Aware (AWRE) 10-Q 27 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 23, 2015
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		22,929,901
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 46,421	$ 43,985
Accounts receivable, net	2,409	3,619
Inventories	616	2
Deferred tax assets	168	168
Prepaid expenses and other current assets	841	401
Total current assets	50,455	48,175
Property and equipment, net	5,078	5,289
Investments	858	1,428
Long term deferred tax assets	749	804
Other assets	370	197
Total assets	57,510	55,893
Current liabilities:
Accounts payable	297	258
Accrued expenses	764	820
Deferred revenue	2,333	2,352
Total current liabilities	3,394	3,430
Long-term deferred revenue	$ 150	$ 74
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 22,929,901 as of September 30, 2015 and 22,808,761 as of December 31, 2014	$ 229	$ 228
Additional paid-in capital	102,585	103,756
Accumulated other comprehensive loss	(70)	(29)
Accumulated deficit	(48,778)	(51,566)
Total stockholders' equity	53,966	52,389
Total liabilities and stockholders' equity	$ 57,510	$ 55,893

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
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
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	22,929,901	22,808,761
Common stock, shares outstanding	22,929,901	22,808,761

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Software licenses	$ 2,076	$ 3,077	$ 5,997	$ 6,759
Software maintenance	1,220	1,085	3,651	3,282
Services	$ 652	1,585	$ 2,727	3,931
Hardware		132		4,813
Royalties	$ 93	148	$ 299	626
Total revenue	$ 4,041	6,027	$ 12,674	19,411
Costs and expenses:
Cost of hardware		90		3,403
Cost of services	$ 416	615	$ 1,532	1,697
Research and development	1,489	1,381	4,364	4,060
Selling and marketing	849	973	2,885	2,813
General and administrative	858	940	2,604	2,719
Total costs and expenses	$ 3,612	3,999	$ 11,385	14,692
Patent related income		2,127		2,127
Operating income	$ 429	4,155	$ 1,289	6,846
Other income/(expense)			12	(59)
Interest income	35	43	109	182
Income before provision for income taxes	464	4,198	1,410	6,969
Provision for (benefit from) income taxes	(1,733)	1,599	(1,378)	2,625
Net income	$ 2,197	$ 2,599	$ 2,788	$ 4,344
Net income per share - basic (in dollars per share)	$ 0.10	$ 0.11	$ 0.12	$ 0.19
Net income per share - diluted (in dollars per share)	$ 0.10	$ 0.11	$ 0.12	$ 0.19
Weighted-average shares - basic (in shares)	22,930	22,804	22,888	22,687
Weighted-average shares - diluted (in shares)	23,011	22,893	22,949	22,781
Comprehensive income:
Net income	$ 2,197	$ 2,599	$ 2,788	$ 4,344
Other comprehensive income (net of tax):
Unrealized gains (losses) on available for sale securities	(1)	(67)	(41)	54
Comprehensive income	$ 2,196	$ 2,532	$ 2,747	$ 4,398

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 2,788	$ 4,344
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	474	405
Stock-based compensation	466	$ 619
Reversal of reserve for uncertain tax positions	$ (1,913)
Gain on sale of patent assets		$ (2,127)
Amortization of premium on investments	$ (8)	(1)
Deferred tax provision on other comprehensive income	21	(44)
(Gain)/loss on sale of investments	(12)	59
Changes in assets and liabilities:
Accounts receivable	1,210	632
Inventories	(614)	1,599
Prepaid expenses and other current assets	(440)	260
Deferred tax assets	54	202
Accounts payable	39	(1,337)
Accrued expenses	$ (56)	58
Accrued income taxes		57
Deferred revenue	$ 56	832
Net cash provided by operating activities	2,065	5,558
Cash flows from investing activities:
Purchases of property and equipment	(117)	(112)
Sales of investments	$ 529	1,432
Proceeds from sale of patent assets, net		$ 2,127
Purchase of other assets	$ (320)
Net cash provided by investing activities	92	$ 3,447
Cash flows from financing activities:
Proceeds from issuance of common stock	$ 22	491
Payment of dividends		(39,905)
Excess tax benefits from stock-based compensation	$ 413	1,461
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(156)	(205)
Net cash provided by (used in) financing activities	279	(38,158)
Increase/(decrease) in cash and cash equivalents	2,436	(29,153)
Cash and cash equivalents, beginning of period	43,985	72,660
Cash and cash equivalents, end of period	46,421	43,507
Supplemental disclosure:
Cash paid for income taxes	$ 356	$ 617

