Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BSQR | |
Entity Registrant Name | BSQUARE CORP /WA | |
Entity Central Index Key | 1,054,721 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 12,747,225 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 11,392 | $ 12,859 |
Short-term investments | 5,879 | 11,895 |
Accounts receivable, net of allowance for doubtful accounts of $49 and $50 at September 30, 2018 and December 31, 2017, respectively | 13,124 | 18,014 |
Contract assets | 1,030 | 937 |
Prepaid expenses and other current assets | 677 | 548 |
Total current assets | 32,102 | 44,253 |
Equipment, furniture and leasehold improvements, less accumulated depreciation | 1,306 | 989 |
Intangible assets, less accumulated amortization | 291 | 365 |
Goodwill | 3,738 | 3,738 |
Other non-current assets | 211 | 89 |
Total assets | 37,648 | 49,434 |
Current liabilities: | ||
Third-party software fees payable | 7,882 | 10,547 |
Accounts payable | 329 | 375 |
Accrued compensation | 2,016 | 2,266 |
Other accrued expenses | 535 | 681 |
Deferred rent | 355 | 339 |
Deferred revenue | 1,627 | 3,219 |
Total current liabilities | 12,744 | 17,427 |
Deferred rent, long-term | 247 | 516 |
Deferred revenue, long-term | 799 | 61 |
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; 12,747,225 and 12,664,489 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 138,223 | 137,622 |
Accumulated other comprehensive loss | (885) | (916) |
Accumulated deficit | (113,480) | (105,276) |
Total shareholders' equity | 23,858 | 31,430 |
Total liabilities and shareholders' equity | $ 37,648 | $ 49,434 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 49 | $ 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 | 12,747,225 | 12,664,489 |
Common stock, shares outstanding | 12,747,225 | 12,664,489 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 16,694 | $ 19,653 | $ 56,575 | $ 61,342 |
Cost of revenue: | ||||
Total cost of revenue | 13,335 | 15,273 | 44,755 | 46,836 |
Gross profit | 3,359 | 4,380 | 11,820 | 14,506 |
Operating expenses: | ||||
Selling, general and administrative | 3,199 | 5,338 | 13,548 | 15,249 |
Research and development | 2,292 | 1,588 | 6,600 | 4,381 |
Total operating expenses | 5,491 | 6,926 | 20,148 | 19,630 |
Loss from operations | (2,132) | (2,546) | (8,328) | (5,124) |
Other income, net | 65 | 34 | 156 | 148 |
Loss before income taxes | (2,067) | (2,512) | (8,172) | (4,976) |
Income tax benefit (expense) | (20) | 44 | (32) | 150 |
Net loss | $ (2,087) | $ (2,468) | $ (8,204) | $ (4,826) |
Basic loss per share | $ (0.16) | $ (0.20) | $ (0.65) | $ (0.38) |
Diluted loss per share | $ (0.16) | $ (0.20) | $ (0.65) | $ (0.38) |
Shares used in per share calculations: | ||||
Basic | 12,721 | 12,607 | 12,697 | 12,578 |
Diluted | 12,721 | 12,607 | 12,697 | 12,578 |
Net loss | $ (2,087) | $ (2,468) | $ (8,204) | $ (4,826) |
Other comprehensive income | ||||
Foreign currency translation, net of tax | 15 | 14 | 25 | 36 |
Unrealized gain (loss) on investments, net of tax | 4 | (3) | 6 | |
Total other comprehensive income | 19 | 11 | 31 | 36 |
Comprehensive loss | (2,068) | (2,457) | (8,173) | (4,790) |
Third Party Software [Member] | ||||
Revenue: | ||||
Total revenue | 14,241 | 16,240 | 47,297 | 48,542 |
Cost of revenue: | ||||
Total cost of revenue | 12,003 | 13,619 | 39,837 | 40,804 |
Gross profit | 2,238 | 2,621 | 7,460 | 7,738 |
Proprietary Software [Member] | ||||
Revenue: | ||||
Total revenue | 796 | 1,200 | 2,872 | 4,335 |
Cost of revenue: | ||||
Total cost of revenue | 111 | 34 | 252 | 105 |
Gross profit | 685 | 1,166 | 2,620 | 4,230 |
Professional Engineering Service [Member] | ||||
Revenue: | ||||
Total revenue | 1,657 | 2,213 | 6,406 | 8,465 |
Cost of revenue: | ||||
Total cost of revenue | 1,221 | 1,620 | 4,666 | 5,927 |
Gross profit | $ 436 | $ 593 | $ 1,740 | $ 2,538 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (8,204) | $ (4,826) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 466 | 483 |
Stock-based compensation | 620 | 1,350 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 4,890 | 4,219 |
Contract assets | (244) | 389 |
Prepaid expenses and other assets | (112) | (84) |
Third-party software fees payable | (2,665) | (6,869) |
Accounts payable and accrued expenses | (442) | 427 |
Deferred revenue | (854) | (1,149) |
Deferred rent | (253) | (238) |
Net cash used in operating activities | (6,798) | (6,298) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (709) | (344) |
Proceeds from maturities of short-term investments | 14,125 | 25,702 |
Purchases of short-term investments | (8,092) | (20,440) |
Net cash provided by investing activities | 5,324 | 4,918 |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 9 | 174 |
Effect of exchange rate changes on cash and cash equivalents | (2) | 25 |
Net decrease in cash and cash equivalents | (1,467) | (1,181) |
Cash and cash equivalents, beginning of period | 12,859 | 14,312 |
