Aware (AWRE) 10-K 12 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 05, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	1,015,739
Trading Symbol	awre
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Well-Known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		22,993,139
Entity Public Float			$ 58,926,193
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 51,232	$ 43,985
Accounts receivable (less allowance for doubtful accounts of $20 at December 31, 2015 and 2014)	4,743	3,619
Deferred tax assets	184	168
Prepaid expenses and other current assets	483	403
Total current assets	56,642	48,175
Property and equipment, net	4,977	5,289
Investments	869	1,428
Long term deferred tax assets	815	804
Other assets	316	197
Total assets	63,619	55,893
Current liabilities:
Accounts payable	234	258
Accrued expenses	952	820
Accrued income taxes	236
Deferred revenue	5,885	2,352
Total current liabilities	7,307	3,430
Long-term deferred revenue	$ 131	$ 74
Commitments and contingent liabilities (Note 8)
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; shares authorized, 70,000,000 in 2015 and 2014; issued and outstanding 22,935,988 in 2015 and 22,808,761 in 2014	$ 229	$ 228
Additional paid-in capital	102,968	103,756
Accumulated other comprehensive loss	(64)	(29)
Accumulated deficit	(46,952)	(51,566)
Total stockholders' equity	56,181	52,389
Total liabilities and stockholders' equity	$ 63,619	$ 55,893

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts (in dollars)	$ 20	$ 20
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	22,935,988	22,808,761
Common stock, shares outstanding	22,935,988	22,808,761

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Software licenses	$ 10,113	$ 8,537	$ 8,241
Software maintenance	4,706	4,351	3,866
Services	3,304	5,173	3,148
Hardware	1,094	4,933	3,182
Royalties	404	726	920
Total revenue	19,621	23,720	19,357
Costs and expenses:
Cost of hardware	717	3,485	2,365
Cost of services	1,790	2,359	1,503
Research and development	5,800	5,505	4,085
Selling and marketing	3,945	3,741	3,344
General and administrative	3,497	3,668	3,522
Total costs and expenses	15,749	18,758	14,819
Patent related income	43	2,127	780
Operating income	3,915	7,089	5,318
Other income (expense)	12	(59)	23
Interest income	151	225	328
Income from continuing operations before income taxes	4,078	7,255	5,669
Provision for (benefit from) income taxes	(536)	2,672	1,917
Income from continuing operations	4,614	4,583	3,752
Loss from discontinued operations, net of income taxes			(1,156)
Net income	$ 4,614	$ 4,583	$ 2,596
Basic net income per share:
Basic net income per share from continuing operations (in dollars per share)	$ 0.20	$ 0.20	$ 0.17
Basic net loss per share from discontinued operations (in dollars per share)			(0.05)
Basic net income per share (in dollars per share)	0.20	0.20	0.12
Diluted net income per share:
Diluted net income per share from continuing operations (in dollars per share)	0.20	0.20	0.16
Diluted net loss per share from discontinued operations (in dollars per share)			(0.05)
Diluted net income per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.11
Weighted-average shares - basic (in shares)	22,899	22,703	22,543
Weighted-average shares - diluted (in shares)	22,965	22,787	22,641
Comprehensive income:
Net income	$ 4,614	$ 4,583	$ 2,596
Other comprehensive income (net of tax):
Unrealized gain/(loss) on available for sale securities	(35)	96	(75)
Comprehensive income	$ 4,579	$ 4,679	$ 2,521

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 4,614	$ 4,583	$ 2,596
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	640	541	458
Stock-based compensation	689	915	662
Reversal of reserve for uncertain tax positions	(1,914)
Gain on sale of patent assets	(43)	(2,127)
Amortization of premium (discount) on investments	(11)	(3)	15
(Gain)/loss on sale of investments	(12)	59	(23)
Deferred tax benefit (expense) on other comprehensive income	18	(66)	81
Loss on disposal of property and equipment			28
Increase (decrease) from changes in assets and liabilities:
Accounts receivable	(1,124)	963	(1,125)
Receivable from patent arrangement			1,121
Inventories	2	1,599	(1,601)
Prepaid expenses and other current assets	(82)	294	(167)
Deferred tax assets	(27)	173	563
Accounts payable	(24)	(1,258)	1,188
Accrued expenses	132	23	(310)
Accrued income taxes	236
Deferred revenue	3,590	560	(657)
Net cash provided by operating activities	6,684	6,256	2,829
Cash flows from investing activities:
Purchases of property and equipment	(127)	(135)	(160)
Proceeds from sale of property and equipment			24
Purchases of investments			(2,008)
Sales of investments	529	1,432	1,117
Proceeds from sale of patent assets, net	43	2,127
Purchase of other assets	(320)		(338)
Net cash provided by (used in) investing activities	125	3,424	(1,365)
Cash flows from financing activities:
Proceeds from issuance of common stock	40	508	65
Payment of dividends		(39,905)
Excess tax benefits from stock-based compensation	554	1,247	128
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(156)	(205)	(71)
Net cash provided by (used in) financing activities	438	(38,355)	122
Increase/(decrease) in cash and cash equivalents	7,247	(28,675)	1,586
Cash and cash equivalents, beginning of year	43,985	72,660	71,074
Cash and cash equivalents, end of year	51,232	43,985	72,660
Supplemental disclosure:
Cash paid for income taxes	$ 571	$ 1,018	$ 542

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	(Accumulated Deficit)	Total
Balance at Dec. 31, 2012	$ 225	$ 100,561	$ (50)	$ (18,840)	$ 81,896
Balance (in shares) at Dec. 31, 2012	22,510
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options		26			26
Exercise of common stock options (in shares)	6
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	65
Shares surrendered by employees to pay taxes related to unrestricted stock		(71)			(71)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(14)
Issuance of common stock under employee stock purchase plan		40			40
Issuance of common stock under employee stock purchase plan (in shares)	7
Stock-based compensation expense		662			662
Tax benefits from stock-based awards		128			128
Deferred tax asset write-off		(52)			(52)
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities			(156)		(156)
Deferred tax benefit (expense) on unrealized gain (loss)			81		81
Net income				2,596	2,596
Balance at Dec. 31, 2013	$ 226	101,293	(125)	(16,244)	85,150
Balance (in shares) at Dec. 31, 2013	22,574
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options	$ 1	468			469
Exercise of common stock options (in shares)	118
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	141
Shares surrendered by employees to pay taxes related to unrestricted stock		(205)			(205)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(32)
Issuance of common stock under employee stock purchase plan		39			39
Issuance of common stock under employee stock purchase plan (in shares)	8
Stock-based compensation expense		915			915
Tax benefits from stock-based awards		1,247			1,247
Dividend payment				(39,905)	(39,905)
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities			162		162
Deferred tax benefit (expense) on unrealized gain (loss)			(66)		(66)
Net income				4,583	4,583
Balance at Dec. 31, 2014	$ 228	103,756	(29)	(51,566)	$ 52,389
Balance (in shares) at Dec. 31, 2014	22,809				22,808,761
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of unrestricted stock	$ 1	(1)
Issuance of unrestricted stock (in shares)	152
Shares surrendered by employees to pay taxes related to unrestricted stock		(156)			$ (156)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)	(36)
Issuance of common stock under employee stock purchase plan		40			40
Issuance of common stock under employee stock purchase plan (in shares)	11
Reversal of reserve for uncertain tax positions		(1,914)			(1,914)
Stock-based compensation expense		689			689
Tax benefits from stock-based awards		554			554
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities			(53)		(53)
Deferred tax benefit (expense) on unrealized gain (loss)			18		18
Net income				4,614	4,614
Balance at Dec. 31, 2015	$ 229	$ 102,968	$ (64)	$ (46,952)	$ 56,181
Balance (in shares) at Dec. 31, 2015	22,936				22,935,988

NATURE OF BUSINESS

NATURE OF BUSINESS	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
NATURE OF BUSINESS	1. NATURE OF BUSINESS We are a leading provider of software and services to the biometrics industry. Our software products are used in government and commercial biometrics systems, which are capable of determining or verifying an individual’s identity. We also offer engineering services related to software customization, integration, and installation, as well as complete systems development. We sell our biometrics software products and services globally through systems integrators, OEMs, and directly to end user customers

