Aware (AWRE) 10-Q 28 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 24, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	AWARE INC /MA/
Entity Central Index Key	1,015,739
Trading Symbol	awre
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		21,837,605
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 48,993	$ 51,913
Accounts receivable, net	3,391	3,016
Prepaid expenses and other current assets	299	268
Total current assets	52,683	55,197
Property and equipment, net	4,532	4,634
Investments	996	951
Deferred tax assets	5,802	1,078
Other assets	98	124
Total assets	64,111	61,984
Current liabilities:
Accounts payable	405	135
Accrued expenses	1,080	1,075
Accrued income taxes	36
Deferred revenue	2,240	2,722
Total current liabilities	3,761	3,932
Long-term deferred revenue	181	211
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 21,837,605 as of March 31, 2017 and 22,370,713 as of December 31, 2016	218	224
Additional paid-in capital	97,628	100,485
Accumulated other comprehensive loss	9	(19)
Accumulated deficit	(37,686)	(42,849)
Total stockholders' equity	60,169	57,841
Total liabilities and stockholders' equity	$ 64,111	$ 61,984

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	21,837,605	22,370,713
Common stock, shares outstanding	21,837,605	22,370,713

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Software licenses	$ 2,686	$ 2,774
Software maintenance	1,253	1,282
Services	374	419
Hardware		286
Royalties	34	73
Total revenue	4,347	4,834
Costs and expenses:
Cost of software licenses	247	243
Cost of services	216	213
Cost of hardware		205
Research and development	1,857	1,649
Selling and marketing	942	920
General and administrative	790	724
Total costs and expenses	4,052	3,954
Patent related income	91
Operating income	386	880
Interest income	83	67
Income before provision for income taxes	469	947
Provision for income taxes	64	312
Net income	$ 405	$ 635
Net income per share - basic (in dollars per share)	$ 0.02	$ 0.03
Net income per share - diluted (in dollars per share)	$ 0.02	$ 0.03
Weighted-average shares - basic (in shares)	22,255	22,993
Weighted-average shares - diluted (in shares)	22,321	23,005
Comprehensive income:
Net income	$ 405	$ 635
Other comprehensive income (net of tax):
Unrealized gains/(losses) on available for sale securities	28	(4)
Comprehensive income	$ 433	$ 631

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 405	$ 635
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	132	162
Stock-based compensation	71	8
Deferred tax provision (benefit) on other comprehensive income	(14)	1
Amortization of discount on investments	(3)	(3)
Changes in assets and liabilities:
Accounts receivable	(375)	904
Prepaid expenses and other current assets	(31)	(194)
Deferred tax assets	34	127
Accounts payable	270	382
Accrued expenses	5	(129)
Accrued income taxes	36	(236)
Deferred revenue	(512)	(603)
Net cash provided by operating activities	18	1,054
Cash flows from investing activities:
Purchases of property and equipment	(5)	(5)
Net cash used in investing activities	(5)	(5)
Cash flows from financing activities:
Proceeds from issuance of common stock	13
Excess tax benefits from stock-based compensation		430
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(119)	(61)
Repurchase of common stock	(2,827)
Net cash provided by (used in) financing activities	(2,933)	369
Increase (decrease) in cash and cash equivalents	(2,920)	1,418
Cash and cash equivalents, beginning of period	51,913	51,232
Cash and cash equivalents, end of period	48,993	52,650
Supplemental disclosure:
Cash paid for income taxes	$ 12	$ 275

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	A) Nature of Business.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017, and of operations and cash flows for the interim periods ended March 31, 2017 and 2016. The results of operations for the interim period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	C) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $49.0 million and $51.9 million as of March 31, 2017 and December 31, 2016, respectively. We classified our cash equivalents of $47.1 million and $49.8 million as of March 31, 2017 and December 31, 2016 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 $1.0 million of available-for-sale investments as of March 31, 2017 and December 31, 2016. As of March 31, 2017, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at March 31, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 996 $ - $ - Money market funds (included in cash and cash equivalents) 47,097 Total $ 48,093 $ - $ - As of December 31, 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 December 31, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 951 $ - $ - Money market funds (included in cash and cash equivalents) 49,839 Total $ 50,790 $ - $ -

