Bsquare (BSQR) 10-K 22 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Jan. 31, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	BSQR
Entity Registrant Name	BSQUARE CORP /WA
Entity Central Index Key	1,054,721
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,666,614
Entity Public Float			$ 56,262,281

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 12,859	$ 14,312
Short-term investments	11,895	18,888
Accounts receivable, net of allowance for doubtful accounts of $50 at December 31, 2017 and $50 at December 31, 2016	18,014	21,579
Prepaid expenses and other current assets	548	878
Contract assets	937
Total current assets	44,253	55,657
Equipment, furniture and leasehold improvements, net	989	1,089
Deferred tax assets		7
Intangible assets, net	365	464
Goodwill	3,738	3,738
Other non-current assets including contract assets	89	53
Total assets	49,434	61,008
Current liabilities:
Third-party software fees payable	10,547	14,831
Accounts payable	375	283
Accrued compensation	2,266	2,008
Other accrued expenses	681	714
Deferred rent, current portion	339	321
Deferred revenue	3,219	2,064
Total current liabilities	17,427	20,221
Deferred tax liability		23
Deferred rent	516	854
Deferred revenue	61	1,798
Commitments and contingencies (Note 9)
Shareholders' equity:
Preferred stock, no par: 10,000,000 shares authorized; no shares issued and outstanding
Common stock, no par: 37,500,000 shares authorized; 12,664,489 issued and outstanding at December 31, 2017 and 12,532,348 issued and outstanding at December 31, 2016	137,622	135,660
Accumulated other comprehensive loss	(916)	(941)
Accumulated deficit	(105,276)	(96,607)
Total shareholders' equity	31,430	38,112
Total liabilities and shareholders' equity	$ 49,434	$ 61,008

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 50	$ 50
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	12,664,489	12,532,348
Common stock, shares outstanding	12,664,489	12,532,348

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenue:
Professional engineering service	$ 10,410	$ 15,271
Total revenue	80,811	97,441
Cost of revenue:
Professional engineering service	7,365	13,439
Total cost of revenue	62,689	81,621
Gross profit	18,122	15,820
Operating expenses:
Selling, general and administrative	20,982	14,119
Research and development	6,561	2,859
Total operating expenses	27,543	16,978
Loss from operations	(9,421)	(1,158)
Other income, net	214	247
Loss before income taxes	(9,207)	(911)
Income tax benefit (expense)	149	(141)
Net loss	$ (9,058)	$ (1,052)
Basic loss per share	$ (0.72)	$ (0.09)
Diluted loss per share	$ (0.72)	$ (0.09)
Shares used in per share calculations:
Basic	12,594	12,260
Diluted	12,594	12,260
Comprehensive loss:
Net loss	$ (9,058)	$ (1,052)
Other comprehensive income (loss):
Foreign currency translation, net of tax	25	(79)
Unrealized gain on investments, net of tax		7
Total other comprehensive income (loss)	25	(72)
Comprehensive loss	(9,033)	(1,124)
Third Party Software [Member]
Revenue:
Software	65,755	80,231
Cost of revenue:
Software	55,161	67,853
Proprietary Software [Member]
Revenue:
Software	4,646	1,939
Cost of revenue:
Software	$ 163	$ 329

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2015	$ 36,907	$ 133,331	$ (869)	$ (95,555)
Balance, Shares at Dec. 31, 2015		12,092,598
Net loss	500
Balance at Mar. 31, 2016	37,873
Balance at Dec. 31, 2015	36,907	$ 133,331	(869)	(95,555)
Balance, Shares at Dec. 31, 2015		12,092,598
Exercise of stock options	$ 1,082	$ 1,082
Exercise of stock options, Shares	371,845	371,845
Share-based compensation, including issuance of restricted stock	$ 1,247	$ 1,247
Share-based compensation, including issuance of restricted stock, Shares		67,905
Net loss	(1,052)			(1,052)
Foreign currency translation adjustment, net of tax	(79)		(79)
Unrealized gain on investments, net of tax	7		7
Balance at Dec. 31, 2016	$ 38,112	$ 135,660	(941)	(96,607)
Balance, Shares at Dec. 31, 2016	12,532,348	12,532,348
Balance at Mar. 31, 2016	$ 37,873
Net loss	(185)
Balance at Jun. 30, 2016	38,166
Net loss	(106)
Balance at Sep. 30, 2016	38,790
Net loss	(1,261)
Balance at Dec. 31, 2016	$ 38,112	$ 135,660	(941)	(96,607)
Balance, Shares at Dec. 31, 2016	12,532,348	12,532,348
Net loss	$ 202
Balance at Mar. 31, 2017	39,206
Balance at Dec. 31, 2016	$ 38,112	$ 135,660	(941)	(96,607)
Balance, Shares at Dec. 31, 2016	12,532,348	12,532,348
Cumulative effect of accounting changes	$ 404		15	389
Exercise of stock options	$ 174	$ 174
Exercise of stock options, Shares	54,692	54,692
Share-based compensation, including issuance of restricted stock	$ 1,757	$ 1,757
Share-based compensation, including issuance of restricted stock, Shares		77,449
Net loss	(9,058)			(9,058)
Foreign currency translation adjustment, net of tax	41	$ 31	10
Balance at Dec. 31, 2017	$ 31,430	$ 137,622	(916)	(105,276)
Balance, Shares at Dec. 31, 2017	12,664,489	12,664,489
Balance at Mar. 31, 2017	$ 39,206
Net loss	(2,560)
Balance at Jun. 30, 2017	37,099
Net loss	(2,468)
Balance at Sep. 30, 2017	35,238
Net loss	(4,232)
Balance at Dec. 31, 2017	$ 31,430	$ 137,622	$ (916)	$ (105,276)
Balance, Shares at Dec. 31, 2017	12,664,489	12,664,489

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (9,058)	$ (1,052)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization	634	598
Stock-based compensation	1,757	1,247
Deferred income taxes	(16)
Changes in operating assets and liabilities:
Accounts receivable, net	2,814	(2,570)
Prepaid expenses and other assets	331	(235)
Contract assets, current	149
Third-party software fees payable	(4,284)	3,042
Accounts payable and accrued expenses	317	(850)
Deferred revenue	(547)	2,727
Deferred rent	(320)	(300)
Net cash provided (used) by operating activities	(8,223)	2,607
Cash flows from investing activities:
Purchases of equipment and furniture	(439)	(390)
Proceeds from maturities of short-term investments	33,532	24,950
Purchases of short-term investments	(26,544)	(30,566)
Reduction of restricted cash equivalents		250
Net cash provided (used) by investing activities	6,549	(5,756)
Cash flows from financing activities:
Proceeds from exercise of stock options	202	1,110
Effect of exchange rates on cash	19	(92)
Net decrease in cash and cash equivalents	(1,453)	(2,131)
Cash and cash equivalents, beginning of year	14,312	16,443
Cash and cash equivalents, end of year	12,859	14,312
Supplemental cash flow information:
Cash paid for income taxes	$ 256	$ 194

