Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BSQR | |
Entity Registrant Name | BSQUARE CORP /WA | |
Entity Central Index Key | 1,054,721 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 11,937,482 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 11,966 | $ 13,127 |
Short-term investments | 17,464 | 13,263 |
Accounts receivable, net of allowance for doubtful accounts of $36 at June 30, 2015 and $125 at December 31, 2014 | 15,418 | 13,626 |
Deferred tax assets | 11 | 10 |
Prepaid expenses and other current assets | 698 | 717 |
Total current assets | 45,557 | 40,743 |
Equipment, furniture and leasehold improvements, net | 1,159 | 1,336 |
Restricted cash | 250 | 250 |
Deferred income taxes | 393 | 391 |
Intangible assets, net | 661 | 729 |
Goodwill | 3,738 | 3,738 |
Other non-current assets | 55 | 54 |
Total assets | 51,813 | 47,241 |
Current liabilities: | ||
Third-party software fees payable | 12,361 | 12,247 |
Accounts payable | 191 | 165 |
Accrued compensation | 2,173 | 2,106 |
Other accrued expenses | 1,501 | 1,539 |
Deferred rent, current portion | 287 | 275 |
Deferred revenue | 634 | 712 |
Total current liabilities | 17,147 | 17,044 |
Deferred tax liability | 145 | 144 |
Deferred rent | $ 1,332 | $ 1,476 |
Shareholders’ equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par value: 37,500,000 shares authorized; 11,930,441 shares issued and outstanding at June 30, 2015 and 11,767,577 shares issued and outstanding at December 31, 2014 | $ 131,962 | $ 131,071 |
Accumulated other comprehensive loss | (833) | (846) |
Accumulated deficit | (97,940) | (101,648) |
Total shareholders’ equity | 33,189 | 28,577 |
Total liabilities and shareholders’ equity | $ 51,813 | $ 47,241 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 36 | $ 125 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 37,500,000 | 37,500,000 |
Common stock, shares issued | 11,930,441 | 11,767,577 |
Common stock, shares outstanding | 11,930,441 | 11,767,577 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Software | $ 23,676 | $ 17,413 | $ 45,464 | $ 35,863 |
Service | 5,197 | 5,642 | 9,674 | 9,923 |
Total revenue | 28,873 | 23,055 | 55,138 | 45,786 |
Cost of revenue: | ||||
Software | 19,956 | 14,874 | 37,034 | 30,429 |
Service | 3,685 | 3,916 | 7,423 | 7,557 |
Total cost of revenue | 23,641 | 18,790 | 44,457 | 37,986 |
Gross profit | 5,232 | 4,265 | 10,681 | 7,800 |
Operating expenses: | ||||
Selling, general and administrative | 2,939 | 3,172 | 5,946 | 6,472 |
Research and development | 422 | 423 | 988 | 855 |
Total operating expenses | 3,361 | 3,595 | 6,934 | 7,327 |
Income from operations | 1,871 | 670 | 3,747 | 473 |
Other income (expense), net | 68 | (11) | 92 | (102) |
Income before income taxes | 1,939 | 659 | 3,839 | 371 |
Income tax expense | (54) | (8) | (131) | (113) |
Net income | $ 1,885 | $ 651 | $ 3,708 | $ 258 |
Basic income per share | $ 0.16 | $ 0.06 | $ 0.31 | $ 0.02 |
Diluted income per share | $ 0.15 | $ 0.06 | $ 0.30 | $ 0.02 |
Shares used in calculation of income per share: | ||||
Basic | 11,856 | 11,510 | 11,826 | 11,451 |
Diluted | 12,295 | 11,715 | 12,195 | 11,681 |
Comprehensive income: | ||||
Net income | $ 1,885 | $ 651 | $ 3,708 | $ 258 |
Other comprehensive income: | ||||
Foreign currency translation, net of tax | 88 | 54 | 14 | 131 |
Change in unrealized gains (losses) on investments, net of tax | 2 | (4) | ||
Total other comprehensive income | 90 | 54 | 10 | 131 |
Comprehensive income | $ 1,975 | $ 705 | $ 3,718 | $ 389 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 3,708 | $ 258 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 288 | 325 |
Realized loss on disposal of assets | 33 | |
Stock-based compensation | 569 | 463 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (1,792) | 4,658 |
Prepaid expenses and other assets | 17 | 752 |
Third-party software fees payable | 114 | (3,218) |
Accounts payable and accrued expenses | 54 | (384) |
Deferred revenue | (78) | (169) |
Deferred rent | (132) | 8 |
Net cash provided by operating activities | 2,748 | 2,726 |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (44) | (93) |
Proceeds from maturities of short-term investments | 9,481 | 8,355 |
Purchases of short-term investments | (13,678) | (14,090) |
Net cash used in investing activities | (4,241) | (5,828) |
Cash flows provided by financing activities: | ||
Proceeds from exercise of stock options | 322 | 563 |
Effect of exchange rate changes on cash | 10 | 131 |
Net decrease in cash and cash equivalents | (1,161) | (2,408) |
Cash and cash equivalents, beginning of period | 13,127 | 13,510 |
Cash and cash equivalents, end of period | $ 11,966 | 11,102 |
Supplemental disclosure of cash flow information: | ||
Non-cash investing activity-leasehold improvements and furniture funded by landlord | $ 1,128 |
Description of Business and Acc