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Use of Estimates Fair Value Measurements Cash and cash equivalents, which primarily include money market mutual funds, were $51.2 million and $44.0 million as of December 31, 2015 and December 31, 2014, respectively. We classified our cash equivalents of $43.0 million and $34.3 million as of December 31, 2015 and 2014, respectively, 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. Debt securities with maturities greater than one year are classified as long term assets. 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 December 31, 2015 and December 31, 2014, respectively. As of December 31, 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 December 31, 2015 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 869 $ - $ - Money market funds (included in cash and cash equivalents) 43,027 Total $ 43,896 $ - $ - 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 $ - $ - Cash and Cash Equivalents Investments Realized gains on investments were $12,000 and $23,000 in the years ended December 31, 2015 and 2013, respectively. Realized losses on investments were $59,000 in the year ended December 31, 2014. Unrealized losses on investments were $53,000 and $156,000 in the years ended December 31, 2015, and 2013. Unrealized gains on investments were $162,000 in the year ended December 31, 2014. The amortized cost of our corporate debt securities was $1.0 million at December 31, 2015. Corporate debt securities comprising investments mature in 2017 and 2018. Allowance for Doubtful Accounts Inventories Property and Equipment The estimated useful lives of assets used by us are: Building 30 years Building improvements 5 to 20 years Furniture and fixtures 5 years Computer, office & manufacturing equipment 3 years Purchased software 3 years Impairment of Long-Lived Assets Revenue Recognition Persuasive evidence of an arrangement: Product delivery: Fixed or determinable fee: Collection is deemed probable: We categorize revenue as software licenses, software maintenance, services, hardware, or royalties. In addition to the general revenue recognition policies described above, specific revenue recognition policies apply to each category of revenue. Software licenses Software licenses consist of revenue from the sale of software licenses for biometrics and imaging applications. Our software licenses typically provide customers with the right to use our software in perpetuity. We recognize revenue from software licenses upon delivery when licenses are sold in single element arrangements, because we have no post-delivery obligations, including contractual or implied Post Contract Support (“PCS”). Software maintenance Software maintenance consists of revenue from the sale of software maintenance contracts for biometrics and imaging software. Software maintenance contracts entitle customers to receive software support and software updates, if and when they become available, during the term of the maintenance contract. We recognize software maintenance revenue ratably over the related contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue as services are delivered when services are sold in single element arrangements. Hardware Hardware revenue consists of sales of biometrics equipment to a single U.S. government customer. We recognize hardware revenue upon delivery and acceptance of the equipment by the customer. Royalties Royalties consist primarily of royalty payments we receive under DSL silicon contracts with two customers that incorporate our silicon intellectual property (“IP”) in their DSL chipsets. We sold the assets of our DSL IP business in 2009, but we continue to receive royalty payments from these customers. Royalties are reported in continuing operations in accordance with ASC 205, Reporting Discontinued Operations, because we have continuing ongoing cash flows from this business. Since we cannot reasonably estimate royalty revenue, such revenue is recognized in the quarter in which a final report is received from a customer. Royalty reports are typically received in the quarter immediately following the quarter in which sales of royalty-bearing products occur. Multiple element arrangements with software and software related elements In addition to selling software licenses, software maintenance and software services in single element arrangements, we also sell these three products as part of multiple element arrangements. We apply the provisions of ASC 985-605, Software Revenue Recognition, to these arrangements because all the elements are software or software related. The various combinations of multiple element arrangements and our revenue recognition for each are described as follows: · Software licenses and software maintenance · Software licenses and services. · Software licenses, software maintenance and services. Multiple element arrangement with hardware and software elements We also have a multiple element arrangement with one customer that involves the delivery of hardware, software maintenance, and software services. We determined that these elements qualified as separate units of accounting under ASC 605, Revenue Recognition, because they have value to the customer on a standalone basis. We recognize revenue from this arrangement as follows: i) hardware revenue is recognized upon delivery and acceptance of the equipment by the customer; ii) maintenance revenue is recognized ratably over the related contract period; and iii) service revenue is recognized as services are delivered. Income Taxes We recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the tax position. The evaluation of an uncertain tax position is based on factors that include, but are not limited to, changes in the tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, and changes in facts or circumstances related to a tax position. Any changes to these estimates, based on the actual results obtained and/or a change in assumptions, could impact our tax provision in future periods. Interest and penalty charges, if any, related to unrecognized tax benefits would be classified as a provision for income tax in the statement of income. Capitalization of Software Costs Research and Development Costs Concentration of Credit Risk Concentration of credit risk with respect to net accounts receivable consisted of amounts owed by the following customers that comprised more than 10% of net accounts receivable at December 31: 2015 2014 Customer A 26 % 18 % Customer B 17 % - % Customer C - % 15 % Customer D 4 % 11 % Concentration of credit risk with respect to our investment portfolio consisted of $0.5 million and $0.4 million with two issuers of corporate debt securities, respectively, at December 31, 2015, and $0.5 million, $0.5 million, and $0.4 million with three issuers of corporate debt securities, respectively, at December 31, 2014. Stock-Based Compensation For stock awards, we determine the fair value of the award by using the fair market value of our stock on the date of grant; provided the number of shares in the grant is fixed on the grant date. For stock options, we use the Black-Scholes option valuation model to estimate the fair value of the award. This valuation model takes into account the exercise price of the award, as well as a variety of significant assumptions. The assumptions used to estimate the fair value of stock options include the expected term, the expected volatility of our stock over the expected term, the risk-free interest rate over the expected term, and our expected annual dividend yield. Computation of Earnings per Share Fair Value of Financial Instruments The carrying amount of investments is based on the fair value of the individual securities in our investment portfolio. Advertising Costs – Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standard Update ("ASU") 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position to simplify the presentation of deferred income taxes. The standard is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company did not early adopt this standard. The effect of early adoption would not have been material as it would have only resulted in a $184,000 reclass of short term deferred tax assets to long term deferred tax assets on our December 31, 2015 consolidated balance sheets. With the exception of the two standards above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of December 31, 2015. Reclassifications - Segments