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis Of Accounting [Abstract]
Basis of Presentation	A) Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of income and comprehensive income, 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 September 30, 2015, and of operations and cash flows for the interim periods ended September 30, 2015 and 2014. The results of operations for the interim period ended September 30, 2015 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	B) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $46.4 million and $44.0 million as of September 30, 2015 and December 31, 2014, respectively. We classified our cash equivalents of $34.3 million and $34.3 million as of September 30, 2015 and December 31, 2014 within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our investments, which consist of high yield corporate debt securities, are also classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. We categorize our investments as available-for-sale securities, and carry them at fair value in our financial statements. We had $0.9 million and $1.4 million of available-for-sale investments as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, 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 September 30, 2015 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 858 $ - $ - Money market funds (included in cash and cash equivalents) 34,322 Total $ 35,180 $ - $ - As of December 31, 2014, 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, 2014 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 1,428 $ - $ - Money market funds (included in cash and cash equivalents) 34,339 Total $ 35,767 $ - $ -

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	C) Inventories. September 30, December 31, Raw materials $ 616 $ 2 Finished goods - - Total $ 616 $ 2

Computation of Earnings per Sha

Computation of Earnings per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computation of Earnings per Share	D) Computation of Earnings per Share. Net income per share is calculated as follows (in thousands, except per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net income $ 2,197 $ 2,599 $ 2,788 $ 4,344 Shares outstanding: Weighted-average common shares outstanding 22,930 22,804 22,888 22,687 Additional dilutive common stock equivalents 81 89 61 94 Diluted shares outstanding 23,011 22,893 22,949 22,781 Net income per share – basic $ 0.10 $ 0.11 $ 0.12 $ 0.19 Net income per share - diluted $ 0.10 $ 0.11 $ 0.12 $ 0.19 For the three month periods ended September 30, 2015 and 2014, options to purchase 64,034 and 40,834 shares of common stock were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive. For the nine month periods ended September 30, 2015 and 2014, options to purchase 54,034 and 40,834 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock-Based Compensation	E) Stock-Based Compensation. Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of services $ 9 $ 15 $ 23 $ 30 Research and development 29 34 56 71 Selling and marketing 4 6 9 12 General and administrative 181 242 378 506 Stock-based compensation expense $ 223 $ 297 $ 466 $ 619 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2015 and 2014 that affected financial results for the three and nine month periods ended September 30, 2015 and 2014. These grants are described below. 2015 Grant. The shares we issued on July 1, 2015 for the first installment of the 2015 grant included 58,862 net shares of common stock after employees surrendered 17,138 shares for which we paid $69,000 of withholding taxes on their behalf. 2014 Grant

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Business Segments	F) 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 nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 United States $ 2,579 $ 4,154 $ 7,594 $ 14,945 Brazil 157 22 1,810 460 Rest of World 1,305 1,851 3,270 4,006 $ 4,041 $ 6,027 $ 12,674 $ 19,411 Revenue by product group for the three and nine months ended September 30, 2015 and 2014 was (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Biometrics $ 3,575 $ 5,510 $ 11,306 $ 17,720 Imaging 373 369 1,069 1,065 DSL royalties 93 148 299 626 $ 4,041 $ 6,027 $ 12,674 $ 19,411

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	G) Recent Accounting Pronouncements. With the exception of the new revenue 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 September 30, 2015.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	H) Income Taxes . Income tax expense was $1.6 million and $2.6 million for the three and nine months ended September 30, 2014, respectively. Income tax expense in the three and nine month periods of 2014 was based on the U.S. statutory rate of 34%, increased by state income taxes. We recorded income tax benefits in the three and nine month periods ended September 30, 2015 of $1.7 million and $1.4 million, respectively. Income tax benefits in the three and nine month periods of 2015 were the result of a $1.9 million tax benefit from the reversal of a reserve for uncertain tax positions, which was partially offset by taxes on pre-tax income based on the U.S. statutory rate of 34%, increased by state income taxes. As previously reported, the Internal Revenue Service (“IRS”) commenced an examination of our tax return for the year ended December 31, 2012 in September 2014. In July 2015, the IRS notified us that it had completed its examination and that it had no changes to our reported tax. As a result of the completion of the IRS examination, we determined that a $1.9 million reserve for uncertain tax positions we had established on federal research and development credits was no longer required. We reversed the reserve in the current quarter. In the nine month periods ended September 30, 2015 and 2014, we utilized deferred tax assets to reduce our tax liability payable to the government. A portion of the deferred tax assets we used comprised cumulative deductions for stock options in excess of book expense. Under income tax accounting rules, that portion of tax benefits attributable to such deductions must be recorded as an adjustment to equity versus a reduction of income tax expense. The tax benefits from such stock-based awards were $0.4 million and $1.5 million in the nine month periods ended September 30, 2015 and 2014, respectively. These tax benefits were recorded as an equity adjustment to additional paid-in capital. As of September 30, 2015, we had a total of $0.9 million of deferred tax assets for which we had recorded no valuation allowance. 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 addition to deferred tax assets carried on our balance sheet, we also had net federal and state research and development credit carryforwards available at December 31, 2014 of $4.0 million and $0.3 million. Federal credits of $4.0 million would be adjusted to $5.9 million after giving effect to the current quarter reversal of the reserve for uncertain tax positions. Our federal and state credits were not recorded as tax assets as they relate to excess stock compensation deductions that may not be recorded as tax assets under generally accepted accounting principles until the amounts have been utilized to reduce our tax liability. To the extent that these assets are used to reduce future taxes, the benefit will be recorded as a reduction to additional paid-in capital. The aforementioned $0.4 million and $1.5 million

