Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | BSQUARE CORP /WA | |
Entity Central Index Key | 0001054721 | |
Trading Symbol | bsqr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 13,235,038 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common stock, no par value |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,209 | $ 7,712 |
Restricted cash | 363 | 600 |
Short-term investments | 2,249 | |
Accounts receivable, net of allowance for doubtful accounts of $50 and $31 at September 30, 2020 and December 31, 2019, respectively | 5,514 | 9,216 |
Contract assets | 553 | 494 |
Prepaid expenses and other current assets | 423 | 244 |
Total current assets | 19,062 | 20,515 |
Equipment, furniture and leasehold improvements, less accumulated depreciation | 403 | 252 |
Deferred tax assets | 7 | 7 |
Intangible assets, less accumulated amortization | 95 | 169 |
Right-of-use lease asset, net | 1,471 | 1,828 |
Other non-current assets | 25 | 284 |
Total assets | 21,063 | 23,055 |
Current liabilities: | ||
Third-party software fees payable | 5,722 | 7,224 |
Accounts payable | 287 | 408 |
Paycheck Protection Program loan | 962 | |
Accrued compensation | 456 | 1,001 |
Other accrued expenses | 658 | 306 |
Deferred revenue | 2,142 | 1,559 |
Operating lease | 317 | 702 |
Total current liabilities | 10,544 | 11,200 |
Deferred revenue, long-term | 10 | 903 |
Operating lease, long-term | 1,269 | 1,256 |
Paycheck Protection Program loan, long-term | 618 | |
Shareholders' equity: | ||
Preferred stock, no par: 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par: 37,500,000 shares authorized; 13,180,139 and 13,042,293 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 139,516 | 138,877 |
Accumulated other comprehensive loss | (1,017) | (987) |
Accumulated deficit | (129,877) | (128,194) |
Total shareholders' equity | 8,622 | 9,696 |
Total liabilities and shareholders' equity | $ 21,063 | $ 23,055 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 50 | $ 31 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 37,500,000 | 37,500,000 |
Common stock, shares issued (in shares) | 13,180,139 | 13,042,293 |
Common stock, shares outstanding (in shares) | 13,180,139 | 13,042,293 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 10,420 | $ 14,641 | $ 36,073 | $ 43,917 |
Cost of revenue: | ||||
Total cost of revenue | 8,530 | 12,009 | 30,552 | 36,471 |
Gross profit | 1,890 | 2,632 | 5,521 | 7,446 |
Operating expenses: | ||||
Selling, general and administrative | 1,987 | 2,462 | 6,951 | 8,478 |
Research and development | 41 | 1,046 | 222 | 5,276 |
Restructuring costs | 253 | 1,629 | ||
Total operating expenses | 2,028 | 3,761 | 7,173 | 15,383 |
Loss from operations | (138) | (1,129) | (1,652) | (7,937) |
Other income (loss), net | 2 | 22 | (31) | 116 |
Loss before income taxes | (136) | (1,107) | (1,683) | (7,821) |
Income taxes | ||||
Net loss | $ (136) | $ (1,107) | $ (1,683) | $ (7,821) |
Basic loss per share (in dollars per share) | $ (0.01) | $ (0.09) | $ (0.13) | $ (0.60) |
Diluted loss per share (in dollars per share) | $ (0.01) | $ (0.09) | $ (0.13) | $ (0.60) |
Shares used in per share calculations: | ||||
Basic (in shares) | 13,165 | 12,934 | 13,205 | 12,982 |
Diluted (in shares) | 13,165 | 12,934 | 13,205 | 12,982 |
Net loss | $ (136) | $ (1,107) | $ (1,683) | $ (7,821) |
Other comprehensive income (loss) | ||||
Foreign currency translation, net of tax | 11 | (2) | (27) | (82) |
Unrealized gain (loss) on investments, net of tax | (3) | (2) | (3) | 4 |
Total other comprehensive income (loss) | 8 | (4) | (30) | (78) |
Comprehensive loss | (128) | (1,111) | (1,713) | (7,899) |
Partner Solutions [Member] | ||||
Revenue: | ||||
Total revenue | 9,145 | 12,556 | 33,160 | 37,341 |
Cost of revenue: | ||||
Total cost of revenue | 7,402 | 10,762 | 27,502 | 31,834 |
Gross profit | 1,743 | 1,794 | 5,658 | 5,507 |
Edge to Cloud [Member] | ||||
Revenue: | ||||
Total revenue | 1,275 | 2,085 | 2,913 | 6,576 |
Cost of revenue: | ||||
Total cost of revenue | 1,128 | 1,247 | 3,050 | 4,637 |
Gross profit | $ 147 | $ 838 | $ (137) | $ 1,939 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (1,683) | $ (7,821) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 494 | 696 |
Stock-based compensation | 601 | 371 |
Impairment of capitalized software development costs | 375 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3,702 | 2,804 |
Contract assets | 123 | 424 |
Prepaid expenses and other assets | (342) | 344 |
Third-party software fees payable | (1,502) | (612) |
Accounts payable and accrued expenses | (314) | (1,270) |
Operating lease | (15) | 240 |
Deferred revenue | (310) | (48) |
Deferred rent | (497) | |
Net cash provided by (used in) operating activities | 754 | (4,994) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (374) | (300) |
Proceeds from maturities of short-term investments | 2,250 | 9,640 |
Purchases of short-term investments | (7,370) | |
Net cash provided by investing activities | 1,876 | 1,970 |
Cash flows from financing activities: | ||
Cash flows from financing activities: Proceeds from Paycheck Protection Program loan | 1,580 | |
Effect of exchange rate changes on cash and cash equivalents | 50 | (144) |
Net increase (decrease) in cash and cash equivalents | 4,260 | (3,168) |
Cash, restricted cash, and cash equivalents, beginning of period | 8,312 | 10,531 |
Cash, restricted cash, and cash equivalents, end of period | $ 12,572 | $ 7,363 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 13,042,293 | ||||
Balance at Dec. 31, 2019 | $ 138,877 | $ (987) | $ (128,194) | $ 9,696 | |
Exercise of stock options (in shares) | 25,000 | ||||
Exercise of stock options | $ 34 | $ 34 | |||
Share-based compensation, including issuance of restricted stock (in shares) | 137,846 | ||||
Share-based compensation, including issuance of restricted stock | $ 601 | 601 | |||
Net loss | (1,683) | (1,683) | |||
Foreign currency translation adjustment, net of tax | (27) | (23) | |||
Foreign currency translation adjustment, net of tax | 4 | ||||
Unrealized gain (loss) on investments, net of tax | (3) | (3) | |||
Balance (in shares) at Sep. 30, 2020 | 13,180,139 | ||||
Balance at Sep. 30, 2020 | $ 139,516 | (1,017) | (129,877) | 8,622 | |
Balance (in shares) at Jun. 30, 2020 | 13,155,139 | ||||
Balance at Jun. 30, 2020 | $ 139,199 | (1,025) | (129,741) | 8,433 | |
Exercise of stock options (in shares) | 25,000 | ||||