Description of Business and Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“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 our 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 June 30, 2015 and our operating results and cash flows for the three and six months ended June 30, 2015 and 2014. The accompanying financial information as of December 31, 2014 is derived from audited financial statements. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014. All intercompany balances have been eliminated. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance, as amended, is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for public companies effective for annual and interim reporting periods beginning after December 15, 2016. We are currently evaluating the impact this ASU will have on our consolidated financial statements. Income (Loss) Per Share Basic income or loss per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares, such as options, restricted stock awards and restricted stock units. Restricted stock awards (“RSAs”) are considered outstanding and included in the computation of basic income or loss per share when underlying restrictions expire and the awards are no longer forfeitable. Restricted stock units (“RSUs”) are considered outstanding and included in the computation of basic income or loss per share only when vested. Diluted income per share is computed using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. We excluded an aggregate of 114,270 and 130,159 options and RSUs for the three and six month periods ended June 30, 2015, respectively, from diluted earnings per share because their effect was anti-dilutive. We excluded an aggregate of 939,251 and 850,669 options and RSUs for the three and six month periods ended June 30, 2014, respectively, from diluted earnings per share because their effect was anti-dilutive. In a period where we are in a net loss position, diluted loss per share is computed using the basic share count. |
Cash and Investments
Cash and Investments | 6 Months Ended |
Jun. 30, 2015 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Investments | 2. Cash and Investments Cash, cash equivalents, short-term investments, and restricted cash consisted of the following at June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Cash $ 2,042 $ 2,763 Cash equivalents: Money market funds 9,674 9,362 Corporate debt securities 250 1,002 Total cash equivalents 9,924 10,364 Total cash and cash equivalents 11,966 13,127 Short-term investments: Corporate commercial paper 1,399 550 Corporate debt securities 16,065 12,713 Total short-term investments 17,464 13,263 Restricted cash—money market fund 250 250 Total cash, cash equivalents, short-term investments and restricted cash $ 29,680 $ 26,640 Gross unrealized gains and losses on our short-term investments were not material as of June 30, 2015 and December 31, 2014. The restricted cash balances at June 30, 2015 and December 31, 2014 relate to a letter of credit securing the lease of our corporate headquarters. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements 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-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: 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 corroborated by market data. The inputs require significant management judgment or estimation. We classify our cash equivalents and short-term investments within Level 1 or Level 2 because our cash equivalents and short-term investments are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 are summarized below (in thousands): June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 9,674 $ — $ 9,674 Corporate debt securities — 250 250 Total cash equivalents 9,674 250 9,924 Short-term investments: Corporate commercial paper — 1,399 1,399 Corporate debt securities — 16,065 16,065 Total short-term investments — 17,464 17,464 Restricted cash—money market fund 250 — 250 Total assets measured at fair value $ 9,924 $ 17,714 $ 27,638 December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 9,362 $ — $ 9,362 Corporate debt securities — 1,002 1,002 Total cash equivalents 9,362 1,002 10,364 Short-term investments: Corporate commercial paper — 550 550 Corporate debt securities — 12,713 12,713 Total short-term investments — 13,263 13,263 Restricted cash—money market fund 250 — 250 Total assets measured at fair value $ 9,612 $ 14,265 $ 23,877 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets Goodwill relates to the 2011 acquisition of MPC Data, Ltd. (“MPC”), a United Kingdom based provider of embedded software engineering services. The excess of the acquisition consideration over the fair value of net assets acquired was recorded as goodwill. We operate as a single reporting unit, and MPC falls within that reporting unit. There were no changes in the carrying amount of goodwill during the three and six month periods ended June 30, 2015. Intangible assets relate to customer relationships acquired from TestQuest Inc. in 2008 and from the acquisition of MPC in 2011, the vast majority of which relates to the MPC acquisition. Information regarding our intangible assets as of June 30, 2015 and December 31, 2014 is as follows (in thousands): June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (614 ) $ 661 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (546 ) $ 729 Amortization expense was $34,000 and $68,000 for the three and six month periods ended June 30, 2015, respectively, and $34,000 and $67,000 for the three and six month periods ended June 30, 2014, respectively. Amortization in future periods is expected to be as follows (in thousands): Remainder of 2015 $ 68 2016 130 2017 98 2018 98 2019 98 2020 98 2021 71 Total $ 661 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | 5. Shareholders’ Equity Equity Compensation Plans We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (the “Inducement Plan”) (collectively, the “Plans”). Under the Plans, stock options may be granted with a fixed exercise price that is equivalent to fair market value on the date of grant. These options have a term of up to 10 years and vest over a predetermined period, generally four years. Incentive stock options granted under the Stock Plan may only be granted to our employees. The Plans also allow for awards of non-qualified stock options, stock appreciation rights, RSAs and unrestricted stock awards, and RSUs. 