	1,642	1,046
Operating Segments | Brazil
Disaggregation of Revenue [Line Items]
Total revenue	687	239	1,333	730
Operating Segments | Rest of World
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,122	$ 485	$ 3,038	$ 1,455

Revenue Recognition - Revenue b

Revenue Recognition - Revenue by Timing of Transfer of Goods or Services (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,175	$ 2,474	$ 12,857	$ 7,883
Goods or services transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	2,275	896	6,296	3,258
Goods or services transferred over time
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,900	$ 1,578	$ 6,561	$ 4,625

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Revenue by Contract Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,175	$ 2,474	$ 12,857	$ 7,883
License and service contracts
Disaggregation of Revenue [Line Items]
Total revenue	2,197	796	6,287	3,176
Operating Segments
Disaggregation of Revenue [Line Items]
Total revenue	4,175	2,474	12,857	7,883
Operating Segments | License and service contracts
Disaggregation of Revenue [Line Items]
Total revenue	3,114	2,282	10,675	7,423
Operating Segments | Subscription-based contracts
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,061	$ 192	$ 2,182	$ 460

Revenue Recognition - Changes i

Revenue Recognition - Changes in Contract Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Unbilled receivables, Balance at Beginning of Period	$ 2,867	$ 2,018	$ 2,229	$ 3,315
Unbilled receivables, Revenue Recognized In Advance of Billings	1,660	492	3,739	752
Unbilled receivables, Billings	(1,255)	(283)	(2,696)	(1,840)
Unbilled receivables, Balance at End of Period	$ 3,272	$ 2,227	$ 3,272	$ 2,227

Revenue Recognition - Changes_2

Revenue Recognition - Changes in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Deferred revenue, Balance at Beginning of Period	$ 2,947	$ 2,961	$ 3,933	$ 2,837
Deferred revenue, Billings	1,725	1,400	4,043	4,284
Deferred revenue, Revenue Recognized	(1,526)	(1,320)	(4,830)	(4,080)
Deferred revenue, Balance at End of Period	$ 3,146	$ 3,041	$ 3,146	$ 3,041

Fair Value Measurements - Addit

Fair Value Measurements - Additional information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 33,297	$ 38,565	$ 42,318	$ 47,742

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities
Total	$ 32,451	$ 37,948
Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities
Total	0	0
Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities
Total	0	0
Money market funds (included in cash and cash equivalents) | Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities
Money market funds (included in cash and cash equivalents)	32,451	37,948
Money market funds (included in cash and cash equivalents) | Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities
Money market funds (included in cash and cash equivalents)	0	0
Money market funds (included in cash and cash equivalents) | Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities
Money market funds (included in cash and cash equivalents)	$ 0	$ 0

Acquisition - Additional Inform

Acquisition - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Nov. 30, 2020	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 1,651	$ 1,651	$ 1,651
Bill of Sale and Assignment Agreement
Business Acquisition [Line Items]
Cash consideration to acquire business	$ 2,400
Business acquisition date of agreement			Nov. 30, 2020
Goodwill	$ 1,651
Amortization of intangible assets		$ 44	$ 131

Acquisition - Summary of Fair V

Acquisition - Summary of Fair Value of Assets Acquired and Liabilities Assumed At Date of Acquisition (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Nov. 30, 2020
Business Acquisition [Line Items]
Goodwill	$ 1,651	$ 1,651
Bill of Sale and Assignment Agreement
Business Acquisition [Line Items]
Net working capital, excluding deferred revenue			$ 155
Goodwill			1,651
Assets acquired			3,046
Deferred revenue			(616)
Net assets acquired			2,430
Customer Relationships | Bill of Sale and Assignment Agreement
Business Acquisition [Line Items]
Intangible assets acquired			940
Developed Technology | Bill of Sale and Assignment Agreement
Business Acquisition [Line Items]
Intangible assets acquired			280
Trade Name / Trademarks | Bill of Sale and Assignment Agreement
Business Acquisition [Line Items]
Intangible assets acquired			$ 20

Acquisition - Summary of Fair_2

Acquisition - Summary of Fair Value of Intangible Assets and Estimated Useful Lives (Details) - USD ($) $ in Thousands	1 Months Ended
	Nov. 30, 2020	Dec. 31, 2020
Acquired Finite Lived Intangible Assets [Line Items]
Net Book Value		$ 1,086
Bill of Sale and Assignment Agreement
Acquired Finite Lived Intangible Assets [Line Items]
Gross Amount	$ 1,240
Accumulated Amortization	154
Net Book Value	$ 1,086
Customer Relationships | Bill of Sale and Assignment Agreement
Acquired Finite Lived Intangible Assets [Line Items]
Useful Life	8 years
Gross Amount	$ 940
Accumulated Amortization	102
Net Book Value	$ 838
Developed Technology | Bill of Sale and Assignment Agreement
Acquired Finite Lived Intangible Assets [Line Items]
Useful Life	5 years
Gross Amount	$ 280
Accumulated Amortization	49
Net Book Value	$ 231
Trade name trademarks | Bill of Sale and Assignment Agreement
Acquired Finite Lived Intangible Assets [Line Items]
Useful Life	7 years
Gross Amount	$ 20
Accumulated Amortization	3
Net Book Value	$ 17

Acquisition - Schedule of Finit

Acquisition - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2020USD ($)
Finite Lived Intangible Assets Net Amortization Expense Rolling Maturity [Abstract]
2021	$ 44
2022	176
2023	176
2024	176
2025	169
Thereafter	345
Net Book Value	$ 1,086