Exercise of stock options | $ 34 | 34 | |||
Share-based compensation, including issuance of restricted stock (in shares) | |||||
Share-based compensation, including issuance of restricted stock | $ 281 | 281 | |||
Net loss | (136) | (136) | |||
Foreign currency translation adjustment, net of tax | 11 | 13 | |||
Foreign currency translation adjustment, net of tax | 2 | ||||
Unrealized gain (loss) on investments, net of tax | (3) | (3) | |||
Balance (in shares) at Sep. 30, 2020 | 13,180,139 | ||||
Balance at Sep. 30, 2020 | $ 139,516 | $ (1,017) | $ (129,877) | $ 8,622 |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. Description of business Bsquare Corporation (“Bsquare,” “we,” “us” and “our”) builds technology that is powering the next generation of connected devices and intelligent systems. We help companies realize the promise of the Internet of Things (“IoT”) through the development of devices and systems that are cloud-enabled, share data seamlessly, facilitate distributed learning and control, and operate securely at scale. We believe that IoT-enabled systems can not Since our founding in 1994, Our business has largely been focused on providing software solutions (including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market, and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as point-of-sale terminals, kiosks, tablets and handheld devices, as well as vending machines, ATM machines, digital signs, smart phones, set-top boxes and in-vehicle telematics and entertainment devices. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Bsquare have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of Bsquare and our wholly owned subsidiaries. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In management's opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2020 nine September 30, 2020 2019 December 31, 2019 These unaudited condensed financial statements and related notes should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10 December 31, 2019 February 24, 2020. Basis of consolidation The consolidated financial statements include the accounts of Bsquare and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates and assumptions. Actual results may Income (Loss) Per Share We compute basic loss per share using the weighted average number of shares of common stock outstanding during the period. We consider restricted stock units as outstanding shares of common stock and include them in the computation of basic loss per share only when vested. We compute diluted loss per share using the weighted average number of shares of common stock outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options 1,796,478 1,534,817 1,769,556 1,560,546 Restricted stock units 35,123 59,130 46,851 78,430 Small Business Administration Paycheck Protection Program loan On April 10, 2020, $1.6 2.5 12 12 COVID- 19 In March 2020, 19” may 19 may September 30, 2020 19, 19, may |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. Disaggregation of revenue The following table provides information about disaggregated revenue by primary geographical area and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Edge to Edge to Partner Solutions Cloud Total Partner Solutions Cloud Total Primary geographic area: North America $ 7,819 $ 1,100 $ 8,919 $ 10,851 $ 1,863 $ 12,714 Europe 613 172 785 164 177 341 Asia 713 3 716 1,541 45 1,586 Total $ 9,145 $ 1,275 $ 10,420 $ 12,556 $ 2,085 $ 14,641 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Edge to Edge to Partner Solutions Cloud Total Partner Solutions Cloud Total Primary geographic area: North America $ 28,104 $ 2,345 $ 30,449 $ 31,687 $ 5,932 $ 37,619 Europe 1,344 475 1,819 1,086 477 1,563 Asia 3,712 93 3,805 4,568 167 4,735 Total $ 33,160 $ 2,913 $ 36,073 $ 37,341 $ 6,576 $ 43,917 Contract balances We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance obligations not no three nine September 30, 2020 2019 Significant changes in the contract assets and the deferred revenue balances during the three nine September 30, 2020 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Contract Deferred Contract Deferred Assets Revenue Assets Revenue Revenue recognized that was included in deferred revenue at December 31, 2019 $ — $ 412 $ — $ 1,118 Transferred to receivables from contract assets recognized at December 31, 2019 — — 15 — Contract acquisition costs We capitalize contract acquisition costs for contracts with a life exceeding one $23,000 $35,000 three September 30, 2020 2019 $68,000 $42,000 nine September 30, 2020 2019 no Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period (in thousands). The estimated revenue does not one September 30, 2020 Remainder of 2020 2021 After 2021 Partner Solutions $ 66 $ 3 $ 9 Edge to Cloud 591 1,483 — Practical expedients and exemptions We apply a practical expedient and fully expense contract acquisition costs, such as sales commissions, as incurred because the amortization period is less than one |
Note 3 - Cash, Cash Equivalents
Note 3 - Cash, Cash Equivalents and Short-term Investments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | 3. Cash, cash equivalents and short-term investments consisted of the following (in thousands): September 30, 2020 December 31, 2019 Cash $ 6,356 $ 4,092 Cash equivalents (see detail in Note 4) 5,853 3,620 Restricted cash 363 600 Total cash and cash equivalents 12,572 8,312 Short-term investments (see detail in Note 4) — 2,249 Total cash, cash equivalents and short-term investments $ 12,572 $ 10,561 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. We measure our cash equivalents and short-term investments at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable market-based inputs or unobservable inputs used in models or other valuation methodologies. Level 3: Unobservable inputs that are not We classify our cash equivalents and short-term investments within Level 1 2 Assets measured at fair value on a recurring basis as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Quoted Prices in Direct or Quoted Prices in Direct or Active Markets Indirect Active Markets Indirect for Identical Observable for Identical Observable Assets (Level 1) Inputs (Level 2) Total Assets (Level 1) Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 5,853 $ — $ 5,853 $ 1,871 $ — $ 1,871 Corporate commercial paper — — — — 999 999 Corporate debt — — — — 750 750 Total cash equivalents 5,853 — 5,853 1,871 1,749 3,620 Restricted cash: Money market funds 363 — 363 600 — 600 Short-term investments: Corporate commercial paper — — — — 748 748 Corporate debt — — — — 1,501 1,501 Total short-term investments — — — — 2,249 2,249 Total assets measured at fair value $ 6,216 $ — $ 6,216 $ 2,471 $ 3,998 $ 6,469 As of September 30, 2020 December 31, 2019 one not |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Intangible assets are related to customer relationships that we acquired from TestQuest, Inc. in November 2008 September 2011. Information regarding our intangible assets is as follows (in thousands): September 30, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 982 $ (887 ) $ 95 $ 1,275 $ (1,106 ) $ 169 Amortization expense was $25,000 three September 30, 2020 2019 $74,000 nine September 30, 2020 2019 Remainder of 2020 $ 24 2021 71 Total $ 95 |