Computation of Earnings per Sha

Computation of Earnings per Share	3 Months Ended
	Mar. 31, 2017
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 2017 2016 Net income $ 405 $ 635 Weighted average common shares outstanding 22,255 22,993 Additional dilutive common stock equivalents 66 12 Diluted shares outstanding 22,321 23,005 Net income per share – basic $ 0.02 $ 0.03 Net income per share – diluted $ 0.02 $ 0.03 For the three month periods ended March 31, 2017 and 2016, 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.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock-Based Compensation	E) Stock-Based Compensation. Three Months Ended 2017 2016 Cost of services $ 2 $ - Research and development 12 1 Selling and marketing 1 - General and administrative 56 7 Stock-based compensation expense $ 71 $ 8 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2017 and 2016 that affected financial results for the three month periods ended March 31, 2017 and 2016. These grants are described below. 2017 Grant. 2016 Grant

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 United States $ 3,243 $ 3,740 Rest of world 1,104 1,094 $ 4,347 $ 4,834 Revenue by product group for the three months ended March 31, 2017 and 2016 was (in thousands): Three Months Ended March 31, 2017 2016 Biometrics $ 4,003 $ 3,285 Imaging 310 1,476 DSL royalties 34 73 $ 4,347 $ 4,834

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	G) Recent Accounting Pronouncements. FASB ASU No. 2014-09. In May 2014, the FASB issued Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU is the result of a joint project by the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that would: remove inconsistencies and weaknesses, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, jurisdictions, industries, and capital markets, improve disclosure requirements and resulting financial statements, and simplify the presentation of financial statements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. On July 9, 2015, the FASB voted to delay the effective date of the new revenue standard by one year, but to permit entities to choose to adopt the standard as of the original effective date. We have begun to evaluate the effect the new revenue standard will have on our consolidated financial statements and related disclosures, but have not completed our evaluation and implementation process. We intend to complete that process during 2017 and adopt the new standard on January 1, 2018 using the full retrospective adoption transition method. Based on our preliminary evaluations to date, we believe that revenue recognized under the new standard will generally approximate revenue recognized under current GAAP with the exception of the following contracts: i) 2015 imaging software license contract ii) DSL royalty contracts iii) Minimum license/royalty payment contracts iv) Sales commissions and other third party acquisition costs. The foregoing observations are subject to change as we complete our implementation process. FASB ASU No. 2016-09. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. In addition, the new standard eliminates the limitation on recognition of excess stock compensation benefits until such benefits are actually realized, and instead applies the general recognition standard to these deferred tax assets. We adopted ASU 2016-09 in the first quarter of 2017 which will be applied using a modified retrospective approach. Upon adoption, we recorded a deferred tax asset of $4.8 million with an offsetting adjustment to retained earnings related to excess stock compensation deductions that were not previously recorded as tax assets. For the three month period ended March 31, 2017, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. We have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. 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 March 31, 2017.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	H) Income Taxes . Income tax expense was $0.1 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. Income tax expense in the three month periods of 2017 and 2016 was based on the U.S. statutory rate of 34%, increased by state income taxes, and reduced by permanent adjustments and research tax credits. For the three month period ended March 31, 2016, 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 at that time, that portion of tax benefits attributable to such deductions must be recorded as an adjustment to equity versus a reduction of income tax expense. The tax benefits from such stock-based awards were $0.4 million in the three month periods ended March 31, 2016. These tax benefits were recorded as an equity adjustment to additional paid-in capital. For the three month period ended March 31, 2017, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. As of March 31, 2017, we had a total of $5.8 million of deferred tax assets for which we had recorded no valuation allowance. We have assessed the need for a valuation allowance on our deferred tax assets. Based on our assessment of future sources of income, including reversing deferred tax liabilities, and future earnings, we have determined that it is more likely than not that the deferred tax assets will be realized, and therefore there is no valuation allowance required for the deferred tax assets. We will continue to assess the level of valuation allowance in future periods. Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	I) Accumulated Other Comprehensive Loss. December 31, Increase/ Reclassification March 31, 2016 Decrease Adjustments 2017 Unrealized losses on available for sale securities $ ( 45 ) $ 21 $ - ($ 24 ) Unrealized gains on available for sale securities 17 21 - 38 Net unrealized gains (losses) on available for sale securities (28 ) 42 - 14 Income tax benefit (expense) on other comprehensive loss 9 (14 ) - (5 ) Total accumulated other comprehensive income (loss), net of taxes $ (19 ) $ 28 $ - $ 9