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 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 differ materially in the future from that recorded in the current period. The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Dividend yield 0 % 0 % 0 % 0 % Expected life 3.3 years 3.3 years 3.3 years 3.2 years Expected volatility 52 % 59 % 52 % 60 % Risk-free interest rate 1.3 % 1.3 % 1.2 % 1.2 % The impact on our results of operations of stock-based compensation expense for the three and six month periods ended June 30, 2015 and 2014 was as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of revenue — service $ 105 $ 36 $ 218 $ 77 Selling, general and administrative 182 191 320 366 Research and development 18 (8 ) 31 20 Total stock-based compensation expense $ 305 $ 219 $ 569 $ 463 Per diluted share $ 0.02 $ 0.02 $ 0.05 $ 0.04 Stock Option Activity The following table summarizes stock option activity under the Plans for the six month period ended June 30, 2015: Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance at January 1, 2015 1,553,360 $ 3.50 Granted 24,725 4.33 Exercised (117,056 ) 2.95 Forfeited (58,429 ) 3.29 Expired (6,376 ) 2.62 Balance at June 30, 2015 1,396,224 $ 3.57 6.83 $ 4,497,910 Vested and expected to vest at June 30, 2015 1,324,724 $ 3.57 6.73 $ 4,270,113 Exercisable at June 30, 2015 623,582 $ 3.58 4.71 $ 2,011,909 At June 30, 2015, total compensation cost related to stock options granted but not yet recognized was $517,752, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.0 year. The following table summarizes certain information about stock options for the three and six month periods ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted-average grant-date fair value of option grants for the period $ 1.88 $ 1.88 $ 1.92 $ 1.68 Options in-the-money at period end 1,390,199 450,914 1,390,199 450,914 Aggregate intrinsic value of options exercised $ 302,895 $ 110,347 $ 350,776 $ 241,224 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 that were in-the-money at period end or that were 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 for the six month period ended June 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2014 80,179 $ 3.40 Granted 50,728 6.32 Vested (50,391 ) 3.42 Forfeited (8,976 ) 3.15 Unvested at June 30, 2015 71,540 $ 5.48 Expected to vest after June 30, 2015 68,810 $ 5.51 At June 30, 2015, total compensation cost related to RSUs granted but not yet recognized was $318,008, net of estimated forfeitures. This cost will be amortized on the straight-line method over a period of approximately 1.0 year. Common Stock Reserved for Future Issuance The following table summarizes our shares of common stock reserved for future issuance under the Plans as of June 30, 2015: Stock options outstanding 1,396,224 RSUs outstanding 71,540 Stock awards available for future grant 1,602,411 Common stock reserved for future issuance 3,070,175 On June 16, 2015, our shareholders approved an amendment to the Stock Plan increasing the number of shares reserved and available for issuance by 750,000 shares. On June 26, 2015 our Board of Directors approved an increase in the number of shares reserved and available for issuance under the Inducement Plan by 200,000 shares. These additional shares reserved under both of the Plans are included in the “Stock awards available for future grant” total in the preceding table. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2020. We have lease commitments for office space in Bellevue, Washington; San Diego, California; Boston, Massachusetts; Taipei, Taiwan; Tokyo, Japan; and Trowbridge, UK. We also lease office space on a month-to-month basis in Akron, Ohio. In August 2013, we amended the lease agreement for our Bellevue, Washington headquarters, which was initially scheduled to expire in August 2014, and extended the lease term to May 2020. The amendment to the headquarters lease provided that no cash lease payments were to be made for a seven-month period from June 1, 2013 to December 31, 2013. In conjunction with the amended lease agreement, the landlord provided lease incentives totaling $1,128,000 for leasehold improvements and furniture related to new space in the same building, which were capitalized and are reflected in the deferred rent liability. We are amortizing these assets over the shorter of their economic life or the lease term. We are recognizing rent expense, including the effect of the deferred rent, on the straight-line basis over the lease term. Rent expense was $257,000 and $521,000 for the three and six month periods ended June 30, 2015, respectively. Rent