Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BSQR | |
Entity Registrant Name | BSQUARE CORP /WA | |
Entity Central Index Key | 0001054721 | |
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 | 12,837,534 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 7,489 | $ 10,005 |
Restricted cash | 338 | 263 |
Short-term investments | 7,173 | 6,409 |
Accounts receivable, net of allowance for doubtful accounts of $31 at March 31, 2019 and $40 at December 31, 2018 | 9,713 | 11,581 |
Prepaid expenses and other current assets | 874 | 685 |
Contract assets | 841 | 1,053 |
Total current assets | 26,428 | 29,996 |
Restricted cash, long term | 263 | 263 |
Equipment, furniture and leasehold improvements, net | 989 | 911 |
Deferred tax assets | 7 | 7 |
Intangible assets, net | 242 | 267 |
Right-of-use lease assets, net | 1,089 | |
Other non-current assets including contract assets | 655 | 550 |
Total assets | 29,673 | 31,994 |
Current liabilities: | ||
Third-party software fees payable | 7,317 | 7,620 |
Accounts payable | 221 | 565 |
Accrued compensation | 1,810 | 1,629 |
Other accrued expenses | 434 | 653 |
Deferred rent, current portion | 347 | |
Operating lease, current portion | 1,131 | |
Deferred revenue, current portion | 1,551 | 1,652 |
Total current liabilities | 12,464 | 12,466 |
Deferred rent | 150 | |
Deferred revenue | 1,162 | 1,037 |
Operating lease | 374 | |
Commitments and contingencies (Note 8) | ||
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; 12,823,298 issued and outstanding at March 31, 2019 and 12,777,573 issued and outstanding at December 31, 2018 | 138,448 | 138,280 |
Accumulated other comprehensive loss | (916) | (926) |
Accumulated deficit | (121,859) | (119,013) |
Total shareholders' equity | 15,673 | 18,341 |
Total liabilities and shareholders' equity | $ 29,673 | $ 31,994 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 31 | $ 40 |
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 | 12,823,298 | 12,777,573 |
Common stock, shares outstanding | 12,823,298 | 12,777,573 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 15,096 | $ 20,678 |
Cost of revenue: | ||
Total cost of revenue | 12,705 | 15,478 |
Gross profit | 2,391 | 5,200 |
Operating expenses: | ||
Selling, general and administrative | 2,934 | 5,448 |
Research and development | 2,336 | 2,230 |
Total operating expenses | 5,270 | 7,678 |
Loss from operations | (2,879) | (2,478) |
Other income, net | 33 | 44 |
Loss before income taxes | (2,846) | (2,434) |
Net loss | $ (2,846) | $ (2,434) |
Basic loss per share | $ (0.22) | $ (0.19) |
Diluted loss per share | $ (0.22) | $ (0.19) |
Shares used in per share calculations: | ||
Basic | 12,795 | 12,673 |
Diluted | 12,795 | 12,673 |
Comprehensive loss: | ||
Net loss | $ (2,846) | $ (2,434) |
Other comprehensive income (loss): | ||
Foreign currency translation, net of tax | 2 | (11) |
Unrealized gain on investments, net of tax | 8 | 10 |
Total other comprehensive income (loss) | 10 | (1) |
Comprehensive loss | (2,836) | (2,435) |
Third Party Software [Member] | ||
Revenue: | ||
Total revenue | 13,101 | 16,064 |
Cost of revenue: | ||
Total cost of revenue | 11,149 | 13,354 |
Gross profit | 1,952 | 2,710 |
Proprietary Software [Member] | ||
Revenue: | ||
Total revenue | 251 | 1,795 |
Cost of revenue: | ||
Total cost of revenue | 213 | 41 |
Gross profit | 38 | 1,754 |
Professional Engineering Service [Member] | ||
Revenue: | ||
Total revenue | 1,744 | 2,819 |
Cost of revenue: | ||
Total cost of revenue | 1,343 | 2,083 |
Gross profit | $ 401 | $ 736 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (2,846) | $ (2,434) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization | 194 | 141 |
Stock-based compensation | 168 | 331 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,868 | 1,302 |
Prepaid expenses and other assets | (176) | (359) |
Contract assets | 75 | 3 |
Third-party software fees payable | (303) | 142 |
Accounts payable and accrued expenses | (382) | (27) |
Operating lease | 416 | |
Deferred revenue | 24 | (2,266) |
Deferred rent | (497) | (83) |
Net cash used by operating activities | (1,459) | (3,250) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (246) | (82) |
Proceeds from maturities of short-term investments | 4,390 | 6,125 |
Purchases of short-term investments | (5,127) | (4,983) |
Net cash provided (used) by investing activities | (983) | 1,060 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 9 | 12 |
Effect of exchange rates on cash | (8) | 11 |
Net decrease in cash, restricted cash, and cash equivalents | (2,441) | (2,167) |
Cash, restricted cash, and cash equivalents, beginning of year | 10,531 | 12,859 |
Cash, restricted cash, and cash equivalents, end of quarter | $ 8,090 | $ 10,692 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2019 - USD ($) $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2018 | $ 18,341 | $ 138,280 | $ (926) | $ (119,013) |
Balance, Shares at Dec. 31, 2018 | 12,777,573 | 12,777,573 | ||
