Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001054721 | |
Entity Registrant Name | BSQUARE CORP /WA | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-27687 | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1650880 | |
Entity Address, Address Line One | 1415 Western Ave, Suite 700 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98101 | |
City Area Code | 425 | |
Local Phone Number | 519-5900 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | BSQR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,493,827 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 26,165 | $ 39,529 |
Restricted cash (see detail in Note 4) | 221 | 557 |
Short-term investments | 10,677 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $50 at September 30, 2022 and December 31, 2021 | 4,614 | 4,914 |
Contract assets | 51 | 46 |
Prepaid expenses and other current assets | 551 | 364 |
Total current assets | 42,279 | 45,410 |
Property and equipment, net of accumulated depreciation | 821 | 726 |
Right-of-use lease assets | 1,340 | 1,598 |
Other non-current assets | 24 | 24 |
Total assets | 44,464 | 47,758 |
Current liabilities: | ||
Third-party software fees payable | 5,053 | 4,628 |
Accounts payable | 329 | 426 |
Accrued compensation | 379 | 502 |
Other accrued expenses | 191 | 219 |
Deferred revenue | 346 | 944 |
Current portion of operating lease liability | 351 | 357 |
Total current liabilities | 6,649 | 7,076 |
Deferred revenue, long-term | 43 | 194 |
Operating lease liability, net of current portion | 1,107 | 1,363 |
Shareholders' equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, no par value: 37,500,000 shares authorized: 20,493,827 and 20,374,406 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 172,637 | 172,397 |
Accumulated other comprehensive loss | (1,086) | (1,024) |
Accumulated deficit | (134,886) | (132,248) |
Total shareholders' equity | 36,665 | 39,125 |
Total liabilities and shareholders' equity | $ 44,464 | $ 47,758 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for doubtful accounts | $ 50 | $ 50 |
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) | 20,493,827 | 20,374,406 |
Common stock, shares outstanding (in shares) | 20,493,827 | 20,374,406 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 8,406 | $ 10,646 | $ 28,532 | $ 31,289 |
Cost of revenue: | ||||
Total cost of revenue | 7,271 | 9,318 | 24,315 | 27,176 |
Gross profit | 1,135 | 1,328 | 4,217 | 4,113 |
Operating expenses: | ||||
Selling, general and administrative | 2,030 | 1,786 | 6,195 | 6,209 |
Research and development | 259 | 408 | 776 | 941 |
Total operating expenses | 2,289 | 2,194 | 6,971 | 7,150 |
Loss from operations | (1,154) | (866) | (2,754) | (3,037) |
Other income (expense), net | 29 | (29) | 116 | 1,575 |
Loss before income taxes | (1,125) | (895) | (2,638) | (1,462) |
Income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (1,125) | $ (895) | $ (2,638) | $ (1,462) |
Basic and diluted loss per share (in dollars per share) | $ (0.05) | $ (0.05) | $ (0.13) | $ (0.09) |
Shares used in per share calculations: | ||||
Basic and diluted (in shares) | 20,470 | 19,603 | 20,441 | 15,419 |
Net loss | $ (1,125) | $ (895) | $ (2,638) | $ (1,462) |
Other comprehensive loss | ||||
Foreign currency translation, net of tax | (14) | 37 | (62) | (30) |
Total other comprehensive (loss) income | (14) | 37 | (62) | (30) |
Comprehensive loss | (1,139) | (858) | (2,700) | (1,492) |
Partner Solutions [Member] | ||||
Revenue: | ||||
Total revenue | 7,557 | 9,638 | 26,042 | 28,393 |
Cost of revenue: | ||||
Total cost of revenue | 6,574 | 8,491 | 22,232 | 24,528 |
Gross profit | 983 | 1,147 | 3,810 | 3,865 |
Edge to Cloud [Member] | ||||
Revenue: | ||||
Total revenue | 849 | 1,008 | 2,490 | 2,896 |
Cost of revenue: | ||||
Total cost of revenue | 697 | 827 | 2,083 | 2,648 |
Gross profit | $ 152 | $ 181 | $ 407 | $ 248 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (2,638) | $ (1,462) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 311 | 409 |
Stock-based compensation | 298 | 596 |
Gain on extinguishment of PPP loan | 0 | (1,584) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 300 | 185 |
Contract assets | (5) | (33) |
Prepaid expenses and other assets | (191) | (30) |
Third-party software fees payable | 425 | (51) |
Accounts payable and accrued expenses | (248) | (451) |
Deferred revenue | (749) | (771) |
Net cash used in operating activities | (2,497) | (3,192) |
Cash flows from investing activities: | ||
Additions to property and equipment | (406) | (375) |
Purchases of short-term investments | (10,677) | 0 |
Net cash from investing activities | (11,083) | (375) |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock, net of issuance fees | 0 | 31,936 |
Proceeds from exercise of stock options | 79 | 68 |
Cash settlement of performance stock units | (137) | 0 |
Net cash (used in) provided by financing activities | (58) | 32,004 |
Effect of exchange rate changes on cash and cash equivalents | (62) | (30) |
Net decrease in cash and cash equivalents | (13,700) | 28,407 |
Cash, restricted cash, and cash equivalents, beginning of period | 40,086 | 12,960 |
Cash, restricted cash, and cash equivalents, end of period | $ 26,386 | $ 41,367 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Restricted Stock Units (RSUs) [Member] Preferred Stock [Member] | Restricted Stock Units (RSUs) [Member] Common Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings, Appropriated [Member] | Total |
Balance (in shares) at Dec. 31, 2020 | 0 | 13,235,038 | |||||
Balance at Dec. 31, 2020 | $ 0 | $ 139,726 | $ (992) | $ (130,006) | $ 8,728 | ||
Exercise of stock options (in shares) | 0 | 37,380 | |||||
Exercise of stock options | $ 0 | $ 68 | 0 | 0 | 68 | ||