expense was $313,000 and $637,000 for the three and six month periods ended June 30, 2014, respectively. As of June 30, 2015, we had $250,000 pledged as collateral for a bank letter of credit under the terms of our headquarters facility lease. The pledged cash supporting the outstanding letter of credit is classified as restricted cash. Future operating lease commitments are as follows by calendar year (in thousands): Remainder of 2015 $ 661 2016 1,308 2017 1,194 2018 1,108 2019 1,038 2020 437 Total commitments $ 5,746 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 meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. A third-party software vendor invoiced us a total of $934,000 for certain licensed software that was lost in transit by a common carrier during the second quarter of 2014. We accrued a liability of $100,000 in the second quarter of 2014 as an estimate of our potential liability for legal and insurance deductible expenses. During the first quarter of 2015, the vendor credited our account for the full $934,000 as the licenses had been deactivated and there was no indication of counterfeit use. Accordingly, we reversed approximately $85,000 of the accrual after payment of legal expenses in the first quarter of 2015. Volume Pricing Agreements In conjunction with our activities under our OEM Distribution Agreements (“ODAs”) with Microsoft Corporation (“Microsoft”), as further described in Note 8, we enter into OEM Volume Royalty Pricing (“OVRP”) commitments with Microsoft. Under these OVRPs, we are provided with volume pricing on a customer-by-customer basis assuming certain minimum unit volumes are met. The OVRP terms are 12 months. In the event we do not meet the committed minimum unit volumes, we are obligated to pay the difference between the committed per-unit volume rate and the actual per-unit rate we achieved based upon actual units purchased. The OVRP arrangements do not equate to a minimum purchase commitment, but rather, the arrangements are a volume pricing arrangement based upon actual volume purchased. In substantially all significant instances, we have reciprocal agreements with our customers such that we will receive per-unit price adjustments, similar to the amounts we would subsequently owe to Microsoft if such OVRP volumes are not met. However, in the event a customer is unwilling or unable to pay us, we would be negatively impacted. Based upon the credit-worthiness of our customers, our historical OVRP experience with our customers and OVRP arrangements in general, we do not believe we will incur any material liability relating to active agreements, and, therefore, no provision or reserve has been recorded as of June 30, 2015. |
Information about Geographic Ar
Information about Geographic Areas | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | 7. Information about Geographic Areas 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 segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, or planning for levels or components below the consolidated unit level. Accordingly, we consider ourselves to be in a single reporting segment and operating unit structure. Revenue by geography is based on the sales region of the customer. The following table sets forth revenue and long-lived assets by geographic area (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total revenue: North America $ 27,015 $ 19,910 $ 50,761 $ 40,501 Asia 603 1,666 1,988 2,750 Europe 1,255 1,479 2,389 2,535 Total revenue $ 28,873 $ 23,055 $ 55,138 $ 45,786 June 30, 2015 December 31, 2014 Long-lived assets: North America $ 1,361 $ 1,597 Asia 482 360 Europe 4,413 4,453 Total long-lived assets $ 6,256 $ 6,410 |
Significant Risk Concentrations
Significant Risk Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Risks And Uncertainties [Abstract] | |
Significant Risk Concentrations | 8. Significant Risk Concentrations Significant Customer One customer accounted for $3.9 million, or 13% of total revenue for the three months ended June 30, 2015 and that same customer accounted for $7.9 million, or 14% of total revenue for the six months ended June 30, 2014. No other single customer accounted for more than 10% of our total revenue for the three or six month periods ended June 30, 2015 and 2014. One customer had an accounts receivable balance greater than 10% of the total accounts receivable at June 30, 2015. No customers had accounts receivable balances greater than 10% of the total accounts receivable at December 31, 2014. Significant Supplier We have two ODAs with Microsoft which enable us to sell Microsoft Windows Embedded operating systems to our customers in the United States, Canada, Argentina, Brazil, Chile, Columbia, Mexico, Peru, Puerto Rico, the Caribbean, the European Union, the European Free Trade Association, Turkey and Africa, which expire on June 30, 2016. We also have four ODAs with Microsoft which allow us to sell Microsoft Windows Mobile operating systems in the Americas (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa, which also expire on June 30, 2016. Software sales under these agreements constitute a significant portion of our software revenue and total revenue. These agreements are typically renewed bi-annually, annually or semi-annually; however, there is no automatic renewal