Note 6 - Leases
Note 6 - Leases | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 6. We determine if an arrangement is a lease at inception. On our balance sheet, our office leases are included in right-of-use (“ROU”) lease asset, net and related lease liabilities are included in operating lease and operating lease, long-term. We determined that we do not ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do not In December 2019, 87 May 1, 2020 July 31, 2027. December 2019, $1.2 no Our leases have remaining terms of one eight fourth 2019, not May 2020, not February 2020 ( 11, not not The following tables present the components of our lease expense and supplemental cash flow information related to our leases for the nine September 30, 2020 Nine Months Ended Total component lease expense was as follows: September 30, 2020 Operating leases $ 582 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities $ 596 The following table presents supplemental balance sheet information related to our operating leases as of September 30, 2020 September 30, 2020 Right-of-use lease assets $ 1,471 Current portion of operating lease liability $ 317 Operating lease liability, net of current portion 1,269 Total operating lease liabilities $ 1,586 Weighted average remaining lease term (years) 6.6 Weighted average discount rate 8.4 % The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of September 30, 2020 Years Ended December 31, 2020, remainder of year $ 157 2021 274 2022 249 2023 255 2024 262 After 2024 709 Total minimum lease payments 1,905 Less: amount representing interest (319 ) Present value of lease liabilities $ 1,586 |
Note 7 - Shareholders' Equity
Note 7 - Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 7. Equity Compensation Plans We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (together with the Stock Plan, the “Plans”). Under the Plans, stock options to purchase shares of our common stock may 10 four may Stock-Based Compensation The estimated fair value of stock-based awards is recognized as compensation expense over the vesting period of the award, net of estimated forfeitures. We estimate forfeitures based on historical experience and expected future activities. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock option awards is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, stock-based compensation expense may Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Dividend yield 0 % 0 % 0 % 0 % Expected life (years) 4.9 5.6 4.9 5.8 Expected volatility 63 % 64 % 63 % 64 % Risk-free interest rate 0.2 % 1.6 % 0.5 % 2.1 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue — Edge to Cloud $ 26 $ 1 $ 50 $ 10 Selling, general and administrative 250 175 536 373 Research and development 5 12 15 (12 ) Total stock-based compensation expense $ 281 $ 188 $ 601 $ 371 Stock Option Activity The following table summarizes stock option activity under the Plans: Weighted Average Weighted Remaining Average Contractual Aggregate Number of Exercise Life Intrinsic Shares Price (in years) Value Balance at December 31, 2019 1,544,826 $ 2.74 7.47 $ 46,582 Granted 574,900 1.03 Exercised (25,000 ) 1.35 Forfeited (109,656 ) 1.72 Expired (200,367 ) 4.82 Balance at September 30, 2020 1,784,703 2.07 8.03 214,529 Vested and expected to vest at September 30, 2020 1,548,348 2.14 7.90 172,230 Exercisable at September 30, 2020 568,073 $ 3.35 6.28 $ 6,601 At September 30, 2020 not $490,778. 1.6 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average grant-date fair value of options granted during the period $ 1.37 $ 1.23 $ 1.03 $ 1.70 Options in-the-money (in shares) 59,201 — 59,201 — Aggregate intrinsic value of options exercised during the period $ 1.35 $ — $ 1.35 $ — The aggregate intrinsic value represents the difference between the exercise price of the underlying options and the quoted price of our common stock for the number of options exercised during the period. We issue new shares of common stock upon exercise of stock options. Restricted Stock Unit Activity The following table summarizes RSU activity under the Plans: Number of Weighted Average Shares Award Price Unvested at December 31, 2019 112,846 $ 1.44 Granted 219,596 1 Vested (112,846 ) 1.44 Forfeited — — Unvested at September 30, 2020 219,596 $ 1.48 Expected to vest after September 30, 2020 206,673 $ 1.48 At September 30, 2020 not $173,000. 0.4 Common Stock Reserved for Future Issuance The following table summarizes our shares of common stock reserved for future issuance under the Plans as of September 30, 2020 September 30, 2020 Stock options outstanding 1,784,703 Restricted stock units outstanding 219,596 Stock options and restricted stock units available for future grant 1,245,563 Common stock reserved for future issuance 3,249,862 |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8. Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2027. 6, Loss Contingencies From time to time, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business including tax assessments. We defend ourselves vigorously against any such claims. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not may |
Note 9 - Information About Geog