Issuance of common stock upon settlement of restricted stock units (RSUs) (in shares) | 0 | 182,004 | |||||
Stock-based compensation | $ 0 | $ 596 | 0 | 0 | 596 | ||
Net loss | 0 | 0 | 0 | (1,462) | (1,462) | ||
Foreign currency translation, net of tax | $ 0 | $ (8) | (22) | 0 | (30) | ||
Sale of common stock (in shares) | 0 | 6,902,677 | |||||
Sale of common stock | $ 0 | $ 31,936 | 0 | 0 | 31,936 | ||
Issuance of common stock upon settlement of RSUs (in shares) | 0 | 182,004 | |||||
Issuance of common stock upon settlement of RSUs | $ 0 | $ 0 | 0 | 0 | 0 | ||
Balance (in shares) at Sep. 30, 2021 | 0 | 20,357,099 | |||||
Balance at Sep. 30, 2021 | $ 0 | $ 172,318 | (1,014) | (131,468) | 39,836 | ||
Balance (in shares) at Jun. 30, 2021 | 0 | 13,479,220 | |||||
Balance at Jun. 30, 2021 | $ 0 | $ 140,494 | (1,035) | (130,573) | 8,886 | ||
Exercise of stock options (in shares) | 0 | 11,875 | |||||
Exercise of stock options | $ 0 | $ 14 | 0 | 0 | 14 | ||
Issuance of common stock upon settlement of restricted stock units (RSUs) (in shares) | 0 | 72,206 | |||||
Stock-based compensation | 0 | 218 | 0 | 0 | 218 | ||
Net loss | 0 | 0 | 0 | (895) | (895) | ||
Foreign currency translation, net of tax | $ 0 | $ 16 | 21 | 0 | 37 | ||
Sale of common stock (in shares) | 0 | 6,793,798 | |||||
Sale of common stock | $ 0 | $ 31,576 | 0 | 0 | 31,576 | ||
Issuance of common stock upon settlement of RSUs (in shares) | 0 | 72,206 | |||||
Balance (in shares) at Sep. 30, 2021 | 0 | 20,357,099 | |||||
Balance at Sep. 30, 2021 | $ 0 | $ 172,318 | (1,014) | (131,468) | 39,836 | ||
Balance (in shares) at Dec. 31, 2021 | 0 | 20,374,406 | |||||
Balance at Dec. 31, 2021 | $ 0 | $ 172,397 | (1,024) | (132,248) | $ 39,125 | ||
Exercise of stock options (in shares) | 0 | 67,500 | 67,500 | ||||
Exercise of stock options | $ 0 | $ 79 | 0 | 0 | $ 79 | ||
Issuance of common stock upon settlement of restricted stock units (RSUs) (in shares) | 0 | 51,921 | |||||
Stock-based compensation | $ 0 | $ 298 | 0 | 0 | 298 | ||
Net loss | 0 | 0 | 0 | (2,638) | (2,638) | ||
Foreign currency translation, net of tax | $ 0 | $ 0 | (62) | 0 | (62) | ||
Issuance of common stock upon settlement of RSUs (in shares) | 0 | 51,921 | |||||
Issuance of common stock upon settlement of RSUs | $ 0 | $ 0 | 0 | 0 | 0 | ||
Cash settlement of performance stock units | $ 0 | $ (137) | 0 | 0 | (137) | ||
Balance (in shares) at Sep. 30, 2022 | 0 | 20,493,827 | |||||
Balance at Sep. 30, 2022 | $ 0 | $ 172,637 | (1,086) | (134,886) | 36,665 | ||
Balance (in shares) at Jun. 30, 2022 | 0 | 20,468,395 | |||||
Balance at Jun. 30, 2022 | $ 0 | $ 172,445 | (1,072) | (133,761) | 37,612 | ||
Exercise of stock options (in shares) | 0 | 8,125 | |||||
Exercise of stock options | $ 0 | $ 8 | 0 | 0 | 8 | ||
Issuance of common stock upon settlement of restricted stock units (RSUs) (in shares) | 0 | 17,307 | |||||
Stock-based compensation | 0 | 184 | 0 | 0 | 184 | ||
Net loss | 0 | 0 | 0 | (1,125) | (1,125) | ||
Foreign currency translation, net of tax | $ 0 | $ 0 | (14) | 0 | (14) | ||
Issuance of common stock upon settlement of RSUs (in shares) | 0 | 17,307 | |||||
Balance (in shares) at Sep. 30, 2022 | 0 | 20,493,827 | |||||
Balance at Sep. 30, 2022 | $ 0 | $ 172,637 | $ (1,086) | $ (134,886) | $ 36,665 |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. Description of Business Bsquare Corporation ("Bsquare," "we," "us" and "our") develops and deploys technologies for the makers and operators of connected devices. These fleets of business-oriented devices, often called the Internet of Things (IoT), offer a powerful means to connect organizations, people, information, and ideas. Hundreds of millions of connected devices have already been deployed and it is estimated that billions more will be. Despite their growing prevalence, these devices and the systems in which they operate remain a significant source of complexity, unplanned and often uncontrolled expense, and operational risk. Our customers are undergoing a massive change in their business practices and Bsquare provides technology that helps them capture the value of connected devices and reduces the cost and risk of doing so. Since our founding in 1994, More recently, our expertise and business prospects have shifted to cloud-connected devices that have been connected to create intelligent systems. This shift coincides with the overall growth of IoT technologies and with our customers’ recognition that connected intelligent devices create significant business opportunities. Device makers have increasingly specified their products not 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 subsidiary. 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, 2022 nine September 30, 2022 2021 December 31, 2021 These unaudited 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, 2021 March 10, 2022. Basis of consolidation The consolidated financial statements include the accounts of Bsquare and our wholly owned subsidiary. 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 related to contracts with customers, such as determining standalone selling price, useful lives of property and equipment, fair value of stock-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates. Actual results may Income (loss) per share We compute basic income (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 weighted 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, 2022 2021 2022 2021 Stock options 1,248,513 384,444 1,158,220 317,909 Equity awards 76,036 35,275 36,826 68,341 |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