Share-based compensation, including issuance of restricted stock | $ 168 | $ 168 | ||
Share-based compensation, including issuance of restricted stock, Shares | 45,725 | |||
Net loss | (2,846) | (2,846) | ||
Foreign currency translation adjustment, net of tax | 2 | 2 | ||
Unrealized gain on investments, net of tax | 8 | 8 | ||
Balance at Mar. 31, 2019 | $ 15,673 | $ 138,448 | $ (916) | $ (121,859) |
Balance, Shares at Mar. 31, 2019 | 12,823,298 | 12,823,298 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, our operating results for the three months ended March 31, 2019 and 2018 and our cash flows for the three months ended March 31, 2019 and 2018. The accompanying financial information as of December 31, 2018 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, 2018, as filed with the SEC on March 4, 2019. 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 Standard We adopted Accounting Standard Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”) on January 1, 2019. See Note 6, “Leases.” 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, assumptions used to determine the net present value of operating lease liabilities, and the fair values of acquired assets and liabilities, among other estimates. Actual results may differ from these estimates. 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 Three Months Ended March 31, 2019 2018 Stock options 1,485,981 1,528,907 Restricted stock units 77,532 64,192 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Disaggregation of revenue The following table Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 12,727 $ 244 $ 1,557 $ 14,528 $ 15,119 $ 1,683 $ 2,487 $ 19,289 Europe 320 6 135 461 593 100 246 939 Asia 54 1 52 107 352 12 86 450 Total $ 13,101 $ 251 $ 1,744 $ 15,096 $ 16,064 $ 1,795 $ 2,819 $ 20,678 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 asset impairment charges related to contract assets for each of the three months ended March 31, 2019 and 2018. Significant changes in the contract assets and the deferred revenue three months ended March 31, 2019 Three Months Ended March 31, 2019 Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2018 $ — $ 369 Transferred to receivables from contract assets recognized at December 31, 2018 302 — Contract acquisition costs We capitalize contract acquisition costs for contracts with a mortization of contract acquisition costs was $7,000 and $80,000 for the three months ended March 31, 2019 and 2018, respectively. There were no asset impairment charges for contract acquisition costs for any of the periods noted above. Transaction price allocated to the remaining performance obligations The following table Remainder of 2019 2020 2021 2022 Third-party software $ 37 $ 14 $ — $ — Proprietary software 2,179 1,755 1,936 196 Professional engineering services — — — — Practical expedients and exemptions We apply a practical expedient and fully expense contract acquisition costs, such as sales commissions, as incurred because the amortization period is less than one year. We record these costs within selling, general and administrative expenses. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 December 31, 2018 Cash $ 5,976 $ 6,780 Cash equivalents (see detail in Note 4) 1,513 3,225 Restricted cash 338 263 Restricted cash, long-term 263 263 Total cash and cash equivalents 8,090 10,531 Short-term investments (see detail in Note 4) 7,173 6,409 Total cash, cash equivalents and short-term investments $ 15,263 $ 16,940 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 are summarized below March 31, 2019 December 31, 2018 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 $ 264 $ — $ 264 $ 1,277 $ — $ 1,277 Government and agencies — 500 $ 500 — — — Corporate commercial paper — 749 749 — 1,198 1,198 Corporate debt — — — — 750 750 Total cash equivalents 264 1,249 1,513 1,277 1,948 3,225 Restricted cash: Money market funds 601 — 601 526 — 526 Short-term investments: Corporate commercial paper — 5,276 5,276 — 3,874 3,874 Corporate debt — 1,897 1,897 — 2,535 2,535 Total short-term investments — 7,173 7,173 — 6,409 6,409 Total assets measured at fair value $ 865 $ 8,422 $ 9,287 $ 1,803 $ 8,357 $ 10,160 As of March 31, 2019 and December 31, 2018, contractual maturities of our short-term investments were less than one year, and gross unrealized gains and losses on those investments were not material. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets 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 March 31, 2019 December 31, 2018 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (1,033 ) $ 242 $ 1,275 $ (1,008 ) $ 267 Amortization expense was $25,000 for each of the three months ended March 31, 2019 and 2018. Amortization in future periods is expected to be as follows (in thousands): 2019 73 2020 98 2021 71 Total $ 242 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, requiring most leases to be recognized by lessees on their balance sheets as right-of-use (“ROU”) 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 adopted ASU 2016-02 effective January 1, 2019 and elected the modified retrospective 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. On the date of adoption, we recorded a cumulative adjustment to recognize new net lease liabilities of $1.7 million and new ROU assets of $1.2 million, for operating leases on our consolidated balance sheets, based on the present value of remaining rental payments for existing operating leases. As part of adoption, we also de-recognized $0.5 million in deferred rent. Adoption of the standard did not have a material impact on our statement of operations or statement of cash flows. As part of adoption, we elected the short-term lease recognition exemption for our facility rental and equipment leases (all leases that qualified), which means that we did not recognize ROU assets or lease liabilities for existing short-term leases (leases of 12-months or less) as of the January 1, 2019 adoption date. In addition, when adopting ASU 2016-02 we applied the following practical expedients to forego assessing • whether any expired or existing contracts are or contain a lease, • lease classification for any expired or existing leases, and • initial direct costs for any existing leases. We determine if an arrangement is a lease at inception. On our balance sheet, our office leases are included in ROU assets and related lease liabilities are included in the Operating lease, current portion and Operating lease statement line items. We determined that we do not currently have any leases that we are required to classify as finance leases. ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do not provide an implicit rate, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. We will use the implicit rate in the lease when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Our leases have remaining terms of one to four years. The only leases that contain renewal options are for office space leases at our Bellevue and Taiwan locations. However, because of changes in our business, we are not able to determine with reasonable certainty whether either or both of these leases will be renewed. As a result, we have not considered renewal options when recording ROU assets, lease liabilities or lease expense. Three months ended Total component lease expense was as follows (in thousands): March 31, 2019 Operating leases $ 348 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 429 Supplemental balance sheet information related to leases was as follows (dollars in thousands): March 31, 2019 Operating leases: Right of use $ 1,089 Current portion of operating lease liability $ 1,131 Operating lease liability, net of current portion 374 Total operating lease liabilities $ 1,505 Weighted Average Remaining Lease Term 1.4 years Weighted Average Discount Rate 7.0 % As of March 31, 2019, maturities of lease liabilities were as follows: Operating leases Years Ended December 31, Remainder of 2019 $ 900 2020 624 2021 61 Total minimum lease payments 1,585 Less: amount representing interest (80 ) Present value of lease liabilities $ 1,505 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
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 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 March 31, 2019 2018 Dividend yield 0 % 0 % Expected life 6.0 years 5.4 years Expected volatility 64 % 54 % Risk-free interest rate 2.2 % 2.4 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts Three Months Ended March 31, 2019 2018 Cost of revenue — professional engineering service $ 6 $ 11 Selling, general and administrative 188 264 Research and development (26 ) 56 Total stock-based compensation expense $ 168 $ 331 Per diluted share $ 0.01 $ 0.03 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, 2018 1,390,012 $ 4.77 6.83 $ — Granted 575,625 1.97 Exercised — — Forfeited (54,194 ) 4.90 Expired (20,296 ) 5.17 Balance at March 31, 2019 1,891,147 $ 3.90 6.96 $ 180 Vested and expected to vest at March 31, 2019 1,638,226 $ 4.13 6.55 $ 117 Exercisable at March 31, 2019 979,630 $ 4.85 4.00 $ — At March 31, 2019, total compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures, Three Months Ended March 31, 2019 2018 Weighted average grant-date fair value of options granted during the period $ 1.97 $ 2.09 Options in-the-money (in shares) 6,000 737,632 Aggregate intrinsic value of options exercised during the period $ — $ 275 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 Number of Weighted Average Shares Award Price Unvested at December 31, 2018 186,516 $ 2.88 Granted — — Vested (45,725 ) 2.82 Forfeited (18,876 ) 4.23 Unvested at March 31, 2019 121,915 $ 2.69 Expected to vest after March 31, 2019 114,770 $ 2.65 At March 31, 2019, total compensation cost related to RSUs granted but not yet recognized, net of estimated forfeitures, Common Stock Reserved for Future Issuance The following table March 31, 2019 Stock options outstanding 1,891,147 Restricted stock units outstanding 121,915 Stock options and restricted stock units