Aware (AWRE) 10-Q 27 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	1,015,739
Trading Symbol	awre
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,630,021
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 52,266	$ 51,232
Accounts receivable, net	4,250	4,743
Prepaid expenses and other current assets	398	483
Total current assets	56,914	56,458
Property and equipment, net	4,736	4,977
Investments	916	869
Deferred tax assets	1,012	999
Other assets	151	316
Total assets	63,729	63,619
Current liabilities:
Accounts payable	197	234
Accrued expenses	1,069	952
Accrued income taxes	215	236
Deferred revenue	3,361	5,885
Total current liabilities	4,842	7,307
Long-term deferred revenue	242	131
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 22,630,021 as of September 30, 2016 and 22,935,988 as of December 31, 2015	226	229
Additional paid-in capital	101,768	102,968
Accumulated other comprehensive loss	(40)	(64)
Accumulated deficit	(43,309)	(46,952)
Total stockholders' equity	58,645	56,181
Total liabilities and stockholders' equity	$ 63,729	$ 63,619

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	22,630,021	22,935,988
Common stock, shares outstanding	22,630,021	22,935,988

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Software licenses	$ 4,136	$ 2,076	$ 12,257	$ 5,997
Software maintenance	1,288	1,220	3,750	3,651
Services	426	652	1,061	2,727
Hardware			317
Royalties	49	93	252	299
Total revenue	5,899	4,041	17,637	12,674
Costs and expenses:
Cost of software licenses			1,101
Cost of services	146	416	517	1,532
Cost of hardware			234
Research and development	1,752	1,489	5,204	4,364
Selling and marketing	1,069	849	3,100	2,885
General and administrative	857	858	2,452	2,604
Total costs and expenses	3,824	3,612	12,608	11,385
Patent related income	238		238
Operating income	2,313	429	5,267	1,289
Other income				12
Interest income	76	35	215	109
Income before provision for income taxes	2,389	464	5,482	1,410
Provision for (benefit from) income taxes	816	(1,733)	1,839	(1,378)
Net income	$ 1,573	$ 2,197	$ 3,643	$ 2,788
Net income per share - basic (in dollars per share)	$ 0.07	$ 0.10	$ 0.16	$ 0.12
Net income per share - diluted (in dollars per share)	$ 0.07	$ 0.10	$ 0.16	$ 0.12
Weighted-average shares - basic (in shares)	22,847	22,930	22,934	22,888
Weighted-average shares - diluted (in shares)	22,939	23,011	22,996	22,949
Comprehensive income:
Net income	$ 1,573	$ 2,197	$ 3,643	$ 2,788
Other comprehensive income (net of tax):
Unrealized gains (losses) on available for sale securities	37	(1)	24	(41)
Comprehensive income	$ 1,610	$ 2,196	$ 3,667	$ 2,747

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 3,643	$ 2,788
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	488	474
Stock-based compensation	374	466
Reversal of reserve for uncertain tax positions		(1,913)
Deferred tax provision on other comprehensive income	(13)	21
Gain on sale of investments		(12)
Amortization of discount on investments	(9)	(8)
Changes in assets and liabilities:
Accounts receivable	493	1,210
Inventories		(614)
Prepaid expenses and other current assets	85	(440)
Deferred tax assets	(13)	54
Accounts payable	(37)	39
Accrued expenses	117	(56)
Accrued income taxes	(21)
Deferred revenue	(2,413)	56
Net cash provided by operating activities	2,694	2,065
Cash flows from investing activities:
Purchases of property and equipment	(82)	(117)
Sales of investments		529
Purchase of other assets		(320)
Net cash provided by (used in) investing activities	(82)	92
Cash flows from financing activities:
Proceeds from issuance of common stock	21	22
Excess tax benefits from stock-based compensation	700	413
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(136)	(156)
Repurchase of common stock	(2,163)
Net cash provided by (used in) financing activities	(1,578)	279
Increase in cash and cash equivalents	1,034	2,436
Cash and cash equivalents, beginning of period	51,232	43,985
Cash and cash equivalents, end of period	52,266	46,421
Supplemental disclosure:
Cash paid for income taxes	$ 1,024	$ 356

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	A) Nature of Business.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Basis Of Accounting [Abstract]
Basis of Presentation	B) Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of income and comprehensive income, and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at September 30, 2016, and of operations and cash flows for the interim periods ended September 30, 2016 and 2015. The results of operations for the interim period ended September 30, 2016 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	C) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $52.3 million and $51.2 million as of September 30, 2016 and December 31, 2015, respectively. We classified our cash equivalents of $49.3 million and $43.0 million as of September 30, 2016 and December 31, 2015 within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our investments, which consist of high yield corporate debt securities, are also classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. We categorize our investments as available-for-sale securities, and carry them at fair value in our financial statements. We had $0.9 million of available-for-sale investments as of September 30, 2016 and December 31, 2015. As of September 30, 2016, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at September 30, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 916 $ - $ - Money market funds (included in cash and cash equivalents) 49,274 Total $ 50,190 $ - $ - 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 $ - $ -