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 operating segment (in thousands): Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Partner Edge to Partner Edge to Solutions Cloud Total Solutions Cloud Total Primary geographic area: North America $ 6,877 $ 821 $ 7,698 $ 8,294 $ 964 $ 9,258 Europe 100 28 128 68 44 112 Asia 580 — 580 1,276 — 1,276 Total $ 7,557 $ 849 $ 8,406 $ 9,638 $ 1,008 $ 10,646 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Partner Edge to Partner Edge to Solutions Cloud Total Solutions Cloud Total Primary geographic area: North America $ 23,335 $ 2,407 $ 25,742 $ 23,372 $ 2,695 $ 26,067 Europe 253 83 336 275 201 476 Asia 2,454 — 2,454 4,746 — 4,746 Total $ 26,042 $ 2,490 $ 28,532 $ 28,393 $ 2,896 $ 31,289 For the quarter ended September 30, 2022 2021, nine September 30, 2022 2021, Contract balances We receive payments from customers based upon contractual billing schedules. Accounts receivable are 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, 2022 2021 Significant changes in the contract assets and the deferred revenue balances during the three nine September 30, 2022 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Contract Contract Assets Assets Balance at beginning of period $ 51 $ 46 Revenue recognized — 50 Amounts collected or invoiced — (45 ) Balance at end of period $ 51 $ 51 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Deferred Deferred Revenue Revenue Balance at beginning of period $ 577 $ 1,138 Revenue recognized (253 ) (1,173 ) Amounts collected or invoiced 65 424 Balance at end of period $ 389 $ 389 Contract acquisition costs We capitalize contract acquisition costs for contracts with a life exceeding one three September 30, 2022 2021, nine September 30, 2022 2021, 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. The satisfaction of performance obligations varies based on the nature of the underlying promise and the customer. The estimated revenue does not one September 30, 2022 Remainder of 2022 2023 2024 2025 2026 Edge to Cloud $ 326 $ 1,612 $ 1,330 $ — $ — Practical expedients and exemptions We generally expense sales commissions when incurred because the amortization period would have been less than one When applicable and appropriate, the Company utilizes the ‘as-invoiced’ practical expedient which permits revenue recognition upon invoicing. |
Note 3 - Cash and Investments
Note 3 - Cash and Investments | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Cash, Cash Equivalents, and Short-Term Investments [Text Block] | 3. Cash, cash equivalents, restricted cash and short-term investments consisted of the following (in thousands): September 30, 2022 December 31, 2021 Cash $ 2,063 $ 2,506 Cash equivalents (see detail in Note 4) 24,102 37,023 Restricted cash (see detail in Note 4) 221 557 Total cash, cash equivalents and restricted cash 26,386 40,086 Short-term investments 10,677 — Total cash, cash equivalents, restricted cash and short-term investments $ 37,063 $ 40,086 The following table sets forth information regarding the amortized cost basis and fair value of our short-term investments that are classified as held-to-maturity ("HTM") (in thousands): Gross Gross Amortized Allowance for Net carrying unrealized unrealized Fair cost credit losses amount gains losses value U.S. treasury securities $ 10,677 $ — $ 10,677 $ — $ 3 $ 10,674 Total $ 10,677 $ — $ 10,677 $ — $ 3 $ 10,674 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. We measure our cash equivalents and restricted cash 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 restricted cash within Level 1 2 Assets measured at fair value on a recurring basis as of September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 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 $ 12,651 $ — $ 12,651 $ 37,023 $ — $ 37,023 U.S. treasury securities — 11,451 11,451 — — — Total cash equivalents 12,651 11,451 24,102 37,023 — 37,023 Restricted cash: Money market funds 221 — 221 557 — 557 Total assets measured at fair value $ 12,872 $ 11,451 $ 24,323 $ 37,580 $ — $ 37,580 |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 5. In December 2019, May 1, 2020 July 31, 2027. In November 2020, November 30, 2020 November 8, 2030. five November 2025. November 2025 November 9, 2020. December 31, 2020. no Our leases have remaining terms of four five 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, 2022 2021 Nine Months Ended Nine Months Ended Total component lease expense was as follows: September 30, 2022 September 30, 2021 Operating leases $ 271 $ 311 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities $ 275 $ 311 The following table presents supplemental balance sheet information related to our operating leases as of September 30, 2022 2021 September 30, 2022 September 30, 2021 Right-of-use lease assets $ 1,340 $ 1,660 Current portion of operating lease liability $ 351 $ 354 Operating lease liability, net of current portion 1,107 1,430 Total operating lease liabilities $ 1,458 $ 1,784 Weighted average remaining lease term (years) 4.5 5.4 Weighted average discount rate 8.5 % 8.5 % The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of September 30, 2022 Years Ending December 31, 2022, remainder of year $ 88 2023 356 2024 362 2025 352 2026 276 After 2026 164 Total minimum lease payments 1,598 Less: amount representing interest (140 ) Present value of lease liabilities $ 1,458 |
Note 6 - Shareholders' Equity