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2017
Share Repurchase Program [Abstract]
Share Repurchase Program	J) Share Repurchase Program. We repurchased 593,719 shares of common stock under this program for a total cost of $2.8 million during the three months ended March 31, 2017. Included in the shares repurchased during the quarter were 210,000 shares repurchased through a privately negotiated transaction. On March 9, 2017, after approval by the Company's Audit Committee and Board of Directors, the Company repurchased 210,000 shares from Richard P. Moberg, the Company's former co-Chief Executive Officer, co-President and Chief Financial Officer and current member of the Board of Directors at a 10% discount off of the market closing price of the Company's stock on March 8, 2017. The closing price of our common stock on March 8, 2017 was $4.85. The resulting sale price, after calculating the ten percent (10%) discount was $4.36 and the total transaction cost was $915,600. Since the program commenced in April 2016, we have repurchased 1,284,520 shares for a total cost of $6.5 million.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017, and of operations and cash flows for the interim periods ended March 31, 2017 and 2016. The results of operations for the interim period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at March 31, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 996 $ - $ - Money market funds (included in cash and cash equivalents) 47,097 Total $ 48,093 $ - $ - Fair Value Measurement at December 31, 2016 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ 951 $ - $ - Money market funds (included in cash and cash equivalents) 49,839 Total $ 50,790 $ - $ -

Computation of Earnings per S18

Computation of Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of net income per share	Three Months Ended 2017 2016 Net income $ 405 $ 635 Weighted average common shares outstanding 22,255 22,993 Additional dilutive common stock equivalents 66 12 Diluted shares outstanding 22,321 23,005 Net income per share – basic $ 0.02 $ 0.03 Net income per share – diluted $ 0.02 $ 0.03

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
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 2017 2016 Cost of services $ 2 $ - Research and development 12 1 Selling and marketing 1 - General and administrative 56 7 Stock-based compensation expense $ 71 $ 8

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Three Months Ended March 31, 2017 2016 United States $ 3,243 $ 3,740 Rest of world 1,104 1,094 $ 4,347 $ 4,834
Schedule of revenue by product group	Three Months Ended March 31, 2017 2016 Biometrics $ 4,003 $ 3,285 Imaging 310 1,476 DSL royalties 34 73 $ 4,347 $ 4,834

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of components of accumulated other comprehensive loss and activity	December 31, Increase/ Reclassification March 31, 2016 Decrease Adjustments 2017 Unrealized losses on available for sale securities $ ( 45 ) $ 21 $ - ($ 24 ) Unrealized gains on available for sale securities 17 21 - 38 Net unrealized gains (losses) on available for sale securities (28 ) 42 - 14 Income tax benefit (expense) on other comprehensive loss 9 (14 ) - (5 ) Total accumulated other comprehensive income (loss), net of taxes $ (19 ) $ 28 $ - $ 9

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	Mar. 31, 2017	Dec. 31, 2016
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	$ 48,093	$ 50,790
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	996	951
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)	47,097	49,839
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	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, primarily include money market funds	$ 48,993	$ 51,913	$ 52,650	$ 51,232
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	996	951
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	$ 47,100	$ 49,800

Computation of Earnings per S24

Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income	$ 405	$ 635
Weighted average common shares outstanding (in shares)	22,255	22,993
Additional dilutive common stock equivalents (in shares)	66	12
Diluted shares outstanding (in shares)	22,321	23,005
Net income per share - basic (in dollars per share)	$ 0.02	$ 0.03
Net income per share - diluted (in dollars per share)	$ 0.02	$ 0.03