Cash and cash equivalents, end of period | $ 11,392 | $ 13,131 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“BSQUARE”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of BSQUARE and our wholly owned subsidiaries. In the Condensed Consolidated Statements of Operations and Comprehensive Loss, prior period software revenue has been separately presented as third-party software and proprietary software to conform to current period presentation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2018, our operating results for the three and nine months ended September 30, 2018 and 2017 and our cash flows for the nine months ended September 30, 2018 and 2017. The accompanying financial information as of December 31, 2017 is derived from audited financial statements as of that date. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 22, 2018. All intercompany balances have been eliminated. Recently Issued Accounting Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”), 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 expect to adopt ASU 2016-02 effective January 1, 2019 and elect an optional transition method, recording a cumulative-effect adjustment as of that date and presenting comparative prior year periods in accordance with Accounting Standards Codification Topic 840. In addition, we expect to apply a package of practical expedients to forego reassessing: • whether any expired or existing contracts are or contain leases, • lease classification for any expired or existing leases, and • initial direct costs for any existing leases. We are continuing to evaluate the full impact of adoption and expect this ASU will have a material impact on our consolidated balance sheets 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” (“ASU 2017-04”), Loss Per Share We compute basic loss per share using the weighted average number of common shares outstanding during the period. We consider restricted stock units as outstanding common shares and include them in the computation of basic loss per share only when vested. We compute diluted loss per share using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 1,679,969 1,455,713 1,584,046 1,429,883 Restricted stock units 51,679 63,709 64,043 52,579 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On January 1, 2017, we adopted ASU 2014-09, “Revenue from Contracts with Customers” (“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. Disaggregation of revenue The following table provides information about disaggregated revenue by primary geographical market and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 13,715 $ 288 $ 1,438 $ 15,441 $ 15,615 $ 532 $ 1,835 $ 17,982 Europe 526 2 146 674 520 — 276 796 Asia — 506 73 579 105 668 102 875 Total $ 14,241 $ 796 $ 1,657 $ 16,694 $ 16,240 $ 1,200 $ 2,213 $ 19,653 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 45,115 $ 2,236 $ 5,558 $ 52,909 $ 46,867 $ 3,650 $ 6,963 $ 57,480 Europe 1,821 107 574 2,502 1,380 — 1,053 2,433 Asia 361 529 274 1,164 295 685 449 1,429 Total $ 47,297 $ 2,872 $ 6,406 $ 56,575 $ 48,542 $ 4,335 $ 8,465 $ 61,342 Contract balances We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance obligations not yet invoiced and deferred contract acquisition costs, which are amortized over time as the associated revenue is recognized. Contract liabilities, presented as deferred revenue on our condensed consolidated balance sheets, include payments received in advance of performance under the contract and are realized when the associated revenue is recognized. We had no asset impairment charges related to contract assets for each of the three and nine months ended September 30, 2018 and 2017. Significant changes in the contract assets and the deferred revenue balances during the nine months ended September 30, 2018 Nine Months Ended September 30, 2018 Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2017 $ — $ 2,847 Transferred to receivables from contract assets recognized at December 31, 2017 263 — Contract acquisition costs We capitalize contract acquisition costs for contracts with a term exceeding one year, as is more common with our DataV software bookings. A mortization of contract acquisition costs was $7,000 and $12,000 for the three months ended September 30, 2018 and 2017, respectively, and was $93,000 and $160,000 for the nine months ended September 30, 2018 and 2017, respectively. There were no asset impairment charges for contract acquisitions costs for any of the periods noted above. For contracts that have a duration of less than one year, we apply a practical expedient and fully expense these costs as incurred. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period (in thousands). The estimated revenue does not 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 September 30, 2018: Remainder of 2018 2019 2020 2021 Third-party software $ 24 $ 50 $ 14 $ — Proprietary software 853 1,827 1,802 687 Professional engineering service 230 — — — Practical expedients and exemptions We generally expense sales commissions when incurred because the amortization period is less than one year. We record these costs within selling, general and administrative expenses. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 9 Months Ended |
Sep. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | 3. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments consisted of the following (in thousands): September 30, 2018 December 31, 2017 Cash $ 7,665 $ 6,340 Cash equivalents (see Note 4) 3,727 6,519 Total cash and cash equivalents 11,392 12,859 Short-term investments (see Note 4) 5,879 11,895 Total cash, cash equivalents and short-term investments $ 17,271 $ 24,754 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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. Assets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 are summarized below (in thousands): September 30, 2018 December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 1,981 $ — $ 1,981 $ 2,274 $ — $ 2,274 Corporate commercial paper — 1,746 1,746 — 3,245 3,245 Corporate debt — — — — 1,000 1,000 Total cash equivalents 1,981 1,746 3,727 2,274 4,245 6,519 Short-term investments: Corporate commercial paper — 3,231 3,231 — 5,480 5,480 Corporate debt — 2,648 2,648 — 6,415 6,415 Total short-term investments — 5,879 5,879 — 11,895 11,895 Total assets measured at fair value $ 1,981 $ 7,625 $ 9,606 $ 2,274 $ 16,140 $ 18,414 As of September 30, 2018, and December 31, 2017, contractual maturities of our short-term investments were less than one year, and gross unrealized gains and losses on those investments were not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill was originally recorded in September 2011 in connection with the 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. There were no changes in the carrying amount of goodwill during the three and nine months ended September 30, 2018. Intangible assets are related to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011. Information regarding our intangible assets is as follows (in thousands): September 30, 2018 December 31, 2017 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (984 ) $ 291 $ 1,275 $ (910 ) $ 365 Amortization expense was $25,000 for each of the three months ended September 30, 2018 and 2017, and $74,000 for each of the nine months ended September 30, 2018 and 2017. Amortization in future periods is expected to be as follows (in thousands): Remainder of 2018 $ 24 2019 98 2020 98 2021 71 Total $ 291 |
Credit Agreement
Credit Agreement | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 6. Credit Agreement Line of Credit On September 22, 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. On September 29, 2016, the Credit Agreement was modified to extend the final due date for an additional year to September 22, 2018. At our election, advances under the Credit Agreement bore 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 contained 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 was an ongoing event of default or to the extent such distribution caused an event of default. We were required to maintain certain minimum interest coverage ratios, liquidity levels and asset coverage ratios as defined in the Credit Agreement. 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, was reduced to $11.75 million while the Credit Agreement was in effect. The Credit Agreement expired on September 22, 2018 in accordance with its terms with no amounts outstanding. There were no amounts outstanding under the Credit Agreement at December 31, 2017. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Equity Compensation Plans We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (together with the Stock Plan, the “Plans”). Under the Plans, stock options to purchase shares of our common stock may be granted with a fixed exercise price that is equal 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 restricted stock units (“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 activities. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock option awards is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dividend yield 0 % 0 % 0 % 0 % Expected life 4.4 years 3.3 years 5.3 years 3.3 years Expected volatility 56 % 52 % 55 % 52 % Risk-free interest rate 2.7 % 1.7 % 2.5 % 1.7 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of revenue — professional engineering service $ 11 $ 13 $ 30 $ 98 Selling, general and administrative 237 457 421 1,061 Research and development 57 70 169 191 Total stock-based compensation expense $ 305 $ 540 $ 620 $ 1,350 Per diluted share $ 0.02 $ 0.04 $ 0.05 $ 0.11 Stock Option Activity The following table summarizes stock option activity under the Plans: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Granted 283,893 3.78 Exercised (2,422 ) 3.59 Forfeited (385,736 ) 4.94 Expired (332,036 ) 4.17 Balance at September 30, 2018 1,475,860 $ 4.81 6.88 $ 3,950 Vested and expected to vest at September 30, 2018 1,366,764 $ 4.82 6.73 $ 3,259 Exercisable at September 30, 2018 954,862 $ 4.84 5.97 $ — At September 30, 2018, total compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures, was $489,000. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.3 years. The following table summarizes certain information about stock options: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average grant-date fair value of options granted during the period $ 1.02 $ 2.45 $ 1.89 $ 2.62 Options in-the-money (in shares) 26,000 1,261,705 26,000 1,261,705 Aggregate intrinsic value of options exercised during the period $ - $ 31,338 $ 1,853 $ 89,171 The aggregate intrinsic value represents the difference between the exercise price of the underlying options and the quoted price of our common stock for the number of options exercised during the period. We issue new shares of common stock upon exercise of stock options. Restricted Stock Unit Activity The following table summarizes RSU activity under the Plans: Number of Weighted Average Shares Award Price Unvested at December 31, 2017 116,968 $ 5.33 Granted 159,760 3.06 Vested (82,868 ) 4.55 Forfeited (52,441 ) 4.53 Unvested at September 30, 2018 141,419 $ 3.51 Expected to vest after September 30, 2018 125,050 $ 3.46 At September 30, 2018, total compensation cost related to RSUs granted but not yet recognized, net of estimated forfeitures, was $232,000. This cost will be amortized on the straight-line method over a weighted-average period of approximately 0.7 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 September 30, 2018: September 30, 2018 Stock options outstanding 1,475,860 Restricted stock units outstanding 141,419 Stock options and restricted stock units available for future grant 1,515,816 Common stock reserved for future issuance 3,133,095 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2021. We have lease commitments for office space in Bellevue, Washington; Boston, Massachusetts; Taipei, Taiwan; and Trowbridge, UK. In August 2013, we amended the lease agreement for our Bellevue, Washington headquarters, and extended the term of the original lease that was scheduled to expire in August 2014 to May 2020. Rent expense was $211,000 and $253,000 for the three months ended September 30, 2018 and 2017, respectively, and $695,000 and $786,000 for the nine months ended September 30, 2018 and 2017, respectively. Future operating lease commitments are as follows by calendar year (in thousands): September 30, 2018 Remainder of 2018 $ 312 2019 1,246 2020 646 2021 48 Total commitments $ 2,252 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 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 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. |