Note 6 - Shareholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-Based Payments [Text Block] | 6. Equity Compensation Plans We have a stock plan (the “Stock Plan”) for equity awards to eligible service providers and an inducement stock plan for newly hired employees (the “Inducement Plan”) (collectively the “Plans”). We stopped using the Inducement Plan in 2019, may 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 activity. 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 PSUs is estimated at the grant date based on the fair value of each vesting tranche as calculated by a Monte Carlo simulation. The fair value of stock options 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, 2022 2021 2022 2021 Dividend yield 0 % 0 % 0 % 0 % Expected life (years) 4.9 4.9 4.9 4.9 Expected volatility 110 % 111 % 110 % 111 % Risk-free interest rate 3.3 % 0.6 % 2.7 % 0.6 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue — Edge to Cloud $ 4 $ 6 $ 13 $ 30 Selling, general and administrative 178 188 279 515 Research and development 2 24 6 51 Total stock-based compensation expense $ 184 $ 218 $ 298 $ 596 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, 2021 1,664,014 $ 2.07 6.64 $ 405,223 Granted 91,500 1.66 Exercised (67,500 ) 1.16 Forfeited (65,604 ) 1.77 Expired (63,213 ) 3.29 Balance at September 30, 2022 1,559,197 2.05 6.42 51,822 Vested and expected to vest at September 30, 2022 1,524,158 2.06 6.38 50,527 Exercisable at September 30, 2022 1,097,797 2.26 5.85 31,799 At September 30, 2022 not Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Weighted average grant-date fair value of options granted during the period $ 1.40 $ 2.75 $ 1.66 $ 2.88 Options in-the-money (in shares) 222,373 629,272 222,373 629,272 Aggregate intrinsic value of options exercised during the period $ 1.02 $ 1.20 $ 1.16 $ 1.88 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 periods indicated. 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, 2021 34,614 $ 2.72 Granted 83,221 3.25 Vested (51,921 ) 2.90 Forfeited — — Unvested at September 30, 2022 65,914 3.25 Expected to vest after September 30, 2022 65,914 3.25 At September 30, 2022 not Performance Stock Units In January 2021, first January 5, 2022 July 5, 2025. three September 30, 2022 2021, nine September 30, 2022 2021, September 30, 2022, not In January 2022, "2021 2021 February 2022 2021 January 5, 2022. 2021 2021 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, 2022 September 30, 2022 Stock options outstanding 1,559,197 Restricted stock units and performance stock units outstanding 482,914 Stock options and restricted stock units available for future grant 926,051 Common stock reserved for future issuance 2,968,162 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 7. Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2027. 5 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 September 30, 2022, not |
Note 8 - Information About Oper
Note 8 - Information About Operating Segments and Geographic Areas | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8. The Company’s operations are conducted in two reportable segments: Partner Solutions and Edge to Cloud. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. We operate within a single industry segment of computer software and services. The Company measures the results of its segments using, among other measures, each segment's revenue and gross profit. Information for the Company's segments is provided in the following table (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Partner Solutions: Revenue $ 7,557 $ 9,638 $ 26,042 $ 28,393 Cost of revenue 6,574 8,491 22,232 24,528 Segment gross profit 983 1,147 3,810 3,865 Edge to Cloud: Revenue 849 1,008 2,490 2,896 Cost of revenue 697 827 2,083 2,648 Segment gross profit 152 181 407 248 Total gross profit 1,135 1,328 4,217 4,113 Revenue by geography is based on the sales region of the customer. See Footnote 2 We do not September 30, 2022 December 31, 2021 Long-lived assets: North America $ 757 $ 1,430 Europe 145 177 Total long-lived assets $ 902 $ 1,607 Total long-lived assets decreased due to the removal of fully-depreciated assets in North America. |
Note 9 - Significant Risk Conce
Note 9 - Significant Risk Concentrations | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 9. Significant Customers No 10% three nine September 30, 2022 2021. GES Manufacturing Services (M) Sdn Bhd had accounts receivable balances of $652,000, or approximately 14.5% of total accounts receivable at September 30, 2022. No 10% December 31, 2021. Significant Supplier We are authorized to sell Windows IoT operating systems in Canada, the United States, Argentina, Brazil, Chile, Mexico, Peru, Venezuela, Puerto Rico, Columbia, and several Caribbean countries. We were previously party to certain Original Equipment Manufacturer Distribution Agreements ("ODAs") with Microsoft pursuant to which we were licensed to sell Microsoft Windows Mobile operating systems to customers in North America, South America, Central America (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa. The ODAs to sell Windows Mobile operating systems expired on April 30, 2022 not Our current distribution agreements with Microsoft have no may The majority of our revenue continues to be derived from reselling Microsoft Windows Embedded and IoT operating system software to device makers. The sale of Microsoft operating systems has historically accounted for substantially all of our Partner Solutions revenue. Microsoft currently offers a distributor incentives program through which we earn rebates pursuant to predefined objectives related to sales of Microsoft Windows IoT operating systems. In accordance with program rules, we allocate a portion of the incentive earnings to reduce cost of revenue with the remaining portion utilized to offset qualified marketing expenses in the period the expenditures are claimed and approved. Under this rebate program, we recorded rebate credits as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Reductions to cost of revenue $ 2 $ 26 $ 232 $ 236 Reductions to marketing expense 95 110 269 287 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business [Policy Text Block] | Description of Business Bsquare Corporation ("Bsquare," "we," "us" and "our") develops and