Computation of Earnings per S_3

Computation of Earnings per Share - Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net loss	$ (1,579)	$ (1,542)	$ (1,448)	$ (1,777)	$ (3,142)	$ (1,060)	$ (4,569)	$ (5,978)
Shares outstanding:
Weighted-average common shares outstanding	21,532			21,476			21,508	21,452
Diluted shares outstanding	21,532			21,476			21,508	21,452
Net loss per share – basic	$ (0.07)			$ (0.08)			$ (0.21)	$ (0.28)
Net loss per share – diluted	$ (0.07)			$ (0.08)			$ (0.21)	$ (0.28)

Equity and Stock-based Compen_3

Equity and Stock-based Compensation - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 441	$ 244	$ 1,077	$ 557
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5	4	13	9
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	67	53	169	108
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	74	48	176	121
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 295	$ 139	$ 719	$ 319

Equity and Stock-based Compen_4

Equity and Stock-based Compensation - Stock Option Grants and Unrestricted Stock Grants (Details) $ in Thousands

1 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2021USD ($)shares

Jul. 31, 2021shares

Feb. 28, 2021installmentshares

Jan. 31, 2021USD ($)shares

Nov. 30, 2020shares

Oct. 31, 2020shares

Sep. 30, 2020shares

Jul. 31, 2020USD ($)shares

May 31, 2020shares

Mar. 31, 2020shares

Sep. 30, 2021USD ($)

Dec. 31, 2020USD ($)

Sep. 30, 2020USD ($)

Dec. 31, 2020installment

Sep. 30, 2021USD ($)shares

Sep. 30, 2020USD ($)shares

Dec. 31, 2020shares

Dec. 31, 2019USD ($)installmentshares

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Total stock-based compensation expense | $

$ 441

$ 244

$ 1,077

$ 557

Stock options

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of stock options granted

2,875,000

50,000

Unrestricted Stock | 2001 Nonqualified Stock Plan | 2019 Grant | Directors

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of unrestricted stock granted

56,533

Number of installment | installment

2

Total stock-based compensation expense | $

$ 300

Stock-based compensation expense charged to expense | $

100

200

Remaining stock based compensation expense | $

$ 100

100

100

Unrestricted Stock | 2001 Nonqualified Stock Plan | 2019 Grant | Directors, officers and employees

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of unrestricted stock granted

30,000

120,000

Number of installment | installment

3

Total stock-based compensation expense | $

$ 300

Stock-based compensation expense charged to expense | $

$ 63,000

21,000

63,000

$ 21,000

Remaining stock based compensation expense | $

$ 200

Unrestricted Stock | 2001 Nonqualified Stock Plan | 2020 Grant | Directors, officers and employees

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Total stock-based compensation expense | $

$ 700

Stock-based compensation expense charged to expense | $

$ 300

$ 200

$ 400

Unrestricted Stock | 2001 Nonqualified Stock Plan | 2020 Grant

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of shares granted (in shares)

13,250

13,250

Unrestricted Stock | 2001 Nonqualified Stock Plan | 2020 Grant | Directors, officers and employees

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of installment | installment

2

Number of shares granted (in shares)

243,000

243,000

256,250

Unrestricted Stock | 2001 Nonqualified Stock Plan | March and May 2020 Grant | Directors, officers and employees

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of stock options granted

109,773

Number of common stock shares surrendered by employees withholding taxes

11,727

Common stock value surrendered by employees withholding taxes | $

$ 100

Unrestricted Stock | 2001 Nonqualified Stock Plan | September and October 2019 Grant | Directors, officers and employees

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of stock options granted

30,000

30,000

Unrestricted Stock | 2001 Nonqualified Stock Plan | March, May and November 2020 Grant | Directors, officers and employees

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of stock options granted

115,403

Number of common stock shares surrendered by employees withholding taxes

15,347

Common stock value surrendered by employees withholding taxes | $

$ 100

Unrestricted Stock | 2001 Nonqualified Stock Plan | February 2021 Grant

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of stock options granted

28,275

Unrestricted Stock | 2001 Nonqualified Stock Plan | September 2019 Grant

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of stock options granted

20,000

Equity and Stock-based Compen_5

Equity and Stock-based Compensation - Performance Share Awards (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense		$ 441,000	$ 244,000	$ 1,077,000	$ 557,000
Performance Share Awards | 2001 Nonqualified Stock Plan | Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted (in shares)	20,000
Total stock-based compensation expense		0	0	0	24,000
Share based compensation expense for the total grant	$ 55,000
Performance Share Awards | 2001 Nonqualified Stock Plan | Officer | October 2019 Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted (in shares)	10,000
Total stock-based compensation expense		$ 0	$ 0	$ 0	$ 14,000
Share based compensation expense for the total grant	$ 29,000

Equity and Stock-based Compen_6

Equity and Stock-based Compensation - Share Purchases (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Apr. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Value of shares repurchased		$ 233	$ 469
Share Purchases
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized for repurchase						$ 10,000
Amount utilized under the program to repurchase shares				$ 1,000
Number of stock repurchase	0	83,000		0	222,000
Value of shares repurchased		$ 200			$ 700

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax benefits for net operating losses	$ 0	$ 736,000	$ 0	$ 1,416,000
Estimated benefit of federal tax refund	$ 1,500,000		$ 1,500,000

Potential Sale of Building - Ad

Potential Sale of Building - Additional Information (Details) - Purchase and Sale Agreement - FDS Bedford, LLC	Apr. 26, 2021USD ($)
Potential Sale of Building [Line Items]
Purchase obligation	$ 8,000,000
Purchase obligation, term	180 days
Due diligence period	180 days
Purchaser obligated deposit	$ 125,000
Purchaser obligated deposit period	5 days
Affirmation notice period	45 days
Property occupy period	90 days