Aware (AWRE) 10-Q 28 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 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		21,729,163
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 49,425	$ 51,913
Accounts receivable, net	3,321	3,016
Prepaid expenses and other current assets	272	268
Total current assets	53,018	55,197
Property and equipment, net	4,479	4,634
Investments		951
Deferred tax assets	5,843	1,078
Other assets	71	124
Total assets	63,411	61,984
Current liabilities:
Accounts payable	200	135
Accrued expenses	1,124	1,075
Deferred revenue	2,136	2,722
Total current liabilities	3,460	3,932
Long-term deferred revenue	155	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 21,675,149 as of June 30, 2017 and 22,370,713 as of December 31, 2016	217	224
Additional paid-in capital	97,037	100,485
Accumulated other comprehensive loss		(19)
Accumulated deficit	(37,458)	(42,849)
Total stockholders' equity	59,796	57,841
Total liabilities and stockholders' equity	$ 63,411	$ 61,984

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares	Jun. 30, 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	21,675,149	22,370,713
Common stock, shares outstanding	21,675,149	22,370,713

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Software licenses	$ 1,214	$ 5,347	$ 3,900	$ 8,121
Software maintenance	1,282	1,181	2,534	2,462
Services	206	216	580	635
Hardware		31		317
Royalties	43	129	78	203
Total revenue	2,745	6,904	7,092	11,738
Costs and expenses:
Cost of software licenses		858	247	1,101
Cost of services	104	158	320	372
Cost of hardware		29		234
Research and development	1,876	1,802	3,733	3,451
Selling and marketing	1,024	1,111	1,966	2,031
General and administrative	816	872	1,605	1,595
Total costs and expenses	3,820	4,830	7,871	8,784
Patent related income	1,313		1,403
Operating income	238	2,074	624	2,954
Other income	36		36
Interest income	88	72	172	138
Income before provision for income taxes	362	2,146	832	3,092
Provision for income taxes	134	710	198	1,022
Net income	$ 228	$ 1,436	$ 634	$ 2,070
Net income per share - basic (in dollars per share)	$ 0.01	$ 0.06	$ 0.03	$ 0.09
Net income per share - diluted (in dollars per share)	$ 0.01	$ 0.06	$ 0.03	$ 0.09
Weighted-average shares - basic (in shares)	21,774	22,964	22,013	22,978
Weighted-average shares - diluted (in shares)	21,919	23,124	22,119	23,064
Comprehensive income:
Net income	$ 228	$ 1,436	$ 634	$ 2,070
Other comprehensive income (net of tax):
Unrealized gains (losses) on available for sale securities	(9)	(9)	19	(12)
Comprehensive income	$ 219	$ 1,427	$ 653	$ 2,058

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 634	$ 2,070
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	260	324
Stock-based compensation	267	190
Deferred tax provision (benefit) on other comprehensive income	(9)	6
Amortization of discount on investments	(4)	(6)
Gain on sale of investments	(36)
Changes in assets and liabilities:
Accounts receivable	(305)	(815)
Prepaid expenses and other current assets	(4)	14
Deferred tax assets	(7)	1
Accounts payable	65	821
Accrued expenses	49	39
Accrued income taxes		(236)
Deferred revenue	(642)	(1,398)
Net cash provided by operating activities	268	1,010
Cash flows from investing activities:
Purchases of property and equipment	(53)	(54)
Sales of investments	1,019
Net cash provided from (used) in investing activities	966	(54)
Cash flows from financing activities:
Proceeds from issuance of common stock	43	21
Excess tax benefits from stock-based compensation		457
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(119)	(61)
Repurchase of common stock	(3,646)	(349)
Net cash provided by (used in) financing activities	(3,722)	68
Increase (decrease) in cash and cash equivalents	(2,488)	1,024
Cash and cash equivalents, beginning of period	51,913	51,232
Cash and cash equivalents, end of period	49,425	52,256
Supplemental disclosure:
Cash paid for income taxes	$ 275	$ 833