deploys technologies for the makers and operators of connected devices. These fleets of business-oriented devices, often called the Internet of Things (IoT), offer a powerful means to connect organizations, people, information, and ideas. Hundreds of millions of connected devices have already been deployed and it is estimated that billions more will be. Despite their growing prevalence, these devices and the systems in which they operate remain a significant source of complexity, unplanned and often uncontrolled expense, and operational risk. Our customers are undergoing a massive change in their business practices and Bsquare provides technology that helps them capture the value of connected devices and reduces the cost and risk of doing so. Since our founding in 1994, More recently, our expertise and business prospects have shifted to cloud-connected devices that have been connected to create intelligent systems. This shift coincides with the overall growth of IoT technologies and with our customers’ recognition that connected intelligent devices create significant business opportunities. Device makers have increasingly specified their products not |
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 subsidiary. 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, 2022 nine September 30, 2022 2021 December 31, 2021 These unaudited 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, 2021 March 10, 2022. |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The consolidated financial statements include the accounts of Bsquare and our wholly owned subsidiary. 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 related to contracts with customers, such as determining standalone selling price, useful lives of property and equipment, fair value of stock-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates. Actual results may |
Earnings Per Share, Policy [Policy Text Block] | Income (loss) per share We compute basic income (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 weighted 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, 2022 2021 2022 2021 Stock options 1,248,513 384,444 1,158,220 317,909 Equity awards 76,036 35,275 36,826 68,341 |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2022 2021 Stock options 1,248,513 384,444 1,158,220 317,909 Equity awards 76,036 35,275 36,826 68,341 |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Partner Edge to Partner Edge to Solutions Cloud Total Solutions Cloud Total Primary geographic area: North America $ 6,877 $ 821 $ 7,698 $ 8,294 $ 964 $ 9,258 Europe 100 28 128 68 44 112 Asia 580 — 580 1,276 — 1,276 Total $ 7,557 $ 849 $ 8,406 $ 9,638 $ 1,008 $ 10,646 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Partner Edge to Partner Edge to Solutions Cloud Total Solutions Cloud Total Primary geographic area: North America $ 23,335 $ 2,407 $ 25,742 $ 23,372 $ 2,695 $ 26,067 Europe 253 83 336 275 201 476 Asia 2,454 — 2,454 4,746 — 4,746 Total $ 26,042 $ 2,490 $ 28,532 $ 28,393 $ 2,896 $ 31,289 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Contract Contract Assets Assets Balance at beginning of period $ 51 $ 46 Revenue recognized — 50 Amounts collected or invoiced — (45 ) Balance at end of period $ 51 $ 51 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Deferred Deferred Revenue Revenue Balance at beginning of period $ 577 $ 1,138 Revenue recognized (253 ) (1,173 ) Amounts collected or invoiced 65 424 Balance at end of period $ 389 $ 389 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remainder of 2022 2023 2024 2025 2026 Edge to Cloud $ 326 $ 1,612 $ 1,330 $ — $ — |
Note 3 - Cash and Investments (
Note 3 - Cash and Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Cash, Cash Equivalents and Investments [Table Text Block] | September 30, 2022 December 31, 2021 Cash $ 2,063 $ 2,506 Cash equivalents (see detail in Note 4) 24,102 37,023 Restricted cash (see detail in Note 4) 221 557 Total cash, cash equivalents and restricted cash 26,386 40,086 Short-term investments 10,677 — Total cash, cash equivalents, restricted cash and short-term investments $ 37,063 $ 40,086 |
Debt Securities, Held-to-Maturity [Table Text Block] | Gross Gross Amortized Allowance for Net carrying unrealized unrealized Fair cost credit losses amount gains losses value U.S. treasury securities $ 10,677 $ — $ 10,677 $ — $ 3 $ 10,674 Total $ 10,677 $ — $ 10,677 $ — $ 3 $ 10,674 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2022 December 31, 2021 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 $ 12,651 $ — $ 12,651 $ 37,023 $ — $ 37,023 U.S. treasury securities — 11,451 11,451 — — — Total cash equivalents 12,651 11,451 24,102 37,023 — 37,023 Restricted cash: Money market funds 221 — 221 557 — 557 Total assets measured at fair value $ 12,872 $ 11,451 $ 24,323 $ 37,580 $ — $ 37,580 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Nine Months Ended Nine Months Ended Total component lease expense was as follows: September 30, 2022 September 30, 2021 Operating leases $ 271 $ 311 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities $ 275 $ 311 |
Lessee, Operating Leases, Supplemental Balance Sheet Information [Table Text Block] | September 30, 2022 September 30, 2021 Right-of-use lease assets $ 1,340 $ 1,660 Current portion of operating lease liability $ 351 $ 354 Operating lease liability, net of current portion 1,107 1,430 Total operating lease liabilities $ 1,458 $ 1,784 Weighted average remaining lease term (years) 4.5 5.4 Weighted average discount rate 8.5 % 8.5 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Years Ending December 31, 2022, remainder of year $ 88 2023 356 2024 362 2025 352 2026 276 After 2026 164 Total minimum lease payments 1,598 Less: amount representing interest (140 ) Present value of lease liabilities $ 1,458 |