Computation of Earnings per S25

Computation of Earnings per Share (Detail Textuals) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	20,834	64,034

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 71	$ 8
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	12	1
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 56	$ 7

Stock-Based Compensation (Detai

Stock-Based Compensation (Detail Textuals) - 2001 Nonqualified Stock Plan - Unrestricted Stock - Directors, officers and employees	1 Months Ended			3 Months Ended
	Feb. 27, 2017Installmentshares	Jan. 31, 2017USD ($)shares	Jul. 31, 2016USD ($)shares	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)Installmentshares
2017 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares) | shares	134,000
Number of installment | Installment	2
Stock-based compensation expense				$ 663,000
Stock based compensation expense charged				71,000
Remaining stock based compensation expense				$ 592,000
2016 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares) | shares					152,000
Number of installment | Installment					2
Stock-based compensation expense					$ 558,000
Number of shares issued (in shares) | shares		56,443	58,902
Number of common stock shares surrendered by employees withholding taxes | shares		19,557	17,098
Common stock value surrendered by employees withholding taxes		$ 119,000	$ 74,000

Business Segments - Revenues ge

Business Segments - Revenues generated following geographic regions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 4,347	$ 4,834
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue	3,243	3,740
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 1,104	$ 1,094

Business Segments - Summary of

Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 4,347	$ 4,834
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue	4,003	3,285
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue	310	1,476
Operating Segments | DSL royalties
Segment Reporting Information [Line Items]
Revenue	$ 34	$ 73

Business Segments (Detail Textu

Business Segments (Detail Textuals)	3 Months Ended
	Mar. 31, 2017Segment
Segment Reporting [Abstract]
Number of operating segment	1

Recent Accounting Pronounceme31

Recent Accounting Pronouncements (Detail Textuals) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2015	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Consummated license contract	$ 4,625,000
Deferred tax asset with offsetting adjustment to retained earnings related to excess stock compensation deductions		$ 4,800,000
License fee
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Consummated license contract	4,500,000
Software maintenance fee
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Consummated license contract	$ 125,000

Income Taxes (Detail Textuals)

Income Taxes (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 64	$ 312
U.S. statutory tax rate	34.00%	34.00%
Tax benefits from stock-based awards		$ 400
Deferred tax assets	$ 5,800

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Loss - Components of accumulated other comprehensive loss and activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, Net unrealized gains (losses) on available for sale securities	$ (28)
Beginning balance, Income tax benefit (expense) on other comprehensive loss	9
Beginning balance, Total accumulated other comprehensive income (loss), net of taxes	(19)
Increase/Decrease, Net unrealized gains (losses) on available for sale securities	42
Increase/Decrease, Income tax benefit (expense) on other comprehensive loss	(14)
Increase/Decrease, Total accumulated other comprehensive income (loss), net of taxes	28
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	14
Ending balance, Income tax benefit (expense) on other comprehensive loss	(5)
Ending balance, Total accumulated other comprehensive income (loss), net of taxes	9
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	(45)
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	(24)
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	17
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	$ 38

Share Repurchase Program (Detai

Share Repurchase Program (Detail Textuals) - Share Repurchase Program - USD ($)	Mar. 09, 2017	Mar. 31, 2017	Mar. 31, 2017	Apr. 26, 2016
Equity, Class of Treasury Stock [Line Items]
Maximum amount of common stock authorized to repurchase				$ 10,000,000
Repurchase common stock (in shares)		593,719	1,284,520
Repurchase common stock		$ 2,800,000	$ 6,500,000
Privately negotiated transaction included in stock repurchase program
Equity, Class of Treasury Stock [Line Items]
Repurchase common stock (in shares)		210,000
Richard P. Moberg
Equity, Class of Treasury Stock [Line Items]
Repurchase common stock (in shares)	210,000
Discount on the market closing price	10.00%
Closing price of common stock before discount (in dollars per share)	$ 4.85
Closing price of common stock after discount (in dollars per share)	$ 4.36
Repurchase common stock	$ 915,600