PATENT RELATED INCOME

PATENT RELATED INCOME	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
PATENT RELATED INCOME	3. PATENT RELATED INCOME The composition of patent related income in 2015, 2014 and 2013 was as follows: Year ended December 31, 2015. We sold a portion of our patent portfolio pertaining to home networking technology to an unrelated third party for $50,000. The proceeds from the sale were reduced by $7,000 of transaction costs, which consisted primarily of fees from the law firm that assisted us in the sale. We recorded a gain of $43,000 on the sale. Year ended December 31, 2014. We sold a portion of our patent portfolio pertaining to DSL diagnostic technology to an unrelated third party for $2.6 million. The proceeds from the sale were reduced by $0.5 million of transaction costs, which consisted primarily of fees from the law firm that assisted us in the sale. We recorded a gain of $2.1 million on the sale. The DSL diagnostic technology in the patents we sold in 2014 was related to our DSL Service Assurance business that we shut down in 2012 and 2013 and reported in discontinued operations in those periods. We do not consider our patent related activities to be a component of the operating business from which the underlying technology was derived, but rather as a component of corporate general and administrative expenses. Accordingly the gain on the sale of these patents was reported in income from continuing operations. The gains on the sale of patents was included in income from continuing operations pursuant to ASC 360-10, Impairment or Disposal of Long-Lived Assets, and Rule 5-03 of Regulation S-X. Year ended December 31, 2013. We entered into an arrangement with an unaffiliated third party in 2010 under which we assigned certain patents in return for royalties on proceeds from patent monetization efforts by the third party. Such third party has engaged in various patent monetization activities, including enforcement, litigation and licensing. The party reported and we recorded $0.8 million of income from this arrangement in the year ended December 31, 2013. We continue to have a contractual relationship with this third party. However, we are unable to predict how much more income we might receive from this arrangement, if any, because: · The claims in one of the patents we assigned were rejected by the United States Patent Office (“USPTO”) in May 2013. The USPTO’s Patent Trial & Appeal Board (“PTAB”) affirmed the USPTO decision in June 2014. The PTAB decision was appealed to the Federal Circuit. In December 2014, the Federal Circuit remanded the appeal back to the PTAB for further consideration. In August 2015, the PTAB remanded the case back to the USPTO patent examiner of record for further review. In November 2015, the USPTO confirmed the validity of the claims in the patent. · Even though the USPTO has confirmed the validity of the claims in the patent, we do not know whether any patent monetization efforts by the third party will be successful.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	12 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	4. DISCONTINUED OPERATIONS Our board of directors approved the shutdown of our DSL service assurance software product line in 2013. This product line was previously a component of our DSL Service Assurance Segment. Results from the DSL Service Assurance Segment have been reported as discontinued operations because we no longer have any significant continuing involvement with, or cash flows from, this segment. Loss from the discontinued DSL Service Assurance Segment was (in thousands): Years ended December 31, 2015 2014 2013 Revenue $ - $ - $ 3,216 Expenses - - 5,120 Loss before income taxes - - (1,904 ) Income tax benefit - - (748 ) Loss from discontinued operations $ - $ - $ (1,156 ) In 2013, we incurred one-time shutdown costs related to the software product line of approximately $2.9 million. Such costs comprise: i) $3.7 million of payments to customers to terminate contracts, which were offset by $1.2 million of deferred revenue obligations that were relieved as a result of such contract terminations; ii) $0.3 million of severance and employee-related costs; and iii) $48,000 of asset write-offs. All such costs were incurred and included in loss from discontinued operations for the year ended December 31, 2013. All DSL service assurance software product line exit costs were paid in 2013, with the exception of $0.1 million of severance costs, which were paid in early January 2014. There were no assets or liabilities remaining on the balance sheet as of December 31, 2015 related to the DSL Service Assurance Segment.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2015 2014 Land $ 1,056 $ 1,056 Building and improvements 9,060 9,060 Computer equipment 626 614 Purchased software 83 78 Furniture and fixtures 778 778 Office equipment 166 191 Total 11,769 11,777 Less accumulated depreciation and amortization (6,792 ) (6,488 ) Property and equipment, net $ 4,977 $ 5,289 Depreciation expense was $0.4 million, $0.4 million, and $0.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. In 2015, 2014 and 2013, we identified $0.1 million, $0.1 million, and $0.3 million of assets no longer in use and retired the assets and related accumulated depreciation.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	6. INCOME TAXES We recorded a benefit from income taxes of $0.5 million in the year ended December 31, 2015, all of which was included in continuing operations. We made provisions for income taxes related to continuing operations in the years ended December 31, 2014 and 2013 of $2.7 million and $1.9 million, respectively. The components of the provision for income taxes are as follows (in thousands): Year ended December 31, 2015 2014 2013 Current: Federal $ (807 ) $ 1,976 $ 1,000 State 280 589 273 (527 ) 2,565 1,273 Deferred: Federal (16 ) 93 471 State 7 14 173 (9 ) 107 644 Provision for (benefit from) income taxes $ (536 ) $ 2,672 $ 1,917 A reconciliation of the U.S. federal statutory rate to the effective tax rate is as follows: Year ended December 31, 2015 2014 2013 Federal statutory rate 34 % 34 % 34 % State rate, net of federal benefit 5 5 5 Tax credits (4 ) (1 ) (2 ) Permanent adjustments (2 ) (1 ) (1 ) Reversal of reserve (47 ) - - Other 1 - - Prior year adjustment - - (2 ) Effective tax rate (13 %) 37 % 34 % We recorded a benefit from income taxes of $0.5 million for the year ended December 31, 2015, all of which was included in continuing operations. The benefit from income taxes was the result of a $1.9 million tax benefit from the reversal of a reserve for uncertain tax positions, which was partially offset by $1.4 million of income taxes on pre-tax income based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by research tax credits and permanent adjustments. As previously reported, the Internal Revenue Service (“IRS”) commenced an examination of our tax return for the year ended December 31, 2012 in September 2014. In July 2015, the IRS notified us that it had completed its examination and that it had no changes to our reported tax. As a result of the completion of the IRS examination, we determined that the $1.9 million reserve for uncertain tax positions we had established on federal research and development credits in 2012 was no longer required. We reversed the reserve in 2015. Total income tax expense for the year ended December 31, 2014 was $2.7 million, all of which was included in continuing operations. Income tax expense for 2014 was based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by Federal research tax credits and permanent adjustments. Total income tax expense for the year ended December 31, 2013 was $1.2 million, including $1.9 million of tax expense that was recorded in continuing operations less a tax benefit of $0.7 million that was recorded in discontinued operations. Income tax expense for 2013 was based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by Federal research tax credits and permanent adjustments. Tax expense in 2013 also reflects two items related to 2012, including: i) a tax benefit of $0.1 million related to the 2012 research tax credit. This credit was extended retroactively back to January 1, 2012, by the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013; and ii) a tax benefit of $0.1 million related to a reduction in the estimate of the 2012 tax expense recorded in our 2012 financial statements. As of December 31, 2015 and 2014, we had deferred tax assets for which we had recorded no valuation allowance. The principal components of deferred tax assets were as follows at December 31 (in thousands): 2015 2014 Depreciation $ 394 $ 374 Stock compensation 256 303 Capitalized research and development costs 39 96 Other 310 199 Total 999 972 Less valuation allowance (-) (-) Deferred tax assets, net $ 999 $ 972 We will continue to assess the level of valuation allowance required in future periods. Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly. A rollforward of the uncertain tax position related to our research and development tax credits is as follows (in thousands): Uncertain tax positions at December 31, 2012 $ 2,945 Increase due to positions taken in prior periods - Uncertain tax positions at December 31, 2013 2,945 Increase due to positions taken in prior periods - Uncertain tax positions at December 31, 2014 2,945 Decrease due to completion of IRS examination (1,913 ) Uncertain tax positions at December 31, 2015 $ 1,032 Uncertain tax positions of $0.7 million will impact our tax rate if realized. The difference between this amount and the total uncertain tax positions in the table above is the federal tax effect on state tax credits. 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, 2015 of $5.5 million and $0.1 million. These 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. In 2015, 2014 and 2013, we recorded tax benefits of $0.6 million, $1.2 million, and $0.1 million, respectively, to equity related to the use of these tax credits to reduce our tax liability. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2015, we had no accrued interest or penalties related to uncertain tax positions. The tax years from 2013 through 2015 are subject to examination by the IRS and the tax years 2000 through 2015 are subject to examination by state tax authorities.

EQUITY AND STOCK COMPENSATION P

EQUITY AND STOCK COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY AND STOCK COMPENSATION PLANS	7. EQUITY AND STOCK COMPENSATION PLANS Fixed Stock Option Plan Options are granted at exercise prices as determined by the Board of Directors and have terms ranging from four to a maximum of ten years. Options generally vest over three to five years. The following table presents stock-based employee compensation expenses included in our consolidated statements of income and comprehensive income (in thousands): Years ended December 31, 2015 2014 2013 Cost of services $ 28 $ 44 $ 34 Research and development 89 106 81 Selling and marketing 13 17 14 General and administrative 559 748 533 Stock-based compensation expense $ 689 $ 915 $ 662 Stock-based compensation expense in the preceding table includes expenses associated with grants of: i) stock options; and iii) unrestricted shares of our common stock. The methods used to determine stock-based compensation expense for each type of equity grant are described in the following paragraphs. Stock Option Grants. Unrestricted Stock Grants The accounting treatment of unrestricted stock awards in 2015, 2014 and 2013 is described below: Year ended December 31, 2015. We issued shares of common stock related to the March 2015 grant as follows: i) 58,862 net shares of common stock were issued in early July 2015 after employees surrendered 17,138 shares for which we paid $69,000 of withholding taxes on their behalf; and ii) 57,151 shares of common stock were issued in early January 2016 after employees surrendered 18,849 shares for which we paid $61,000 of withholding taxes on their behalf. Year ended December 31, 2014. We issued shares of common stock related to the March 2014 grant as follows: i) 58,769 net shares of common stock were issued in early July 2014 after employees surrendered 17,231 shares for which we paid $113,000 of withholding taxes on their behalf; and ii) 56,804 shares of common stock were issued in early January 2015 after employees surrendered 19,196 shares for which we paid $87,000 of withholding taxes on their behalf. Year ended December 31, 2013. We issued shares of common stock related to the April 2013 grant as follows: i) 51,374 net shares of common stock were issued in early July 2013 after employees surrendered 13,626 shares for which we paid $71,000 of withholding taxes on their behalf; and ii) 49,936 net shares of common stock were issued in early January 2014 after employees surrendered 15,064 shares for which we paid $92,000 of withholding taxes on their behalf. A summary of stock option transactions for our fixed stock option plan for the years ended December 31, 2015, 2014, and 2013 are presented below: 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of year 106,202 $ 4.71 1,004,989 $ 5.68 1,063,025 $ 5.63 Granted - - - - - - Exercised - - (117,783 ) 3.98 (6,163 ) 4.27 Forfeited or cancelled (20,000 ) 6.18 (781,004 ) 6.07 (51,873 ) 4.83 Outstanding at end of year 86,202 $ 4.37 106,202 $ 4.71 1,004,989 $ 5.68 Exercisable at year end 86,202 $ 4.37 104,117 $ 4.69 986,237 $ 5.70 Total options outstanding at December 31, 2015 were 86,202. All of those options were vested and had a weighted average exercise price of $4.37. No stock options were granted in the years ended December 31, 2015, 2014 and 2013. No options were exercised in the year ended December 31, 2015. At December 31, 2015, the weighted average remaining contractual term for total options outstanding and total options exercisable was approximately 2.1 years for each. At December 31, 2015, the aggregate intrinsic value of options outstanding and options exercisable was $14,000 for each. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The following table summarizes the stock options outstanding at December 31, 2015: Options Outstanding Options Exercisable Exercise Price Range Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Number Weighted Average Exercise Price $2 to $3 18,000 $ 2.52 3.39 18,000 $ 2.52 $3 to $4 14,168 3.57 1.82 14,168 3.57 $4 to $5 33,200 4.64 1.93 33,200 4.64 $6 to $7 20,834 6.10 1.36 20,834 6.10 86,202 $ 4.37 2.08 86,202 $ 4.37 At December 31, 2015, there was no unrecognized compensation expense related to non-vested stock options as there were no non-vested stock options. We issue common stock from previously authorized but unissued shares to satisfy option exercises and purchases under our Employee Stock Purchase Plan. Employee Stock Purchase Plan Dividends –