Note 6 - Shareholders' Equity (
Note 6 - Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2022 2021 Dividend yield 0 % 0 % 0 % 0 % Expected life (years) 4.9 4.9 4.9 4.9 Expected volatility 110 % 111 % 110 % 111 % Risk-free interest rate 3.3 % 0.6 % 2.7 % 0.6 % |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue — Edge to Cloud $ 4 $ 6 $ 13 $ 30 Selling, general and administrative 178 188 279 515 Research and development 2 24 6 51 Total stock-based compensation expense $ 184 $ 218 $ 298 $ 596 |
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, 2021 1,664,014 $ 2.07 6.64 $ 405,223 Granted 91,500 1.66 Exercised (67,500 ) 1.16 Forfeited (65,604 ) 1.77 Expired (63,213 ) 3.29 Balance at September 30, 2022 1,559,197 2.05 6.42 51,822 Vested and expected to vest at September 30, 2022 1,524,158 2.06 6.38 50,527 Exercisable at September 30, 2022 1,097,797 2.26 5.85 31,799 |
Schedule of Share Based Compensation Additional Stock Options Activity [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Weighted average grant-date fair value of options granted during the period $ 1.40 $ 2.75 $ 1.66 $ 2.88 Options in-the-money (in shares) 222,373 629,272 222,373 629,272 Aggregate intrinsic value of options exercised during the period $ 1.02 $ 1.20 $ 1.16 $ 1.88 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Number of Weighted Average Shares Award Price Unvested at December 31, 2021 34,614 $ 2.72 Granted 83,221 3.25 Vested (51,921 ) 2.90 Forfeited — — Unvested at September 30, 2022 65,914 3.25 Expected to vest after September 30, 2022 65,914 3.25 |
Schedule of Common Stock Reserved For Future Issuance [Table Text Block] | September 30, 2022 Stock options outstanding 1,559,197 Restricted stock units and performance stock units outstanding 482,914 Stock options and restricted stock units available for future grant 926,051 Common stock reserved for future issuance 2,968,162 |
Note 8 - Information About Op_2
Note 8 - Information About Operating Segments and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Partner Solutions: Revenue $ 7,557 $ 9,638 $ 26,042 $ 28,393 Cost of revenue 6,574 8,491 22,232 24,528 Segment gross profit 983 1,147 3,810 3,865 Edge to Cloud: Revenue 849 1,008 2,490 2,896 Cost of revenue 697 827 2,083 2,648 Segment gross profit 152 181 407 248 Total gross profit 1,135 1,328 4,217 4,113 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | September 30, 2022 December 31, 2021 Long-lived assets: North America $ 757 $ 1,430 Europe 145 177 Total long-lived assets $ 902 $ 1,607 |
Note 9 - Significant Risk Con_2
Note 9 - Significant Risk Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Rebate Credit [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Reductions to cost of revenue $ 2 $ 26 $ 232 $ 236 Reductions to marketing expense 95 110 269 287 |
Note 1 - Description of Busin_3
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Potentially dilutive securities (in shares) | 1,248,513 | 384,444 | 1,158,220 | 317,909 |
Equity Awards [Member] | ||||
Potentially dilutive securities (in shares) | 76,036 | 35,275 | 36,826 | 68,341 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,406,000 | $ 10,646,000 | $ 28,532,000 | $ 31,289,000 | |
Contract with Customer, Asset, Credit Loss Expense (Reversal) | 0 | 0 | 0 | 0 | |
Capitalized Contract Cost, Amortization | 3,000 | 4,000 | 12,000 | 57,000 | |
Capitalized Contract Cost, Impairment Loss | 0 | 0 | 0 | 0 | |
Transferred at Point in Time [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 7,700,000 | 26,900,000 | 28,400,000 | $ 9,600,000 | |
Transferred over Time [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 700,000 | $ 1,000,000 | $ 1,700,000 | $ 2,900,000 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total revenue | $ 8,406 | $ 10,646 | $ 28,532 | $ 31,289 |
North America [Member] | ||||
Total revenue | 7,698 | 9,258 | 25,742 | 26,067 |
Europe [Member] | ||||
Total revenue | 128 | 112 | 336 | 476 |
Asia [Member] | ||||
Total revenue | 580 | 1,276 | 2,454 | 4,746 |
Partner Solutions [Member] | ||||
Total revenue | 7,557 | 9,638 | 26,042 | 28,393 |
Partner Solutions [Member] | North America [Member] | ||||
Total revenue | 6,877 | 8,294 | 23,335 | 23,372 |
Partner Solutions [Member] | Europe [Member] | ||||
Total revenue | 100 | 68 | 253 | 275 |
Partner Solutions [Member] | Asia [Member] | ||||
Total revenue | 580 | 1,276 | 2,454 | 4,746 |
Edge to Cloud [Member] | ||||
Total revenue | 849 | 1,008 | 2,490 | 2,896 |
Edge to Cloud [Member] | North America [Member] | ||||
Total revenue | 821 | 964 | 2,407 | 2,695 |
Edge to Cloud [Member] | Europe [Member] | ||||
Total revenue | 28 | 44 | 83 | 201 |
Edge to Cloud [Member] | Asia [Member] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
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, 2022 | Sep. 30, 2022 | |
Balance at beginning of period | $ 51 | $ 46 |
Revenue recognized | 0 | 50 |
Amounts collected or invoiced | 0 | (45) |
Balance at end of period | 51 | 51 |
Balance at beginning of period | 577 | 1,138 |
Revenue recognized | (253) | (1,173) |
Amounts collected or invoiced | 65 | 424 |
Balance at end of period | $ 389 | $ 389 |
Note 2 - Revenue Recognition _3
Note 2 - Revenue Recognition - Transaction Price Allocated to the Remaining Performance Obligations 2 (Details) - Edge to Cloud [Member] $ in Thousands | Sep. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Edge to Cloud | $ 326 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Edge to Cloud | 1,612 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Edge to Cloud | 1,330 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Edge to Cloud | 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Edge to Cloud | $ 0 |
Note 2 - Revenue Recognition _4