available for future grant 1,593,641 Common stock reserved for future issuance 3,606,703 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 Three Months Ended March 31, 2019 2018 Third-party software: Revenue $ 13,101 $ 16,064 Cost of revenue 11,149 13,354 Gross profit 1,952 2,710 Proprietary software: Revenue 251 1,795 Cost of revenue 213 41 Gross profit 38 1,754 Professional Engineering Service: Revenue 1,744 2,819 Cost of revenue 1,343 2,083 Gross profit 401 736 Total gross profit 2,391 5,200 Operating expenses 5,270 7,678 Other income, net 33 44 Income tax (expense) benefit — — Net loss $ (2,846 ) $ (2,434 ) Revenue by geography is based on the sales region of the customer. The following tables Three Months Ended March 31, 2019 2018 Total revenue: North America $ 14,528 $ 19,289 Asia 107 450 Europe 461 939 Total revenue $ 15,096 $ 20,678 March 31, 2019 December 31, 2018 Long-lived assets: North America $ 1,545 $ 1,578 Asia 83 91 Europe 258 4,023 Total long-lived assets $ 1,886 $ 5,692 |
Significant Risk Concentrations
Significant Risk Concentrations | 3 Months Ended |
Mar. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Significant Risk Concentrations | 10. Significant Risk Concentrations Significant Customer No customers accounted for 10% or more of total revenue for three months ended March 31, 2019. Honeywell No Honeywell had accounts receivable balances Significant Supplier Effective March 1, 2019, pursuant to a new Global Partnership Agreement with Microsoft Corporation (“Microsoft”), we are authorized to sell Windows Embedded operating systems in Canada, the United States, Argentina, Brazil, Chile, Mexico, Peru, Venezuela, Puerto Rico, Cuba, Haiti, Dominican Republic, Jamaica, Trinidad and Tobago, Guadeloupe, Martinique, Bahamas, Barbados, Saint Lucia, Curacao, Aruba, Saint Vincent and the Grenadines, U.S. Virgin Islands, Grenada, Dominica, Cayman Islands, Saint Kitts and Nevis, Sint Maarten, Turks and Caicos Islands, Saint Martin, British Virgin Islands, Sint Eustatius, Saba, Anguilla, Montserrat, Colombia, Saint Barthelemy, Antigua and Barbuda. Our existing distribution agreement for sales of Windows Embedded operating systems in the E.U., the European Free Trade Association, Turkey and Africa, from which we generated approximately 3.7% of our third-party software sales in 2018, expires on June 30, 2019 and will not be renewed thereafter. We have also entered into ODAs with Microsoft pursuant to which we are licensed to sell Microsoft Windows Mobile operating systems to customers in North America, South America, Central America (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa. The ODAs to sell Windows Mobile operating systems are effective through April 30, 2022. Software sales under these agreements constitute a significant portion of our software revenue and total revenue. There is no automatic renewal provision in any of these agreements, and 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: • For the three months ended March 31, 2019, we allocated 20% of rebates to reduce cost of sales, with the remaining 80% potentially available to offset qualified marketing expenses related to Microsoft Azure products in the period that expenditures are claimed and approved. • For the three months ended March 31, 2018, we allocated 30% of rebates to reduce cost of sales, with the remaining 70% available to offset qualified marketing expenses in the period the expenditures are claimed and approved. Under this rebate program, we recorded rebate credits Three Months Ended March 31, 2019 2018 Reductions to cost of revenue $ 82 $ 260 Reductions to marketing expense $ 413 $ 267 There was a balance |
Credit Agreement
Credit Agreement | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 11. 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 to September 2018, at which point it expired. No borrowings were ever outstanding under the Credit Agreement. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 12. Subsequent Event On May 9, 2019, our Board of Directors approved a severance plan that includes a workforce elimination of 38 positions, comprised of 32 employees and 6 consultants. This one-time involuntary termination benefit plan reduced our workforce by approximately 25% and was done in order to reduce go-forward operating costs and re-align our go-forward business model to support future business initiatives. We currently anticipate incurring pre-tax severance charges under this severance plan of approximately $1.1 million, representing one-time cash employee termination benefits including severance and other employment obligations, which will be paid out beginning in the second quarter of 2019 through early 2020. We expect the workforce reductions will be substantially completed by the end of the third quarter of 2019 and anticipate that cost savings will be realized beginning in the third quarter of 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, our operating results for the three months ended March 31, 2019 and 2018 and our cash flows for the three months ended March 31, 2019 and 2018. The accompanying financial information as of December 31, 2018 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, 2018, as filed with the SEC on March 4, 2019. |
