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 |