Note 9 - Information About Geographic Areas and Operating Segments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 9. Our chief operating decision-makers (i.e. our Chief Executive Officer and certain direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information for purposes of allocating resources and evaluating financial performance. There are no We have two not not Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Partner Solutions: Revenue $ 9,145 $ 12,556 $ 33,160 $ 37,341 Cost of revenue 7,402 10,762 27,502 31,834 Gross profit 1,743 1,794 5,658 5,507 Edge to Cloud: Revenue 1,275 2,085 2,913 6,576 Cost of revenue 1,128 1,247 3,050 4,637 Gross profit 147 838 (137 ) 1,939 Total gross profit 1,890 2,632 5,521 7,446 Operating expenses 2,028 3,761 7,173 15,383 Other income, net 2 22 (31 ) 116 Income tax (expense) benefit — — — — Net loss $ (136 ) $ (1,107 ) $ (1,683 ) $ (7,821 ) Revenue by geographic area is based on the sales region of the customer. The following tables set forth total revenue and long-lived assets by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total revenue: North America $ 8,919 $ 12,714 $ 30,449 $ 37,619 Asia 716 1,586 3,805 4,735 Europe 785 341 1,819 1,563 Total revenue $ 10,420 $ 14,641 $ 36,073 $ 43,917 September 30, 2020 December 31, 2019 Long-lived assets: North America $ 1,823 $ 2,016 Asia — 177 Europe 171 340 Total long-lived assets $ 1,994 $ 2,533 Long-lived assets decreased due to utilization of ROU leased assets in North America and from retirement of ROU leased assets in Asia due to closure of our Taiwan office. |
Note 10 - Significant Risk Conc
Note 10 - Significant Risk Concentrations | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 10. Significant Customers No 10% three nine September 30, 2020 2019 Kodak Alaris had accounts receivable balances of $645 12% September 30, 2020. oneywell International, Inc. and affiliated entities (“Honeywell”) had accounts receivable balances of $552 10% September 30, 2020 $1.2 13% December 31, 2019 No 10% September 30, 2020 December 31, 2019 Significant Supplier Effective March 1, 2019, 79% 2019 April 30, 2022. Software sales under these agreements constitute a significant portion of our Partner Solutions revenue and total revenue. There is no Microsoft currently offers a rebate program to sell Microsoft Windows Embedded operating systems pursuant to which we earn money for achieving certain predefined objectives. In accordance with Microsoft rebate program rules: • For the three September 30, 2020, 50% 50% • For the six June 30, 2020, 20% 80% • For the three nine September 30, 2019, 20% 80% Under this rebate program, we recorded rebate credits as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reductions to cost of revenue $ 500 $ 87 $ 654 $ 240 Reductions to marketing expense $ 123 $ 597 $ 1,026 $ 1,027 There was a balance of approximately $122,000 September 30, 2020 |
Note 11 - Restructuring Costs
Note 11 - Restructuring Costs | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 11. In May 2019, 38 October 2019, 17 2019. $2.3 2019, second 2019. three nine September 30, 2020 not three September 30, 2020, no nine September 30, 2020 $0.5 no September 30, 2020 The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in thousands): For the nine months ended September 30, 2020 Balance at beginning of period $ 472 Restructuring costs — Cash payments (472 ) Balance at end of period $ — |
Note 12 - Paycheck Protection P
Note 12 - Paycheck Protection Program Loan | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 12. Our PPP Loan is evidenced by a promissory note, dated as of April 7, 2020 ( two 0.98% may No six eight may may The Note contains customary events of default relating to, among other things, payment defaults and breaches of representations or warranties. The occurrence of an event of default may At September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 PPP Loan, .98%, due April 2022: Principal $ 1,572 $ - Accrued interest 8 - $ 1,580 $ - PPP Loan payable: Current portion $ 962 Long-term portion 618 $ 1,580 $ - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business [Policy Text Block] | Description of business Bsquare Corporation (“Bsquare,” “we,” “us” and “our”) builds technology that is powering the next generation of connected devices and intelligent systems. We help companies realize the promise of the Internet of Things (“IoT”) through the development of devices and systems that are cloud-enabled, share data seamlessly, facilitate distributed learning and control, and operate securely at scale. We believe that IoT-enabled systems can not Since our founding in 1994, Our business has largely been focused on providing software solutions (including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market, and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as point-of-sale terminals, kiosks, tablets and handheld devices, as well as vending machines, ATM machines, digital signs, smart phones, set-top boxes and in-vehicle telematics and entertainment devices. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Bsquare have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of Bsquare and our wholly owned subsidiaries. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In management's opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2020 nine September 30, 2020 2019 December 31, 2019 These unaudited condensed financial statements and related notes should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10 December 31, 2019 February 24, 2020. |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The consolidated financial statements include the accounts of Bsquare and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates, Policy [Policy Text Block] | Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates and assumptions. Actual results may |
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) Per Share We compute basic loss per share using the weighted average number of shares of common stock outstanding during the period. We consider restricted stock units as outstanding shares of common stock and include them in the computation of basic loss per share only when vested. We compute diluted loss per share using the weighted average number of shares of common stock outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options 1,796,478 1,534,817 1,769,556 1,560,546 Restricted stock units 35,123 59,130 46,851 78,430 |
Debt, Policy [Policy Text Block] | Small Business Administration Paycheck Protection Program loan On April 10, 2020, $1.6 2.5 12 12 |