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Loss	I) Accumulated Other Comprehensive Loss. December 31, Increase/ Reclassification September 30, 2014 Decrease Adjustments 2015 Unrealized losses on available for sale securities $ (87 ) $ (64 ) $ - $ (151 ) Unrealized gains on available for sale securities 43 (10 ) 12 45 Net unrealized gains (losses) on available for sale securities (44 ) (74 ) 12 (a) (106 ) Income tax benefit (expense) on other comprehensive loss 15 25 (4 ) 36 Total accumulated other comprehensive loss, net of taxes $ (29 ) $ (49 ) $ 8 $ (70 ) (a) – Classified in other income.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at September 30, 2015 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 858 $ - $ - Money market funds (included in cash and cash equivalents) 34,322 Total $ 35,180 $ - $ - Fair Value Measurement at December 31, 2014 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 1,428 $ - $ - Money market funds (included in cash and cash equivalents) 34,339 Total $ 35,767 $ - $ -

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, December 31, Raw materials $ 616 $ 2 Finished goods - - Total $ 616 $ 2

Computation of Earnings per S17

Computation of Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of net income per share	Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net income $ 2,197 $ 2,599 $ 2,788 $ 4,344 Shares outstanding: Weighted-average common shares outstanding 22,930 22,804 22,888 22,687 Additional dilutive common stock equivalents 81 89 61 94 Diluted shares outstanding 23,011 22,893 22,949 22,781 Net income per share – basic $ 0.10 $ 0.11 $ 0.12 $ 0.19 Net income per share - diluted $ 0.10 $ 0.11 $ 0.12 $ 0.19

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
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 Nine Months Ended 2015 2014 2015 2014 Cost of services $ 9 $ 15 $ 23 $ 30 Research and development 29 34 56 71 Selling and marketing 4 6 9 12 General and administrative 181 242 378 506 Stock-based compensation expense $ 223 $ 297 $ 466 $ 619

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 United States $ 2,579 $ 4,154 $ 7,594 $ 14,945 Brazil 157 22 1,810 460 Rest of World 1,305 1,851 3,270 4,006 $ 4,041 $ 6,027 $ 12,674 $ 19,411
Schedule of revenue by product group	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Biometrics $ 3,575 $ 5,510 $ 11,306 $ 17,720 Imaging 373 369 1,069 1,065 DSL royalties 93 148 299 626 $ 4,041 $ 6,027 $ 12,674 $ 19,411

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of components of accumulated other comprehensive loss and activity	December 31, Increase/ Reclassification September 30, 2014 Decrease Adjustments 2015 Unrealized losses on available for sale securities $ (87 ) $ (64 ) $ - $ (151 ) Unrealized gains on available for sale securities 43 (10 ) 12 45 Net unrealized gains (losses) on available for sale securities (44 ) (74 ) 12 (a) (106 ) Income tax benefit (expense) on other comprehensive loss 15 25 (4 ) 36 Total accumulated other comprehensive loss, net of taxes $ (29 ) $ (49 ) $ 8 $ (70 ) (a) – Classified in other income.

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	Sep. 30, 2015	Dec. 31, 2014
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 35,180	$ 35,767
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	858	1,428
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds (included in cash and cash equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds (included in cash and cash equivalents)	$ 34,322	$ 34,339
Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities
Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities

Fair Value Measurements (Detail

Fair Value Measurements (Detail Textuals) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, primarily include money market funds	$ 46,421	$ 43,985	$ 43,507	$ 72,660
Fair value on recurring basis | Corporate debt securities | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investments	858	1,428
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)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, primarily include money market funds	$ 34,300	$ 34,300

Inventories - Summary of invent

Inventories - Summary of inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 616	$ 2
Finished goods
Total	$ 616	$ 2