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 Standard We adopted Accounting Standard Update (“ASU”) No. 2016-02, “Leases” (“ASU 2016-02”) on January 1, 2019. See Note 6, “Leases.” |
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, assumptions used to determine the net present value of operating lease liabilities, and the fair values of acquired assets and liabilities, among other estimates. Actual results may differ from these estimates. |
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 Three Months Ended March 31, 2019 2018 Stock options 1,485,981 1,528,907 Restricted stock units 77,532 64,192 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Three Months Ended March 31, 2019 2018 Stock options 1,485,981 1,528,907 Restricted stock units 77,532 64,192 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Third-Party Software Proprietary Software Professional Engineering Service Total Third-Party Software Proprietary Software Professional Engineering Service Total Primary geographical markets: North America $ 12,727 $ 244 $ 1,557 $ 14,528 $ 15,119 $ 1,683 $ 2,487 $ 19,289 Europe 320 6 135 461 593 100 246 939 Asia 54 1 52 107 352 12 86 450 Total $ 13,101 $ 251 $ 1,744 $ 15,096 $ 16,064 $ 1,795 $ 2,819 $ 20,678 |
Schedule of Significant Changes in Contract Assets and Deferred Revenue | Significant changes in the contract assets and the deferred revenue three months ended March 31, 2019 Three Months Ended March 31, 2019 Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2018 $ — $ 369 Transferred to receivables from contract assets recognized at December 31, 2018 302 — |
Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The following table Remainder of 2019 2020 2021 2022 Third-party software $ 37 $ 14 $ — $ — Proprietary software 2,179 1,755 1,936 196 Professional engineering services — — — — |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, cash equivalents and short-term investments consisted of the following March 31, 2019 December 31, 2018 Cash $ 5,976 $ 6,780 Cash equivalents (see detail in Note 4) 1,513 3,225 Restricted cash 338 263 Restricted cash, long-term 263 263 Total cash and cash equivalents 8,090 10,531 Short-term investments (see detail in Note 4) 7,173 6,409 Total cash, cash equivalents and short-term investments $ 15,263 $ 16,940 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 are summarized below March 31, 2019 December 31, 2018 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 $ 264 $ — $ 264 $ 1,277 $ — $ 1,277 Government and agencies — 500 $ 500 — — — Corporate commercial paper — 749 749 — 1,198 1,198 Corporate debt — — — — 750 750 Total cash equivalents 264 1,249 1,513 1,277 1,948 3,225 Restricted cash: Money market funds 601 — 601 526 — 526 Short-term investments: Corporate commercial paper — 5,276 5,276 — 3,874 3,874 Corporate debt — 1,897 1,897 — 2,535 2,535 Total short-term investments — 7,173 7,173 — 6,409 6,409 Total assets measured at fair value $ 865 $ 8,422 $ 9,287 $ 1,803 $ 8,357 $ 10,160 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Relate to Customer Relationships | Information March 31, 2019 December 31, 2018 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (1,033 ) $ 242 $ 1,275 $ (1,008 ) $ 267 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): 2019 73 2020 98 2021 71 Total $ 242 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Component of Lease Expense, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Related to Leases | Three months ended Total component lease expense was as follows (in thousands): March 31, 2019 Operating leases $ 348 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 429 Supplemental balance sheet information related to leases was as follows (dollars in thousands): March 31, 2019 Operating leases: Right of use $ 1,089 Current portion of operating lease liability $ 1,131 Operating lease liability, net of current portion 374 Total operating lease liabilities $ 1,505 Weighted Average Remaining Lease Term 1.4 years Weighted Average Discount Rate 7.0 % |
Schedule of Maturities of Lease Liabilities | As of March 31, 2019, maturities of lease liabilities were as follows: Operating leases Years Ended December 31, Remainder of 2019 $ 900 2020 624 2021 61 Total minimum lease payments 1,585 Less: amount representing interest (80 ) Present value of lease liabilities $ 1,505 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Dividend yield 0 % 0 % Expected life 6.0 years 5.4 years Expected volatility 64 % 54 % Risk-free interest rate 2.2 % 2.4 % |
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 March 31, 2019 2018 Cost of revenue — professional engineering service $ 6 $ 11 Selling, general and administrative 188 264 Research and development (26 ) 56 Total stock-based compensation expense $ 168 $ 331 Per diluted share $ 0.01 $ 0.03 |