COVID-19 Impact [Policy Text Block] | COVID- 19 In March 2020, 19” may 19 may September 30, 2020 19, 19, may |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options 1,796,478 1,534,817 1,769,556 1,560,546 Restricted stock units 35,123 59,130 46,851 78,430 |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Edge to Edge to Partner Solutions Cloud Total Partner Solutions Cloud Total Primary geographic area: North America $ 7,819 $ 1,100 $ 8,919 $ 10,851 $ 1,863 $ 12,714 Europe 613 172 785 164 177 341 Asia 713 3 716 1,541 45 1,586 Total $ 9,145 $ 1,275 $ 10,420 $ 12,556 $ 2,085 $ 14,641 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Edge to Edge to Partner Solutions Cloud Total Partner Solutions Cloud Total Primary geographic area: North America $ 28,104 $ 2,345 $ 30,449 $ 31,687 $ 5,932 $ 37,619 Europe 1,344 475 1,819 1,086 477 1,563 Asia 3,712 93 3,805 4,568 167 4,735 Total $ 33,160 $ 2,913 $ 36,073 $ 37,341 $ 6,576 $ 43,917 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Contract Deferred Contract Deferred Assets Revenue Assets Revenue Revenue recognized that was included in deferred revenue at December 31, 2019 $ — $ 412 $ — $ 1,118 Transferred to receivables from contract assets recognized at December 31, 2019 — — 15 — |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remainder of 2020 2021 After 2021 Partner Solutions $ 66 $ 3 $ 9 Edge to Cloud 591 1,483 — |
Note 3 - Cash, Cash Equivalen_2
Note 3 - Cash, Cash Equivalents and Short-term Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Cash, Cash Equivalents and Investments [Table Text Block] | September 30, 2020 December 31, 2019 Cash $ 6,356 $ 4,092 Cash equivalents (see detail in Note 4) 5,853 3,620 Restricted cash 363 600 Total cash and cash equivalents 12,572 8,312 Short-term investments (see detail in Note 4) — 2,249 Total cash, cash equivalents and short-term investments $ 12,572 $ 10,561 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2020 December 31, 2019 Quoted Prices in Direct or Quoted Prices in Direct or Active Markets Indirect Active Markets Indirect for Identical Observable for Identical Observable Assets (Level 1) Inputs (Level 2) Total Assets (Level 1) Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 5,853 $ — $ 5,853 $ 1,871 $ — $ 1,871 Corporate commercial paper — — — — 999 999 Corporate debt — — — — 750 750 Total cash equivalents 5,853 — 5,853 1,871 1,749 3,620 Restricted cash: Money market funds 363 — 363 600 — 600 Short-term investments: Corporate commercial paper — — — — 748 748 Corporate debt — — — — 1,501 1,501 Total short-term investments — — — — 2,249 2,249 Total assets measured at fair value $ 6,216 $ — $ 6,216 $ 2,471 $ 3,998 $ 6,469 |
Note 5 - Intangible Assets (Tab
Note 5 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2020 December 31, 2019 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 982 $ (887 ) $ 95 $ 1,275 $ (1,106 ) $ 169 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of 2020 $ 24 2021 71 Total $ 95 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Nine Months Ended Total component lease expense was as follows: September 30, 2020 Operating leases $ 582 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities $ 596 |
Lessee, Operating Leases, Supplemental Balance Sheet Information [Table Text Block] | September 30, 2020 Right-of-use lease assets $ 1,471 Current portion of operating lease liability $ 317 Operating lease liability, net of current portion 1,269 Total operating lease liabilities $ 1,586 Weighted average remaining lease term (years) 6.6 Weighted average discount rate 8.4 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Years Ended December 31, 2020, remainder of year $ 157 2021 274 2022 249 2023 255 2024 262 After 2024 709 Total minimum lease payments 1,905 Less: amount representing interest (319 ) Present value of lease liabilities $ 1,586 |
Note 7 - Shareholders' Equity (
Note 7 - Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Dividend yield 0 % 0 % 0 % 0 % Expected life (years) 4.9 5.6 4.9 5.8 Expected volatility 63 % 64 % 63 % 64 % Risk-free interest rate 0.2 % 1.6 % 0.5 % 2.1 % |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue — Edge to Cloud $ 26 $ 1 $ 50 $ 10 Selling, general and administrative 250 175 536 373 Research and development 5 12 15 (12 ) Total stock-based compensation expense $ 281 $ 188 $ 601 $ 371 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Weighted Remaining Average Contractual Aggregate Number of Exercise Life Intrinsic Shares Price (in years) Value Balance at December 31, 2019 1,544,826 $ 2.74 7.47 $ 46,582 Granted 574,900 1.03 Exercised (25,000 ) 1.35 Forfeited (109,656 ) 1.72 Expired (200,367 ) 4.82 Balance at September 30, 2020 1,784,703 2.07 8.03 214,529 Vested and expected to vest at September 30, 2020 1,548,348 2.14 7.90 172,230 Exercisable at September 30, 2020 568,073 $ 3.35 6.28 $ 6,601 |
Schedule of Share Based Compensation Additional Stock Options Activity [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average grant-date fair value of options granted during the period $ 1.37 $ 1.23 $ 1.03 $ 1.70 Options in-the-money (in shares) 59,201 — 59,201 — Aggregate intrinsic value of options exercised during the period $ 1.35 $ — $ 1.35 $ — |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Number of Weighted Average Shares Award Price Unvested at December 31, 2019 112,846 $ 1.44 Granted 219,596 1 Vested (112,846 ) 1.44 Forfeited — — Unvested at September 30, 2020 219,596 $ 1.48 Expected to vest after September 30, 2020 206,673 $ 1.48 |
Schedule of Common Stock Reserved For Future Issuance [Table Text Block] | September 30, 2020 Stock options outstanding 1,784,703 Restricted stock units outstanding 219,596 Stock options and restricted stock units available for future grant 1,245,563 Common stock reserved for future issuance 3,249,862 |
Note 9 - Information About Ge_2
Note 9 - Information About Geographic Areas and Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Partner Solutions: Revenue $ 9,145 $ 12,556 $ 33,160 $ 37,341 Cost of revenue 7,402 10,762 27,502 31,834 Gross profit 1,743 1,794 5,658 5,507 Edge to Cloud: Revenue 1,275 2,085 2,913 6,576 Cost of revenue 1,128 1,247 3,050 4,637 Gross profit 147 838 (137 ) 1,939 Total gross profit 1,890 2,632 5,521 7,446 Operating expenses 2,028 3,761 7,173 15,383 Other income, net 2 22 (31 ) 116 Income tax (expense) benefit — — — — Net loss $ (136 ) $ (1,107 ) $ (1,683 ) $ (7,821 ) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total revenue: North America $ 8,919 $ 12,714 $ 30,449 $ 37,619 Asia 716 1,586 3,805 4,735 Europe 785 341 1,819 1,563 Total revenue $ 10,420 $ 14,641 $ 36,073 $ 43,917 September 30, 2020 December 31, 2019 Long-lived assets: North America $ 1,823 $ 2,016 Asia — 177 Europe 171 340 Total long-lived assets $ 1,994 $ 2,533 |