Computation of Earnings per S24

Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 2,197	$ 2,599	$ 2,788	$ 4,344
Shares outstanding:
Weighted average common shares outstanding (in shares)	22,930	22,804	22,888	22,687
Additional dilutive common stock equivalents (in shares)	81	89	61	94
Diluted shares outstanding (in shares)	23,011	22,893	22,949	22,781
Net income per share - basic (in dollars per share)	$ 0.10	$ 0.11	$ 0.12	$ 0.19
Net income per share - diluted (in dollars per share)	$ 0.10	$ 0.11	$ 0.12	$ 0.19

Computation of Earnings per S25

Computation of Earnings per Share (Detail Textuals) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	64,034	40,834	54,034	40,834

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 223	$ 297	$ 466	$ 619
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	9	15	23	30
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	29	34	56	71
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4	6	9	12
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 181	$ 242	$ 378	$ 506

Stock-Based Compensation (Detai

Stock-Based Compensation (Detail Textuals) - Unrestricted Stock Grants - 2001 Nonqualified Stock Plan - Directors, officers and employees - USD ($)	Jul. 01, 2015	Mar. 26, 2015	Jan. 31, 2015	Jul. 31, 2014	Mar. 31, 2014	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)		152,000
Number of shares issuable in future		76,000
Stock-based compensation expense							$ 682,000
Stock based compensation expense charged						$ 223,000	459,000
Remaining stock based compensation expense						$ 223,000	$ 223,000
Number of shares issued (in shares)	58,862
Number of common stock shares surrendered by employees withholding taxes	17,138
Common stock value surrendered by employees withholding taxes	$ 69,000
2014 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)					152,000
Stock-based compensation expense								$ 876,000
Number of shares issued (in shares)			56,804	58,769
Number of common stock shares surrendered by employees withholding taxes			19,196	17,231
Common stock value surrendered by employees withholding taxes			$ 87,000	$ 113,000

Business Segments - Revenues ge

Business Segments - Revenues generated following geographic regions (Details ) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 4,041	$ 6,027	$ 12,674	$ 19,411
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue	2,579	4,154	7,594	14,945
Operating Segments | Brazil
Segment Reporting Information [Line Items]
Revenue	157	22	1,810	460
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 1,305	$ 1,851	$ 3,270	$ 4,006

Business Segments - Summary of

Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 4,041	$ 6,027	$ 12,674	$ 19,411
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue	3,575	5,510	11,306	17,720
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue	373	369	1,069	1,065
Operating Segments | DSL royalties
Segment Reporting Information [Line Items]
Revenue	$ 93	$ 148	$ 299	$ 626

Income Taxes (Detail Textuals)

Income Taxes (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ (1,733)	$ 1,599	$ (1,378)	$ 2,625
Income tax U.S. statutory rate	34.00%	34.00%	34.00%	34.00%
Reversal of reserve for uncertain tax positions	$ 1,900		$ 1,913
Tax benefits from stock-based awards			400	$ 1,500
Deferred tax assets	900		900
Equity adjustment to additional paid-in capital			400	$ 1,500
Federal | Research and development credit carryforwards
Operating Loss Carryforwards [Line Items]
Net federal and state research and development credit carryforwards	5,900		5,900		$ 4,000
State | Research and development credit carryforwards
Operating Loss Carryforwards [Line Items]
Net federal and state research and development credit carryforwards	$ 300		$ 300		$ 300

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Loss - Components of accumulated other comprehensive loss and activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance Net unrealized gains (losses) on available for sale securities	$ (44)
Beginning balance Income tax benefit (expense) on other comprehensive loss	15
Beginning balance Total accumulated other comprehensive loss, net of taxes	(29)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	(74)
Increase/Decrease Income tax benefit (expense) on other comprehensive loss	25
Increase/Decrease Total accumulated other comprehensive loss, net of taxes	(49)
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities	12	[1]
Reclassification Adjustments Income tax benefit (expense) on other comprehensive loss	(4)
Reclassification Adjustments Total accumulated other comprehensive loss, net of taxes	8
Ending balance Net unrealized gains (losses) on available for sale securities	(106)
Ending balance Income tax benefit (expense) on other comprehensive loss	36
Ending balance Total accumulated other comprehensive loss, net of taxes	(70)
Unrealized losses on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance Net unrealized gains (losses) on available for sale securities	(87)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	$ (64)
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities
Ending balance Net unrealized gains (losses) on available for sale securities	$ (151)
Unrealized gains on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance Net unrealized gains (losses) on available for sale securities	43
Increase/Decrease Net unrealized gains (losses) on available for sale securities	(10)
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities	12
Ending balance Net unrealized gains (losses) on available for sale securities	$ 45
[1]	Classified in other income.