Computation of Earnings per Sha

Computation of Earnings per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of Earnings per Share	D) Computation of Earnings per Share. Net income per share is calculated as follows (in thousands, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income $ 1,573 $ 2,197 $ 3,643 $ 2,788 Shares outstanding: Weighted-average common shares outstanding 22,847 22,930 22,934 22,888 Additional dilutive common stock equivalents 92 81 62 61 Diluted shares outstanding 22,939 23,011 22,996 22,949 Net income per share – basic $ 0.07 $ 0.10 $ 0.16 $ 0.12 Net income per share - diluted $ 0.07 $ 0.10 $ 0.16 $ 0.12 For the three month periods ended September 30, 2016 and 2015, options to purchase 20,834 and 64,034 shares of common stock were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive. For the nine month periods ended September 30, 2016 and 2015, options to purchase 54,034 shares of common stock were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock-Based Compensation	E) Stock-Based Compensation. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of services $ 2 $ 9 $ 5 $ 23 Research and development 29 29 59 56 Selling and marketing 4 4 7 9 General and administrative 149 181 303 378 Stock-based compensation expense $ 184 $ 223 $ 374 $ 466 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2016 and 2015 that affected financial results for the three and nine month periods ended September 30, 2016 and 2015. These grants are described below. 2016 Grant. The shares we issued on July 1, 2016 for the first installment of the 2016 grant included 58,902 net shares of common stock after employees surrendered 17,098 shares for which we paid $74,000 of withholding taxes on their behalf. 2015 Grant

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Business Segments	F) Business Segments We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 4,929 $ 2,579 $ 14,849 $ 7,594 Brazil 441 157 1,042 1,810 Rest of World 529 1,305 1,746 3,270 $ 5,899 $ 4,041 $ 17,637 $ 12,674 Revenue by product group for the three and nine months ended September 30, 2016 and 2015 was (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Biometrics $ 4,514 $ 3,575 $ 13,241 $ 11,306 Imaging 1,336 373 4,144 1,069 DSL royalties 49 93 252 299 $ 5,899 $ 4,041 $ 17,637 $ 12,674

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	G) Recent Accounting Pronouncements. FASB ASU No. 2014-09. FASB ASU No. 2015-17. FASB ASU No. 2016-09. FASB ASU No. 2016-13. With the exception of the standards discussed above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of September 30, 2016.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	H) Income Taxes . We recorded income tax benefits in the three and nine month periods ended September 30, 2015 of $1.7 million and $1.4 million, respectively. Income tax benefits in the three and nine month periods of 2015 were the result of a $1.9 million tax benefit from the reversal of a reserve for uncertain tax positions, which was partially offset by taxes on pre-tax income based on the U.S. statutory rate of 34%, increased by state income taxes. The tax benefit from the reversal of a reserve for uncertain tax positions last year resulted from the completion of an Internal Revenue Service examination in the third quarter of 2015. In the nine month periods ended September 30, 2016 and 2015, we utilized deferred tax assets to reduce our tax liability payable to the government. A portion of the deferred tax assets we used comprised cumulative deductions for stock options in excess of book expense. Under income tax accounting rules, that portion of tax benefits attributable to such deductions must be recorded as an adjustment to equity versus a reduction of income tax expense. The tax benefits from such stock-based awards were $0.7 million and $0.4 million in the nine month periods ended September 30, 2016 and 2015, respectively. These tax benefits were recorded as an equity adjustment to additional paid-in capital. As of September 30, 2016, we had a total of $1.0 million of deferred tax assets for which we had recorded no valuation allowance. We will continue to assess the level of valuation allowance in future periods. Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly. In addition to deferred tax assets carried on our balance sheet, we also had net federal and state research and development credit carryforwards available at December 31, 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. The aforementioned $0.7 million and $0.4 million equity adjustment to additional paid-in capital in the nine month periods ended September 30, 2016 and 2015 were related to these deferred tax assets.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	I) Accumulated Other Comprehensive Loss. December 31, Increase/ Reclassification September 30, 2015 Decrease Adjustments 2016 Unrealized losses on available for sale securities $ (137 ) $ 58 $ - $ (79 ) Unrealized gains on available for sale securities 40 (21 ) - 19 Net unrealized gains (losses) on available for sale securities (97 ) 37 - (60 ) Income tax benefit (expense) on other comprehensive loss 33 (13 ) - 20 Total accumulated other comprehensive loss, net of taxes $ (64 ) $ 24 $ - $ (40 )