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	8. COMMITMENTS AND CONTINGENT LIABILITIES Lease Commitments Litigation Guarantees and Indemnification Obligations We enter into agreements in the ordinary course of business that require us: i) to perform under the terms of the contracts, ii) to protect the confidentiality of our customers’ intellectual property, and iii) to indemnify customers, including indemnification against third party claims alleging infringement of intellectual property rights. We also have agreements with each of our directors and executive officers to indemnify such directors or executive officers, to the extent legally permissible, against all liabilities reasonably incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer of the Company. Given the nature of the above obligations and agreements, we are unable to make a reasonable estimate of the maximum potential amount that we could be required to pay. Historically, we have not made any significant payments on the above guarantees and indemnifications and no amount has been accrued in the accompanying consolidated financial statements with respect to these guarantees and indemnifications.

BUSINESS SEGMENTS AND MAJOR CUS

BUSINESS SEGMENTS AND MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
BUSINESS SEGMENTS AND MAJOR CUSTOMERS	9. BUSINESS SEGMENTS AND MAJOR CUSTOMERS We organize ourselves into a single segment that reports to the chief operating decision makers. We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions (in thousands): Year ended December 31, 2015 2014 2013 United States $ 11,737 $ 18,168 $ 13,909 Brazil 2,163 848 231 Rest of world 5,721 4,704 5,217 $ 19,621 $ 23,720 $ 19,357 Revenue by product group was (in thousands): Year ended December 31, 2015 2014 2013 Biometrics $ 16,916 $ 21,436 $ 17,085 Imaging 2,301 1,558 1,352 DSL royalties 404 726 920 $ 19,621 $ 23,720 $ 19,357 The portion of total revenue that was derived from major customers was as follows: Year ended December 31, 2015 2014 2013 Customer A 10 % 2 % - % Customer B 9 % 24 % 21 % Customer C 3 % 10 % 3 %

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLAN	10. EMPLOYEE BENEFIT PLAN In 1994, we established a qualified 401(k) Retirement Plan (the “Plan”) under which employees are allowed to contribute certain percentages of their pay, up to the maximum allowed under Section 401(k) of the Internal Revenue Code. Our contributions to the Plan are at the discretion of the Board of Directors. Our contributions were approximately $216,000, $198,000, and $189,000 in 2015, 2014 and 2013, respectively.

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
NET INCOME PER SHARE	11. NET INCOME PER SHARE Net income per share is calculated as follows (in thousands, except per share data): Year ended December 31, 2015 2014 2013 Net income: Income from continuing operations $ 4,614 $ 4,583 $ 3,752 Loss from discontinued operations - - (1,156 ) Net income $ 4,614 $ 4,583 $ 2,596 Shares outstanding: Weighted-average common shares outstanding 22,899 22,703 22,543 Additional dilutive common stock equivalents 66 84 98 Diluted shares outstanding 22,965 22,787 22,641 Basic net income per share: Basic net income per share from continuing operations $ 0.20 $ 0.20 $ 0.17 Basic net loss per share from discontinued operations - - (0.05 ) Basic net income per share $ 0.20 $ 0.20 $ 0.12 Diluted net income per share: Diluted net income per share from continuing operations $ 0.20 $ 0.20 $ 0.16 Diluted net loss per share from discontinued operations - - (0.05 ) Diluted net income per share $ 0.20 $ 0.20 $ 0.11 For the years ended December 31, 2015, 2014 and 2013, options to purchase 54,034, 40,834, and 823,338 shares of common stock at weighted average exercise prices of $5.20, $6.14, and $6.07 per share, 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 shares and thus would be anti-dilutive.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	12 Months Ended
	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	12. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss and activity were as follows (in thousands): December 31, Increase/ Reclassification December 31, 2014 Decrease Adjustments 2015 Unrealized losses on available for sale securities $ (87 ) $ (50 ) $ - $ (137 ) Unrealized gains on available for sale securities 43 (15 ) 12 40 Net unrealized gains (losses) on available for sale securities (44 ) (65 ) 12 (a) (97 ) Income tax benefit (expense) on other comprehensive loss 15 22 (4 ) 33 Total accumulated other comprehensive loss, net of taxes $ (29 ) $ (43 ) $ 8 $ (64 ) (a) – Classified in other income (expense).

QUARTERLY RESULTS OF OPERATIONS

QUARTERLY RESULTS OF OPERATIONS UNAUDITED	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY RESULTS OF OPERATIONS - UNAUDITED	13. QUARTERLY RESULTS OF OPERATIONS – UNAUDITED The following table is a summary of certain items in the consolidated statements of income and comprehensive income for each of our quarters in the two-year period ended December 31, 2015 (in thousands, except per share data). 2015 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 4,123 $ 4,510 $ 4,041 $ 6,946 Operating income 384 477 429 2,625 Net income 272 319 2,197 1,826 Net income per share – basic $ 0.01 $ 0.01 $ 0.10 $ 0.08 Net income per share – diluted $ 0.01 $ 0.01 $ 0.10 $ 0.08 2014 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 6,617 $ 6,767 $ 6,027 $ 4,309 Operating income 1,311 1,382 4,155 243 Net income 880 865 2,599 239 Net income per share – basic $ 0.04 $ 0.04 $ 0.11 $ 0.01 Net income per share – diluted $ 0.04 $ 0.04 $ 0.11 $ 0.01 Quarterly amounts may not sum to annual amounts due to rounding and dilution.

OFF-BALANCE SHEET ARRANGEMENTS

OFF-BALANCE SHEET ARRANGEMENTS	12 Months Ended
	Dec. 31, 2015
Off Balance Sheet Arrangements [Abstract]
OFF-BALANCE SHEET ARRANGEMENTS	14. OFF-BALANCE SHEET ARRANGEMENTS We do not currently have any arrangements with unconsolidated entities, such as entities often referred to as structured finance, special purpose entities, or variable interest entities which are often established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Accordingly, we are not exposed to any financing, liquidity, market or credit risk if we had such relationships.