Description of Business and Acc

Description of Business and Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Description of Business and Accounting Policies	1. Description of Business and Accounting Policies Description of business BSQUARE Corporation (“BSQUARE”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (historically, including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Beginning in early 2014, we initiated development efforts focused on new proprietary software products addressing the Industrial Internet of Things (“IIoT”) market, by interconnecting of uniquely identifiable devices, extracting data from those devices and applying advanced analytics and machine learning to the data in order to derive meaningful and actionable insights. While IIoT is a relatively new market, we believe the work we have engaged in since our inception—namely adding intelligence and connectivity to discrete standalone devices and systems—embodies much of what is central to the core functionality of IIoT. These software development efforts have driven a new business initiative for BSQUARE, which we refer to as DataV™. Our DataV solution includes software products, applications and services that are designed to turn raw IIoT device data into meaningful and actionable data for our customers. Basis of consolidation The consolidated financial statements include the accounts of BSQUARE and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Recently adopted accounting standards In March 2016, the Financial Accounting Standards Board (“FASB”) amended the existing accounting standards for stock-based compensation by issuing Accounting Standards Update (“ASU”) 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The changes in the new standard eliminated the requirements that excess tax benefits be recognized in additional paid-in capital and tax deficiencies be recognized either in the income tax provision or in additional paid-in capital, in addition to changing the accounting for forfeitures and presentation changes for cash flows. We adopted the amendments in the first quarter of 2017. ASU 2016-09 requires that certain amendments be applied using a modified retrospective transition method by means of a cumulative effect adjustment to retained earnings as of the beginning of 2017. We made an entity-wide accounting policy election to recognize share-based award forfeitures as they occur rather than at vest date, which did not have a material impact on our consolidated financial statements. There was no change to retained earnings with respect to unrecognized excess tax benefits as this was not applicable to us. We have elected to present any excess tax benefits for share-based payments in operating activities rather than in financing activities on the cash flow statement on a prospective transition method, and no prior periods have been adjusted. In May 2014, the FASB issued ASU 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 amended guidance, herein referred to as Topic 606, is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted effective for annual and interim reporting periods beginning after December 15, 2016. We elected to early adopt Topic 606, effective January 1, 2017, using the modified retrospective transition method. As a result of this adoption, we recognized a cumulative effect adjustment to retained earnings at the beginning of 2017. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See further discussion in Note 2 “Revenue Recognition.” Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards and the fair values of acquired assets and liabilities, among other estimates. Actual results may differ from these estimates. Income (loss) per share We compute basic per share amounts using the weighted average number of common shares outstanding during the period and exclude any dilutive effects of common stock equivalent shares, such as options and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income or loss per share only when vested. We compute diluted per share amounts using the weighted average number of common shares outstanding plus 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. Unvested but outstanding RSUs are included in the diluted per share calculation. In a period where we are in a net loss position, the diluted loss per share is computed using the basic share count. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding, basic 12,594 12,260 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,594 12,260 Common stock equivalent shares of approximately 1,227,000 and 691,000 were excluded from the computation of diluted per share amounts for the years ended December 31, 2017 and 2016, respectively, because their effect was anti-dilutive. Cash, cash equivalents and investments We invest our excess cash primarily in highly liquid debt instruments of U.S. government agencies and municipalities, debt instruments issued by foreign governments, corporate commercial paper, money market funds, and corporate debt securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as short-term investments. Short-term investments consist entirely of marketable securities, which are all classified as available-for-sale securities and are recorded at their estimated fair value. We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation at each balance sheet date. We may or may not hold securities with stated maturities greater than 12 months until maturity. As we view these securities as available to support current operations, we classify securities with maturities less than 12 months as short-term investments. We carry these securities at fair value and report the unrealized gains and losses, net of taxes, as a component of shareholders’ equity, except for unrealized losses determined to be other than temporary, which are recorded in other expense. Restricted cash We had a restricted cash equivalents balance for funds held at a financial institution as security for an outstanding letter of credit related to our corporate headquarters lease obligation. The full balance of restricted cash equivalents was released in September 2016 when we entered into a new letter of credit agreement secured by our credit agreement with JPMorgan Chase Bank, N.A. Financial instruments and concentrations of risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, and accounts receivable. Allowance for doubtful accounts We record accounts receivable at the invoiced amount net of an estimated allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review customers that have past due invoices to identify specific customers with known disputes or collectability issues. In determining the amount of the allowance, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Equipment, furniture and leasehold improvements We account for equipment, furniture and leasehold improvements at cost less accumulated depreciation and amortization. We compute depreciation of equipment and furniture using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives, ranging from two to ten years. We expense maintenance and repair costs as incurred. When assets are retired or otherwise disposed of, gains or losses are included in the consolidated statements of operations. When facts and circumstances indicate that the value of long-lived assets may be impaired, we perform an evaluation of recoverability comparing the carrying value of the asset to projected undiscounted future cash flows. Upon indication that the carrying value of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations based on the difference between the carrying value of the asset and its fair value. Intangible assets Intangible assets were recorded in connection with business acquisitions and are stated at estimated fair value at the time of acquisition less accumulated amortization. We amortize our acquired intangible assets using the straight-line method using lives ranging from one to ten years. We review intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If intangible assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. Goodwill We evaluate goodwill for impairment in the fourth quarter annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by performing a qualitative assessment to determine whether the fair value of the reporting unit is more likely than not less than the carrying amount. If we determine that the fair value of the reporting unit is more likely greater than its carrying amount, we do not conduct further impairment testing. If we determine that the fair value of the reporting unit is not more likely greater than the carrying amount, we perform a quantitative two-step impairment test. The first step compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds fair value, we then perform the second step of the impairment test to measure the amount of any impairment loss. Third-party software fees payable We record all fees payable and accrued liabilities related to the sale of third-party software, such as Microsoft Windows Embedded and Windows Mobile operating systems, as third-party software fees payable. Research and development Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs would be capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this would be reached after all high-risk development issues have been resolved through coding and testing and would occur shortly before the product is released. Amortization of costs incurred after this point would be included in cost of revenue over the estimated life of the products. As of December 31, 2017 and 2016, we had not recorded any such capitalized costs. Advertising costs All costs of advertising, including cooperative marketing arrangements, are expensed as incurred. Advertising expense was $388,000 and $45,000 in 2017 and 2016, respectively. Stock-based compensation The estimated fair value of stock-based awards is recognized as compensation expense over the requisite service period, net of estimated forfeitures. We estimate forfeitures of stock-based awards 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 options are 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. Comprehensive loss Comprehensive loss refers to net loss and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net loss. Income taxes We are subject to income taxes in the U.S. and certain foreign jurisdictions. Significant judgment is required in determining our provision for income taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for on the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Our deferred tax amounts are measured using currently enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We apply judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2017, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. We recognize tax benefits from an uncertain position only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. Interest and penalties related to uncertain tax positions are classified in the consolidated financial statements as income tax expense. Foreign currency The functional currency of foreign subsidiaries is their local currency. Accordingly, assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Resulting translation adjustments are included in other comprehensive loss and accumulated other comprehensive loss, a separate component of shareholders’ equity. The net gains and losses resulting from foreign currency transactions are recorded in the period incurred and were not significant for any of the periods presented. Revenue recognition The following is a description of principal activities from which we generate revenue. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. Third-party software We sell third-party software licenses based upon a customer purchase order, shipping a certificate of authenticity (“COA”) to satisfy this single performance obligation. These shipments are also subject to limited return rights; historically, returns have averaged less than one-quarter of one percent. In accordance with Topic 606, we will continue to recognize revenue from third-party products at the time of shipment when the customer accepts control of the COA. Proprietary software We sell our proprietary software products to customers under a contract or by purchase order. Our DataV software contracts generally include professional services, a perpetual or term license and support and maintenance. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined. Contracts that include software customization may result in the combination of the customization services with the software license as one distinct performance obligation. The transaction price is generally in the form of a fixed fee at contract inception. Certain DataV contracts also include variable consideration in the form of royalties earned when customers meet contractual volume thresholds. We allocate the transaction price to each distinct performance obligation based on the estimated standalone selling price for each performance obligation. We then look to how control transfers to the customer in order to determine the timing of revenue recognition. In contracts that include customer acceptance, we recognize revenue when we have delivered the software and received customer acceptance. We recognize revenue from support and maintenance performance obligations over the service delivery period. We recognize revenue from royalties in the period of usage. Our non-DataV software products generally do not include customization or modification services and are sold in the form of term licenses. These software licenses represent only one distinct performance obligation. Revenue is recognized when the software is delivered to the customer. There are two items involving revenue recognition on DataV software contracts that require us to make more difficult and subjective judgments: the determination of which performance obligations are distinct within the context of the overall contract and the estimated standalone selling price of each performance obligation. In instances where our DataV contracts include significant customization or modification services, the customization and modification services are generally combined with the software license and recorded as one distinct performance obligation. We estimate the standalone selling price of each performance obligation based on either a cost-plus-margin approach or an adjusted market assessment approach. In instances where we have observable selling prices for professional services and support and maintenance, we may apply the residual approach to estimate the standalone selling price of software licenses. Professional engineering services We enter into contracts for professional engineering services that include DataV software pilot services, software implementation and customization. We have certain legacy contracts to deliver other engineering services to customers that we will continue to serve as long as they are profitable; some of our legacy services customers may become DataV customers. To date, the majority of our DataV services contracts are fixed fee pilot programs. We identify each performance obligation in our professional engineering services contracts at contract inception. The contracts generally include project deliverables specified by each customer; for DataV services contracts, the goal of the contract is to assess customer data and demonstrate how DataV applications solve the customer’s business use case, with success resulting in a DataV software license. The performance obligations for both DataV and other service contracts are generally combined into one deliverable. The contract pricing is either at stated billing rates per service hour and material costs or at a fixed amount. Services provided under the majority of our legacy non-DataV professional engineering contracts generally result in the transfer of control of the applicable deliverable over time. For most legacy service contracts, we recognize revenue on service contracts based on time and materials as we have the right to invoice. We recognize revenue on fixed fee contracts on the proportion of labor hours expended (under ASC 606, the ‘input method’) to the total hours expected to complete the contract performance obligation. Certain professional engineering contracts include substantive customer acceptance provisions, in which case we recognize revenue upon customer acceptance. For most DataV pilot service contracts we recognize revenue upon completion of the pilot. For contracts that require the input method for revenue recognition, the determination of the total labor hours expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. In certain situations, when it is impractical for us to reasonably measure the outcome of a performance obligation, and where we anticipate that we will not incur a loss, an adjusted cost-based input method is used for revenue recognition. Equal amounts of revenue and cost are recognized during the contract period, and profit is recognized when the project is completed and accepted. Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to make leasing activities more transparent and comparable, requiring most leases to be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-02 is effective for annual periods beginning after December 31, 2018 and interim periods within that year, with early adoption permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” simplifying how an entity is required to test goodwill for impairment by eliminating step two from the goodwill impairment test described above. ASU 2017-04 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted on testing dates after January 1, 2017. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2017
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition On January 1, 2017, we adopted Topic 606, applying the modified retrospective method to all contracts that were not completed as of that date. Results for reporting periods beginning after January 1, 2017 are presented under Topic 606, while prior period results are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded an increase to opening equity of $404,000 as of January 1, 2017 due to the cumulative impact of adopting Topic 606. The impact to revenue for the year ended December 31, 2017 was an increase of $1.9 million as a result of adopting Topic 606. The adoption of Topic 606 did not have a significant impact on our third-party software or professional engineering service revenue; however, it did have a significant impact on our proprietary DataV software products and services revenue. We executed our first two DataV contracts in the fourth quarter of 2016. Our current DataV contracts include customization, software license and support and maintenance performance obligations. Under the accounting standards in effect in the prior period, revenue from our DataV software contracts was recognized under a zero-profit model whereby revenue was recognized up to the amount of costs incurred. The profit margin was deferred and recognized ratably over the service and maintenance period after delivery and acceptance of the software product. Under Topic 606, revenue is recognized on our DataV contracts when the customization services essential to provide the derived benefit of the software to the customer are completed and control of the product is transferred to the customer as evidenced by customer acceptance. Disaggregation of revenue The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Year Ended December 31, 2017 Third-Party Software Proprietary Software Total Software Professional Engineering Service Total Primary geographical markets: North America $ 63,430 $ 3,950 $ 67,380 $ 8,682 $ 76,062 Europe 1,914 - 1,914 1,191 3,105 Asia 411 696 1,107 537 1,644 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Major products/services lines: Third-party software $ 65,755 $ - $ 65,755 $ - $ 65,755 Proprietary software - 4,646 4,646 - 4,646 Professional engineering services - - - 10,410 10,410 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Timing of revenue recognition: Transferred at a point in time $ 65,608 $ 3,696 $ 69,304 $ 861 $ 70,165 Transferred over time 147 950 1,097 9,549 10,646 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 31, 2017 Receivables $ 18,014 Short-term contract assets 937 Long-term contract assets 30 Short-term contract liabilities (deferred revenue) 3,219 Long-term contract liabilities (deferred revenue) 61 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 objectives not yet invoiced and deferred contract acquisition costs, which are amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. We had no asset impairment charges related to contract assets in the period. Significant changes in contract assets and liabilities balances were as follows (in thousands): December 31, 2017 Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability at beginning of the period $ - $ 3,068 Transferred to receivables from contract assets recognized at beginning of the period $ 780 $ - (1) Comprised of deferred revenue Contract acquisition costs In connection with the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. As of January 1, 2017, the date we adopted Topic 606, we capitalized $292,000 in contract acquisition costs related to contracts that were not completed. For contracts that have a duration of less than one year, we follow a Topic 606 practical expedient and expense these costs when incurred. For contracts with lives exceeding one year, as is more common with our DataV software bookings, we record these costs in proportion to each completed contract performance obligation. During the year ended December 31, 2017, the amount of amortization was $168,000, and there was no impairment loss in relation to costs capitalized. During the year ended December 31, 2017, an additional $87,000 in contract acquisition costs were capitalized. Performance obligations We did not recognize any revenue from performance obligations satisfied in previous periods. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period, in thousands. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of December 31, 2017. 2018 2019 2020 2021 Third-party software $ 110 $ 36 $ - $ - Proprietary software 2,655 1,133 820 114 Professional engineering services 760 - - - Practical expedients and exemptions We generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within selling, general and administrative expenses. In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated statements of operations was as follows (in thousands, except per share amounts): Year Ended December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Revenue: Third-party software $ 65,755 $ 65,755 $ — Proprietary software 4,646 2,964 1,682 Professional engineering service 10,410 10,198 212 Total revenue 80,811 78,917 1,894 Cost of revenue: Third-party software 55,161 55,161 — Proprietary software 163 163 — Professional engineering service 7,365 7,277 88 Total cost of revenue 62,689 62,601 88 Gross profit 18,122 16,316 1,806 Operating expenses: Selling, general and administrative 20,982 20,909 73 Research and development 6,561 6,561 — Total operating expenses 27,543 27,470 73 Loss from operations (9,421 ) (11,154 ) 1,733 Other income, net 214 214 — Loss before income taxes (9,207 ) (10,940 ) 1,733 Income tax benefit 149 149 — Net loss $ (9,058 ) $ (10,791 ) $ 1,733 Basic loss per share $ (0.72 ) $ (0.86 ) $ 0.14 Diluted loss per share $ (0.72 ) $ (0.86 ) $ 0.14 In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated balance sheet was as follows (in thousands): December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Assets: Contract assets $ 937 $ 753 $ 184 Other noncurrent assets 89 59 30 Liabilities: Deferred revenue - current 3,219 4,243 (1,024 ) Deferred revenue - noncurrent 61 556 (495 ) Shareholders' Equity: Accumulated deficit (105,276 ) (107,009 ) 1,733

Cash and Investments

Cash and Investments	12 Months Ended
	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Cash and Investments	3. Cash and Investments Cash, cash equivalents and short-term investments consisted of the following (in thousands): December 31, 2017 2016 Cash $ 6,340 $ 11,016 Cash equivalents (see detail in Note 4) 6,519 3,296 Total cash and cash equivalents 12,859 14,312 Short-term investments (see detail in Note 4) 11,895 18,888 Total cash, cash equivalents, and short-term investments $ 24,754 $ 33,200

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. 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. We review the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believe that the policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 2,274 $ - $ 2,274 Corporate commercial paper - 3,245 3,245 Corporate debt - 1,000 1,000 Total cash equivalents 2,274 4,245 6,519 Short-term investments: Corporate commercial paper - 5,480 5,480 Corporate debt - 6,415 6,415 Total short-term investments - 11,895 11,895 Total assets measured at fair value $ 2,274 $ 16,140 $ 18,414 December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 2,796 $ - $ 2,796 Corporate commercial paper - 500 500 Corporate debt - - - Total cash equivalents 2,796 500 3,296 Short-term investments: Corporate commercial paper - 11,465 11,465 Corporate debt - 7,423 7,423 Total short-term investments - 18,888 18,888 Total assets measured at fair value $ 2,796 $ 19,388 $ 22,184