Share Repurchase Program

Share Repurchase Program	9 Months Ended
	Sep. 30, 2016
Share Repurchase Program [Abstract]
Share Repurchase Program	J) Share Repurchase Program. We repurchased 345,442 shares of common stock under this program for a total cost of $1.8 million during the three months ended September 30, 2016. Since the program commenced in April 2016, we have repurchased 427,422 shares for a total cost of $2.2 million.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of income and comprehensive income, and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at September 30, 2016, and of operations and cash flows for the interim periods ended September 30, 2016 and 2015. The results of operations for the interim period ended September 30, 2016 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at September 30, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 916 $ - $ - Money market funds (included in cash and cash equivalents) 49,274 Total $ 50,190 $ - $ - 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 $ - $ -

Computation of Earnings per S18

Computation of Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of net income per share	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income $ 1,573 $ 2,197 $ 3,643 $ 2,788 Shares outstanding: Weighted-average common shares outstanding 22,847 22,930 22,934 22,888 Additional dilutive common stock equivalents 92 81 62 61 Diluted shares outstanding 22,939 23,011 22,996 22,949 Net income per share – basic $ 0.07 $ 0.10 $ 0.16 $ 0.12 Net income per share - diluted $ 0.07 $ 0.10 $ 0.16 $ 0.12

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of stock-based employee compensation expense included in unaudited consolidated statements of comprehensive income	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of services $ 2 $ 9 $ 5 $ 23 Research and development 29 29 59 56 Selling and marketing 4 4 7 9 General and administrative 149 181 303 378 Stock-based compensation expense $ 184 $ 223 $ 374 $ 466

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 4,929 $ 2,579 $ 14,849 $ 7,594 Brazil 441 157 1,042 1,810 Rest of World 529 1,305 1,746 3,270 $ 5,899 $ 4,041 $ 17,637 $ 12,674
Schedule of revenue by product group	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Biometrics $ 4,514 $ 3,575 $ 13,241 $ 11,306 Imaging 1,336 373 4,144 1,069 DSL royalties 49 93 252 299 $ 5,899 $ 4,041 $ 17,637 $ 12,674

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of components of accumulated other comprehensive loss and activity	December 31, Increase/ Reclassification September 30, 2015 Decrease Adjustments 2016 Unrealized losses on available for sale securities $ (137 ) $ 58 $ - $ (79 ) Unrealized gains on available for sale securities 40 (21 ) - 19 Net unrealized gains (losses) on available for sale securities (97 ) 37 - (60 ) Income tax benefit (expense) on other comprehensive loss 33 (13 ) - 20 Total accumulated other comprehensive loss, net of taxes $ (64 ) $ 24 $ - $ (40 )

Fair Value Measurements - Asset

Fair Value Measurements - Assets measured at fair value on a recurring basis (Details) - Fair value on recurring basis - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 50,190	$ 43,896
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	916	869
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds (included in cash and cash equivalents)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds (included in cash and cash equivalents)	49,274	43,027
Fair Value Measurement, Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities
Fair Value Measurement, Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities

Fair Value Measurements (Detail

Fair Value Measurements (Detail Textuals) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, primarily include money market funds	$ 52,266	$ 51,232	$ 46,421	$ 43,985
Fair value on recurring basis | Corporate debt securities | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investments	916	869
Fair value on recurring basis | Money market funds (included in cash and cash equivalents) | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents, primarily include money market funds	$ 49,300	$ 43,000

Computation of Earnings per S24

Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 1,573	$ 2,197	$ 3,643	$ 2,788
Shares outstanding:
Weighted-average common shares outstanding (in shares)	22,847	22,930	22,934	22,888
Additional dilutive common stock equivalents (in shares)	92	81	62	61
Diluted shares outstanding (in shares)	22,939	23,011	22,996	22,949
Net income per share - basic (in dollars per share)	$ 0.07	$ 0.10	$ 0.16	$ 0.12
Net income per share - diluted (in dollars per share)	$ 0.07	$ 0.10	$ 0.16	$ 0.12

Computation of Earnings per S25

Computation of Earnings per Share (Detail Textuals) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	20,834	64,034	54,034	54,034

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 184	$ 223	$ 374	$ 466
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2	9	5	23
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	29	29	59	56
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4	4	7	9
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 149	$ 181	$ 303	$ 378