Note 2 - Revenue Recognition - Transaction Price Allocated to the Remaining Performance Obligations (Details) (Parentheticals) - Edge to Cloud [Member] | Sep. 30, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Note 3 - Cash and Investments -
Note 3 - Cash and Investments - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash | $ 2,063 | $ 2,506 | ||
Cash equivalents (see detail in Note 4) | 24,102 | 37,023 | ||
Restricted cash (see detail in Note 4) | 221 | 557 | ||
Total cash, cash equivalents and restricted cash | 26,386 | 40,086 | $ 41,367 | $ 12,960 |
Short-term investments | 10,677 | 0 | ||
Total cash, cash equivalents, restricted cash and short-term investments | $ 37,063 | $ 40,086 |
Note 3 - Cash and Investments_2
Note 3 - Cash and Investments - Amortized Cost and Fair Value of Short-Term Investments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
U.S. treasury securities, AC | $ 10,677 |
U.S. treasury securities, CV | 10,677 |
U.S. treasury securities, unrealized losses | 3 |
U.S. treasury securities, FV | 10,674 |
US Treasury Securities [Member] | |
U.S. treasury securities, AC | 10,677 |
U.S. treasury securities, CV | 10,677 |
U.S. treasury securities, unrealized losses | 3 |
U.S. treasury securities, FV | $ 10,674 |
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, 2022 | Dec. 31, 2021 |
Total cash equivalents | $ 24,102 | |
Restricted cash | 221 | |
Total assets measured at fair value | 24,323 | |
Money Market Funds [Member] | ||
Total cash equivalents | 12,651 | |
US Treasury Securities [Member] | ||
Total cash equivalents | 11,451 | |
Fair Value, Inputs, Level 1 [Member] | ||
Total cash equivalents | 12,651 | $ 37,023 |
Restricted cash | 221 | 557 |
Total assets measured at fair value | 12,872 | 37,580 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Total cash equivalents | 12,651 | $ 37,023 |
Fair Value, Inputs, Level 2 [Member] | ||
Total cash equivalents | 11,451 | |
Total assets measured at fair value | 11,451 | |
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Total cash equivalents | $ 11,451 |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) - USD ($) $ in Thousands | Nov. 09, 2020 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease, Right-of-Use Asset | $ 1,340 | $ 1,598 | $ 1,660 | |||
Minimum [Member] | ||||||
Lessee, Operating Lease, Remaining Lease Term (Year) | 4 years | |||||
Maximum [Member] | ||||||
Lessee, Operating Lease, Remaining Lease Term (Year) | 5 years | |||||
Corporate Office Facility in Seattle, Washington [Member] | ||||||
Lessee, Operating Lease, Term of Contract (Month) | 87 months | |||||
Office Facility in the UK [Member] | ||||||
Lessee, Operating Lease, Renewal Term (Month) | 120 months | |||||
Lessee Operating Lease, Termination Option Term (Year) | 5 years | |||||
Operating Lease, Right-of-Use Asset | $ 400 |
Note 5 - Leases - Components of
Note 5 - Leases - Components of Lease Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating leases | $ 271 | $ 311 |
Cash paid for amounts included in the measurement of lease liabilities | $ 275 | $ 311 |
Note 5 - Leases - Supplemental
Note 5 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Right-of-use lease assets | $ 1,340 | $ 1,598 | $ 1,660 |
Current portion of operating lease liability | 351 | 357 | 354 |
Operating lease liability, net of current portion | 1,107 | $ 1,363 | 1,430 |
Total operating lease liabilities | $ 1,458 | $ 1,784 | |
Weighted average remaining lease term (years) (Year) | 4 years 6 months | 5 years 4 months 24 days | |
Weighted average discount rate | 8.50% | 8.50% |
Note 5 - Leases - Amounts Oblig
Note 5 - Leases - Amounts Obligated to Pay, by Maturity, Under Operating Leases Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
2022, remainder of year | $ 88 | |
2023 | 356 | |
2024 | 362 | |
2025 | 352 | |
2026 | 276 | |
After 2026 | 164 | |
Total minimum lease payments | 1,598 | |
Less: amount representing interest | (140) | |
Present value of lease liabilities | $ 1,458 | $ 1,784 |
Note 6 - Shareholders' Equity_2
Note 6 - Shareholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Expense | $ 184,000 | $ 218,000 | $ 298,000 | $ 596,000 | |||
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 | 169,706 | $ 169,706 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 10 months 24 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 141,416 | $ 141,416 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 6 months | ||||||
Performance Stock Units [Member] | |||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 30,200 | $ 30,200 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 9 months 18 days | ||||||
Share-Based Payment Arrangement, Expense | $ 8,100 | $ 17,000 | $ 29,100 | $ 51,000 | |||
Performance Stock Units [Member] | Mr. Derrickson [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease), Total (in shares) | (50,000) | ||||||
Performance Stock Units [Member] | Mr. Wheaton [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease), Total (in shares) | (33,333) |
Note 6 - Shareholders' Equity -
Note 6 - Shareholders' Equity - Weighted Average Assumptions of Stock Options (Details) - Share-Based Payment Arrangement, Option [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Dividend yield | 0% | 0% | 0% | 0% |
Expected life (years) (Year) | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Expected volatility | 110% | 111% | 110% | 111% |
Risk-free interest rate | 3.30% | 0.60% | 2.70% | 0.60% |
Note 6 - Shareholders' Equity_3
Note 6 - Shareholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total stock-based compensation expense | $ 184 | $ 218 | $ 298 | $ 596 |
Cost of Sales [Member] | Edge to Cloud [Member] | ||||
Total stock-based compensation expense | 4 | 6 | 13 | 30 |