Equipment, Furniture and Leaseh

Equipment, Furniture and Leasehold Improvements	12 Months Ended
	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Equipment, Furniture and Leasehold Improvements	5. Equipment, Furniture and Leasehold Improvements Equipment, furniture, and leasehold improvements consisted of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,819 $ 2,929 Office furniture and equipment 321 357 Leasehold improvements 1,189 1,192 Total 3,329 4,478 Less: accumulated depreciation and amortization (2,340 ) (3,389 ) Equipment, furniture and leasehold improvements, net $ 989 $ 1,089 Depreciation and amortization expense related to these assets was $536,000 and $468,000 in 2017 and 2016, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	6 . Goodwill and Intangible Assets Goodwill was recorded in connection with the September 2011 acquisition of MPC Data, Ltd. (renamed BSQUARE EMEA, Ltd. in 2015), a United Kingdom based provider of software engineering services. The excess of the acquisition consideration over the fair value of net assets acquired was recorded as goodwill and is included within the professional engineering service reporting unit. There were no changes in the carrying amount of goodwill in 2017 and 2016. Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011 and were as follows (in thousands): Gross Carrying Accumulated Net Carrying Amount Amortization Value Customer relationships: Balance as of December 31, 2017 $ 1,275 $ (910 ) $ 365 Balance as of December 31, 2016 $ 1,275 $ (811 ) $ 464 Amortization expense was $98,000 and $130,000 for 2017 and 2016, respectively. Amortization expense in future periods is expected to be as follows (in thousands): 2018 $ 98 2019 98 2020 98 2021 71 Total $ 365

Other Income and Loss

Other Income and Loss	12 Months Ended
	Dec. 31, 2017
Other Income And Loss [Abstract]
Other Income and Loss	7. Other Income and Loss Other income and loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 Interest income $ 238 $ 137 Other income (loss) (24 ) 110 Total $ 214 $ 247

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes Pre-tax loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 U.S. $ (8,885 ) $ (580 ) Foreign (322 ) (331 ) Total $ (9,207 ) $ (911 ) Income tax benefit (expense) consisted of the following (in thousands): Year Ended December 31, 2017 2016 Current taxes: Federal $ (79 ) $ (24 ) State and local (1 ) 38 Foreign (42 ) 41 Current taxes (122 ) 55 Deferred taxes: Federal - - State and local - - Foreign (27 ) 86 Deferred taxes (27 ) 86 Total $ (149 ) $ 141 Net deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2017 2016 Depreciation and amortization $ 238 $ 365 Accrued expenses and reserves 148 345 Deferred revenue 508 66 Net operating loss carryforwards 14,561 20,448 Research and development credit carryforwards 3,037 2,740 Stock-based compensation 940 840 Other 10 91 Gross deferred tax assets 19,442 24,895 Less: valuation allowance (19,442 ) (24,911 ) Net deferred tax assets (liability) $ - $ (16 ) Net deferred tax assets and liabilities were recorded as follows (in thousands): December 31, 2017 2016 Deferred tax assets, non-current $ - $ 7 Deferred tax liability, non-current - (23 ) Net deferred tax assets (liability) $ - $ (16 ) The Tax Cuts and Jobs Act was enacted on December 22, 2017 (the “Tax Act”) and introduces significant changes to U.S. income tax law. Our accounting for the elements of the Tax Act that were effective for 2017 is complete and its impact is reflected in our 2017 consolidated financial statements. The Tax Act reduces the US federal corporate tax rate from 35% in 2017 to 21% beginning in 2018. The anticipated impact of the Tax Act for us is an $8.9 million reduction in our net deferred tax assets to reflect the new statutory rate. The rate adjustment to the deferred tax assets, a discrete item for the quarter, was fully offset by a decrease in the valuation allowance so there is no rate impact to us. Effective in 2018, companies may be subject to global intangible low tax income (“GILTI”) which is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. GILTI will be effectively taxed at a tax rate of 10.5%. Due to the complexity of the GILTI tax rules, companies are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred or (2) factoring such amounts into a company’s measurement of its deferred taxes. We are electing to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred, and therefore there was no impact to our deferred tax rate in 2017. As of December 31, 2017, our deferred tax assets were primarily the result of U.S. net operating loss, research and development credit carryforwards and stock-based compensation expense. We have applied a full valuation allowance against the U.S. deferred tax assets in the U.S. and foreign jurisdictions. We use judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2017, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. The provision for income taxes differed from the amount of expected income tax expense determined by applying the applicable U.S. statutory federal income tax rate to pre-tax loss as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 U.S. Federal tax benefit at statutory rates $ (3,130 ) 34.0 % $ (310 ) 34.0 % Impact of: Tax credits (376 ) 4.1 % (170 ) 18.6 % State income tax (1 ) 0.0 % 25 (2.7 )% International operations 168 (1.8 )% 183 (20.1 )% Stock-based compensation (130 ) 1.4 % (23 ) 2.6 % Valuation allowance (5,688 ) 61.8 % 311 (34.2 )% Expiration of state net operating loss carryforwards - (— )% 77 (8.5 )% Impact of tax reform 8,929 (97.0 )% Other, net 79 (0.9 )% 48 (5.4 )% Tax expense (benefit) and effective tax rate $ (149 ) 1.6 % $ 141 (15.7 )% At December 31, 2017, we had approximately $61.6 million of federal and $4.4 million of state net operating loss carryforwards, which have begun to expire, including approximately $1.2 million of state losses which will expire in 2026. Of the federal net operating loss carryforwards, approximately $36.3 million will expire in 2022 and 2023. We also have approximately $3.0 million of tax credit carryforwards, which begin to expire in 2018. Use of these carryforwards may subject us to an annual limitation due to Section 382 of the U.S. Internal Revenue Code that restricts the ability of a corporation that undergoes an ownership change to use its carryforwards. Under the applicable tax rules, an ownership change occurs if holders of more than five percent of an issuer’s outstanding common stock, collectively, increase their ownership percentage by more than 50 percentage points over a rolling three-year period. We have performed analyses of possible ownership changes in the past, which included consideration of third-party studies, and do not believe that an ownership change of more than 50 percentage points has occurred. We have evaluated all the material income tax positions taken on our income tax filings to various tax authorities, and we determined that we did not have unrealized tax benefits related to uncertain tax positions recorded at December 31, 2017 or 2016. Because of net operating loss and tax credit carryforwards, substantially all of our tax years remain open and subject to examination.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Contractual commitments Our commitments include obligations under operating leases, which expire through 2020. We have lease commitments for office space in Bellevue, Washington; Taipei, Taiwan; Trowbridge, UK; and Tokyo, Japan. We also lease office space on a month-to-month basis in Akron, Ohio, and on an annual basis in Boston, Massachusetts. Rent expense was approximately $1.0 million in each of 2017 and 2016. 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 was recorded as restricted cash equivalents. In September 2016, this letter of credit agreement was replaced by a letter of credit secured by our credit agreement and the corresponding restricted cash equivalents were returned to us. Operating lease commitments are as follows (in thousands): 2018 $ 1,173 2019 1,038 2020 437 Total $ 2,648 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.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shareholders' Equity	10. 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 the fair market value of our common stock 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, restricted 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 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 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: Year Ended December 31, 2017 2016 Dividend yield 0 % 0 % Expected life 6.5 years 6.5 years Expected volatility 52 % 55 % Risk-free interest rate 1.7 % 1.1 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Year Ended December 31, 2017 2016 Cost of revenue— professional engineering service $ 107 $ 220 Selling, general and administrative 1,414 868 Research and development 236 159 Total stock-based compensation expense $ 1,757 $ 1,247 Per basic share $ 0.14 $ 0.10 Per diluted share $ 0.14 $ 0.10 Stock option activity The following table summarizes stock option activity: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2015 1,778,697 $ 4.43 7.83 Granted 903,248 $ 5.24 Exercised (371,845 ) $ 3.17 Forfeited (396,161 ) $ 5.32 Expired (67,171 ) $ 5.91 Balance at December 31, 2016 1,846,768 $ 4.84 8.19 Granted 248,100 $ 5.18 Exercised (54,692 ) $ 3.66 Forfeited (91,411 ) $ 5.31 Expired (36,604 ) $ 5.83 Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Vested and expected to vest at December 31, 2017 1,792,667 $ 4.85 7.52 $ 781,025 Exercisable at December 31, 2017 1,065,767 $ 4.48 6.63 $ 775,767 At December 31, 2017, total compensation cost related to stock options granted but not yet recognized was approximately $1,016,877, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.50 years. The following table summarizes certain additional information about stock options: Year Ended December 31, 2017 2016 Weighted average grant-date fair value for options granted during the year $ 2.62 $ 2.63 Vested options in-the-money 603,925 605,017 Aggregate intrinsic value of options exercised during the year $ 104,512 $ 773,327 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 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 : Number of Weighted Average Shares Award Price Unvested at December 31, 2015 104,463 $ 5.97 Granted 107,370 $ 5.41 Vested (76,258 ) $ 5.81 Forfeited (15,969 ) $ 5.77 Unvested at December 31, 2016 119,606 $ 5.60 Granted 79,819 $ 4.98 Vested (82,457 ) $ 5.39 Forfeited — $ — Unvested at December 31, 2017 116,968 $ 5.33 Expected to vest after December 31, 2017 102,796 $ 5.33 At December 31, 2017, total compensation cost related to RSUs granted but not recognized was approximately $237,386, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.12 years. Common stock reserved for future issuance The following table summarizes our shares of common stock reserved for future issuance under the Plans as of December 31, 2017: Stock options outstanding 1,912,161 Restricted stock units outstanding 116,968 Stock options available for future grant 1,189,256 Common stock reserved for future issuance 3,218,385

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Employee Benefit Plan	11. Employee Benefit Plan We have a Profit Sharing and Deferred Compensation Plan, The BSQUARE Corporation 401(k) Plan and Trust (the “Profit Sharing Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended. Substantially all full-time employees are eligible to participate in the Profit Sharing Plan. We typically elect to match the participants’ contributions to the Profit Sharing Plan up to a certain amount subject to vesting. Participants will receive their share of the value of their investments, and any applicable vested match, upon retirement or termination. We made matching contributions of $410,000 and $321,000 in 2017 and 2016, respectively.

Significant Concentrations

Significant Concentrations	12 Months Ended
	Dec. 31, 2017
Risks And Uncertainties [Abstract]
Significant Concentrations	12. Significant Concentrations Significant customer Honeywell International, Inc. and affiliated entities (“Honeywell”) had revenue and accounts receivable as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 Honeywell revenue $ 12,278 $ 13,696 As a percentage of total revenue 15 % 14 % December 31, 2017 2016 Honeywell accounts receivable $ 8,659 $ 7,075 As a percentage of total accounts receivable 48 % 33 % No other customer accounted for 10% or more of total revenue in 2017 or 2016 or 10% or more of total accounts receivable at December 31, 2017 or 2016. Significant supplier We have ODAs with Microsoft which enable us to sell Microsoft Windows Embedded operating systems on a non-exclusive basis to our customers in the United States, Canada, Argentina, Brazil, Chile, Columbia, Mexico, Peru, Puerto Rico, the Caribbean (excluding Cuba), the European Union, the European Free Trade Association, Turkey and Africa, which expire on June 30, 2018. We also have 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, 2018. 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. In accordance with Microsoft rebate program rules, we allocate 30% of rebates to reduce cost of sales, with the remaining 70% to offset qualified marketing expenses in the period the expenditures are incurred. Under this rebate program, we recorded rebate credits as follows (in thousands): Year Ended December 31, 2017 2016 Reductions to cost of revenue $ 499 $ 345 Reductions to marketing expense $ 658 $ 1,085 There was a balance of approximately $411,000 in outstanding rebate credits for which we qualified as of December 31, 2017. If qualified program expenditures are made, these will be accounted for as reductions in marketing expense in the period in which such expenditures are made. Microsoft implemented significant pricing changes for its embedded products effective January 1, 2016, including ending its design registration pricing discounts, terminating its OVRP and changing the aggregate volume price structure and product royalties for existing embedded Windows products. In December 2015, Microsoft granted extensions for certain of the OVRPs through December 31, 2016, at which time the program ended.