Information about Geographic Ar
Information about Geographic Areas and Operating Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas and Operating Segments | 9. Information about Geographic Areas and Operating Segments 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, and we do not produce asset information by reportable segment. The following table sets forth profit and loss information about our segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Third-party software: Revenue $ 14,241 $ 16,240 $ 47,297 $ 48,542 Cost of revenue 12,003 13,619 39,837 40,804 Gross profit 2,238 2,621 7,460 7,738 Proprietary software: Revenue 796 1,200 2,872 4,335 Cost of revenue 111 34 252 105 Gross profit 685 1,166 2,620 4,230 Professional Engineering Service: Revenue 1,657 2,213 6,406 8,465 Cost of revenue 1,221 1,620 4,666 5,927 Gross profit 436 593 1,740 2,538 Total gross profit 3,359 4,380 11,820 14,506 Operating expenses 5,491 6,926 20,148 19,630 Other income, net 65 34 156 148 Income tax benefit (expense) (20 ) 44 (32 ) 150 Net loss $ (2,087 ) $ (2,468 ) $ (8,204 ) $ (4,826 ) Revenue by geography is based on the sales region of the customer. The following tables set forth total revenue and long-lived assets by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Total revenue: North America $ 15,441 $ 17,982 $ 52,909 $ 57,480 Asia 579 875 1,164 1,429 Europe 674 796 2,502 2,433 Total revenue $ 16,694 $ 19,653 $ 56,575 $ 61,342 September 30, 2018 December 31, 2017 Long-lived assets: North America $ 1,388 $ 991 Asia 100 76 Europe 4,051 4,114 Total long-lived assets $ 5,539 $ 5,181 |
Significant Risk Concentrations
Significant Risk Concentrations | 9 Months Ended |
Sep. 30, 2018 | |
Risks And Uncertainties [Abstract] | |
Significant Risk Concentrations | 10. Significant Risk Concentrations Significant Customer Honeywell International, Inc. and affiliated entities (“Honeywell”) accounted for $2.9 million or 15% of total revenue for the three months ended September 30, 2017 and $9.1 million or 15% of total revenue for the nine months ended September 30, 2017. No No customers accounted for 10% or more of total revenue for the three and nine months ended September 30, 2018. Honeywell had accounts receivable balances of $5.1 million or approximately 39% of total accounts receivable at September 30, 2018 and $8.7 million or approximately 48% of total accounts receivable at December 31, 2017. No other customer accounted for 10% or more of total accounts receivable at September 30, 2018 or December 31, 2017. Significant Supplier We have OEM Distribution Agreements (“ODAs”) with Microsoft Corporation (“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 have been extended through February 28, 2019. 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 expire on April 30, 2022. Software sales under these agreements constitute a significant portion of our 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 rebate values to reduce cost of sales and 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): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Reductions to cost of revenue $ 159 $ 126 $ 577 $ 323 Reductions to marketing expense $ 294 $ 185 $ 673 $ 558 There was a balance of approximately $371,000 in qualified outstanding rebate credits at September 30, 2018, which will be accounted for as a reduction in marketing expense in the period in which qualified program expenditures are made. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“BSQUARE”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of BSQUARE and our wholly owned subsidiaries. In the Condensed Consolidated Statements of Operations and Comprehensive Loss, prior period software revenue has been separately presented as third-party software and proprietary software to conform to current period presentation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of September 30, 2018, our operating results for the three and nine months ended September 30, 2018 and 2017 and our cash flows for the nine months ended September 30, 2018 and 2017. The accompanying financial information as of December 31, 2017 is derived from audited financial statements as of that date. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 22, 2018. All intercompany balances have been eliminated. |
Recently Issued Accounting Standard | Recently Issued Accounting Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”), 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 expect to adopt ASU 2016-02 effective January 1, 2019 and elect an optional transition method, recording a cumulative-effect adjustment as of that date and presenting comparative prior year periods in accordance with Accounting Standards Codification Topic 840. In addition, we expect to apply a package of practical expedients to forego reassessing: • whether any expired or existing contracts are or contain leases, • lease classification for any expired or existing leases, and • initial direct costs for any existing leases. We are continuing to evaluate the full impact of adoption and expect this ASU will have a material impact on our consolidated balance sheets 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” (“ASU 2017-04”), |