Note 10 - Significant Risk Co_2
Note 10 - Significant Risk Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Rebate Credit [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reductions to cost of revenue $ 500 $ 87 $ 654 $ 240 Reductions to marketing expense $ 123 $ 597 $ 1,026 $ 1,027 |
Note 11 - Restructuring Costs (
Note 11 - Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Restructuring Reserve by Type of Cost and Estimated Timing of Future Payouts [Table Text Block] | For the nine months ended September 30, 2020 Balance at beginning of period $ 472 Restructuring costs — Cash payments (472 ) Balance at end of period $ — |
Note 12 - Paycheck Protection_2
Note 12 - Paycheck Protection Program Loan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 30, 2020 December 31, 2019 PPP Loan, .98%, due April 2022: Principal $ 1,572 $ - Accrued interest 8 - $ 1,580 $ - PPP Loan payable: Current portion $ 962 Long-term portion 618 $ 1,580 $ - |
Note 1 - Description of Busin_3
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Apr. 10, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Proceeds from Notes Payable, Total | $ 1,580 | ||
Paycheck Protection Program CARES Act [Member] | |||
Proceeds from Notes Payable, Total | $ 1,600 |
Note 1 - Description of Busin_4
Note 1 - Description of Business and Summary of Significant Accounting Policies - Potentially Dilutive Shares Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||||
Potentially dilutive securities (in shares) | 1,796,478 | 1,534,817 | 1,769,556 | 1,560,546 |
Restricted Stock Units (RSUs) [Member] | ||||
Potentially dilutive securities (in shares) | 35,123 | 59,130 | 46,851 | 78,430 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Contract with Customer, Asset, Credit Loss Expense (Reversal) | $ 0 | $ 0 | $ 0 | $ 0 |
Capitalized Contract Cost, Amortization | 23,000 | 35,000 | 68,000 | 42,000 |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenue | $ 10,420 | $ 14,641 | $ 36,073 | $ 43,917 |
North America [Member] | ||||
Total revenue | 8,919 | 12,714 | 30,449 | 37,619 |
Europe [Member] | ||||
Total revenue | 785 | 341 | 1,819 | 1,563 |
Asia [Member] | ||||
Total revenue | 716 | 1,586 | 3,805 | 4,735 |
Partner Solutions [Member] | ||||
Total revenue | 9,145 | 12,556 | 33,160 | 37,341 |
Partner Solutions [Member] | North America [Member] | ||||
Total revenue | 7,819 | 10,851 | 28,104 | 31,687 |
Partner Solutions [Member] | Europe [Member] | ||||
Total revenue | 613 | 164 | 1,344 | 1,086 |
Partner Solutions [Member] | Asia [Member] | ||||
Total revenue | 713 | 1,541 | 3,712 | 4,568 |
Edge to Cloud [Member] | ||||
Total revenue | 1,275 | 2,085 | 2,913 | 6,576 |
Edge to Cloud [Member] | North America [Member] | ||||
Total revenue | 1,100 | 1,863 | 2,345 | 5,932 |
Edge to Cloud [Member] | Europe [Member] | ||||
Total revenue | 172 | 177 | 475 | 477 |
Edge to Cloud [Member] | Asia [Member] | ||||
Total revenue | $ 3 | $ 45 | $ 93 | $ 167 |
Note 2 - Revenue Recognition _2
Note 2 - Revenue Recognition - Significant Changes in Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Revenue recognized that was included in deferred revenue | $ 412 | $ 1,118 |
Transferred to receivables from contract assets recognized | $ 15 |
Note 2 - Revenue Recognition _3
Note 2 - Revenue Recognition - Transaction Price Allocated to the Remaining Performance Obligations 2 (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Remaining performance obligations | $ 66 |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | 3 |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Remaining performance obligations | 9 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Remaining performance obligations | 591 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | 1,483 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Remaining performance obligations |
Note 2 - Revenue Recognition _4
Note 2 - Revenue Recognition - Transaction Price Allocated to the Remaining Performance Obligations (Details) (Parentheticals) | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Partner Solutions [Member] | |
Remaining performance obligations, period (Year) | 182 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Edge to Cloud [Member] | |
Remaining performance obligations, period (Year) | 182 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Partner Solutions [Member] | |
Remaining performance obligations, period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Edge to Cloud [Member] | |
Remaining performance obligations, period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Partner Solutions [Member] | |
Remaining performance obligations, period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Edge to Cloud [Member] | |
Remaining performance obligations, period (Year) | 1 year |
Note 3 - Cash, Cash Equivalen_3
Note 3 - Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash | $ 6,356 | $ 4,092 | ||
Cash equivalents (see detail in Note 4) | 5,853 | 3,620 | ||
Restricted cash | 363 | 600 | ||
Total cash and cash equivalents | 12,572 | 8,312 | $ 7,363 | $ 10,531 |
Short-term investments (see detail in Note 4) | 2,249 | |||
Total cash, cash equivalents and short-term investments | $ 12,572 | $ 10,561 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total cash equivalents | $ 5,853 | $ 3,620 |
Restricted cash | 363 | 600 |
Total short-term investments | 2,249 | |
Total assets measured at fair value | 6,216 | 6,469 |
Money Market Funds [Member] | ||
Total cash equivalents | 5,853 | 1,871 |
Commercial Paper [Member] | ||
Total cash equivalents | 999 | |
Corporate Debt [Member] | ||
Total cash equivalents | 750 | |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Total short-term investments | 748 | |
Corporate Debt Securities [Member] | ||
Total short-term investments | 1,501 | |
Fair Value, Inputs, Level 1 [Member] | ||
Total cash equivalents | 5,853 | 1,871 |
Restricted cash | 363 | 600 |
Total short-term investments | ||
Total assets measured at fair value | 6,216 | 2,471 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Total cash equivalents | 5,853 | 1,871 |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | ||