Stock-Based Compensation (Detai

Stock-Based Compensation (Detail Textuals) - Unrestricted Stock Grants - 2001 Nonqualified Stock Plan - Directors, officers and employees - USD ($)	1 Months Ended					3 Months Ended	9 Months Ended	12 Months Ended
	Jul. 31, 2016	Mar. 28, 2016	Jan. 31, 2016	Jul. 31, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
2016 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)		152,000
Number of shares issuable in future		76,000
Stock-based compensation expense							$ 558,000
Stock based compensation expense charged						$ 184,000	374,000
Remaining stock based compensation expense						$ 184,000	$ 184,000
Number of shares issued (in shares)	58,902
Number of common stock shares surrendered by employees withholding taxes	17,098
Common stock value surrendered by employees withholding taxes	$ 74,000
2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)					152,000
Stock-based compensation expense								$ 682,000
Number of shares issued (in shares)			57,151	58,862
Number of common stock shares surrendered by employees withholding taxes			18,849	17,138
Common stock value surrendered by employees withholding taxes			$ 61,000	$ 69,000

Business Segments - Revenues ge

Business Segments - Revenues generated following geographic regions (Details ) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue	$ 5,899	$ 4,041	$ 17,637	$ 12,674
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue	4,929	2,579	14,849	7,594
Operating Segments | Brazil
Segment Reporting Information [Line Items]
Revenue	441	157	1,042	1,810
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 529	$ 1,305	$ 1,746	$ 3,270

Business Segments - Summary of

Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue	$ 5,899	$ 4,041	$ 17,637	$ 12,674
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue	4,514	3,575	13,241	11,306
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue	1,336	373	4,144	1,069
Operating Segments | DSL royalties
Segment Reporting Information [Line Items]
Revenue	$ 49	$ 93	$ 252	$ 299

Recent Accounting Pronounceme30

Recent Accounting Pronouncementsa (Detail Textuals)	9 Months Ended
	Sep. 30, 2016USD ($)
Accounting Changes and Error Corrections [Abstract]
Reclassification amount of deferred tax assets previously included in current assets	$ 184,000

Income Taxes (Detail Textuals)

Income Taxes (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 816	$ (1,733)	$ 1,839	$ (1,378)
U.S. statutory tax rate			34.00%	34.00%
Reversal of reserve for uncertain tax positions				$ 1,913
Tax benefits from stock-based awards			$ 700	400
Deferred tax assets	$ 1,000		1,000
Equity adjustment to additional paid-in capital			$ 700	$ 400
Federal | Research and development credit carryforwards
Operating Loss Carryforwards [Line Items]
Net federal and state research and development credit carryforwards					$ 5,500
State | Research and development credit carryforwards
Operating Loss Carryforwards [Line Items]
Net federal and state research and development credit carryforwards					$ 100

Accumulated Other Comprehensi32

Accumulated Other Comprehensive Loss - Components of accumulated other comprehensive loss and activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Accumulated Other Comprehensive Income Loss [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	$ (97)
Beginning balance Income tax benefit (expense) on other comprehensive loss	33
Beginning balance Total accumulated other comprehensive loss, net of taxes	(64)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	37
Increase/Decrease Income tax benefit (expense) on other comprehensive loss	(13)
Increase/Decrease Total accumulated other comprehensive loss, net of taxes	24
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities
Reclassification Adjustments Income tax benefit (expense) on other comprehensive loss
Reclassification Adjustments Total accumulated other comprehensive loss, net of taxes
Ending balance Net unrealized gains (losses) on available for sale securities	(60)
Ending balance Income tax benefit (expense) on other comprehensive loss	20
Ending balance Total accumulated other comprehensive loss, net of taxes	(40)
Unrealized losses on available for sale securities
Accumulated Other Comprehensive Income Loss [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	(137)
Increase/Decrease Net unrealized gains (losses) on available for sale securities	58
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities
Ending balance Net unrealized gains (losses) on available for sale securities	(79)
Unrealized gains on available for sale securities
Accumulated Other Comprehensive Income Loss [Roll Forward]
Beginning balance Net unrealized gains (losses) on available for sale securities	40
Increase/Decrease Net unrealized gains (losses) on available for sale securities	(21)
Reclassification Adjustments Net unrealized gains (losses) on available for sale securities
Ending balance Net unrealized gains (losses) on available for sale securities	$ 19

Share Repurchase Program (Detai

Share Repurchase Program (Detail Textuals) - Share Repurchase Program - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Apr. 26, 2016
Equity, Class of Treasury Stock [Line Items]
Maximum amount of common stock authorized to repurchase			$ 10
Repurchase common stock (in shares)	345,442	427,422
Repurchase common stock	$ 1.8	$ 2.2