Schedule of valuation and quali

Schedule of valuation and qualifying accounts	12 Months Ended
	Dec. 31, 2015
Valuation and Qualifying Accounts [Abstract]
Schedule of valuation and qualifying accounts	Schedule II - Valuation and Qualifying Accounts – Years ended December 31, 2015, 2014, and 2013 (in thousands) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Additions Balance at Charged to Charged Deductions Balance Beginning Costs and to Other Charged to at End of Period Expenses Accounts Reserves of Period Allowance for doubtful accounts receivable: 2015 $ 20 $ - $ - $ - $ 20 2014 $ 20 $ - $ - $ - $ 20 2013 $ 20 $ - $ - $ - $ 20 Inventory reserves: 2015 $ - $ - $ - $ - $ - 2014 $ - $ - $ - $ - $ - 2013 $ - $ - $ - $ - $ - Warranty reserves: 2015 $ - $ - $ - $ - $ - 2014 $ - $ - $ - $ - $ - 2013 $ 10 $ - $ - $ 10 $ - Deferred tax asset valuation allowance: 2015 $ - $ - $ - $ - $ - 2014 $ - $ - $ - $ - $ - 2013 $ - $ - $ - $ - $ -

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Use of Estimates	Use of Estimates
Fair Value Measurements	Fair Value Measurements Cash and cash equivalents, which primarily include money market mutual funds, were $51.2 million and $44.0 million as of December 31, 2015 and December 31, 2014, respectively. We classified our cash equivalents of $43.0 million and $34.3 million as of December 31, 2015 and 2014, respectively, 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. Debt securities with maturities greater than one year are classified as long term assets. 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 December 31, 2015 and December 31, 2014, respectively. As of December 31, 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 December 31, 2015 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 869 $ - $ - Money market funds (included in cash and cash equivalents) 43,027 Total $ 43,896 $ - $ - 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 $ - $ -
Cash and Cash Equivalents	Cash and Cash Equivalents
Investments	Investments Realized gains on investments were $12,000 and $23,000 in the years ended December 31, 2015 and 2013, respectively. Realized losses on investments were $59,000 in the year ended December 31, 2014. Unrealized losses on investments were $53,000 and $156,000 in the years ended December 31, 2015, and 2013. Unrealized gains on investments were $162,000 in the year ended December 31, 2014. The amortized cost of our corporate debt securities was $1.0 million at December 31, 2015. Corporate debt securities comprising investments mature in 2017 and 2018.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
Inventories	Inventories
Property and Equipment	Property and Equipment The estimated useful lives of assets used by us are: Building 30 years Building improvements 5 to 20 years Furniture and fixtures 5 years Computer, office & manufacturing equipment 3 years Purchased software 3 years
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Revenue Recognition	Revenue Recognition Persuasive evidence of an arrangement: Product delivery: Fixed or determinable fee: Collection is deemed probable: We categorize revenue as software licenses, software maintenance, services, hardware, or royalties. In addition to the general revenue recognition policies described above, specific revenue recognition policies apply to each category of revenue. Software licenses Software licenses consist of revenue from the sale of software licenses for biometrics and imaging applications. Our software licenses typically provide customers with the right to use our software in perpetuity. We recognize revenue from software licenses upon delivery when licenses are sold in single element arrangements, because we have no post-delivery obligations, including contractual or implied Post Contract Support (“PCS”). Software maintenance Software maintenance consists of revenue from the sale of software maintenance contracts for biometrics and imaging software. Software maintenance contracts entitle customers to receive software support and software updates, if and when they become available, during the term of the maintenance contract. We recognize software maintenance revenue ratably over the related contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue as services are delivered when services are sold in single element arrangements. Hardware Hardware revenue consists of sales of biometrics equipment to a single U.S. government customer. We recognize hardware revenue upon delivery and acceptance of the equipment by the customer. Royalties Royalties consist primarily of royalty payments we receive under DSL silicon contracts with two customers that incorporate our silicon intellectual property (“IP”) in their DSL chipsets. We sold the assets of our DSL IP business in 2009, but we continue to receive royalty payments from these customers. Royalties are reported in continuing operations in accordance with ASC 205, Reporting Discontinued Operations, because we have continuing ongoing cash flows from this business. Since we cannot reasonably estimate royalty revenue, such revenue is recognized in the quarter in which a final report is received from a customer. Royalty reports are typically received in the quarter immediately following the quarter in which sales of royalty-bearing products occur. Multiple element arrangements with software and software related elements In addition to selling software licenses, software maintenance and software services in single element arrangements, we also sell these three products as part of multiple element arrangements. We apply the provisions of ASC 985-605, Software Revenue Recognition, to these arrangements because all the elements are software or software related. The various combinations of multiple element arrangements and our revenue recognition for each are described as follows: · Software licenses and software maintenance · Software licenses and services. · Software licenses, software maintenance and services. Multiple element arrangement with hardware and software elements We also have a multiple element arrangement with one customer that involves the delivery of hardware, software maintenance, and software services. We determined that these elements qualified as separate units of accounting under ASC 605, Revenue Recognition, because they have value to the customer on a standalone basis. We recognize revenue from this arrangement as follows: i) hardware revenue is recognized upon delivery and acceptance of the equipment by the customer; ii) maintenance revenue is recognized ratably over the related contract period; and iii) service revenue is recognized as services are delivered.
Income Taxes	Income Taxes We recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the tax position. The evaluation of an uncertain tax position is based on factors that include, but are not limited to, changes in the tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, and changes in facts or circumstances related to a tax position. Any changes to these estimates, based on the actual results obtained and/or a change in assumptions, could impact our tax provision in future periods. Interest and penalty charges, if any, related to unrecognized tax benefits would be classified as a provision for income tax in the statement of income.
Capitalization of Software Costs	Capitalization of Software Costs
Research and Development Costs	Research and Development Costs
Concentration of Credit Risk	Concentration of Credit Risk Concentration of credit risk with respect to net accounts receivable consisted of amounts owed by the following customers that comprised more than 10% of net accounts receivable at December 31: 2015 2014 Customer A 26 % 18 % Customer B 17 % - % Customer C - % 15 % Customer D 4 % 11 % Concentration of credit risk with respect to our investment portfolio consisted of $0.5 million and $0.4 million with two issuers of corporate debt securities, respectively, at December 31, 2015, and $0.5 million, $0.5 million, and $0.4 million with three issuers of corporate debt securities, respectively, at December 31, 2014.
Stock-based compensation	Stock-Based Compensation For stock awards, we determine the fair value of the award by using the fair market value of our stock on the date of grant; provided the number of shares in the grant is fixed on the grant date. For stock options, we use the Black-Scholes option valuation model to estimate the fair value of the award. This valuation model takes into account the exercise price of the award, as well as a variety of significant assumptions. The assumptions used to estimate the fair value of stock options include the expected term, the expected volatility of our stock over the expected term, the risk-free interest rate over the expected term, and our expected annual dividend yield.
Computation of Earnings per Share	Computation of Earnings per Share
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amount of investments is based on the fair value of the individual securities in our investment portfolio.
Advertising Costs	Advertising Costs –
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standard Update ("ASU") 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position to simplify the presentation of deferred income taxes. The standard is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company did not early adopt this standard. The effect of early adoption would not have been material as it would have only resulted in a $184,000 reclass of short term deferred tax assets to long term deferred tax assets on our December 31, 2015 consolidated balance sheets. With the exception of the two standards above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of December 31, 2015.
Reclassifications	Reclassifications -
Segments	Segments

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at December 31, 2015 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 869 $ - $ - Money market funds (included in cash and cash equivalents) 43,027 Total $ 43,896 $ - $ - 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 $ - $ -
Schedule of estimated useful lives assets	Building 30 years Building improvements 5 to 20 years Furniture and fixtures 5 years Computer, office & manufacturing equipment 3 years Purchased software 3 years
Schedules of concentration of credit risk with respect to net accounts receivable	2015 2014 Customer A 26 % 18 % Customer B 17 % - % Customer C - % 15 % Customer D 4 % 11 %

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of income (loss) from discontinued operations attributable to the DSL service assurance segment	Years ended December 31, 2015 2014 2013 Revenue $ - $ - $ 3,216 Expenses - - 5,120 Loss before income taxes - - (1,904 ) Income tax benefit - - (748 ) Loss from discontinued operations $ - $ - $ (1,156 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	2015 2014 Land $ 1,056 $ 1,056 Building and improvements 9,060 9,060 Computer equipment 626 614 Purchased software 83 78 Furniture and fixtures 778 778 Office equipment 166 191 Total 11,769 11,777 Less accumulated depreciation and amortization (6,792 ) (6,488 ) Property and equipment, net $ 4,977 $ 5,289

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of components of the provision for income taxes	Year ended December 31, 2015 2014 2013 Current: Federal $ (807 ) $ 1,976 $ 1,000 State 280 589 273 (527 ) 2,565 1,273 Deferred: Federal (16 ) 93 471 State 7 14 173 (9 ) 107 644 Provision for (benefit from) income taxes $ (536 ) $ 2,672 $ 1,917
Schedule of reconciliation of the U.S. federal statutory rate to the effective tax rate	Year ended December 31, 2015 2014 2013 Federal statutory rate 34 % 34 % 34 % State rate, net of federal benefit 5 5 5 Tax credits (4 ) (1 ) (2 ) Permanent adjustments (2 ) (1 ) (1 ) Reversal of reserve (47 ) - - Other 1 - - Prior year adjustment - - (2 ) Effective tax rate (13 %) 37 % 34 %
Schedule of components of deferred tax assets	2015 2014 Depreciation $ 394 $ 374 Stock compensation 256 303 Capitalized research and development costs 39 96 Other 310 199 Total 999 972 Less valuation allowance (-) (-) Deferred tax assets, net $ 999 $ 972
Schedule of rollforward of the uncertain tax position related to research and development tax credits	Uncertain tax positions at December 31, 2012 $ 2,945 Increase due to positions taken in prior periods - Uncertain tax positions at December 31, 2013 2,945 Increase due to positions taken in prior periods - Uncertain tax positions at December 31, 2014 2,945 Decrease due to completion of IRS examination (1,913 ) Uncertain tax positions at December 31, 2015 $ 1,032