Loss Per Share | Loss Per Share We compute basic loss per share using the weighted average number of common shares outstanding during the period. We consider restricted stock units as outstanding common shares and include them in the computation of basic loss per share only when vested. We compute diluted loss per share using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 1,679,969 1,455,713 1,584,046 1,429,883 Restricted stock units 51,679 63,709 64,043 52,579 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Potentially Dilutive Shares Excluded From Calculation of Diluted Net Loss Per Share | The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 1,679,969 1,455,713 1,584,046 1,429,883 Restricted stock units 51,679 63,709 64,043 52,579 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table provides information about disaggregated revenue by primary geographical market and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 13,715 $ 288 $ 1,438 $ 15,441 $ 15,615 $ 532 $ 1,835 $ 17,982 Europe 526 2 146 674 520 — 276 796 Asia — 506 73 579 105 668 102 875 Total $ 14,241 $ 796 $ 1,657 $ 16,694 $ 16,240 $ 1,200 $ 2,213 $ 19,653 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 45,115 $ 2,236 $ 5,558 $ 52,909 $ 46,867 $ 3,650 $ 6,963 $ 57,480 Europe 1,821 107 574 2,502 1,380 — 1,053 2,433 Asia 361 529 274 1,164 295 685 449 1,429 Total $ 47,297 $ 2,872 $ 6,406 $ 56,575 $ 48,542 $ 4,335 $ 8,465 $ 61,342 |
Schedule of Significant Changes in Contract Assets and Deferred Revenue | Significant changes in the contract assets and the deferred revenue balances during the nine months ended September 30, 2018 Nine Months Ended September 30, 2018 Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2017 $ — $ 2,847 Transferred to receivables from contract assets recognized at December 31, 2017 263 — |
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 September 30, 2018: Remainder of 2018 2019 2020 2021 Third-party software $ 24 $ 50 $ 14 $ — Proprietary software 853 1,827 1,802 687 Professional engineering service 230 — — — |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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): September 30, 2018 December 31, 2017 Cash $ 7,665 $ 6,340 Cash equivalents (see Note 4) 3,727 6,519 Total cash and cash equivalents 11,392 12,859 Short-term investments (see Note 4) 5,879 11,895 Total cash, cash equivalents and short-term investments $ 17,271 $ 24,754 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 are summarized below (in thousands): September 30, 2018 December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 1,981 $ — $ 1,981 $ 2,274 $ — $ 2,274 Corporate commercial paper — 1,746 1,746 — 3,245 3,245 Corporate debt — — — — 1,000 1,000 Total cash equivalents 1,981 1,746 3,727 2,274 4,245 6,519 Short-term investments: Corporate commercial paper — 3,231 3,231 — 5,480 5,480 Corporate debt — 2,648 2,648 — 6,415 6,415 Total short-term investments — 5,879 5,879 — 11,895 11,895 Total assets measured at fair value $ 1,981 $ 7,625 $ 9,606 $ 2,274 $ 16,140 $ 18,414 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Relate to Customer Relationships | Information regarding our intangible assets is as follows (in thousands): September 30, 2018 December 31, 2017 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (984 ) $ 291 $ 1,275 $ (910 ) $ 365 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): Remainder of 2018 $ 24 2019 98 2020 98 2021 71 Total $ 291 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions | The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dividend yield 0 % 0 % 0 % 0 % Expected life 4.4 years 3.3 years 5.3 years 3.3 years Expected volatility 56 % 52 % 55 % 52 % Risk-free interest rate 2.7 % 1.7 % 2.5 % 1.7 % |
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): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of revenue — professional engineering service $ 11 $ 13 $ 30 $ 98 Selling, general and administrative 237 457 421 1,061 Research and development 57 70 169 191 Total stock-based compensation expense $ 305 $ 540 $ 620 $ 1,350 Per diluted share $ 0.02 $ 0.04 $ 0.05 $ 0.11 |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Plans: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Granted 283,893 3.78 Exercised (2,422 ) 3.59 Forfeited (385,736 ) 4.94 Expired (332,036 ) 4.17 Balance at September 30, 2018 1,475,860 $ 4.81 6.88 $ 3,950 Vested and expected to vest at September 30, 2018 1,366,764 $ 4.82 6.73 $ 3,259 Exercisable at September 30, 2018 954,862 $ 4.84 5.97 $ — |
Summary of Certain Additional Information about Stock Options | The following table summarizes certain information about stock options: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average grant-date fair value of options granted during the period $ 1.02 $ 2.45 $ 1.89 $ 2.62 Options in-the-money (in shares) 26,000 1,261,705 26,000 1,261,705 Aggregate intrinsic value of options exercised during the period $ - $ 31,338 $ 1,853 $ 89,171 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity under the Plans: Number of Weighted Average Shares Award Price Unvested at December 31, 2017 116,968 $ 5.33 Granted 159,760 3.06 Vested (82,868 ) 4.55 Forfeited (52,441 ) 4.53 Unvested at September 30, 2018 141,419 $ 3.51 Expected to vest after September 30, 2018 125,050 $ 3.46 |