Nature of Business

Nature of Business	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	A) Nature of Business.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 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 June 30, 2017, and of operations and cash flows for the interim periods ended June 30, 2017 and 2016. The results of operations for the interim period ended June 30, 2017 are not necessarily indicative of the results to be expected for the year.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	C) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $49.4 million and $51.9 million as of June 30, 2017 and December 31, 2016, respectively. We classified our cash equivalents of $47.4 million and $49.8 million as of June 30, 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 December 31, 2016. As of June 30, 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 June 30, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ - $ - $ - Money market funds (included in cash and cash equivalents) 47,411 Total $ 47,411 $ - $ - 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	6 Months Ended
	Jun. 30, 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 Six Months Ended 2017 2016 2017 2016 Net income $ 228 $ 1,436 $ 634 $ 2,070 Shares outstanding: Weighted-average common shares outstanding 21,774 22,964 22,013 22,978 Additional dilutive common stock equivalents 145 160 106 86 Diluted shares outstanding 21,919 23,124 22,119 23,064 Net income per share – basic $ 0.01 $ 0.06 $ 0.03 $ 0.09 Net income per share - diluted $ 0.01 $ 0.06 $ 0.03 $ 0.09 For the three and six month periods ended June 30, 2016, 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	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Stock-Based Compensation	E) Stock-Based Compensation. Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of services $ 2 $ 3 $ 4 $ 3 Research and development 36 28 48 30 Selling and marketing 4 4 6 4 General and administrative 154 147 209 153 Stock-based compensation expense $ 196 $ 182 $ 267 $ 190 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2017 and 2016 that affected financial results for the three and six month periods ended June 30, 2017 and 2016. These grants are described below. 2017 Grant. 2016 Grant

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 United States $ 1,870 $ 6,180 $ 5,113 $ 9,920 Rest of World 875 724 1,979 1,818 $ 2,745 $ 6,904 $ 7,092 $ 11,738 Revenue by product group for the three months ended June 30, 2017 and 2016 was (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Biometrics $ 2,488 $ 5,443 $ 6,491 $ 8,727 Imaging 214 1,332 524 2,808 DSL royalties 43 129 77 203 $ 2,745 $ 6,904 $ 7,092 $ 11,738

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 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 expected significant differences: 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 six month period ended June 30, 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 June 30, 2017.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	H) Income Taxes . Income tax expense was $0.1 million and $0.7 million for the three months ended June 30, 2017 and 2016, respectively. Income tax expense was $0.2 and $1.0 million for the six months ended June 30, 2017 and 2016, respectively. Income tax expense in the three and six 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. In the six month period ended June 30, 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 $0.5 million in the six month period ended June 30, 2016. These tax benefits were recorded as an equity adjustment to additional paid-in capital. For the six month period ended June 30, 2017, we recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as a discrete event. As of June 30, 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. In the second quarter of 2017, the Internal Revenue Service commenced an examination of our tax return for the year ended December 31, 2015.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	I) Accumulated Other Comprehensive Loss. December 31, Increase/ Reclassification June 30, 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 ) - All amounts reclassified from accumulated other comprehensive income were related to realized gains on available-for-sale securities. These reclassifications impacted "other income" on the Consolidated Statements of Income and Other Comprehensive Income.

Share Repurchase Program

Share Repurchase Program	6 Months Ended
	Jun. 30, 2017
Share Repurchase Program [Abstract]
Share Repurchase Program	J) Share Repurchase Program. We repurchased 168,925 shares of common stock under this program for a total cost of $0.8 million during the three months ended June 30, 2017. We repurchased 762,644 shares of common stock under this program for a total cost of $3.6 million during the six months ended June 30, 2017. Included in the shares repurchased during the first six months of 2017 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 1,453,445 shares for a total cost of $7.3 million.

Income from patent arrangement

Income from patent arrangement	6 Months Ended
	Jun. 30, 2017
Income From Patent Arrangement [Abstract]
Income from patent arrangement	K) Income from patent arrangement.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 June 30, 2017, and of operations and cash flows for the interim periods ended June 30, 2017 and 2016. The results of operations for the interim period ended June 30, 2017 are not necessarily indicative of the results to be expected for the year.
Recent Accounting Pronouncements	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 expected significant differences: 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 six month period ended June 30, 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 June 30, 2017.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurement at June 30, 2017 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Corporate debt securities $ - $ - $ - Money market funds (included in cash and cash equivalents) 47,411 Total $ 47,411 $ - $ - 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 S19

Computation of Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of net income per share	Three Months Ended Six Months Ended 2017 2016 2017 2016 Net income $ 228 $ 1,436 $ 634 $ 2,070 Shares outstanding: Weighted-average common shares outstanding 21,774 22,964 22,013 22,978 Additional dilutive common stock equivalents 145 160 106 86 Diluted shares outstanding 21,919 23,124 22,119 23,064 Net income per share – basic $ 0.01 $ 0.06 $ 0.03 $ 0.09 Net income per share - diluted $ 0.01 $ 0.06 $ 0.03 $ 0.09