EQUITY AND STOCK COMPENSATION27

EQUITY AND STOCK COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based employee compensation expense included in consolidated statements of income and comprehensive income	Years ended December 31, 2015 2014 2013 Cost of services $ 28 $ 44 $ 34 Research and development 89 106 81 Selling and marketing 13 17 14 General and administrative 559 748 533 Stock-based compensation expense $ 689 $ 915 $ 662
Schedule of the summary of stock option transactions for one fixed stock option plans	2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of year 106,202 $ 4.71 1,004,989 $ 5.68 1,063,025 $ 5.63 Granted - - - - - - Exercised - - (117,783 ) 3.98 (6,163 ) 4.27 Forfeited or cancelled (20,000 ) 6.18 (781,004 ) 6.07 (51,873 ) 4.83 Outstanding at end of year 86,202 $ 4.37 106,202 $ 4.71 1,004,989 $ 5.68 Exercisable at year end 86,202 $ 4.37 104,117 $ 4.69 986,237 $ 5.70
Schedule of the summary of stock options outstanding	Options Outstanding Options Exercisable Exercise Price Range Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Number Weighted Average Exercise Price $2 to $3 18,000 $ 2.52 3.39 18,000 $ 2.52 $3 to $4 14,168 3.57 1.82 14,168 3.57 $4 to $5 33,200 4.64 1.93 33,200 4.64 $6 to $7 20,834 6.10 1.36 20,834 6.10 86,202 $ 4.37 2.08 86,202 $ 4.37

BUSINESS SEGMENTS AND MAJOR C28

BUSINESS SEGMENTS AND MAJOR CUSTOMERS (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Year ended December 31, 2015 2014 2013 United States $ 11,737 $ 18,168 $ 13,909 Brazil 2,163 848 231 Rest of world 5,721 4,704 5,217 $ 19,621 $ 23,720 $ 19,357
Schedule of revenue by product group	Year ended December 31, 2015 2014 2013 Biometrics $ 16,916 $ 21,436 $ 17,085 Imaging 2,301 1,558 1,352 DSL royalties 404 726 920 $ 19,621 $ 23,720 $ 19,357
Schedule of total revenue that was derived from major customers	Year ended December 31, 2015 2014 2013 Customer A 10 % 2 % - % Customer B 9 % 24 % 21 % Customer C 3 % 10 % 3 %

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of net income per share	Year ended December 31, 2015 2014 2013 Net income: Income from continuing operations $ 4,614 $ 4,583 $ 3,752 Loss from discontinued operations - - (1,156 ) Net income $ 4,614 $ 4,583 $ 2,596 Shares outstanding: Weighted-average common shares outstanding 22,899 22,703 22,543 Additional dilutive common stock equivalents 66 84 98 Diluted shares outstanding 22,965 22,787 22,641 Basic net income per share: Basic net income per share from continuing operations $ 0.20 $ 0.20 $ 0.17 Basic net loss per share from discontinued operations - - (0.05 ) Basic net income per share $ 0.20 $ 0.20 $ 0.12 Diluted net income per share: Diluted net income per share from continuing operations $ 0.20 $ 0.20 $ 0.16 Diluted net loss per share from discontinued operations - - (0.05 ) Diluted net income per share $ 0.20 $ 0.20 $ 0.11

ACCUMULATED OTHER COMPREHENSI30

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of accumulated other comprehensive loss and activity	December 31, Increase/ Reclassification December 31, 2014 Decrease Adjustments 2015 Unrealized losses on available for sale securities $ (87 ) $ (50 ) $ - $ (137 ) Unrealized gains on available for sale securities 43 (15 ) 12 40 Net unrealized gains (losses) on available for sale securities (44 ) (65 ) 12 (a) (97 ) Income tax benefit (expense) on other comprehensive loss 15 22 (4 ) 33 Total accumulated other comprehensive loss, net of taxes $ (29 ) $ (43 ) $ 8 $ (64 ) (a) – Classified in other income (expense).

QUARTERLY RESULTS OF OPERATIO31

QUARTERLY RESULTS OF OPERATIONS UNAUDITED (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	2015 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 4,123 $ 4,510 $ 4,041 $ 6,946 Operating income 384 477 429 2,625 Net income 272 319 2,197 1,826 Net income per share – basic $ 0.01 $ 0.01 $ 0.10 $ 0.08 Net income per share – diluted $ 0.01 $ 0.01 $ 0.10 $ 0.08 2014 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 6,617 $ 6,767 $ 6,027 $ 4,309 Operating income 1,311 1,382 4,155 243 Net income 880 865 2,599 239 Net income per share – basic $ 0.04 $ 0.04 $ 0.11 $ 0.01 Net income per share – diluted $ 0.04 $ 0.04 $ 0.11 $ 0.01

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets measured at fair value on recurring basis (Details) - Fair value on recurring basis - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value	$ 43,896	$ 35,767
Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value
Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value
Corporate debt securities | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value	$ 869	$ 1,428
Corporate debt securities | Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value
Corporate debt securities | Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value
Money market funds (included in cash and cash equivalents) | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value	$ 43,027	$ 34,339
Money market funds (included in cash and cash equivalents) | Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value
Money market funds (included in cash and cash equivalents) | Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities [Line Items]
Investments, stated at fair value

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of assets (Details 1)	12 Months Ended
	Dec. 31, 2015
Building
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	30 years
Building improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	5 years
Building improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	20 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	5 years
Computer, office & manufacturing equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	3 years
Purchased software
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	3 years

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of credit risk (Details 2) - Accounts Receivable - Credit Concentration Risk	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	26.00%	18.00%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	17.00%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage		15.00%
Customer D
Concentration Risk [Line Items]
Concentration risk, percentage	4.00%	11.00%

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, which primarily include money market funds	$ 51,232	$ 43,985	$ 72,660	$ 71,074
Fair value on recurring basis | 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 securities fair value	43,896	35,767
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 securities fair value	869	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]
Available-for-sale securities fair value	$ 43,027	$ 34,339

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Realized gains (losses) on investments	$ 12,000	$ (59,000)	$ 23,000
Unrealized gain (loss) on securities	$ (53,000)	$ 162,000	$ (156,000)

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 2) $ in Millions	Dec. 31, 2015USD ($)
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost corporate debt securities	$ 1

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 3) $ in Millions	Dec. 31, 2015USD ($)
Software licenses and software maintenance
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	$ 3.6

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 4) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)Issuer	Dec. 31, 2014USD ($)Issuer
Concentration Risk [Line Items]
Cash and cash equivalents, in excess of federally insured deposit limits	$ 51	$ 43.7
Investment Portfolio | Credit Concentration Risk | Corporate debt securities
Concentration Risk [Line Items]
Number of issuer | Issuer	2	3
Investment Portfolio | Credit Concentration Risk | Corporate debt securities | Issuer One
Concentration Risk [Line Items]
Concentration of risk, Amount	$ 0.5	$ 0.5
Investment Portfolio | Credit Concentration Risk | Corporate debt securities | Issuer Two
Concentration Risk [Line Items]
Concentration of risk, Amount	$ 0.4	0.5
Investment Portfolio | Credit Concentration Risk | Corporate debt securities | Issuer Three
Concentration Risk [Line Items]
Concentration of risk, Amount		$ 0.4

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 5)	12 Months Ended
	Dec. 31, 2014USD ($)Segment	Dec. 31, 2015USD ($)
Accounting Policies [Abstract]
Reclassification of short term deferred tax assets to long term deferred tax assets		$ 184,000
Prior period reclassification adjustment of inventory	$ 2,000
Number of operating segment | Segment	1

PATENT RELATED INCOME (Detail T

PATENT RELATED INCOME (Detail Textuals ) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Patent Related Income [Abstract]
Gain on sale of patent assets	$ 43	$ 2,127
Income from patent arrangement			$ 800