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 September 30, 2018: September 30, 2018 Stock options outstanding 1,475,860 Restricted stock units outstanding 141,419 Stock options and restricted stock units available for future grant 1,515,816 Common stock reserved for future issuance 3,133,095 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Operating Lease Commitments | Future operating lease commitments are as follows by calendar year (in thousands): September 30, 2018 Remainder of 2018 $ 312 2019 1,246 2020 646 2021 48 Total commitments $ 2,252 |
Information about Geographic _2
Information about Geographic Areas and Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table sets forth profit and loss information about our segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Third-party software: Revenue $ 14,241 $ 16,240 $ 47,297 $ 48,542 Cost of revenue 12,003 13,619 39,837 40,804 Gross profit 2,238 2,621 7,460 7,738 Proprietary software: Revenue 796 1,200 2,872 4,335 Cost of revenue 111 34 252 105 Gross profit 685 1,166 2,620 4,230 Professional Engineering Service: Revenue 1,657 2,213 6,406 8,465 Cost of revenue 1,221 1,620 4,666 5,927 Gross profit 436 593 1,740 2,538 Total gross profit 3,359 4,380 11,820 14,506 Operating expenses 5,491 6,926 20,148 19,630 Other income, net 65 34 156 148 Income tax benefit (expense) (20 ) 44 (32 ) 150 Net loss $ (2,087 ) $ (2,468 ) $ (8,204 ) $ (4,826 ) |
Total 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 total revenue and long-lived assets by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Total revenue: North America $ 15,441 $ 17,982 $ 52,909 $ 57,480 Asia 579 875 1,164 1,429 Europe 674 796 2,502 2,433 Total revenue $ 16,694 $ 19,653 $ 56,575 $ 61,342 September 30, 2018 December 31, 2017 Long-lived assets: North America $ 1,388 $ 991 Asia 100 76 Europe 4,051 4,114 Total long-lived assets $ 5,539 $ 5,181 |
Significant Risk Concentratio_2
Significant Risk Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Risks And Uncertainties [Abstract] | |
Summary of Rebate Program Recorded Under Rebate Credits | Under this rebate program, we recorded rebate credits as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Reductions to cost of revenue $ 159 $ 126 $ 577 $ 323 Reductions to marketing expense $ 294 $ 185 $ 673 $ 558 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Potentially Dilutive Shares Excluded From Calculation of Diluted Net Loss Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares excluded from calculation of diluted net loss per share | 1,679,969 | 1,455,713 | 1,584,046 | 1,429,883 |
Restricted stock units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares excluded from calculation of diluted net loss per share | 51,679 | 63,709 | 64,043 | 52,579 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Topic 606 [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2017 | |
Summary Of Accounting Policies [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 404,000 | ||||
Asset impairment charges related to contract assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Amortization of contract acquisition costs | 7,000 | 12,000 | 93,000 | 160,000 | |
Asset impairment charges for contract acquisition cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenue practical expedient, incremental cost of obtaining contract [true/false] | true | ||||
Revenue, remaining performance obligation, optional exemption, performance obligation [true/false] | true |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | $ 16,694 | $ 19,653 | $ 56,575 | $ 61,342 |
Software [Member] | Third Party Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 14,241 | 16,240 | 47,297 | 48,542 |
Software [Member] | Proprietary Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 796 | 1,200 | 2,872 | 4,335 |
Professional Engineering Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 1,657 | 2,213 | 6,406 | 8,465 |
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 15,441 | 17,982 | 52,909 | 57,480 |
North America [Member] | Software [Member] | Third Party Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 13,715 | 15,615 | 45,115 | 46,867 |
North America [Member] | Software [Member] | Proprietary Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 288 | 532 | 2,236 | 3,650 |
North America [Member] | Professional Engineering Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 1,438 | 1,835 | 5,558 | 6,963 |
Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 674 | 796 | 2,502 | 2,433 |
Europe [Member] | Software [Member] | Third Party Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 526 | 520 | 1,821 | 1,380 |
Europe [Member] | Software [Member] | Proprietary Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 2 | 107 | ||
Europe [Member] | Professional Engineering Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 146 | 276 | 574 | 1,053 |
Asia [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 579 | 875 | 1,164 | 1,429 |
Asia [Member] | Software [Member] | Third Party Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 105 | 361 | 295 | |
Asia [Member] | Software [Member] | Proprietary Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 506 | 668 | 529 | 685 |
Asia [Member] | Professional Engineering Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | $ 73 | $ 102 | $ 274 | $ 449 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Deferred Revenue (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Changes in the Contract Assets | |
Transferred to receivables from contract assets recognized at December 31, 2017 | $ 263 |
Changes in the Contract Liabilities | |
Revenue recognized that was included in deferred revenue at December 31, 2017 | $ 2,847 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Software [Member] | Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 24 |