Credit Agreement

Credit Agreement	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Credit Agreement	13. Credit Agreement Line of credit In September 2015, we entered into a two-year unsecured line of credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (the “Bank”) in the principal amount of up to $12.0 million. In September 2016, the Credit Agreement was modified to extend the final due date an additional year to September 22, 2018. At our election, advances under the Credit Agreement shall bear interest at either (1) a rate per annum equal to 1.5% below the bank’s applicable prime rate or (2) 1.5% above the Bank’s applicable LIBOR rate, in each case as defined in the Credit Agreement. The Credit Agreement contains customary affirmative and negative covenants, including compliance with financial ratios and metrics, as well as limitations on our ability to pay distributions or dividends while there is an ongoing event of default or to the extent such distribution causes an event of default. We are required to maintain certain minimum interest coverage ratios, liquidity levels and asset coverage ratios as defined in the Credit Agreement. We were in compliance with all such covenants as of December 31, 2017. At December 31, 2017, the required interest coverage ratio would not permit us to borrow under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of December 31, 2017 or 2016. In September 2016, we entered into a letter of credit agreement for $250,000 secured by the Credit Agreement in connection with the lease of our corporate headquarters. Accordingly, the maximum principal amount available if we were eligible to borrow under the Credit Agreement has been reduced to $11.75 million.

Restructuring

Restructuring	12 Months Ended
	Dec. 31, 2017
Restructuring And Related Activities [Abstract]
Restructuring	14. Restructuring During the third quarter of 2016, our board of directors approved a restructuring plan that included a workforce reduction in our professional engineering service group. The workforce reduction impacted 33 personnel, comprised of both employees and consultants and representing approximately 17% of our pre-reduction headcount, and was intended to reduce expenses and to better align our organizational structure with our increasing strategic focus on our DataV software and service. We incurred the following restructuring charges in 2016, which represented one-time cash employee termination benefit (mostly related to severance and accrued paid-time-of) and were included in the results of operations as follows (in thousands): Year Ended December 31, 2016 Cost of revenue $ 968 Selling, general and administrative 17 Total $ 985 The staff reductions were completed, and related amounts were fully paid out, in the fourth quarter of 2016.

Information about Operating Seg

Information about Operating Segments and Geographic Areas	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Information about Operating Segments and Geographic Areas	15. Information about Operating Segments and 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. We operate within a single industry segment of computer software and services. We have three major product lines—third-party software, proprietary software and professional engineering service--each of which we consider to be operating and reportable segments. We do not allocate costs other than direct cost of goods sold to the segments or produce segment income statements. We do not produce asset information by reportable segment and it is not presented here. The following table sets forth profit and loss information about our segments (in thousands): Year Ended December 31, 2017 2016 Third-party software: Revenue $ 65,755 $ 80,231 Cost of revenue 55,161 67,853 Gross profit 10,594 12,378 Proprietary software: Revenue 4,646 1,939 Cost of revenue 163 329 Gross profit 4,483 1,610 Professional Engineering Service: Revenue 10,410 15,271 Cost of revenue 7,365 13,439 Gross profit 3,045 1,832 Total gross profit 18,122 15,820 Operating expenses 27,543 16,978 Other income, net 214 247 Income tax benefit (expense) 149 (141 ) Net loss $ (9,058 ) $ (1,052 ) Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Year Ended December 31, 2017 2016 Total revenue: North America $ 76,062 $ 92,299 Asia 1,644 2,024 Europe 3,105 3,118 Total revenue $ 80,811 $ 97,441 December 31, 2017 2016 Long-lived assets: North America $ 991 $ 1,025 Asia 76 90 Europe 4,114 4,236 Total long-lived assets $ 5,181 $ 5,351

Quarterly Financial Information

Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information (Unaudited)	16. Quarterly Financial Information (Unaudited) Condensed Consolidated Statements of Operations 2017 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 22,841 $ 18,848 $ 19,653 $ 19,469 Gross profit $ 6,253 $ 3,873 $ 4,380 $ 3,616 Income (loss) from operations $ 41 $ (2,619 ) $ (2,546 ) $ (4,297 ) Net income (loss) $ 202 $ (2,560 ) $ (2,468 ) $ (4,232 ) Basic income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Diluted income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Shares used in per share calculations: Basic 12,550 12,577 12,607 12,640 Diluted 12,848 12,577 12,607 12,640 2016 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 25,439 $ 22,738 $ 22,467 $ 26,797 Gross profit $ 4,296 $ 3,893 $ 3,677 $ 3,954 Income (loss) from operations $ 649 $ (85 ) $ (415 ) $ (1,307 ) Net income (loss) $ 500 $ (185 ) $ (106 ) $ (1,261 ) Basic income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Diluted income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Shares used in per share calculations: Basic 12,102 12,152 12,310 12,473 Diluted 12,531 12,152 12,310 12,473 Condensed Consolidated Balance Sheets 2017 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 30,984 $ 27,296 $ 26,758 $ 24,754 Total current assets $ 49,092 $ 47,077 $ 45,021 $ 44,253 Total assets $ 54,403 $ 52,395 $ 50,247 $ 49,434 Total current liabilities $ 14,310 $ 14,445 $ 14,351 $ 17,427 Total shareholders' equity $ 39,206 $ 37,099 $ 35,238 $ 31,430 2016 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 27,626 $ 26,898 $ 31,577 $ 33,200 Total current assets $ 49,683 $ 47,059 $ 51,844 $ 55,657 Total assets $ 55,389 $ 52,680 $ 57,355 $ 61,008 Total current liabilities $ 16,322 $ 13,407 $ 15,502 $ 20,221 Total shareholders' equity $ 37,873 $ 38,166 $ 38,790 $ 38,112

Description of Business and A23

Description of Business and Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Description of business	Description of business BSQUARE Corporation (“BSQUARE”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (historically, including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Beginning in early 2014, we initiated development efforts focused on new proprietary software products addressing the Industrial Internet of Things (“IIoT”) market, by interconnecting of uniquely identifiable devices, extracting data from those devices and applying advanced analytics and machine learning to the data in order to derive meaningful and actionable insights. While IIoT is a relatively new market, we believe the work we have engaged in since our inception—namely adding intelligence and connectivity to discrete standalone devices and systems—embodies much of what is central to the core functionality of IIoT. These software development efforts have driven a new business initiative for BSQUARE, which we refer to as DataV™. Our DataV solution includes software products, applications and services that are designed to turn raw IIoT device data into meaningful and actionable data for our customers.
Basis of consolidation	Basis of consolidation The consolidated financial statements include the accounts of BSQUARE and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
Recently adopted accounting standards	Recently adopted accounting standards In March 2016, the Financial Accounting Standards Board (“FASB”) amended the existing accounting standards for stock-based compensation by issuing Accounting Standards Update (“ASU”) 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The changes in the new standard eliminated the requirements that excess tax benefits be recognized in additional paid-in capital and tax deficiencies be recognized either in the income tax provision or in additional paid-in capital, in addition to changing the accounting for forfeitures and presentation changes for cash flows. We adopted the amendments in the first quarter of 2017. ASU 2016-09 requires that certain amendments be applied using a modified retrospective transition method by means of a cumulative effect adjustment to retained earnings as of the beginning of 2017. We made an entity-wide accounting policy election to recognize share-based award forfeitures as they occur rather than at vest date, which did not have a material impact on our consolidated financial statements. There was no change to retained earnings with respect to unrecognized excess tax benefits as this was not applicable to us. We have elected to present any excess tax benefits for share-based payments in operating activities rather than in financing activities on the cash flow statement on a prospective transition method, and no prior periods have been adjusted. In May 2014, the FASB issued ASU 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 amended guidance, herein referred to as Topic 606, is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted effective for annual and interim reporting periods beginning after December 15, 2016. We elected to early adopt Topic 606, effective January 1, 2017, using the modified retrospective transition method. As a result of this adoption, we recognized a cumulative effect adjustment to retained earnings at the beginning of 2017. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See further discussion in Note 2 “Revenue Recognition.”
Use of estimates	Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards and the fair values of acquired assets and liabilities, among other estimates. Actual results may differ from these estimates.
Income (loss) per share	Income (loss) per share We compute basic per share amounts using the weighted average number of common shares outstanding during the period and exclude any dilutive effects of common stock equivalent shares, such as options and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income or loss per share only when vested. We compute diluted per share amounts using the weighted average number of common shares outstanding plus 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. Unvested but outstanding RSUs are included in the diluted per share calculation. In a period where we are in a net loss position, the diluted loss per share is computed using the basic share count. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding, basic 12,594 12,260 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,594 12,260 Common stock equivalent shares of approximately 1,227,000 and 691,000 were excluded from the computation of diluted per share amounts for the years ended December 31, 2017 and 2016, respectively, because their effect was anti-dilutive.
Cash, cash equivalents and investments	Cash, cash equivalents and investments We invest our excess cash primarily in highly liquid debt instruments of U.S. government agencies and municipalities, debt instruments issued by foreign governments, corporate commercial paper, money market funds, and corporate debt securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as short-term investments. Short-term investments consist entirely of marketable securities, which are all classified as available-for-sale securities and are recorded at their estimated fair value. We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation at each balance sheet date. We may or may not hold securities with stated maturities greater than 12 months until maturity. As we view these securities as available to support current operations, we classify securities with maturities less than 12 months as short-term investments. We carry these securities at fair value and report the unrealized gains and losses, net of taxes, as a component of shareholders’ equity, except for unrealized losses determined to be other than temporary, which are recorded in other expense.
Restricted cash	Restricted cash We had a restricted cash equivalents balance for funds held at a financial institution as security for an outstanding letter of credit related to our corporate headquarters lease obligation. The full balance of restricted cash equivalents was released in September 2016 when we entered into a new letter of credit agreement secured by our credit agreement with JPMorgan Chase Bank, N.A.
Financial instruments and concentrations of risk	Financial instruments and concentrations of risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, and accounts receivable.
Allowance for doubtful accounts	Allowance for doubtful accounts We record accounts receivable at the invoiced amount net of an estimated allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review customers that have past due invoices to identify specific customers with known disputes or collectability issues. In determining the amount of the allowance, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations.
Equipment, furniture and leasehold improvements	Equipment, furniture and leasehold improvements We account for equipment, furniture and leasehold improvements at cost less accumulated depreciation and amortization. We compute depreciation of equipment and furniture using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives, ranging from two to ten years. We expense maintenance and repair costs as incurred. When assets are retired or otherwise disposed of, gains or losses are included in the consolidated statements of operations. When facts and circumstances indicate that the value of long-lived assets may be impaired, we perform an evaluation of recoverability comparing the carrying value of the asset to projected undiscounted future cash flows. Upon indication that the carrying value of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations based on the difference between the carrying value of the asset and its fair value.
Intangible assets	Intangible assets Intangible assets were recorded in connection with business acquisitions and are stated at estimated fair value at the time of acquisition less accumulated amortization. We amortize our acquired intangible assets using the straight-line method using lives ranging from one to ten years. We review intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If intangible assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value.
Goodwill	Goodwill We evaluate goodwill for impairment in the fourth quarter annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by performing a qualitative assessment to determine whether the fair value of the reporting unit is more likely than not less than the carrying amount. If we determine that the fair value of the reporting unit is more likely greater than its carrying amount, we do not conduct further impairment testing. If we determine that the fair value of the reporting unit is not more likely greater than the carrying amount, we perform a quantitative two-step impairment test. The first step compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds fair value, we then perform the second step of the impairment test to measure the amount of any impairment loss.
Third-party software fees payable	Third-party software fees payable We record all fees payable and accrued liabilities related to the sale of third-party software, such as Microsoft Windows Embedded and Windows Mobile operating systems, as third-party software fees payable.
Research and development	Research and development Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs would be capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this would be reached after all high-risk development issues have been resolved through coding and testing and would occur shortly before the product is released. Amortization of costs incurred after this point would be included in cost of revenue over the estimated life of the products. As of December 31, 2017 and 2016, we had not recorded any such capitalized costs.
Advertising costs	Advertising costs All costs of advertising, including cooperative marketing arrangements, are expensed as incurred. Advertising expense was $388,000 and $45,000 in 2017 and 2016, respectively.
Stock-based compensation	Stock-based compensation The estimated fair value of stock-based awards is recognized as compensation expense over the requisite service period, net of estimated forfeitures. We estimate forfeitures of stock-based awards 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 options are 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.
Comprehensive ;loss	Comprehensive loss Comprehensive loss refers to net loss and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net loss.
Income taxes	Income taxes We are subject to income taxes in the U.S. and certain foreign jurisdictions. Significant judgment is required in determining our provision for income taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for on the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Our deferred tax amounts are measured using currently enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We apply judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2017, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. We recognize tax benefits from an uncertain position only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. Interest and penalties related to uncertain tax positions are classified in the consolidated financial statements as income tax expense.
Foreign currency	Foreign currency The functional currency of foreign subsidiaries is their local currency. Accordingly, assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Resulting translation adjustments are included in other comprehensive loss and accumulated other comprehensive loss, a separate component of shareholders’ equity. The net gains and losses resulting from foreign currency transactions are recorded in the period incurred and were not significant for any of the periods presented.
Revenue recognition	Revenue recognition The following is a description of principal activities from which we generate revenue. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. Third-party software We sell third-party software licenses based upon a customer purchase order, shipping a certificate of authenticity (“COA”) to satisfy this single performance obligation. These shipments are also subject to limited return rights; historically, returns have averaged less than one-quarter of one percent. In accordance with Topic 606, we will continue to recognize revenue from third-party products at the time of shipment when the customer accepts control of the COA. Proprietary software We sell our proprietary software products to customers under a contract or by purchase order. Our DataV software contracts generally include professional services, a perpetual or term license and support and maintenance. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined. Contracts that include software customization may result in the combination of the customization services with the software license as one distinct performance obligation. The transaction price is generally in the form of a fixed fee at contract inception. Certain DataV contracts also include variable consideration in the form of royalties earned when customers meet contractual volume thresholds. We allocate the transaction price to each distinct performance obligation based on the estimated standalone selling price for each performance obligation. We then look to how control transfers to the customer in order to determine the timing of revenue recognition. In contracts that include customer acceptance, we recognize revenue when we have delivered the software and received customer acceptance. We recognize revenue from support and maintenance performance obligations over the service delivery period. We recognize revenue from royalties in the period of usage. Our non-DataV software products generally do not include customization or modification services and are sold in the form of term licenses. These software licenses represent only one distinct performance obligation. Revenue is recognized when the software is delivered to the customer. There are two items involving revenue recognition on DataV software contracts that require us to make more difficult and subjective judgments: the determination of which performance obligations are distinct within the context of the overall contract and the estimated standalone selling price of each performance obligation. In instances where our DataV contracts include significant customization or modification services, the customization and modification services are generally combined with the software license and recorded as one distinct performance obligation. We estimate the standalone selling price of each performance obligation based on either a cost-plus-margin approach or an adjusted market assessment approach. In instances where we have observable selling prices for professional services and support and maintenance, we may apply the residual approach to estimate the standalone selling price of software licenses. Professional engineering services We enter into contracts for professional engineering services that include DataV software pilot services, software implementation and customization. We have certain legacy contracts to deliver other engineering services to customers that we will continue to serve as long as they are profitable; some of our legacy services customers may become DataV customers. To date, the majority of our DataV services contracts are fixed fee pilot programs. We identify each performance obligation in our professional engineering services contracts at contract inception. The contracts generally include project deliverables specified by each customer; for DataV services contracts, the goal of the contract is to assess customer data and demonstrate how DataV applications solve the customer’s business use case, with success resulting in a DataV software license. The performance obligations for both DataV and other service contracts are generally combined into one deliverable. The contract pricing is either at stated billing rates per service hour and material costs or at a fixed amount. Services provided under the majority of our legacy non-DataV professional engineering contracts generally result in the transfer of control of the applicable deliverable over time. For most legacy service contracts, we recognize revenue on service contracts based on time and materials as we have the right to invoice. We recognize revenue on fixed fee contracts on the proportion of labor hours expended (under ASC 606, the ‘input method’) to the total hours expected to complete the contract performance obligation. Certain professional engineering contracts include substantive customer acceptance provisions, in which case we recognize revenue upon customer acceptance. For most DataV pilot service contracts we recognize revenue upon completion of the pilot. For contracts that require the input method for revenue recognition, the determination of the total labor hours expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. In certain situations, when it is impractical for us to reasonably measure the outcome of a performance obligation, and where we anticipate that we will not incur a loss, an adjusted cost-based input method is used for revenue recognition. Equal amounts of revenue and cost are recognized during the contract period, and profit is recognized when the project is completed and accepted.
Recently issued accounting pronouncements	Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to make leasing activities more transparent and comparable, requiring most leases to be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-02 is effective for annual periods beginning after December 31, 2018 and interim periods within that year, with early adoption permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” simplifying how an entity is required to test goodwill for impairment by eliminating step two from the goodwill impairment test described above. ASU 2017-04 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted on testing dates after January 1, 2017. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures.