Total cash equivalents | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Debt [Member] | ||
Total cash equivalents | ||
Fair Value, Inputs, Level 1 [Member] | Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Total short-term investments | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Total short-term investments | ||
Fair Value, Inputs, Level 2 [Member] | ||
Total cash equivalents | 1,749 | |
Restricted cash | ||
Total short-term investments | 2,249 | |
Total assets measured at fair value | 3,998 | |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Total cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Total cash equivalents | 999 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt [Member] | ||
Total cash equivalents | 750 | |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Total short-term investments | 748 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Total short-term investments | $ 1,501 |
Note 5 - Intangible Assets (Det
Note 5 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Amortization of Intangible Assets, Total | $ 25,000 | $ 25,000 | $ 74,000 | $ 74,000 |
Note 5 - Intangible Assets - In
Note 5 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Intangible assets, less accumulated amortization | $ 95 | $ 169 |
Customer Relationships [Member] | ||
Customer relationships, gross carrying amount | 982 | 1,275 |
Customer relationships, accumulated amortization | (887) | (1,106) |
Intangible assets, less accumulated amortization | $ 95 | $ 169 |
Note 5 - Intangible Assets - Ex
Note 5 - Intangible Assets - Expected Amortization Expense in Future Periods (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Remainder of 2020 | $ 24 | |
2021 | 71 | |
Total | $ 95 | $ 169 |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Lease, Right-of-Use Asset | $ 1,471 | $ 1,828 |
Operating Lease, Liability, Total | $ 1,586 | |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 8 years | |
Corporate Office Facility in Seattle, Washington [Member] | ||
Lessee, Operating Lease, Term of Contract (Month) | 7 years 90 days | |
Operating Lease, Right-of-Use Asset | $ 1,200 | |
Operating Lease, Liability, Total | $ 1,200 |
Note 6 - Leases - Components of
Note 6 - Leases - Components of Lease Expense and Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Operating leases | $ 582 |
Cash paid for amounts included in the measurement of lease liabilities | $ 596 |
Note 6 - Leases - Supplemental
Note 6 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Lease, Right-of-Use Asset | $ 1,471 | $ 1,828 |
Current portion of operating lease liability | 317 | 702 |
Operating lease liability, net of current portion | 1,269 | $ 1,256 |
Total operating lease liabilities | $ 1,586 | |
Weighted average remaining lease term (years) (Year) | 6 years 219 days | |
Weighted average discount rate | 8.40% |
Note 6 - Leases - Amounts Oblig
Note 6 - Leases - Amounts Obligated to Pay, by Maturity, Under Operating Leases Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
2020, remainder of year | $ 157 |
2021 | 274 |
2022 | 249 |
2023 | 255 |
2024 | 262 |
After 2024 | 709 |
Total minimum lease payments | 1,905 |
Less: amount representing interest | (319) |
Operating Lease, Liability, Total | $ 1,586 |
Note 7 - Shareholders' Equity_2
Note 7 - Shareholders' Equity (Details Textual) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 490,778 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 219 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 146 days |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 173,000 |
Note 7 - Shareholders' Equity -
Note 7 - Shareholders' Equity - Weighted Average Assumptions of Stock Options (Details) - Share-based Payment Arrangement, Option [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life (years) (Year) | 4 years 328 days | 5 years 219 days | 4 years 328 days | 5 years 292 days |
Expected volatility | 63.00% | 64.00% | 63.00% | 64.00% |
Risk-free interest rate | 0.20% | 1.60% | 0.50% | 2.10% |
Note 7 - Shareholders' Equity_3
Note 7 - Shareholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total stock-based compensation expense | $ 281 | $ 188 | $ 601 | $ 371 |
Cost of Sales [Member] | Edge to Cloud [Member] | ||||
Total stock-based compensation expense | 26 | 1 | 50 | 10 |
Selling, General and Administrative Expenses [Member] | ||||
Total stock-based compensation expense | 250 | 175 | 536 | 373 |
Research and Development Expense [Member] | ||||
Total stock-based compensation expense | $ 5 | $ 12 | $ 15 | $ (12) |
Note 7 - Shareholders' Equity_4
Note 7 - Shareholders' Equity - Stock Option Activity (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Balance, number of shares (in shares) | shares | 1,544,826 | |
Balance, weighted average exercise price (in dollars per share) | $ / shares | $ 2.74 | |
Balance, weighted average remaining contractual life (Year) | 8 years 10 days | 7 years 171 days |
Balance, aggregate intrinsic value | $ | $ 214,529 | $ 46,582 |
Granted, number of shares (in shares) | shares | 574,900 | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 1.03 | |
Exercised, number of shares (in shares) | shares | (25,000) | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 1.35 | |
Forfeited, number of shares (in shares) | shares | (109,656) | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 1.72 | |
Expired, number of shares (in shares) | shares | (200,367) | |
Expired, weighted average exercise price (in dollars per share) | $ / shares | $ 4.82 | |
Balance, number of shares (in shares) | shares | 1,784,703 | 1,544,826 |
Balance, weighted average exercise price (in dollars per share) | $ / shares | $ 2.07 | $ 2.74 |
Vested and expected to vest, number of shares (in shares) | shares | 1,548,348 | |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | $ 2.14 | |
Vested and expected to vest, weighted average remaining contractual life (Year) | 7 years 328 days | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 172,230 | |
Exercisable, number of shares (in shares) | shares | 568,073 | |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 3.35 | |
Exercisable, weighted average remaining contractual life (Year) | 6 years 102 days | |
Exercisable, aggregate intrinsic value | $ | $ 6,601 |
Note 7 - Shareholders' Equity_5