Software [Member] | Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 50 |
Software [Member] | Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 14 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 853 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 1,827 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 1,802 |
Software [Member] | Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 687 |
Professional Engineering Service [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 230 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||
Cash | $ 7,665 | $ 6,340 |
Cash equivalents | 3,727 | 6,519 |
Total cash and cash equivalents | 11,392 | 12,859 |
Short-term investments | 5,879 | 11,895 |
Total cash, cash equivalents and short-term investments | $ 17,271 | $ 24,754 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Short-term investments: | ||
Total short-term investments | $ 5,879 | $ 11,895 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,727 | 6,519 |
Short-term investments: | ||
Total short-term investments | 5,879 | 11,895 |
Total assets measured at fair value | 9,606 | 18,414 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,746 | 3,245 |
Short-term investments: | ||
Total short-term investments | 3,231 | 5,480 |
Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,000 | |
Short-term investments: | ||
Total short-term investments | 2,648 | 6,415 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,981 | 2,274 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,981 | 2,274 |
Short-term investments: | ||
Total assets measured at fair value | 1,981 | 2,274 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,981 | 2,274 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,746 | 4,245 |
Short-term investments: | ||
Total short-term investments | 5,879 | 11,895 |
Total assets measured at fair value | 7,625 | 16,140 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,746 | 3,245 |
Short-term investments: | ||
Total short-term investments | 3,231 | 5,480 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,000 | |
Short-term investments: | ||
Total short-term investments | $ 2,648 | $ 6,415 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Change in carrying amount of goodwill | $ 0 | $ 0 | ||
Amortization expense | $ 25,000 | $ 25,000 | $ 74,000 | $ 74,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 291 | $ 365 |
TestQuest, Inc and BSQUARE EMEA, Ltd [Member] | Customer relationships [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,275 | 1,275 |
Accumulated Amortization | (984) | (910) |
Net Book Value | $ 291 | $ 365 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 24 | |
2,019 | 98 | |
2,020 | 98 | |
2,021 | 71 | |
Net Book Value | $ 291 | $ 365 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - USD ($) | Sep. 29, 2016 | Sep. 22, 2015 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 22, 2018 | Dec. 31, 2017 |
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 bore 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 | $ 12,000,000 | $ 11,750,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
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 |
Compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures | $ 489,000 |
Amortization cost, weighted-average period | 1 year 3 months 18 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 8 months 12 days |
Compensation cost related to restricted stock units granted but not yet recognized, net of estimated forfeitures | $ 232,000 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | 4 years 4 months 24 days | 3 years 3 months 18 days | 5 years 3 months 18 days | 3 years 3 months 18 days |
Expected volatility | 56.00% | 52.00% | 55.00% | 52.00% |
Risk-free interest rate | 2.70% | 1.70% | 2.50% | 1.70% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 305 | $ 540 | $ 620 | $ 1,350 |
Per diluted share | $ 0.02 | $ 0.04 | $ 0.05 | $ 0.11 |
Cost of revenue - professional engineering service [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 11 | $ 13 | $ 30 | $ 98 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 237 | 457 | 421 | 1,061 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 57 | $ 70 | $ 169 | $ 191 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Beginning Balance | 1,912,161 | |
Granted, Number of Shares | 283,893 | |
Exercised, Number of Shares | (2,422) | |
Forfeited, Number of Shares | (385,736) | |
Expired, Number of Shares | (332,036) | |
Number of Shares, Ending Balance | 1,475,860 | 1,912,161 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,366,764 | |
Exercisable, Number of Shares, Ending Balance | 954,862 | |
Weighted Average Exercise Price, Beginning Balance | $ 4.88 | |
Granted, Weighted Average Exercise Price | 3.78 | |
Exercised, Weighted Average Exercise Price | 3.59 | |
Forfeited, Weighted Average Exercise Price | 4.94 | |
Expired, Weighted Average Exercise Price | 4.17 | |
Weighted Average Exercise Price, Ending Balance | 4.81 | $ 4.88 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 4.82 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.84 | |
Weighted Average Remaining Contractual Life (in years) | 6 years 10 months 17 days | 7 years 7 months 9 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 6 years 8 months 23 days | |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 5 years 11 months 19 days | |
Balance outstanding, Aggregate Intrinsic Value | $ 3,950 | $ 781,735 |
Vested and expected to vest, Aggregate Intrinsic Value | $ 3,259 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Weighted average grant-date fair value of options granted during the period | $ 1.02 | $ 2.45 | $ 1.89 | $ 2.62 |