provision in any of these agreements. Further, these agreements can be terminated unilaterally by Microsoft at any time. Microsoft currently offers a rebate program to sell Microsoft Windows Embedded operating systems pursuant to which we earn money for achieving certain predefined objectives. Under this rebate program, we recognized $103,000 and $166,000 during the three and six month periods ended June 30, 2015, respectively, compared to $105,000 and $169,000 during the three and six month periods ended June 30, 2014, respectively. These rebates were treated as reductions in cost of sales. Additionally, during the three and six month periods ended June 30, 2015, we qualified for $240,000 and $387,000 in rebate credits, respectively, compared to $245,000 and $394,000 in rebate credits for the three and six month periods ended June 30, 2014, respectively. These are accounted for as reductions in marketing expense if and when qualified program expenditures are made. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“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 our 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 June 30, 2015 and our operating results and cash flows for the three and six months ended June 30, 2015 and 2014. The accompanying financial information as of December 31, 2014 is derived from audited financial statements. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014. All intercompany balances have been eliminated. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance, as amended, is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for public companies effective for annual and interim reporting periods beginning after December 15, 2016. We are currently evaluating the impact this ASU will have on our consolidated financial statements. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income or loss per share is computed using the weighted average number of common shares outstanding during the period, and excludes any dilutive effects of common stock equivalent shares, such as options, restricted stock awards and restricted stock units. Restricted stock awards (“RSAs”) are considered outstanding and included in the computation of basic income or loss per share when underlying restrictions expire and the awards are no longer forfeitable. Restricted stock units (“RSUs”) are considered outstanding and included in the computation of basic income or loss per share only when vested. Diluted income per share is computed using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. Common stock equivalent shares are excluded from the computation if their effect is anti-dilutive. We excluded an aggregate of 114,270 and 130,159 options and RSUs for the three and six month periods ended June 30, 2015, respectively, from diluted earnings per share because their effect was anti-dilutive. We excluded an aggregate of 939,251 and 850,669 options and RSUs for the three and six month periods ended June 30, 2014, respectively, from diluted earnings per share because their effect was anti-dilutive. In a period where we are in a net loss position, diluted loss per share is computed using the basic share count. |
Cash and Investments (Tables)
Cash and Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, Short-Term Investments, and Restricted Cash | Cash, cash equivalents, short-term investments, and restricted cash consisted of the following at June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Cash $ 2,042 $ 2,763 Cash equivalents: Money market funds 9,674 9,362 Corporate debt securities 250 1,002 Total cash equivalents 9,924 10,364 Total cash and cash equivalents 11,966 13,127 Short-term investments: Corporate commercial paper 1,399 550 Corporate debt securities 16,065 12,713 Total short-term investments 17,464 13,263 Restricted cash—money market fund 250 250 Total cash, cash equivalents, short-term investments and restricted cash $ 29,680 $ 26,640 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 are summarized below (in thousands): June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 9,674 $ — $ 9,674 Corporate debt securities — 250 250 Total cash equivalents 9,674 250 9,924 Short-term investments: Corporate commercial paper — 1,399 1,399 Corporate debt securities — 16,065 16,065 Total short-term investments — 17,464 17,464 Restricted cash—money market fund 250 — 250 Total assets measured at fair value $ 9,924 $ 17,714 $ 27,638 December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 9,362 $ — $ 9,362 Corporate debt securities — 1,002 1,002 Total cash equivalents 9,362 1,002 10,364 Short-term investments: Corporate commercial paper — 550 550 Corporate debt securities — 12,713 12,713 Total short-term investments — 13,263 13,263 Restricted cash—money market fund 250 — 250 Total assets measured at fair value $ 9,612 $ 14,265 $ 23,877 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Information Regarding Intangible Assets | Information regarding our intangible assets as of June 30, 2015 and December 31, 2014 is as follows (in thousands): June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (614 ) $ 661 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (546 ) $ 729 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): Remainder of 2015 $ 68 2016 130 2017 98 2018 98 2019 98 2020 98 2021 71 Total $ 661 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions | The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Dividend yield 0 % 0 % 0 % 0 % Expected life 3.3 years 3.3 years 3.3 years 3.2 years Expected volatility 52 % 59 % 52 % 60 % Risk-free interest rate 1.3 % 1.3 % 1.2 % 1.2 % |