Note 7 - Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Details) - Share-based Payment Arrangement, Option [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted average grant-date fair value of options granted during the period (in dollars per share) | $ 1.37 | $ 1.23 | $ 1.03 | $ 1.70 |
Options in-the-money (in shares) (in shares) | 59,201 | 59,201 | ||
Aggregate intrinsic value of options exercised during the period | $ 1.35 | $ 1.35 |
Note 7 - Shareholders' Equity_6
Note 7 - Shareholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Unvested, number of shares (in shares) | shares | 112,846 |
Unvested, weighted average award price (in dollars per share) | $ / shares | $ 1.44 |
Granted, number of shares (in shares) | shares | 219,596 |
Granted, weighted average award price (in dollars per share) | $ / shares | $ 1 |
Vested, number of shares (in shares) | shares | (112,846) |
Vested, weighted average award price (in dollars per share) | $ / shares | $ 1.44 |
Forfeited, number of shares (in shares) | shares | |
Forfeited, weighted average award price (in dollars per share) | $ / shares | |
Unvested, number of shares (in shares) | shares | 219,596 |
Unvested, weighted average award price (in dollars per share) | $ / shares | $ 1.48 |
Expected to vest, number of shares (in shares) | shares | 206,673 |
Expected to vest, weighted average award price (in dollars per share) | $ / shares | $ 1.48 |
Note 7 - Shareholders' Equity_7
Note 7 - Shareholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2020 | Dec. 31, 2019 |
Stock options outstanding (in shares) | 1,784,703 | 1,544,826 |
Stock options and restricted stock units available for future grant (in shares) | 1,245,563 | |
Common stock reserved for future issuance (in shares) | 3,249,862 | |
Restricted Stock Units (RSUs) [Member] | ||
Restricted stock units outstanding (in shares) | 219,596 | 112,846 |
Note 9 - Information About Ge_3
Note 9 - Information About Geographic Areas and Operating Segments (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Number of Operating Segments | 2 |
Number of Reportable Segments | 2 |
Note 9 - Information About Ge_4
Note 9 - Information About Geographic Areas and Operating Segments - Profit and Loss Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 10,420 | $ 14,641 | $ 36,073 | $ 43,917 |
Cost of revenue | 8,530 | 12,009 | 30,552 | 36,471 |
Gross profit | 1,890 | 2,632 | 5,521 | 7,446 |
Operating expenses | 2,028 | 3,761 | 7,173 | 15,383 |
Other income (loss), net | 2 | 22 | (31) | 116 |
Income tax (expense) benefit | ||||
Net loss | (136) | (1,107) | (1,683) | (7,821) |
Partner Solutions [Member] | ||||
Revenue | 9,145 | 12,556 | 33,160 | 37,341 |
Cost of revenue | 7,402 | 10,762 | 27,502 | 31,834 |
Gross profit | 1,743 | 1,794 | 5,658 | 5,507 |
Edge to Cloud [Member] | ||||
Revenue | 1,275 | 2,085 | 2,913 | 6,576 |
Cost of revenue | 1,128 | 1,247 | 3,050 | 4,637 |
Gross profit | $ 147 | $ 838 | $ (137) | $ 1,939 |
Note 9 - Information About Ge_5
Note 9 - Information About Geographic Areas and Operating Segments - Revenue and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Total revenue | $ 10,420 | $ 14,641 | $ 36,073 | $ 43,917 | |
Total long-lived assets | 1,994 | 1,994 | $ 2,533 | ||
North America [Member] | |||||
Total revenue | 8,919 | 12,714 | 30,449 | 37,619 | |
Total long-lived assets | 1,823 | 1,823 | 2,016 | ||
Asia [Member] | |||||
Total revenue | 716 | 1,586 | 3,805 | 4,735 | |
Total long-lived assets | 177 | ||||
Europe [Member] | |||||
Total revenue | 785 | $ 341 | 1,819 | $ 1,563 | |
Total long-lived assets | $ 171 | $ 171 | $ 340 |
Note 10 - Significant Risk Co_3
Note 10 - Significant Risk Concentrations (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 5,514,000 | $ 5,514,000 | $ 9,216,000 | |||
Rebate Credits Outstanding | $ 122,000 | 122,000 | ||||
Microsoft Azure [Member] | Cost of Sales [Member] | ||||||
Rebates, Allocation Percentage | 50.00% | 20.00% | 20.00% | 20.00% | ||
Microsoft Azure [Member] | Selling and Marketing Expense [Member] | ||||||
Rebates, Allocation Percentage | 50.00% | 80.00% | 80.00% | 80.00% | ||
Supplier Concentration Risk [Member] | Revenue Benchmark [Member] | Microsoft Corporation [Member] | Windows IoT Operating Systems [Member] | ||||||
Concentration Risk, Percentage | 79.00% | |||||
Kodak Alaris, Inc [Member] | ||||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 645,000 | $ 645,000 | ||||
Kodak Alaris, Inc [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Concentration Risk, Percentage | 12.00% | |||||
Honeywell International, Inc [Member] | ||||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 552 | $ 552 | $ 1,200,000 | |||
Honeywell International, Inc [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Concentration Risk, Percentage | 10.00% | 13.00% |
Note 10 - Significant Risk Co_4
Note 10 - Significant Risk Concentrations - Rebate Credits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cost of Sales [Member] | ||||
Reductions | $ 500 | $ 87 | $ 654 | $ 240 |
Selling and Marketing Expense [Member] | ||||
Reductions | $ 123 | $ 597 | $ 1,026 | $ 1,027 |
Note 11 - Restructuring Costs_2
Note 11 - Restructuring Costs (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | May 31, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Payments for Restructuring | $ 472 | ||||
Restructuring Reserve, Ending Balance | $ 0 | 0 | $ 472 | ||
Employee Severance [Member] | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 38 | ||||
Restructuring Costs, Total | 0 | 0 | $ 2,300 | ||
Payments for Restructuring | $ 0 | $ 500 | |||
Employee Severance [Member] | TAIWAN, PROVINCE OF CHINA | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 17 |
Note 11 - Restructuring Costs -
Note 11 - Restructuring Costs - Activity and Estimated Timing of Future Payouts for Accrued Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance | $ 472 | |||
Restructuring costs | $ 253 | $ 1,629 | ||
Cash payments | (472) | |||
Balance | $ 0 | $ 0 |
Note 12 - Paycheck Protection_3
Note 12 - Paycheck Protection Program Loan - PPP Loan Balance (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current portion | $ 962 | |
Long-term portion | 618 | |
Paycheck Protection Program CARES Act [Member] | ||
Principal | 1,572 | |
Accrued interest | 8 | |
Long-term Debt, Total | 1,580 | |
Current portion | 962 | |
Long-term portion | 618 | |
Notes Payable, Total | $ 1,580 |