PATENT RELATED INCOME (Detail42

PATENT RELATED INCOME (Detail Textuals 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gain on sale of patent assets	$ 43	$ 2,127
Home networking technology
Finite-Lived Intangible Assets [Line Items]
Sale of patent	50
Transaction cost	7
Gain on sale of patent assets	$ 43
DSL patent
Finite-Lived Intangible Assets [Line Items]
Sale of patent		2,600
Transaction cost		500
Gain on sale of patent assets		$ 2,100

DISCONTINUED OPERATIONS - Incom

DISCONTINUED OPERATIONS - Income (loss) from discontinued operations attributable to DSL service (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax benefit			$ 700
Loss from discontinued operations			(1,156)
DSL Service Assurance | Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue			3,216
Expenses			5,120
Loss before income taxes			(1,904)
Income tax benefit			(748)
Loss from discontinued operations			$ (1,156)

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
Estimated shutdown cost		$ 2,900
Asset write-offs		48
DSL Service Assurance | Discontinued Operations
Restructuring Cost and Reserve [Line Items]
Payment for severance cost	$ 100
Employee Severance And Retention Bonus | DSL Service Assurance | Discontinued Operations
Restructuring Cost and Reserve [Line Items]
Severance and employee related costs		300
Contract Termination | DSL Service Assurance | Discontinued Operations
Restructuring Cost and Reserve [Line Items]
Deferred revenue obligations		1,200
Payments/write-offs		$ 3,700

PROPERTY AND EQUIPMENT - Summar

PROPERTY AND EQUIPMENT - Summary of property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Public Utility, Property, Plant and Equipment [Line Items]
Total	$ 11,769	$ 11,777
Less accumulated depreciation and amortization	(6,792)	(6,488)
Property and equipment, net	4,977	5,289
Land
Public Utility, Property, Plant and Equipment [Line Items]
Total	1,056	1,056
Building and improvements
Public Utility, Property, Plant and Equipment [Line Items]
Total	9,060	9,060
Computer equipment
Public Utility, Property, Plant and Equipment [Line Items]
Total	626	614
Purchased software
Public Utility, Property, Plant and Equipment [Line Items]
Total	83	78
Furniture and fixtures
Public Utility, Property, Plant and Equipment [Line Items]
Total	778	778
Office equipment
Public Utility, Property, Plant and Equipment [Line Items]
Total	$ 166	$ 191

PROPERTY AND EQUIPMENT (Detail

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 0.4	$ 0.4	$ 0.5
Retired assets	$ 0.1	$ 0.1	$ 0.3

INCOME TAXES - Components of pr

INCOME TAXES - Components of provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$ (807)	$ 1,976	$ 1,000
State	280	589	273
Total current tax	(527)	2,565	1,273
Deferred:
Federal	(16)	93	471
State	7	14	173
Total deferred tax	(9)	107	644
Provision for (benefit from) income taxes	$ (536)	$ 2,672	$ 1,917

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of U.S. federal statutory rate (Details 1)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal statutory rate	34.00%	34.00%	34.00%
State rate, net of federal benefit	5.00%	5.00%	5.00%
Tax credits	(4.00%)	(1.00%)	(2.00%)
Permanent adjustments	(2.00%)	(1.00%)	(1.00%)
Reversal of reserve	(47.00%)
Other	1.00%
Prior year adjustment			(2.00%)
Effective tax rate	(13.00%)	37.00%	34.00%

INCOME TAXES - Principal compon

INCOME TAXES - Principal components of deferred tax assets (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Depreciation	$ 394	$ 374
Stock compensation	256	303
Capitalized research and development costs	39	96
Other	310	199
Total	$ 999	$ 972
Less valuation allowance
Deferred tax assets, net	$ 999	$ 972

INCOME TAXES - Rollforward of u

INCOME TAXES - Rollforward of uncertain tax position (Details 3) - Research and development tax credits - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Uncertain tax positions roll forword
Uncertain tax positions	$ 2,945	$ 2,945	$ 2,945
Increase due to positions taken in prior periods
Decrease due to completion of IRS examination	(1,913)
Uncertain tax positions	$ 1,032	$ 2,945	$ 2,945

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit) of continuing operations	$ (536)	$ 2,672	$ 1,917
Reversal of reserve for uncertain tax positions	1,914
Income taxes on pre-tax income based on the U.S. statutory rate	$ 1,400
U.S. statutory rate	34.00%	34.00%	34.00%
Total income tax expense			$ 1,200
Income tax expense (benefit) from discontinuing operations			(700)
Uncertain tax positions	$ 700
Tax benefit related to 2012 research tax credit			100
Tax benefit related to reduction in estimate of 2012 tax expense			100
Tax benefits from stock-based awards	554	$ 1,247	$ 128
Federal | Research and development tax credits
Operating Loss Carryforwards [Line Items]
Net federal and state credit carryforwards	5,500
State | Research and development tax credits
Operating Loss Carryforwards [Line Items]
Net federal and state credit carryforwards	$ 100

EQUITY AND STOCK COMPENSATION52

EQUITY AND STOCK COMPENSATION PLANS - Stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 689	$ 915	$ 662
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	28	44	34
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	89	106	81
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	13	17	14
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 559	$ 748	$ 533

EQUITY AND STOCK COMPENSATION53

EQUITY AND STOCK COMPENSATION PLANS - Summary of stock option transactions (Details 1) - Stock Option - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares
Outstanding at beginning of year	106,202	1,004,989	1,063,025
Granted
Exercised		(117,783)	(6,163)
Forfeited or cancelled	(20,000)	(781,004)	(51,873)
Outstanding at end of year	86,202	106,202	1,004,989
Exercisable at year end	86,202	104,117	986,237
Weighted Average Exercise Price
Outstanding at beginning of year	$ 4.71	$ 5.68	$ 5.63
Granted
Exercised		$ 3.98	$ 4.27
Forfeited or cancelled	$ 6.18	6.07	4.83
Outstanding at end of year	4.37	4.71	5.68
Exercisable at year end	$ 4.37	$ 4.69	$ 5.7

EQUITY AND STOCK COMPENSATION54

EQUITY AND STOCK COMPENSATION PLANS - Summarizes of stock options outstanding (Details 2) - Stock Option - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, Number	86,202	106,202	1,004,989	1,063,025
Options outstanding, Weighted average exercise price	$ 4.37	$ 4.71	$ 5.68	$ 5.63
Options outstanding, Weighted average remaining contractual term (in years)	2 years 29 days
Options exercisable, Number	86,202	104,117	986,237
Options exercisable, Weighted average exercise price	$ 4.37	$ 4.69	$ 5.7
Exercise price range $2 to $3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range (lower)	2
Exercise price range (upper)	$ 3
Options outstanding, Number	18,000
Options outstanding, Weighted average exercise price	$ 2.52
Options outstanding, Weighted average remaining contractual term (in years)	3 years 4 months 21 days
Options exercisable, Number	18,000
Options exercisable, Weighted average exercise price	$ 2.52
Exercise price range $3 to $4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range (lower)	3
Exercise price range (upper)	$ 4
Options outstanding, Number	14,168
Options outstanding, Weighted average exercise price	$ 3.57
Options outstanding, Weighted average remaining contractual term (in years)	1 year 9 months 26 days
Options exercisable, Number	14,168
Options exercisable, Weighted average exercise price	$ 3.57
Exercise price range $4 to $5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range (lower)	4
Exercise price range (upper)	$ 5
Options outstanding, Number	33,200
Options outstanding, Weighted average exercise price	$ 4.64
Options outstanding, Weighted average remaining contractual term (in years)	1 year 11 months 5 days
Options exercisable, Number	33,200
Options exercisable, Weighted average exercise price	$ 4.64
Exercise price range $6 to $7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range (lower)	6
Exercise price range (upper)	$ 7
Options outstanding, Number	20,834
Options outstanding, Weighted average exercise price	$ 6.1
Options outstanding, Weighted average remaining contractual term (in years)	1 year 4 months 10 days
Options exercisable, Number	20,834
Options exercisable, Weighted average exercise price	$ 6.10

EQUITY AND STOCK COMPENSATION55

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals) - Fixed Stock Option Plan	12 Months Ended
	Dec. 31, 2015shares
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options granted at exercise prices	10 years
Term of options vested	5 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options granted at exercise prices	4 years
Term of options vested	3 years
2001 Nonqualified Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stocks authorized to grant	8,000,000
Number of common stocks available for grant	4,966,715
Description of compensation arrangement by share based payment award vesting rights	Options generally vest over three to five years.