Description of Business and A24

Description of Business and Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Per Share Amounts	The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding, basic 12,594 12,260 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,594 12,260

Revenue Recognition(Tables)

Revenue Recognition(Tables)	12 Months Ended
	Dec. 31, 2017
Revenue From Contract With Customer [Abstract]
Disaggregated Revenue	The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Year Ended December 31, 2017 Third-Party Software Proprietary Software Total Software Professional Engineering Service Total Primary geographical markets: North America $ 63,430 $ 3,950 $ 67,380 $ 8,682 $ 76,062 Europe 1,914 - 1,914 1,191 3,105 Asia 411 696 1,107 537 1,644 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Major products/services lines: Third-party software $ 65,755 $ - $ 65,755 $ - $ 65,755 Proprietary software - 4,646 4,646 - 4,646 Professional engineering services - - - 10,410 10,410 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Timing of revenue recognition: Transferred at a point in time $ 65,608 $ 3,696 $ 69,304 $ 861 $ 70,165 Transferred over time 147 950 1,097 9,549 10,646 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811
Schedule of Contract Balances and Changes in Contract Balances	The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 31, 2017 Receivables $ 18,014 Short-term contract assets 937 Long-term contract assets 30 Short-term contract liabilities (deferred revenue) 3,219 Long-term contract liabilities (deferred revenue) 61 Significant changes in contract assets and liabilities balances were as follows (in thousands): December 31, 2017 Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability at beginning of the period $ - $ 3,068 Transferred to receivables from contract assets recognized at beginning of the period $ 780 $ - (1) Comprised of deferred revenue
Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period, in thousands. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of December 31, 2017. 2018 2019 2020 2021 Third-party software $ 110 $ 36 $ - $ - Proprietary software 2,655 1,133 820 114 Professional engineering services 760 - - -
Summary of Impact of Adoption of Accounting Standards	In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated statements of operations was as follows (in thousands, except per share amounts): Year Ended December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Revenue: Third-party software $ 65,755 $ 65,755 $ — Proprietary software 4,646 2,964 1,682 Professional engineering service 10,410 10,198 212 Total revenue 80,811 78,917 1,894 Cost of revenue: Third-party software 55,161 55,161 — Proprietary software 163 163 — Professional engineering service 7,365 7,277 88 Total cost of revenue 62,689 62,601 88 Gross profit 18,122 16,316 1,806 Operating expenses: Selling, general and administrative 20,982 20,909 73 Research and development 6,561 6,561 — Total operating expenses 27,543 27,470 73 Loss from operations (9,421 ) (11,154 ) 1,733 Other income, net 214 214 — Loss before income taxes (9,207 ) (10,940 ) 1,733 Income tax benefit 149 149 — Net loss $ (9,058 ) $ (10,791 ) $ 1,733 Basic loss per share $ (0.72 ) $ (0.86 ) $ 0.14 Diluted loss per share $ (0.72 ) $ (0.86 ) $ 0.14 In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated balance sheet was as follows (in thousands): December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Assets: Contract assets $ 937 $ 753 $ 184 Other noncurrent assets 89 59 30 Liabilities: Deferred revenue - current 3,219 4,243 (1,024 ) Deferred revenue - noncurrent 61 556 (495 ) Shareholders' Equity: Accumulated deficit (105,276 ) (107,009 ) 1,733

Cash and Investments (Tables)

Cash and Investments (Tables)	12 Months Ended
	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents and Short-Term Investments	Cash, cash equivalents and short-term investments consisted of the following (in thousands): December 31, 2017 2016 Cash $ 6,340 $ 11,016 Cash equivalents (see detail in Note 4) 6,519 3,296 Total cash and cash equivalents 12,859 14,312 Short-term investments (see detail in Note 4) 11,895 18,888 Total cash, cash equivalents, and short-term investments $ 24,754 $ 33,200

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2017
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 were as follows (in thousands): December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 2,274 $ - $ 2,274 Corporate commercial paper - 3,245 3,245 Corporate debt - 1,000 1,000 Total cash equivalents 2,274 4,245 6,519 Short-term investments: Corporate commercial paper - 5,480 5,480 Corporate debt - 6,415 6,415 Total short-term investments - 11,895 11,895 Total assets measured at fair value $ 2,274 $ 16,140 $ 18,414 December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 2,796 $ - $ 2,796 Corporate commercial paper - 500 500 Corporate debt - - - Total cash equivalents 2,796 500 3,296 Short-term investments: Corporate commercial paper - 11,465 11,465 Corporate debt - 7,423 7,423 Total short-term investments - 18,888 18,888 Total assets measured at fair value $ 2,796 $ 19,388 $ 22,184

Equipment, Furniture and Leas28

Equipment, Furniture and Leasehold Improvements (Tables)	12 Months Ended
	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Equipment, Furniture and Leasehold Improvements	Equipment, furniture, and leasehold improvements consisted of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,819 $ 2,929 Office furniture and equipment 321 357 Leasehold improvements 1,189 1,192 Total 3,329 4,478 Less: accumulated depreciation and amortization (2,340 ) (3,389 ) Equipment, furniture and leasehold improvements, net $ 989 $ 1,089

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets Relate to Customer Relationships	Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011 and were as follows (in thousands): Gross Carrying Accumulated Net Carrying Amount Amortization Value Customer relationships: Balance as of December 31, 2017 $ 1,275 $ (910 ) $ 365 Balance as of December 31, 2016 $ 1,275 $ (811 ) $ 464
Expected Amortization Expense for Future Period	Amortization expense in future periods is expected to be as follows (in thousands): 2018 $ 98 2019 98 2020 98 2021 71 Total $ 365

Other Income and Loss (Tables)

Other Income and Loss (Tables)	12 Months Ended
	Dec. 31, 2017
Other Income And Loss [Abstract]
Components of Other Income and Loss	Other income and loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 Interest income $ 238 $ 137 Other income (loss) (24 ) 110 Total $ 214 $ 247