Stock-Based Compensation Expense | The impact on our results of operations of stock-based compensation expense for the three and six month periods ended June 30, 2015 and 2014 was as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Cost of revenue — service $ 105 $ 36 $ 218 $ 77 Selling, general and administrative 182 191 320 366 Research and development 18 (8 ) 31 20 Total stock-based compensation expense $ 305 $ 219 $ 569 $ 463 Per diluted share $ 0.02 $ 0.02 $ 0.05 $ 0.04 |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Plans for the six month period ended June 30, 2015: Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance at January 1, 2015 1,553,360 $ 3.50 Granted 24,725 4.33 Exercised (117,056 ) 2.95 Forfeited (58,429 ) 3.29 Expired (6,376 ) 2.62 Balance at June 30, 2015 1,396,224 $ 3.57 6.83 $ 4,497,910 Vested and expected to vest at June 30, 2015 1,324,724 $ 3.57 6.73 $ 4,270,113 Exercisable at June 30, 2015 623,582 $ 3.58 4.71 $ 2,011,909 |
Summary of Certain Information about Stock Options | The following table summarizes certain information about stock options for the three and six month periods ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted-average grant-date fair value of option grants for the period $ 1.88 $ 1.88 $ 1.92 $ 1.68 Options in-the-money at period end 1,390,199 450,914 1,390,199 450,914 Aggregate intrinsic value of options exercised $ 302,895 $ 110,347 $ 350,776 $ 241,224 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity for the six month period ended June 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2014 80,179 $ 3.40 Granted 50,728 6.32 Vested (50,391 ) 3.42 Forfeited (8,976 ) 3.15 Unvested at June 30, 2015 71,540 $ 5.48 Expected to vest after June 30, 2015 68,810 $ 5.51 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table summarizes our shares of common stock reserved for future issuance under the Plans as of June 30, 2015: Stock options outstanding 1,396,224 RSUs outstanding 71,540 Stock awards available for future grant 1,602,411 Common stock reserved for future issuance 3,070,175 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Operating Lease Commitments | Future operating lease commitments are as follows by calendar year (in thousands): Remainder of 2015 $ 661 2016 1,308 2017 1,194 2018 1,108 2019 1,038 2020 437 Total commitments $ 5,746 |
Information about Geographic 20
Information about Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets by Geographic Area | Revenue by geography is based on the sales region of the customer. The following table sets forth revenue and long-lived assets by geographic area (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total revenue: North America $ 27,015 $ 19,910 $ 50,761 $ 40,501 Asia 603 1,666 1,988 2,750 Europe 1,255 1,479 2,389 2,535 Total revenue $ 28,873 $ 23,055 $ 55,138 $ 45,786 June 30, 2015 December 31, 2014 Long-lived assets: North America $ 1,361 $ 1,597 Asia 482 360 Europe 4,413 4,453 Total long-lived assets $ 6,256 $ 6,410 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Options and RSUs [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from computations of diluted earnings per share | 114,270 | 939,251 | 130,159 | 850,669 |
Cash and Investments - Cash, Ca
Cash and Investments - Cash, Cash Equivalents, Short-Term Investments, and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Investment Holdings [Line Items] | ||||
Cash | $ 2,042 | $ 2,763 | ||
Cash equivalents: | ||||
Total cash equivalents | 9,924 | 10,364 | ||
Total cash and cash equivalents | 11,966 | 13,127 | $ 11,102 | $ 13,510 |
Short-term investments: | ||||
Total short-term investments | 17,464 | 13,263 | ||
Restricted cash—money market fund | 250 | 250 | ||
Total cash, cash equivalents, short-term investments and restricted cash | 29,680 | 26,640 | ||
Corporate debt securities [Member] | ||||
Cash equivalents: | ||||
Total cash equivalents | 250 | 1,002 | ||
Short-term investments: | ||||
Total short-term investments | 16,065 | 12,713 | ||
Corporate commercial paper [Member] | ||||
Short-term investments: | ||||
Total short-term investments | 1,399 | 550 | ||
Money market funds [Member] | ||||
Cash equivalents: | ||||
Total cash equivalents | $ 9,674 | $ 9,362 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term investments: | ||
Total short-term investments | $ 17,464 | $ 13,263 |
Restricted cash—money market fund | 250 | 250 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 9,924 | 10,364 |
Short-term investments: | ||
Total short-term investments | 17,464 | 13,263 |
Restricted cash—money market fund | 250 | 250 |
Total assets measured at fair value | 27,638 | 23,877 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 9,674 | 9,362 |
Short-term investments: | ||
Restricted cash—money market fund | 250 | 250 |
Total assets measured at fair value | 9,924 | 9,612 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 250 | 1,002 |
Short-term investments: | ||