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2017 2016 2017 2016 Cost of services $ 2 $ 3 $ 4 $ 3 Research and development 36 28 48 30 Selling and marketing 4 4 6 4 General and administrative 154 147 209 153 Stock-based compensation expense $ 196 $ 182 $ 267 $ 190

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of revenues generated from geographic regions	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 United States $ 1,870 $ 6,180 $ 5,113 $ 9,920 Rest of World 875 724 1,979 1,818 $ 2,745 $ 6,904 $ 7,092 $ 11,738
Schedule of revenue by product group	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Biometrics $ 2,488 $ 5,443 $ 6,491 $ 8,727 Imaging 214 1,332 524 2,808 DSL royalties 43 129 77 203 $ 2,745 $ 6,904 $ 7,092 $ 11,738

Accumulated Other Comprehensi22

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Schedule of components of accumulated other comprehensive loss and activity	December 31, Increase/ Reclassification June 30, 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	Jun. 30, 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	$ 47,411	$ 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		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)	47,411	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	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 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	$ 49,425	$ 51,913	$ 52,256	$ 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		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	$ 47,400	$ 49,800

Computation of Earnings per S25

Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 228	$ 1,436	$ 634	$ 2,070
Shares outstanding:
Weighted-average common shares outstanding (in shares)	21,774	22,964	22,013	22,978
Additional dilutive common stock equivalents (in shares)	145	160	106	86
Diluted shares outstanding (in shares)	21,919	23,124	22,119	23,064
Net income per share - basic (in dollars per share)	$ 0.01	$ 0.06	$ 0.03	$ 0.09
Net income per share - diluted (in dollars per share)	$ 0.01	$ 0.06	$ 0.03	$ 0.09

Computation of Earnings per S26

Computation of Earnings per Share (Detail Textuals) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock share purchase (in shares)	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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 196	$ 182	$ 267	$ 190
Cost of services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2	3	4	3
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	36	28	48	30
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4	4	6	4
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 154	$ 147	$ 209	$ 153

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	6 Months Ended
	Feb. 27, 2017Installmentshares	Jan. 31, 2017USD ($)shares	Jul. 31, 2016USD ($)shares	Mar. 31, 2016USD ($)Installmentshares	Jun. 30, 2017USD ($)	Jun. 30, 2017USD ($)
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					$ 196,000	267,000
Remaining stock based compensation expense					$ 396,000	$ 396,000
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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 2,745	$ 6,904	$ 7,092	$ 11,738
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenue	1,870	6,180	5,113	9,920
Operating Segments | Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 875	$ 724	$ 1,979	$ 1,818

Business Segments - Summary of

Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 2,745	$ 6,904	$ 7,092	$ 11,738
Operating Segments | Biometrics
Segment Reporting Information [Line Items]
Revenue	2,488	5,443	6,491	8,727
Operating Segments | Imaging
Segment Reporting Information [Line Items]
Revenue	214	1,332	524	2,808
Operating Segments | DSL royalties
Segment Reporting Information [Line Items]
Revenue	$ 43	$ 129	$ 77	$ 203

Business Segments (Detail Textu

Business Segments (Detail Textuals)	6 Months Ended
	Jun. 30, 2017Segment
Segment Reporting [Abstract]
Number of operating segment	1

Recent Accounting Pronounceme32

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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 134	$ 710	$ 198	$ 1,022
U.S. statutory tax rate	34.00%	34.00%	34.00%	34.00%
Tax benefits from stock-based awards				$ 500
Deferred tax assets	$ 5,800		$ 5,800

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Loss - Components of accumulated other comprehensive loss and activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 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	(14)
Reclassification Adjustments, Income tax benefit (expense) on other comprehensive loss	5
Reclassification Adjustments, Total accumulated other comprehensive loss, net of taxes	(9)
Ending balance, Net unrealized gains (losses) on available for sale securities
Ending balance, Income tax benefit (expense) on other comprehensive loss
Ending balance, Total accumulated other comprehensive income (loss), net of taxes
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	24
Ending balance, Net unrealized gains (losses) on available for sale securities
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	(38)
Ending balance, Net unrealized gains (losses) on available for sale securities

Share Repurchase Program (Detai

Share Repurchase Program (Detail Textuals) - Share Repurchase Program - USD ($)	Mar. 09, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 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)		168,925	762,644	1,453,445
Repurchase common stock		$ 800,000	$ 3,600,000	$ 7,300,000
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

Income from patent arrangement

Income from patent arrangement (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Income From Patent Arrangement [Abstract]
Income From Intangible Assets	$ 1,313	$ 1,403