Selling, General and Administrative Expenses [Member] | ||||
Total stock-based compensation expense | 178 | 188 | 279 | 515 |
Research and Development Expense [Member] | ||||
Total stock-based compensation expense | $ 2 | $ 24 | $ 6 | $ 51 |
Note 6 - Shareholders' Equity_4
Note 6 - Shareholders' Equity - Stock Option Activity (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Balance, number of shares (in shares) | shares | 1,664,014 | |
Balance, weighted average exercise price (in dollars per share) | $ / shares | $ 2.07 | |
Balance, weighted average remaining contractual life (Year) | 6 years 5 months 1 day | 6 years 7 months 20 days |
Balance, aggregate intrinsic value | $ | $ 51,822 | $ 405,223 |
Granted, number of shares (in shares) | shares | 91,500 | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 1.66 | |
Exercised, number of shares (in shares) | shares | (67,500) | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 1.16 | |
Forfeited, number of shares (in shares) | shares | (65,604) | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 1.77 | |
Expired, number of shares (in shares) | shares | (63,213) | |
Expired, weighted average exercise price (in dollars per share) | $ / shares | $ 3.29 | |
Balance, number of shares (in shares) | shares | 1,559,197 | 1,664,014 |
Balance, weighted average exercise price (in dollars per share) | $ / shares | $ 2.05 | $ 2.07 |
Vested and expected to vest, number of shares (in shares) | shares | 1,524,158 | |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | $ 2.06 | |
Vested and expected to vest, weighted average remaining contractual life (Year) | 6 years 4 months 17 days | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 50,527 | |
Exercisable, number of shares (in shares) | shares | 1,097,797 | |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 2.26 | |
Exercisable, weighted average remaining contractual life (Year) | 5 years 10 months 6 days | |
Exercisable, aggregate intrinsic value | $ | $ 31,799 |
Note 6 - Shareholders' Equity_5
Note 6 - 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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted average grant-date fair value of options granted during the period (in dollars per share) | $ 1.40 | $ 2.75 | $ 1.66 | $ 2.88 |
Options in-the-money (in shares) (in shares) | 222,373 | 629,272 | 222,373 | 629,272 |
Aggregate intrinsic value of options exercised during the period | $ 1.02 | $ 1.20 | $ 1.16 | $ 1.88 |
Note 6 - Shareholders' Equity_6
Note 6 - Shareholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Unvested, number of shares (in shares) | shares | 34,614 |
Unvested, weighted average award price (in dollars per share) | $ / shares | $ 2.72 |
Granted, number of shares (in shares) | shares | 83,221 |
Granted, weighted average award price (in dollars per share) | $ / shares | $ 3.25 |
Vested, number of shares (in shares) | shares | (51,921) |
Vested, weighted average award price (in dollars per share) | $ / shares | $ 2.90 |
Forfeited, number of shares (in shares) | shares | 0 |
Forfeited, weighted average award price (in dollars per share) | $ / shares | $ 0 |
Unvested, number of shares (in shares) | shares | 65,914 |
Unvested, weighted average award price (in dollars per share) | $ / shares | $ 3.25 |
Expected to vest, number of shares (in shares) | shares | 65,914 |
Expected to vest, weighted average award price (in dollars per share) | $ / shares | $ 3.25 |
Note 6 - Shareholders' Equity_7
Note 6 - Shareholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2022 | Dec. 31, 2021 |
Stock options outstanding (in shares) | 1,559,197 | 1,664,014 |
Stock options and restricted stock units available for future grant (in shares) | 926,051 | |
Common stock reserved for future issuance (in shares) | 2,968,162 | |
Restricted Stock Units and Performance Stock Units [Member] | ||
Restricted stock units and performance stock units outstanding (in shares) | 482,914 |
Note 8 - Information About Op_3
Note 8 - Information About Operating Segments and Geographic Areas (Details Textual) | 9 Months Ended |
Sep. 30, 2022 | |
Number of Reportable Segments | 2 |
Note 8 - Information About Geog
Note 8 - Information About Geographic Areas and Operating Segments - Profit and Loss Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | $ 8,406 | $ 10,646 | $ 28,532 | $ 31,289 |
Cost of revenue | 7,271 | 9,318 | 24,315 | 27,176 |
Segment gross profit | 1,135 | 1,328 | 4,217 | 4,113 |
Partner Solutions [Member] | ||||
Revenue | 7,557 | 9,638 | 26,042 | 28,393 |
Cost of revenue | 6,574 | 8,491 | 22,232 | 24,528 |
Segment gross profit | 983 | 1,147 | 3,810 | 3,865 |
Edge to Cloud [Member] | ||||
Revenue | 849 | 1,008 | 2,490 | 2,896 |
Cost of revenue | 697 | 827 | 2,083 | 2,648 |
Segment gross profit | $ 152 | $ 181 | $ 407 | $ 248 |
Note 8 - Information About Op_4
Note 8 - Information About Operating Segments and Geographic Areas - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Total long-lived assets | $ 902 | $ 1,607 |
North America [Member] | ||
Total long-lived assets | 757 | 1,430 |
Europe [Member] | ||
Total long-lived assets | $ 145 | $ 177 |
Note 9 - Significant Risk Con_3
Note 9 - Significant Risk Concentrations (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 4,614,000 | $ 4,914,000 |
GES Manufacturing [Member] | ||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 652,000 | |
GES Manufacturing [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 14.50% |
Note 9 - Significant Risk Con_4
Note 9 - Significant Risk Concentrations - Rebate Credits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cost of Sales [Member] | ||||
Reductions | $ 2 | $ 26 | $ 232 | $ 236 |
Selling and Marketing Expense [Member] | ||||
Reductions | $ 95 | $ 110 | $ 269 | $ 287 |