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Pre-Tax Loss	Pre-tax loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 U.S. $ (8,885 ) $ (580 ) Foreign (322 ) (331 ) Total $ (9,207 ) $ (911 )
Income Tax Benefit (Expense)	Income tax benefit (expense) consisted of the following (in thousands): Year Ended December 31, 2017 2016 Current taxes: Federal $ (79 ) $ (24 ) State and local (1 ) 38 Foreign (42 ) 41 Current taxes (122 ) 55 Deferred taxes: Federal - - State and local - - Foreign (27 ) 86 Deferred taxes (27 ) 86 Total $ (149 ) $ 141
Components of Net Deferred Tax Assets and Liabilities	Net deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2017 2016 Depreciation and amortization $ 238 $ 365 Accrued expenses and reserves 148 345 Deferred revenue 508 66 Net operating loss carryforwards 14,561 20,448 Research and development credit carryforwards 3,037 2,740 Stock-based compensation 940 840 Other 10 91 Gross deferred tax assets 19,442 24,895 Less: valuation allowance (19,442 ) (24,911 ) Net deferred tax assets (liability) $ - $ (16 )
Net Deferred Tax Assets and Liabilities	Net deferred tax assets and liabilities were recorded as follows (in thousands): December 31, 2017 2016 Deferred tax assets, non-current $ - $ 7 Deferred tax liability, non-current - (23 ) Net deferred tax assets (liability) $ - $ (16 )
Schedule of Provision for Income Taxes	The provision for income taxes differed from the amount of expected income tax expense determined by applying the applicable U.S. statutory federal income tax rate to pre-tax loss as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 U.S. Federal tax benefit at statutory rates $ (3,130 ) 34.0 % $ (310 ) 34.0 % Impact of: Tax credits (376 ) 4.1 % (170 ) 18.6 % State income tax (1 ) 0.0 % 25 (2.7 )% International operations 168 (1.8 )% 183 (20.1 )% Stock-based compensation (130 ) 1.4 % (23 ) 2.6 % Valuation allowance (5,688 ) 61.8 % 311 (34.2 )% Expiration of state net operating loss carryforwards - (— )% 77 (8.5 )% Impact of tax reform 8,929 (97.0 )% Other, net 79 (0.9 )% 48 (5.4 )% Tax expense (benefit) and effective tax rate $ (149 ) 1.6 % $ 141 (15.7 )%

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Operating Lease Commitments	Operating lease commitments are as follows (in thousands): 2018 $ 1,173 2019 1,038 2020 437 Total $ 2,648

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2017
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: Year Ended December 31, 2017 2016 Dividend yield 0 % 0 % Expected life 6.5 years 6.5 years Expected volatility 52 % 55 % Risk-free interest rate 1.7 % 1.1 %
Stock-Based Compensation Expense	The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Year Ended December 31, 2017 2016 Cost of revenue— professional engineering service $ 107 $ 220 Selling, general and administrative 1,414 868 Research and development 236 159 Total stock-based compensation expense $ 1,757 $ 1,247 Per basic share $ 0.14 $ 0.10 Per diluted share $ 0.14 $ 0.10
Summary of Stock Option Activity	The following table summarizes stock option activity: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2015 1,778,697 $ 4.43 7.83 Granted 903,248 $ 5.24 Exercised (371,845 ) $ 3.17 Forfeited (396,161 ) $ 5.32 Expired (67,171 ) $ 5.91 Balance at December 31, 2016 1,846,768 $ 4.84 8.19 Granted 248,100 $ 5.18 Exercised (54,692 ) $ 3.66 Forfeited (91,411 ) $ 5.31 Expired (36,604 ) $ 5.83 Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Vested and expected to vest at December 31, 2017 1,792,667 $ 4.85 7.52 $ 781,025 Exercisable at December 31, 2017 1,065,767 $ 4.48 6.63 $ 775,767
Summary of Certain Additional Information about Stock Options	The following table summarizes certain additional information about stock options: Year Ended December 31, 2017 2016 Weighted average grant-date fair value for options granted during the year $ 2.62 $ 2.63 Vested options in-the-money 603,925 605,017 Aggregate intrinsic value of options exercised during the year $ 104,512 $ 773,327
Summary of Restricted Stock Unit Activity	The following table summarizes RSU activity : Number of Weighted Average Shares Award Price Unvested at December 31, 2015 104,463 $ 5.97 Granted 107,370 $ 5.41 Vested (76,258 ) $ 5.81 Forfeited (15,969 ) $ 5.77 Unvested at December 31, 2016 119,606 $ 5.60 Granted 79,819 $ 4.98 Vested (82,457 ) $ 5.39 Forfeited — $ — Unvested at December 31, 2017 116,968 $ 5.33 Expected to vest after December 31, 2017 102,796 $ 5.33
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 December 31, 2017: Stock options outstanding 1,912,161 Restricted stock units outstanding 116,968 Stock options available for future grant 1,189,256 Common stock reserved for future issuance 3,218,385

Significant Concentrations (Tab

Significant Concentrations (Tables)	12 Months Ended
	Dec. 31, 2017
Risks And Uncertainties [Abstract]
Summary of Revenue and Accounts Receivable	Honeywell International, Inc. and affiliated entities (“Honeywell”) had revenue and accounts receivable as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 Honeywell revenue $ 12,278 $ 13,696 As a percentage of total revenue 15 % 14 % December 31, 2017 2016 Honeywell accounts receivable $ 8,659 $ 7,075 As a percentage of total accounts receivable 48 % 33 %
Summary of Rebate Program Recorded Under Rebate Credits	Under this rebate program, we recorded rebate credits as follows (in thousands): Year Ended December 31, 2017 2016 Reductions to cost of revenue $ 499 $ 345 Reductions to marketing expense $ 658 $ 1,085

Restructuring (Tables)

Restructuring (Tables)	12 Months Ended
	Dec. 31, 2017
Restructuring And Related Activities [Abstract]
Schedule of Restructuring Charges Included in Operations	We incurred the following restructuring charges in 2016, which represented one-time cash employee termination benefit (mostly related to severance and accrued paid-time-of) and were included in the results of operations as follows (in thousands): Year Ended December 31, 2016 Cost of revenue $ 968 Selling, general and administrative 17 Total $ 985

Information about Operating S36

Information about Operating Segments and Geographic Areas (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Profit and Loss Information of Segments	The following table sets forth profit and loss information about our segments (in thousands): Year Ended December 31, 2017 2016 Third-party software: Revenue $ 65,755 $ 80,231 Cost of revenue 55,161 67,853 Gross profit 10,594 12,378 Proprietary software: Revenue 4,646 1,939 Cost of revenue 163 329 Gross profit 4,483 1,610 Professional Engineering Service: Revenue 10,410 15,271 Cost of revenue 7,365 13,439 Gross profit 3,045 1,832 Total gross profit 18,122 15,820 Operating expenses 27,543 16,978 Other income, net 214 247 Income tax benefit (expense) 149 (141 ) Net loss $ (9,058 ) $ (1,052 )
Revenue and Long-Lived Assets by Geographic Area	Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Year Ended December 31, 2017 2016 Total revenue: North America $ 76,062 $ 92,299 Asia 1,644 2,024 Europe 3,105 3,118 Total revenue $ 80,811 $ 97,441 December 31, 2017 2016 Long-lived assets: North America $ 991 $ 1,025 Asia 76 90 Europe 4,114 4,236 Total long-lived assets $ 5,181 $ 5,351

Quarterly Financial Informati37

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Summary of Condensed Consolidated Statements of Operations	Condensed Consolidated Statements of Operations 2017 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 22,841 $ 18,848 $ 19,653 $ 19,469 Gross profit $ 6,253 $ 3,873 $ 4,380 $ 3,616 Income (loss) from operations $ 41 $ (2,619 ) $ (2,546 ) $ (4,297 ) Net income (loss) $ 202 $ (2,560 ) $ (2,468 ) $ (4,232 ) Basic income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Diluted income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Shares used in per share calculations: Basic 12,550 12,577 12,607 12,640 Diluted 12,848 12,577 12,607 12,640 2016 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 25,439 $ 22,738 $ 22,467 $ 26,797 Gross profit $ 4,296 $ 3,893 $ 3,677 $ 3,954 Income (loss) from operations $ 649 $ (85 ) $ (415 ) $ (1,307 ) Net income (loss) $ 500 $ (185 ) $ (106 ) $ (1,261 ) Basic income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Diluted income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Shares used in per share calculations: Basic 12,102 12,152 12,310 12,473 Diluted 12,531 12,152 12,310 12,473
Summary of Condensed Consolidated Balance Sheets	Condensed Consolidated Balance Sheets 2017 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 30,984 $ 27,296 $ 26,758 $ 24,754 Total current assets $ 49,092 $ 47,077 $ 45,021 $ 44,253 Total assets $ 54,403 $ 52,395 $ 50,247 $ 49,434 Total current liabilities $ 14,310 $ 14,445 $ 14,351 $ 17,427 Total shareholders' equity $ 39,206 $ 37,099 $ 35,238 $ 31,430 2016 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 27,626 $ 26,898 $ 31,577 $ 33,200 Total current assets $ 49,683 $ 47,059 $ 51,844 $ 55,657 Total assets $ 55,389 $ 52,680 $ 57,355 $ 61,008 Total current liabilities $ 16,322 $ 13,407 $ 15,502 $ 20,221 Total shareholders' equity $ 37,873 $ 38,166 $ 38,790 $ 38,112

Description of Business and A38

Description of Business and Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Summary Of Business And Accounting Policies [Line Items]
Entity incorporation date	1994-07
Common stock equivalent shares excluded from computation of diluted per share amounts	1,227,000	691,000
Capitalized software development costs	$ 0	$ 0
Advertising expense	$ 388,000	$ 45,000
Office furniture and equipment [Member]
Summary Of Business And Accounting Policies [Line Items]
Leasehold improvements estimated useful life	3 years
Minimum [Member]
Summary Of Business And Accounting Policies [Line Items]
Intangible assets useful life range	1 year
Minimum [Member] | Leasehold improvements [Member]
Summary Of Business And Accounting Policies [Line Items]
Leasehold improvements estimated useful life	2 years
Maximum [Member]
Summary Of Business And Accounting Policies [Line Items]
Intangible assets useful life range	10 years
Maximum [Member] | Leasehold improvements [Member]
Summary Of Business And Accounting Policies [Line Items]
Leasehold improvements estimated useful life	10 years

Description of Business and A39

Description of Business and Accounting Policies - Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Per Share Amounts (Detail) - shares shares in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Weighted average common shares outstanding, basic	12,640	12,607	12,577	12,550	12,473	12,310	12,152	12,102	12,594	12,260
Weighted average common shares outstanding, diluted	12,640	12,607	12,577	12,848	12,473	12,310	12,152	12,531	12,594	12,260

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2017
Summary Of Accounting Policies [Line Items]
Revenue	$ 19,469,000	$ 19,653,000	$ 18,848,000	$ 22,841,000	$ 26,797,000	$ 22,467,000	$ 22,738,000	$ 25,439,000	$ 80,811,000	$ 97,441,000
Topic 606 [Member]
Summary Of Accounting Policies [Line Items]
Cumulative-effect adjustment to retained earnings											$ 404,000
Asset impairment charges related to contract assets									0
Capitalized contract acquisition costs	$ 87,000								87,000		$ 292,000
Capitalized contract cost, amortization									168,000
Impairment loss in relation to costs capitalized									0
Topic 606 [Member] | Impact of changes in accounting policies, Effect of Change Higher/(Lower) [Member]
Summary Of Accounting Policies [Line Items]
Revenue									$ 1,894,000

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregated Revenue (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	$ 80,811
Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	70,401
Software [Member] | Third Party Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	65,755
Software [Member] | Proprietary Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	4,646
Professional Engineering Service [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	10,410
North America [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	76,062
North America [Member] | Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	67,380
North America [Member] | Software [Member] | Third Party Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	63,430
North America [Member] | Software [Member] | Proprietary Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	3,950
North America [Member] | Professional Engineering Service [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	8,682
Europe [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	3,105
Europe [Member] | Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	1,914
Europe [Member] | Software [Member] | Third Party Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	1,914
Europe [Member] | Professional Engineering Service [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	1,191
Asia [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	1,644
Asia [Member] | Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	1,107
Asia [Member] | Software [Member] | Third Party Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	411
Asia [Member] | Software [Member] | Proprietary Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	696
Asia [Member] | Professional Engineering Service [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	537
Transferred at a point in time [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	70,165
Transferred at a point in time [Member] | Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	69,304
Transferred at a point in time [Member] | Software [Member] | Third Party Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	65,608
Transferred at a point in time [Member] | Software [Member] | Proprietary Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	3,696
Transferred at a point in time [Member] | Professional Engineering Service [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	861
Transferred over time [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	10,646
Transferred over time [Member] | Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	1,097
Transferred over time [Member] | Software [Member] | Third Party Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	147
Transferred over time [Member] | Software [Member] | Proprietary Software [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	950
Transferred over time [Member] | Professional Engineering Service [Member]
Disaggregation Of Revenue [Line Items]
Disaggregated revenue	$ 9,549