Options in-the-money (in shares) | 26,000 | 1,261,705 | 26,000 | 1,261,705 |
Aggregate intrinsic value of options exercised during the period | $ 31,338 | $ 1,853 | $ 89,171 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 141,419 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 116,968 |
Granted, Number of Shares | 159,760 |
Vested, Number of Shares | (82,868) |
Forfeited, Number of Shares | (52,441) |
Unvested, Number of Shares, Ending Balance | 141,419 |
Expected to vest, Number of Shares, Ending Balance | 125,050 |
Unvested, Weighted Average Award Price, Beginning Balance | $ / shares | $ 5.33 |
Granted, Weighted Average Award Price | $ / shares | 3.06 |
Vested, Weighted Average Award Price | $ / shares | 4.55 |
Forfeited, Weighted Average Award Price | $ / shares | 4.53 |
Unvested, Weighted Average Award Price, Ending Balance | $ / shares | 3.51 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 3.46 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 1,475,860 | 1,912,161 |
Restricted stock units outstanding | 141,419 | |
Stock options and restricted stock units available for future grant | 1,515,816 | |
Common stock reserved for future issuance | 3,133,095 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2013 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Commitments [Line Items] | |||||
Operating leases, expiration year | 2,021 | ||||
Rent expense | $ 211,000 | $ 253,000 | $ 695,000 | $ 786,000 | |
Bellevue [Member] | Washington [Member] | |||||
Other Commitments [Line Items] | |||||
Expiration date of operating lease | 2014-08 | ||||
Extended expiration date of operating lease | 2020-05 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Operating Lease Commitments (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remainder of 2018 | $ 312 |
2,019 | 1,246 |
2,020 | 646 |
2,021 | 48 |
Total commitments | $ 2,252 |
Information about Geographic _3
Information about Geographic Areas and Operating Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 3 |
Number of operating segment | 3 |
Information about Geographic _4
Information about Geographic Areas and Operating Segments - Profit and Loss Information of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 16,694 | $ 19,653 | $ 56,575 | $ 61,342 |
Cost of revenue | 13,335 | 15,273 | 44,755 | 46,836 |
Gross profit | 3,359 | 4,380 | 11,820 | 14,506 |
Operating expenses | 5,491 | 6,926 | 20,148 | 19,630 |
Other income, net | 65 | 34 | 156 | 148 |
Income tax benefit (expense) | (20) | 44 | (32) | 150 |
Net loss | (2,087) | (2,468) | (8,204) | (4,826) |
Third Party Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14,241 | 16,240 | 47,297 | 48,542 |
Cost of revenue | 12,003 | 13,619 | 39,837 | 40,804 |
Gross profit | 2,238 | 2,621 | 7,460 | 7,738 |
Proprietary Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 796 | 1,200 | 2,872 | 4,335 |
Cost of revenue | 111 | 34 | 252 | 105 |
Gross profit | 685 | 1,166 | 2,620 | 4,230 |
Professional Engineering Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,657 | 2,213 | 6,406 | 8,465 |
Cost of revenue | 1,221 | 1,620 | 4,666 | 5,927 |
Gross profit | $ 436 | $ 593 | $ 1,740 | $ 2,538 |
Information about Geographic _5
Information about Geographic Areas and Operating Segments - Total Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Total revenue: | |||||
Total revenue | $ 16,694 | $ 19,653 | $ 56,575 | $ 61,342 | |
Long-lived assets: | |||||
Total long-lived assets | 5,539 | 5,539 | $ 5,181 | ||
North America [Member] | |||||
Total revenue: | |||||
Total revenue | 15,441 | 17,982 | 52,909 | 57,480 | |
Long-lived assets: | |||||
Total long-lived assets | 1,388 | 1,388 | 991 | ||
Asia [Member] | |||||
Total revenue: | |||||
Total revenue | 579 | 875 | 1,164 | 1,429 | |
Long-lived assets: | |||||
Total long-lived assets | 100 | 100 | 76 | ||
Europe [Member] | |||||
Total revenue: | |||||
Total revenue | 674 | $ 796 | 2,502 | $ 2,433 | |
Long-lived assets: | |||||
Total long-lived assets | $ 4,051 | $ 4,051 | $ 4,114 |
Significant Risk Concentratio_3
Significant Risk Concentrations - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||
Total revenue | $ 16,694,000 | $ 19,653,000 | $ 56,575,000 | $ 61,342,000 | |
Accounts receivable | 13,124,000 | $ 13,124,000 | $ 18,014,000 | ||
Extended expiration date one of OEM Distribution agreements for embedded operating systems | Feb. 28, 2019 | ||||
Expiration date of OEM Distribution agreements for mobile operating systems, non-EMEA | Apr. 30, 2022 | ||||
Rebate credits outstanding | 371,000 | $ 371,000 | |||
Cost of revenue [Member] | |||||
Concentration Risk [Line Items] | |||||
Allocation of rebate values, percentage | 30.00% | ||||
Reduction to marketing expense [Member] | |||||
Concentration Risk [Line Items] | |||||
Allocation of rebate values, percentage | 70.00% | ||||
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Total revenue | $ 2,900,000 | $ 9,100,000 | |||
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 5,100,000 | $ 5,100,000 | $ 8,700,000 | ||
Revenue [Member] | Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 15.00% | 15.00% | |||
Accounts receivable [Member] | Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 39.00% | 48.00% |
Significant Risk Concentratio_4
Significant Risk Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cost of revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Earnings under the rebate program | $ 159 | $ 126 | $ 577 | $ 323 |
Reduction to marketing expense [Member] | ||||
Concentration Risk [Line Items] | ||||
Earnings under the rebate program | $ 294 | $ 185 | $ 673 | $ 558 |