EQUITY AND STOCK COMPENSATION56

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 1) - USD ($)	3 Months Ended	4 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense							$ 689,000	$ 915,000	$ 662,000
Unrestricted Stock | Directors, Officers and Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number stock issued							152,000	152,000	130,000
Stock-based compensation expense							$ 682,000	$ 876,000	$ 623,000
Unrestricted Stock | April 2013 Grant | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number stock issued	51,374					49,936
Number of common stock shares surrendered by employees withholding taxes	13,626					15,064
Common stock value surrendered by employees withholding taxes	$ 71,000					$ 92,000
Unrestricted Stock | March 2014 Grant | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number stock issued			58,769		56,804
Number of common stock shares surrendered by employees withholding taxes			17,231		19,196
Common stock value surrendered by employees withholding taxes			$ 113,000		$ 87,000
Unrestricted Stock | March 2015 grant | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number stock issued		58,862		57,151
Number of common stock shares surrendered by employees withholding taxes		17,138		18,849
Common stock value surrendered by employees withholding taxes		$ 69,000		$ 61,000

EQUITY AND STOCK COMPENSATION57

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 2) - Stock Options	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, Number | shares	86,202
Options outstanding, Weighted average exercise price | $ / shares	$ 4.37
Weighted average remaining contractual term	2 years 1 month 6 days
Aggregate intrinsic value of options exercised during the year	$ 0
Unrecognized compensation expense	0
Aggregate intrinsic value of options outstanding	14,000
Aggregate intrinsic value of options exercisable	$ 14,000

EQUITY AND STOCK COMPENSATION58

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 3) - Employee Stock Purchase Plan - shares	1 Months Ended		12 Months Ended
	Nov. 29, 2005	Jun. 30, 1996	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock at a price lower of the fair market value	95.00%	85.00%
Period of common stock offering	6 months	6 months
Minimal discount of fair market value of the common stock	5.00%
Percentage of employee's compensation	6.00%
Total Number of common stock Share reserved for issuance			350,000
Number of common stock Share reserved for issuance			89,376
Issuance of common stock under employee stock purchase plan (in shares)			11,561	8,022	7,196

EQUITY AND STOCK COMPENSATION59

EQUITY AND STOCK COMPENSATION PLANS (Detail Textuals 4) - Dividend paid $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2014USD ($)$ / shares
Dividends Payable [Line Items]
Special cash dividends declared (in dollars per share) | $ / shares	$ 1.75
Special cash dividend payable date	Jul. 24, 2014
Shareholders of record date	Jul. 10, 2014
Dividends payable | $	$ 39.9

BUSINESS SEGMENTS AND MAJOR C60

BUSINESS SEGMENTS AND MAJOR CUSTOMERS - Revenues generated from geographic regions (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenue	$ 6,946	$ 4,041	$ 4,510	$ 4,123	$ 4,309	$ 6,027	$ 6,767	$ 6,617	$ 19,621	$ 23,720	$ 19,357
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue									11,737	18,168	13,909
Operating Segments | Brazil
Segment Reporting Information [Line Items]
Revenue									2,163	848	231
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue									$ 5,721	$ 4,704	$ 5,217

BUSINESS SEGMENTS AND MAJOR C61

BUSINESS SEGMENTS AND MAJOR CUSTOMERS - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenue	$ 6,946	$ 4,041	$ 4,510	$ 4,123	$ 4,309	$ 6,027	$ 6,767	$ 6,617	$ 19,621	$ 23,720	$ 19,357
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue									16,916	21,436	17,085
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue									2,301	1,558	1,352
Operating Segments | Dsl Royalties
Segment Reporting Information [Line Items]
Revenue									$ 404	$ 726	$ 920

BUSINESS SEGMENTS AND MAJOR C62

BUSINESS SEGMENTS AND MAJOR CUSTOMERS - Revenue derived from major customers (Details 2) - Sales revenue	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Customer A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	10.00%	2.00%
Customer B
Revenue, Major Customer [Line Items]
Concentration risk, percentage	9.00%	24.00%	21.00%
Customer C
Revenue, Major Customer [Line Items]
Concentration risk, percentage	3.00%	10.00%	10.00%

EMPLOYEE BENEFIT PLAN (Detail T

EMPLOYEE BENEFIT PLAN (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Retirement Plans 401 K Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Contribution by employer	$ 216,000	$ 198,000	$ 189,000

NET INCOME PER SHARE - Calculat

NET INCOME PER SHARE - Calculation of net income per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income:
Income from continuing operations									$ 4,614	$ 4,583	$ 3,752
Loss from discontinued operation											(1,156)
Net income	$ 1,826	$ 2,197	$ 319	$ 272	$ 239	$ 2,599	$ 865	$ 880	$ 4,614	$ 4,583	$ 2,596
Shares outstanding:
Weighted-average common shares outstanding									22,899	22,703	22,543
Additional dilutive common stock equivalents									66	84	98
Diluted shares outstanding									22,965	22,787	22,641
Basic net income per share:
Basic net income per share from continuing operations (in dollars per share)									$ 0.20	$ 0.20	$ 0.17
Basic net loss per share from discontinued operations (in dollars per share)											(0.05)
Basic net income per share (in dollars per share)	$ 0.08	$ 0.10	$ 0.01	$ 0.01	$ 0.01	$ 0.11	$ 0.04	$ 0.04	0.20	0.20	0.12
Diluted net income per share:
Diluted net income per share from continuing operations (in dollars per share)									0.20	0.20	0.16
Diluted net loss per share from discontinued operations (in dollars per share)											(0.05)
Diluted net income per share (in dollars per share)	$ 0.08	$ 0.10	$ 0.01	$ 0.01	$ 0.01	$ 0.11	$ 0.04	$ 0.04	$ 0.20	$ 0.20	$ 0.11

NET INCOME PER SHARE (Detail Te

NET INCOME PER SHARE (Detail Textuals) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	54,034	40,834	823,338
Weighted average price of anti-dilutive options (in dollars per shares)	$ 5.20	$ 6.14	$ 6.07

ACCUMULATED OTHER COMPREHENSI66

ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of accumulated other comprehensive loss and activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
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	(65)
Increase/Decrease Income tax benefit (expense) on other comprehensive loss	22
Increase/Decrease Total accumulated other comprehensive loss, net of taxes	(43)
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	(97)
Ending balance Income tax benefit (expense) on other comprehensive loss	33
Ending balance Total accumulated other comprehensive loss, net of taxes	(64)
Unrealized losses on available for sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	(87)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	$ (50)
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities
Ending balance Net unrealized gains (losses) on available for sale securities	$ (137)
Unrealized gains on available for sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	43
Increase/Decrease Net unrealized gains (losses) on available for sale securities	(15)
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities	12
Ending balance Net unrealized gains (losses) on available for sale securities	$ 40
[1]	Classified in other income (expense).

QUARTERLY RESULTS OF OPERATIO67

QUARTERLY RESULTS OF OPERATIONS - UNAUDITED - Summary of consolidated statements of comprehensive income (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 6,946	$ 4,041	$ 4,510	$ 4,123	$ 4,309	$ 6,027	$ 6,767	$ 6,617	$ 19,621	$ 23,720	$ 19,357
Operating income	2,625	429	477	384	243	4,155	1,382	1,311	3,915	7,089	5,318
Net income	$ 1,826	$ 2,197	$ 319	$ 272	$ 239	$ 2,599	$ 865	$ 880	$ 4,614	$ 4,583	$ 2,596
Net income per share - basic (in dollars per share)	$ 0.08	$ 0.10	$ 0.01	$ 0.01	$ 0.01	$ 0.11	$ 0.04	$ 0.04	$ 0.20	$ 0.20	$ 0.12
Net income per share - diluted (in dollars per share)	$ 0.08	$ 0.10	$ 0.01	$ 0.01	$ 0.01	$ 0.11	$ 0.04	$ 0.04	$ 0.20	$ 0.20	$ 0.11

Schedule of valuation and qua68

Schedule of valuation and qualifying accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts receivable
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 20	$ 20	$ 20
Charged to Cost and Expense
Charged to Other Accounts
Deductions Charged to Reserves
Balance at End of Period	$ 20	$ 20	$ 20
Inventory reserves
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period
Charged to Cost and Expense
Charged to Other Accounts
Deductions Charged to Reserves
Balance at End of Period
Warranty reserves
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period			$ 10
Charged to Cost and Expense
Charged to Other Accounts
Deductions Charged to Reserves			$ 10
Balance at End of Period
Deferred tax asset valuation allowance
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period
Charged to Cost and Expense
Charged to Other Accounts
Deductions Charged to Reserves
Balance at End of Period