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Revenue From Contract With Customer [Abstract]
Receivables	$ 18,014	$ 21,579
Short-term contract assets	937
Long-term contract assets	30
Short-term contract liabilities (deferred revenue)	3,219	2,064
Long-term contract liabilities (deferred revenue)	$ 61	$ 1,798

Revenue Recognition - Schedul43

Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Changes in the Contract Assets
Transferred to receivables from contract assets recognized at beginning of the period	$ 780
Changes in the Contract Liabilities
Revenue recognized that was included in the contract liability at beginning of the period	$ 3,068

Revenue Recognition - Estimated

Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
2,018
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue, expected recognition period	1 year
2,019
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue, expected recognition period	1 year
2,020
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue, expected recognition period	1 year
2,021
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue, expected recognition period	1 year
Software [Member] | 2018 | Third-Party Software [Member]
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	$ 110
Software [Member] | 2018 | Proprietary Software [Member]
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	2,655
Software [Member] | 2019 | Third-Party Software [Member]
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	36
Software [Member] | 2019 | Proprietary Software [Member]
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	1,133
Software [Member] | 2020 | Proprietary Software [Member]
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	820
Software [Member] | 2021 | Proprietary Software [Member]
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	114
Professional Engineering Services [Member] | 2018
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Estimated revenue expected to be recognized in future	$ 760

Revenue Recognition - Summary o

Revenue Recognition - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Revenue:
Professional engineering service									$ 10,410	$ 15,271
Total revenue	$ 19,469	$ 19,653	$ 18,848	$ 22,841	$ 26,797	$ 22,467	$ 22,738	$ 25,439	80,811	97,441
Cost of revenue:
Professional engineering service									7,365	13,439
Total cost of revenue									62,689	81,621
Gross profit	3,616	4,380	3,873	6,253	3,954	3,677	3,893	4,296	18,122	15,820
Operating expenses:
Selling, general and administrative									20,982	14,119
Research and development									6,561	2,859
Total operating expenses									27,543	16,978
Loss from operations	(4,297)	(2,546)	(2,619)	41	(1,307)	(415)	(85)	649	(9,421)	(1,158)
Other income, net									214	247
Loss before income taxes									(9,207)	(911)
Income tax benefit									149	(141)
Net loss	$ (4,232)	$ (2,468)	$ (2,560)	$ 202	$ (1,261)	$ (106)	$ (185)	$ 500	$ (9,058)	$ (1,052)
Basic loss per share	$ (0.33)	$ (0.20)	$ (0.20)	$ 0.02	$ (0.10)	$ (0.01)	$ (0.02)	$ 0.04	$ (0.72)	$ (0.09)
Diluted loss per share	$ (0.33)	$ (0.20)	$ (0.20)	$ 0.02	$ (0.10)	$ (0.01)	$ (0.02)	$ 0.04	$ (0.72)	$ (0.09)
ASSETS
Contract assets	$ 937								$ 937
Other noncurrent assets	89				$ 53				89	$ 53
Liabilities:
Deferred revenue - current	3,219				2,064				3,219	2,064
Deferred revenue - noncurrent	61				1,798				61	1,798
Shareholders' Equity:
Accumulated deficit	(105,276)				$ (96,607)				(105,276)	(96,607)
Third Party Software [Member]
Revenue:
Software									65,755	80,231
Cost of revenue:
Software									55,161	67,853
Proprietary Software [Member]
Revenue:
Software									4,646	1,939
Cost of revenue:
Software									163	$ 329
Topic 606 [Member] | Balances without adoption of Topic 606 [Member]
Revenue:
Professional engineering service									10,198
Total revenue									78,917
Cost of revenue:
Professional engineering service									7,277
Total cost of revenue									62,601
Gross profit									16,316
Operating expenses:
Selling, general and administrative									20,909
Research and development									6,561
Total operating expenses									27,470
Loss from operations									(11,154)
Other income, net									214
Loss before income taxes									(10,940)
Income tax benefit									149
Net loss									$ (10,791)
Basic loss per share									$ (0.86)
Diluted loss per share									$ (0.86)
ASSETS
Contract assets	753								$ 753
Other noncurrent assets	59								59
Liabilities:
Deferred revenue - current	4,243								4,243
Deferred revenue - noncurrent	556								556
Shareholders' Equity:
Accumulated deficit	(107,009)								(107,009)
Topic 606 [Member] | Effect of change - higher (lower) [Member]
Revenue:
Professional engineering service									212
Total revenue									1,894
Cost of revenue:
Professional engineering service									88
Total cost of revenue									88
Gross profit									1,806
Operating expenses:
Selling, general and administrative									73
Total operating expenses									73
Loss from operations									1,733
Loss before income taxes									1,733
Net loss									$ 1,733
Basic loss per share									$ 0.14
Diluted loss per share									$ 0.14
ASSETS
Contract assets	184								$ 184
Other noncurrent assets	30								30
Liabilities:
Deferred revenue - current	(1,024)								(1,024)
Deferred revenue - noncurrent	(495)								(495)
Shareholders' Equity:
Accumulated deficit	$ 1,733								1,733
Topic 606 [Member] | Third Party Software [Member] | Balances without adoption of Topic 606 [Member]
Revenue:
Software									65,755
Cost of revenue:
Software									55,161
Topic 606 [Member] | Proprietary Software [Member] | Balances without adoption of Topic 606 [Member]
Revenue:
Software									2,964
Cost of revenue:
Software									163
Topic 606 [Member] | Proprietary Software [Member] | Effect of change - higher (lower) [Member]
Revenue:
Software									$ 1,682

Cash and Investments - Cash, Ca

Cash and Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash And Cash Equivalents [Abstract]
Cash	$ 6,340	$ 11,016
Cash equivalents	6,519	3,296
Total cash and cash equivalents	12,859	14,312	$ 16,443
Short-term investments	11,895	18,888
Total cash, cash equivalents, and short-term investments	$ 24,754	$ 33,200

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Short-term investments:
Total short-term investments	$ 11,895	$ 18,888
Recurring basis [Member]
Cash equivalents:
Total cash equivalents	6,519	3,296
Short-term investments:
Total short-term investments	11,895	18,888
Total assets measured at fair value	18,414	22,184
Recurring basis [Member] | Corporate commercial paper [Member]
Cash equivalents:
Total cash equivalents	3,245	500
Short-term investments:
Total short-term investments	5,480	11,465
Recurring basis [Member] | Corporate debt [Member]
Cash equivalents:
Total cash equivalents	1,000
Short-term investments:
Total short-term investments	6,415	7,423
Recurring basis [Member] | Money market funds [Member]
Cash equivalents:
Total cash equivalents	2,274	2,796
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member]
Cash equivalents:
Total cash equivalents	2,274	2,796
Short-term investments:
Total assets measured at fair value	2,274	2,796
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | Money market funds [Member]
Cash equivalents:
Total cash equivalents	2,274	2,796
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member]
Cash equivalents:
Total cash equivalents	4,245	500
Short-term investments:
Total short-term investments	11,895	18,888
Total assets measured at fair value	16,140	19,388
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | Corporate commercial paper [Member]
Cash equivalents:
Total cash equivalents	3,245	500
Short-term investments:
Total short-term investments	5,480	11,465
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | Corporate debt [Member]
Cash equivalents:
Total cash equivalents	1,000
Short-term investments:
Total short-term investments	$ 6,415	$ 7,423

Equipment, Furniture and Leas48

Equipment, Furniture and Leasehold Improvements - Equipment, Furniture and Leasehold Improvements (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total	$ 3,329	$ 4,478
Less: accumulated depreciation and amortization	(2,340)	(3,389)
Equipment, furniture and leasehold improvements, net	989	1,089
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Total	1,819	2,929
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Total	321	357
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total	$ 1,189	$ 1,192

Equipment, Furniture and Leas49

Equipment, Furniture and Leasehold Improvements - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Depreciation and amortization expense	$ 536,000	$ 468,000

Goodwill and Intangible Asset50

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Change in carrying amount of goodwill	$ 0	$ 0
Amortization expense	$ 98,000	$ 130,000

Goodwill and Intangible Asset51

Goodwill and Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Net Carrying Value	$ 365	$ 464
Customer relationships [Member] | TestQuest, Inc and BSQUARE EMEA, Ltd [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,275	1,275
Accumulated Amortization	(910)	(811)
Net Carrying Value	$ 365	$ 464

Goodwill and Intangible Asset52

Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
2,018	$ 98
2,019	98
2,020	98
2,021	71
Net Carrying Value	$ 365	$ 464

Other Income and Loss - Compone

Other Income and Loss - Components of Other Income and Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Other Income And Loss [Abstract]
Interest income	$ 238	$ 137
Other income (loss)	(24)	110
Total	$ 214	$ 247

Income Taxes - Schedule of Pre-

Income Taxes - Schedule of Pre-Tax Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
U.S.	$ (8,885)	$ (580)
Foreign	(322)	(331)
Loss before income taxes	$ (9,207)	$ (911)

Income Taxes - Income Tax Benef

Income Taxes - Income Tax Benefit (Expense) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Current taxes:
Federal current taxes	$ (79)	$ (24)
State and local current taxes	(1)	38
Foreign current taxes	(42)	41
Total current taxes	(122)	55
Deferred taxes:
Foreign deferred taxes	(27)	86
Total deferred taxes	(27)	86
Total Income tax expense (benefit)	$ (149)	$ 141

Income Taxes - Components of Ne

Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Net deferred income tax assets (liability):
Depreciation and amortization	$ 238	$ 365
Accrued expenses and reserves	148	345
Deferred revenue	508	66
Net operating loss carryforwards	14,561	20,448
Research and development credit carryforwards	3,037	2,740
Stock-based compensation	940	840
Other	10	91
Gross deferred tax assets	19,442	24,895
Less: valuation allowance	$ (19,442)	(24,911)
Net deferred tax liability		$ (16)

Income Taxes - Net Deferred Tax

Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Net deferred tax assets (liability):
Deferred tax assets, non-current	$ 7
Deferred tax liability, non-current	(23)
Net deferred tax liability	$ (16)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Reduction in net deferred tax assets to reflect new statutory rate		$ 8,900,000
Tax credit carryforwards		$ 3,000,000
Tax credit carryforwards expiration period		2,018
Period of increase in ownership		3 years
Unrealized tax benefits		$ 0	$ 0
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward		61,600,000
Domestic Tax Authority [Member] | Expire in 2022 and 2023 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward		$ 36,300,000
Domestic Tax Authority [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards expiration period		2,022
Domestic Tax Authority [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards expiration period		2,023
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward		$ 4,400,000
Expired state net operating losses		$ 1,200,000
Operating loss carryforwards expiration period		2,026
US [Member]
Operating Loss Carryforwards [Line Items]
US federal corporate tax rate		35.00%
Scenario, Forecast [Member]
Operating Loss Carryforwards [Line Items]
Global intangible low tax income, effective tax rate	10.50%
Scenario, Forecast [Member] | US [Member]
Operating Loss Carryforwards [Line Items]
US federal corporate tax rate	21.00%

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
U.S. Federal tax benefit at statutory rates	$ (3,130)	$ (310)
Impact of:
Tax credits	(376)	(170)
State income tax	(1)	25
International operations	168	183
Stock-based compensation	(130)	(23)
Valuation allowance	(5,688)	311
Expiration of state net operating loss carryforwards		77
Impact of tax reform	8,929
Other, net	79	48
Total Income tax expense (benefit)	$ (149)	$ 141
U.S. Federal tax benefit at statutory rates	34.00%	34.00%
Impact of:
Tax credits	4.10%	18.60%
State income tax	0.00%	(2.70%)
International operations	(1.80%)	(20.10%)
Stock-based compensation	1.40%	2.60%
Valuation allowance	61.80%	(34.20%)
Expiration of state net operating loss carryforwards		(8.50%)
Impact of tax reform	(97.00%)
Other, net	(0.90%)	(5.40%)
Tax expense (benefit) and effective tax rate	1.60%	(15.70%)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Operating leases, expiration year	2,020
Rent expense	$ 1,000,000	$ 1,000,000
Restricted cash equivalents	$ 250,000