Total short-term investments | 17,464 | 13,263 |
Total assets measured at fair value | 17,714 | 14,265 |
Corporate debt securities [Member] | ||
Short-term investments: | ||
Total short-term investments | 16,065 | 12,713 |
Corporate debt securities [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 250 | 1,002 |
Short-term investments: | ||
Total short-term investments | 16,065 | 12,713 |
Corporate debt securities [Member] | Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 250 | 1,002 |
Short-term investments: | ||
Total short-term investments | 16,065 | 12,713 |
Corporate commercial paper [Member] | ||
Short-term investments: | ||
Total short-term investments | 1,399 | 550 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Short-term investments: | ||
Total short-term investments | 1,399 | 550 |
Corporate commercial paper [Member] | Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Short-term investments: | ||
Total short-term investments | 1,399 | 550 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 9,674 | 9,362 |
Money market funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | $ 9,674 | $ 9,362 |
Goodwill and Intangible Asset24
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Change in carrying amount of goodwill | $ 0 | $ 0 | ||
Amortization expense | $ 34,000 | $ 34,000 | $ 68,000 | $ 67,000 |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets - Summary of Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 661 | $ 729 |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,275 | 1,275 |
Accumulated Amortization | (614) | (546) |
Net Carrying Value | $ 661 | $ 729 |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $ 68 | |
2,016 | 130 | |
2,017 | 98 | |
2,018 | 98 | |
2,019 | 98 | |
2,020 | 98 | |
2,021 | 71 | |
Net Carrying Value | $ 661 | $ 729 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 26, 2015 | Jun. 16, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures | $ 517,752 | ||
Amortization cost, weighted-average period | 1 year | ||
Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase number of shares available for future grant | 750,000 | ||
Inducement Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase number of shares available for future grant | 200,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of stock options granted | 10 years | ||
Vesting of options granted | 4 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization cost, weighted-average period | 1 year | ||
Compensation cost related to restricted stock units granted but not yet recognized | $ 318,008 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | 3 years 3 months 18 days | 3 years 3 months 18 days | 3 years 3 months 18 days | 3 years 2 months 12 days |
Expected volatility | 52.00% | 59.00% | 52.00% | 60.00% |
Risk-free interest rate | 1.30% | 1.30% | 1.20% | 1.20% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 305 | $ 219 | $ 569 | $ 463 |
Per diluted share | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.04 |
Cost of revenue-service [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 105 | $ 36 | $ 218 | $ 77 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 182 | 191 | 320 | 366 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 18 | $ (8) | $ 31 | $ 20 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - Jun. 30, 2015 - USD ($) | Total |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |
Granted, Number of Shares | 24,725 |
Exercised, Number of Shares | (117,056) |
Forfeited, Number of Shares | (58,429) |
Expired, Number of Shares | (6,376) |
Number of Shares, Ending Balance | 1,396,224 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,324,724 |
Exercisable, Number of Shares, Ending Balance | 623,582 |
Granted, Weighted Average Exercise Price | $ 4.33 |
Exercised, Weighted Average Exercise Price | 2.95 |
Forfeited, Weighted Average Exercise Price | 3.29 |
Expired, Weighted Average Exercise Price | 2.62 |
Weighted Average Exercise Price, Ending Balance | 3.57 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 3.57 |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 3.58 |
Weighted Average Remaining Contractual Life (in years) | 6 years 9 months 29 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 6 years 8 months 23 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years 8 months 16 days |
Aggregate Intrinsic Value | $ 4,497,910 |
Vested and expected to vest, Aggregate Intrinsic Value | 4,270,113 |
Exercisable, Aggregate Intrinsic Value | $ 2,011,909 |
Shareholders' Equity - Summar31
Shareholders' Equity - Summary of Certain Information about Stock Options (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Weighted-average grant-date fair value of option grants for the period | $ 1.88 | $ 1.88 | $ 1.92 | $ 1.68 |
Options in-the-money at period end | 1,390,199 | 450,914 | 1,390,199 | 450,914 |
Aggregate intrinsic value of options exercised | $ 302,895 | $ 110,347 | $ 350,776 | $ 241,224 |
Shareholders' Equity - Summar32
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 71,540 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 80,179 |
Granted, Number of Shares | 50,728 |
Vested, Number of Shares | (50,391) |
Forfeited, Number of Shares | (8,976) |
Unvested, Number of Shares, Ending Balance | 71,540 |
Expected to vest, Number of Shares, Ending Balance | 68,810 |
Unvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 3.40 |
Granted, Weighted Average Grant Date Fair Value | 6.32 |
Vested, Weighted Average Grant Date Fair Value | 3.42 |
Forfeited, Weighted Average Grant Date Fair Value | 3.15 |
Unvested, Weighted Average Grant Date Fair Value, Ending Balance | 5.48 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ 5.51 |
Shareholders' Equity - Summar33
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Jun. 30, 2015 | Jan. 01, 2015 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 1,396,224 | 1,553,360 |
RSUs outstanding | 71,540 | |
Stock awards available for future grant | 1,602,411 | |
Common stock reserved for future issuance | 3,070,175 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | ||||
Aug. 31, 2013 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Other Commitments [Line Items] | ||||||||
Operating leases, expiration year | 2,020 | |||||||
Rent expense | $ 257,000 | $ 313,000 | $ 521,000 | $ 637,000 | ||||
Restricted cash | 250,000 | 250,000 | $ 250,000 | |||||
Third party software vendor licensed lost | 934,000 | |||||||
Accrued contingent liability | $ 100,000 | $ 100,000 | ||||||
Loss contingency receivable | 934,000 | 934,000 | ||||||
Payment of legal expenses | $ 85,000 | |||||||
Volume pricing agreements period of OVRP | 12 months | |||||||
Provision on contingencies | $ 0 | $ 0 | ||||||
Bellevue [Member] | Washington [Member] | ||||||||
Other Commitments [Line Items] | ||||||||
Cash lease payments made | $ 0 | |||||||
Leasehold improvements and furniture provided by the landlord | $ 1,128,000 | |||||||
Bellevue [Member] | Washington [Member] | Minimum [Member] | ||||||||
Other Commitments [Line Items] | ||||||||
Expiration date of operating lease | 2014-08 | |||||||
Bellevue [Member] | Washington [Member] | Maximum [Member] | ||||||||
Other Commitments [Line Items] | ||||||||
Expiration date of operating lease | 2020-05 |
Commitments and Contingencies35
Commitments and Contingencies - Operating Lease Commitments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remainder of 2015 | $ 661 |
2,016 | 1,308 |
2,017 | 1,194 |
2,018 | 1,108 |
2,019 | 1,038 |
2,020 | 437 |
Total commitments | $ 5,746 |
Information about Geographic 36
Information about Geographic Areas - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Number of operating segment | 1 |
Information about Geographic 37
Information about Geographic Areas - Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Total revenue: | |||||
Total revenue | $ 28,873 | $ 23,055 | $ 55,138 | $ 45,786 | |
Long-lived assets: | |||||
Total long-lived assets | 6,256 | 6,256 | $ 6,410 | ||
North America [Member] | |||||
Total revenue: | |||||
Total revenue | 27,015 | 19,910 | 50,761 | 40,501 | |
Long-lived assets: | |||||
Total long-lived assets | 1,361 | 1,361 | 1,597 | ||
Asia [Member] | |||||
Total revenue: | |||||
Total revenue | 603 | 1,666 | 1,988 | 2,750 | |
Long-lived assets: | |||||
Total long-lived assets | 482 | 482 | 360 | ||
Europe [Member] | |||||
Total revenue: | |||||
Total revenue | 1,255 | $ 1,479 | 2,389 | $ 2,535 | |
Long-lived assets: | |||||
Total long-lived assets | $ 4,413 | $ 4,413 | $ 4,453 |
Significant Risk Concentratio38
Significant Risk Concentrations - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)Customer | Jun. 30, 2014USD ($)Customer | Jun. 30, 2015USD ($)CustomerAgreement | Jun. 30, 2014USD ($)Customer | Dec. 31, 2014Customer | |
Concentration Risk [Line Items] | |||||
Total revenue | $ 28,873,000 | $ 23,055,000 | $ 55,138,000 | $ 45,786,000 | |
Expiration date one of OEM Distribution agreements for embedded operating systems | Jun. 30, 2016 | ||||
Number of OEM Distribution agreements for embedded operating systems | Agreement | 2 | ||||
Expiration date of OEM Distribution agreements for mobile operating systems, non-EMEA | Jun. 30, 2015 | ||||
Number of OEM Distribution agreements for mobile operating systems | Agreement | 4 | ||||
Cost of revenue-service [Member] | |||||
Concentration Risk [Line Items] | |||||
Earnings under the rebate program | 103,000 | 105,000 | $ 166,000 | 169,000 | |
Reduction in marketing expense in the future [Member] | |||||
Concentration Risk [Line Items] | |||||
Earnings under the rebate program | 240,000 | $ 245,000 | $ 387,000 | 394,000 | |
Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Total revenue | $ 3,900,000 | $ 7,900,000 | |||
Revenue [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customer account as major customer | Customer | 1 | 1 | |||
Concentration risk, percentage | 13.00% | 14.00% | |||
Revenue [Member] | Customer accounted for 10% or more [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customer account as major customer | Customer | 0 | 0 | 0 | 0 | |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Accounts receivable [Member] | Customer accounted for 10% or more [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customer account as major customer | Customer | 1 | 0 | |||
Accounts receivable [Member] | Customer accounted for 10% or more [Member] | Credit Concentration Risk [Member] | Minimum [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% |
Uncategorized Items - bsqr-2015
Label | Element | Value |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 3.50 |