Commitments and Contingencies61

Commitments and Contingencies - Operating Lease Commitments (Detail) $ in Thousands	Dec. 31, 2017USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
2,018	$ 1,173
2,019	1,038
2,020	437
Total	$ 2,648

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017USD ($)
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	$ 1,016,877
Amortization cost, weighted-average period	1 year 6 months
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 1 month 13 days
Compensation cost related to restricted stock units granted but not recognized, net of estimated forfeitures	$ 237,386

Shareholders' Equity - Fair Val

Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected life	6 years 6 months	6 years 6 months
Expected volatility	52.00%	55.00%
Risk-free interest rate	1.70%	1.10%

Shareholders' Equity - Stock-Ba

Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 1,757	$ 1,247
Per basic share	$ 0.14	$ 0.10
Per diluted share	$ 0.14	$ 0.10
Cost of revenue- professional engineering service [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 107	$ 220
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,414	868
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 236	$ 159

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Number of Shares, Beginning Balance	1,846,768	1,778,697
Granted, Number of Shares	248,100	903,248
Exercised, Number of Shares	(54,692)	(371,845)
Forfeited, Number of Shares	(91,411)	(396,161)
Expired, Number of Shares	(36,604)	(67,171)
Number of Shares, Ending Balance	1,912,161	1,846,768	1,778,697
Vested and expected to vest, Number of Shares, Ending Balance	1,792,667
Exercisable, Number of Shares, Ending Balance	1,065,767
Weighted Average Exercise Price, Beginning Balance	$ 4.84	$ 4.43
Granted, Weighted Average Exercise Price	5.18	5.24
Exercised, Weighted Average Exercise Price	3.66	3.17
Forfeited, Weighted Average Exercise Price	5.31	5.32
Expired, Weighted Average Exercise Price	5.83	5.91
Weighted Average Exercise Price, Ending Balance	4.88	$ 4.84	$ 4.43
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance	4.85
Exercisable, Weighted Average Exercise Price, Ending Balance	$ 4.48
Balance outstanding, Weighted Average Remaining Contractual Life (in years)	7 years 7 months 9 days	8 years 2 months 8 days	7 years 9 months 29 days
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years)	7 years 6 months 7 days
Exercisable, Weighted Average Remaining Contractual Life (in years)	6 years 7 months 17 days
Balance outstanding, Aggregate Intrinsic Value	$ 781,735
Vested and expected to vest, Aggregate Intrinsic Value	781,025
Exercisable, Aggregate Intrinsic Value	$ 775,767

Shareholders' Equity - Summar66

Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average grant-date fair value for options granted during the year	$ 2.62	$ 2.63
Vested options in-the-money	603,925	605,017
Aggregate intrinsic value of options exercised during the year	$ 104,512	$ 773,327

Shareholders' Equity - Summar67

Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Number of Shares, Ending Balance	116,968
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Number of Shares, Beginning Balance	119,606	104,463
Granted, Number of Shares	79,819	107,370
Vested, Number of Shares	(82,457)	(76,258)
Forfeited, Number of Shares		(15,969)
Unvested, Number of Shares, Ending Balance	116,968	119,606
Expected to vest, Number of Shares, Ending Balance	102,796
Unvested, Weighted Average Award Price, Beginning Balance	$ 5.60	$ 5.97
Granted, Weighted Average Award Price	4.98	5.41
Vested, Weighted Average Award Price	5.39	5.81
Forfeited, Weighted Average Award Price		5.77
Unvested, Weighted Average Award Price, Ending Balance	5.33	$ 5.60
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance	$ 5.33

Shareholders' Equity - Summar68

Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract]
Stock options outstanding	1,912,161	1,846,768	1,778,697
Restricted stock units outstanding	116,968
Stock options available for future grant	1,189,256
Common stock reserved for future issuance	3,218,385

Employee Benefit Plan - Additio

Employee Benefit Plan - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
General Discussion Of Pension And Other Postretirement Benefits [Abstract]
Profit Sharing and Deferred Compensation Plan	$ 410,000	$ 321,000

Significant Concentrations - Su

Significant Concentrations - Summary of Revenue and Accounts Receivable (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Revenue	$ 19,469	$ 19,653	$ 18,848	$ 22,841	$ 26,797	$ 22,467	$ 22,738	$ 25,439	$ 80,811	$ 97,441
Accounts receivable	18,014				21,579				18,014	21,579
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue									12,278	13,696
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 8,659				$ 7,075				$ 8,659	$ 7,075
Honeywell International Inc and affiliated entities [Member] | Revenue [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage									15.00%	14.00%
Honeywell International Inc and affiliated entities [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage									48.00%	33.00%

Significant Concentrations - Ad

Significant Concentrations - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Concentration Risk [Line Items]
Expiration date one of OEM Distribution agreements for embedded operating systems	Jun. 30, 2018
Expiration date of OEM Distribution agreements for mobile operating systems, non-EMEA	Jun. 30, 2018
Rebate credits outstanding	$ 411,000
Cost of revenue [Member]
Concentration Risk [Line Items]
Allocation of rebate values, percentage	30.00%
Reduction in marketing expense [Member]
Concentration Risk [Line Items]
Allocation of rebate values, percentage	70.00%

Significant Concentrations - 72

Significant Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cost of revenue [Member]
Concentration Risk [Line Items]
Earnings under the rebate program	$ 499	$ 345
Reductions to marketing expense [Member]
Concentration Risk [Line Items]
Earnings under the rebate program	$ 658	$ 1,085

Credit Agreement - Additional I

Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - USD ($)	1 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2017	Dec. 31, 2016
Line Of Credit Facility [Line Items]
Letter of credit, agreement amount	$ 250,000
Unsecured Line of Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Line of credit, interest rate description			The Credit Agreement shall bear interest at either (1) a rate per annum equal to 1.5% below the bank’s applicable prime rate or (2) 1.5% above the Bank’s applicable LIBOR rate, in each case as defined in the Credit Agreement.
Line of credit, final due date	Sep. 22, 2018
Line of credit, amount outstanding			$ 0	$ 0
Unsecured Line of Credit Agreement [Member] | Prime Rate [Member] | Minimum [Member]
Line Of Credit Facility [Line Items]
Line of credit, interest rate, basis spread on variable rate			1.50%
Unsecured Line of Credit Agreement [Member] | LIBOR Rate [Member] | Maximum [Member]
Line Of Credit Facility [Line Items]
Line of credit, interest rate, basis spread on variable rate			1.50%
Unsecured Line of Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member]
Line Of Credit Facility [Line Items]
Line of credit, term		2 years
Line of credit, maximum borrowing capacity	$ 11,750,000	$ 12,000,000

Restructuring - Additional Info

Restructuring - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2016Employee
Restructuring And Related Activities [Abstract]
Number of employees impacted by workforce reduction	33
Percentage of pre-reduction headcount impacted by workforce reduction	17.00%

Restructuring - Schedule of Res

Restructuring - Schedule of Restructuring Charges Included in Operations (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Restructuring costs and Reserve [Line Items]
Total restructuring charges	$ 985
Cost of revenue [Member]
Restructuring costs and Reserve [Line Items]
Total restructuring charges	968
Selling, general and administrative [Member]
Restructuring costs and Reserve [Line Items]
Total restructuring charges	$ 17

Information about Operating S76

Information about Operating Segments and Geographic Areas - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017Segment
Segment Reporting [Abstract]
Number of reportable segment	3
Number of operating segment	3

Information about Operating S77

Information about Operating Segments and Geographic Areas - Profit and Loss Information of Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 19,469	$ 19,653	$ 18,848	$ 22,841	$ 26,797	$ 22,467	$ 22,738	$ 25,439	$ 80,811	$ 97,441
Cost of revenue									62,689	81,621
Gross profit	3,616	4,380	3,873	6,253	3,954	3,677	3,893	4,296	18,122	15,820
Operating expenses									27,543	16,978
Other income, net									214	247
Income tax benefit (expense)									149	(141)
Net loss	$ (4,232)	$ (2,468)	$ (2,560)	$ 202	$ (1,261)	$ (106)	$ (185)	$ 500	(9,058)	(1,052)
Third Party Software [Member]
Segment Reporting Information [Line Items]
Revenue									65,755	80,231
Cost of revenue									55,161	67,853
Gross profit									10,594	12,378
Proprietary Software [Member]
Segment Reporting Information [Line Items]
Revenue									4,646	1,939
Cost of revenue									163	329
Gross profit									4,483	1,610
Professional Engineering Services [Member]
Segment Reporting Information [Line Items]
Revenue									10,410	15,271
Cost of revenue									7,365	13,439
Gross profit									$ 3,045	$ 1,832

Information about Operating S78

Information about Operating Segments and Geographic Areas - Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Total revenue:
Total revenue	$ 19,469	$ 19,653	$ 18,848	$ 22,841	$ 26,797	$ 22,467	$ 22,738	$ 25,439	$ 80,811	$ 97,441
Long-lived assets:
Total long-lived assets	5,181				5,351				5,181	5,351
North America [Member]
Total revenue:
Total revenue									76,062	92,299
Long-lived assets:
Total long-lived assets	991				1,025				991	1,025
Asia [Member]
Total revenue:
Total revenue									1,644	2,024
Long-lived assets:
Total long-lived assets	76				90				76	90
Europe [Member]
Total revenue:
Total revenue									3,105	3,118
Long-lived assets:
Total long-lived assets	$ 4,114				$ 4,236				$ 4,114	$ 4,236

Quarterly Financial Informati79

Quarterly Financial Information (Unaudited) - Summary of Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 19,469	$ 19,653	$ 18,848	$ 22,841	$ 26,797	$ 22,467	$ 22,738	$ 25,439	$ 80,811	$ 97,441
Gross profit	3,616	4,380	3,873	6,253	3,954	3,677	3,893	4,296	18,122	15,820
Income (loss) from operations	(4,297)	(2,546)	(2,619)	41	(1,307)	(415)	(85)	649	(9,421)	(1,158)
Net income (loss)	$ (4,232)	$ (2,468)	$ (2,560)	$ 202	$ (1,261)	$ (106)	$ (185)	$ 500	$ (9,058)	$ (1,052)
Basic income (loss) per share	$ (0.33)	$ (0.20)	$ (0.20)	$ 0.02	$ (0.10)	$ (0.01)	$ (0.02)	$ 0.04	$ (0.72)	$ (0.09)
Diluted income (loss) per share	$ (0.33)	$ (0.20)	$ (0.20)	$ 0.02	$ (0.10)	$ (0.01)	$ (0.02)	$ 0.04	$ (0.72)	$ (0.09)
Shares used in per share calculations:
Basic	12,640	12,607	12,577	12,550	12,473	12,310	12,152	12,102	12,594	12,260
Diluted	12,640	12,607	12,577	12,848	12,473	12,310	12,152	12,531	12,594	12,260

Quarterly Financial Informati80

Quarterly Financial Information (Unaudited) - Summary of Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Cash, cash equivalents and short-term investments	$ 24,754	$ 26,758	$ 27,296	$ 30,984	$ 33,200	$ 31,577	$ 26,898	$ 27,626
Total current assets	44,253	45,021	47,077	49,092	55,657	51,844	47,059	49,683
Total assets	49,434	50,247	52,395	54,403	61,008	57,355	52,680	55,389
Total current liabilities	17,427	14,351	14,445	14,310	20,221	15,502	13,407	16,322
Total shareholders' equity	$ 31,430	$ 35,238	$ 37,099	$ 39,206	$ 38,112	$ 38,790	$ 38,166	$ 37,873	$ 36,907