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, 2018 1,390,012 $ 4.77 6.83 $ — Granted 575,625 1.97 Exercised — — Forfeited (54,194 ) 4.90 Expired (20,296 ) 5.17 Balance at March 31, 2019 1,891,147 $ 3.90 6.96 $ 180 Vested and expected to vest at March 31, 2019 1,638,226 $ 4.13 6.55 $ 117 Exercisable at March 31, 2019 979,630 $ 4.85 4.00 $ — |
Summary of Certain Additional Information about Stock Options | The following table summarizes Three Months Ended March 31, 2019 2018 Weighted average grant-date fair value of options granted during the period $ 1.97 $ 2.09 Options in-the-money (in shares) 6,000 737,632 Aggregate intrinsic value of options exercised during the period $ — $ 275 |
Summary of Restricted Stock Unit Activity | The following table Number of Weighted Average Shares Award Price Unvested at December 31, 2018 186,516 $ 2.88 Granted — — Vested (45,725 ) 2.82 Forfeited (18,876 ) 4.23 Unvested at March 31, 2019 121,915 $ 2.69 Expected to vest after March 31, 2019 114,770 $ 2.65 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table March 31, 2019 Stock options outstanding 1,891,147 Restricted stock units outstanding 121,915 Stock options and restricted stock units available for future grant 1,593,641 Common stock reserved for future issuance 3,606,703 |
Information about Geographic _2
Information about Geographic Areas and Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table Three Months Ended March 31, 2019 2018 Third-party software: Revenue $ 13,101 $ 16,064 Cost of revenue 11,149 13,354 Gross profit 1,952 2,710 Proprietary software: Revenue 251 1,795 Cost of revenue 213 41 Gross profit 38 1,754 Professional Engineering Service: Revenue 1,744 2,819 Cost of revenue 1,343 2,083 Gross profit 401 736 Total gross profit 2,391 5,200 Operating expenses 5,270 7,678 Other income, net 33 44 Income tax (expense) benefit — — Net loss $ (2,846 ) $ (2,434 ) |
Total Revenue and Long-Lived Assets by Geographic Area | Revenue by geography is based on the sales region of the customer. The following tables Three Months Ended March 31, 2019 2018 Total revenue: North America $ 14,528 $ 19,289 Asia 107 450 Europe 461 939 Total revenue $ 15,096 $ 20,678 March 31, 2019 December 31, 2018 Long-lived assets: North America $ 1,545 $ 1,578 Asia 83 91 Europe 258 4,023 Total long-lived assets $ 1,886 $ 5,692 |
Significant Risk Concentratio_2
Significant Risk Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Summary of Rebate Program Recorded Under Rebate Credits | Under this rebate program, we recorded rebate credits Three Months Ended March 31, 2019 2018 Reductions to cost of revenue $ 82 $ 260 Reductions to marketing expense $ 413 $ 267 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 1,485,981 | 1,528,907 |
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 | 77,532 | 64,192 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 15,096 | $ 20,678 |
Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 13,101 | 16,064 |
Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 251 | 1,795 |
Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 1,744 | 2,819 |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 14,528 | 19,289 |
North America [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 12,727 | 15,119 |
North America [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 244 | 1,683 |
North America [Member] | Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 1,557 | 2,487 |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 461 | 939 |
Europe [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 320 | 593 |
Europe [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 6 | 100 |
Europe [Member] | Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 135 | 246 |
Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 107 | 450 |
Asia [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 54 | 352 |
Asia [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 1 | 12 |
Asia [Member] | Professional Engineering Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 52 | $ 86 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Deferred Revenue (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Changes in the Contract Assets | |
Transferred to receivables from contract assets recognized at December 31, 2018 | $ 302 |
Changes in the Contract Liabilities | |
Revenue recognized that was included in deferred revenue at December 31, 2018 | $ 369 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Topic 606 [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary Of Accounting Policies [Line Items] | ||
Amortization of contract acquisition costs | $ 7,000 | $ 80,000 |
Asset impairment charges for contract acquisition cost | $ 0 | $ 0 |
Revenue, remaining performance obligation, optional exemption, performance obligation [true/false] | true |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) - Software [Member] $ in Thousands | Mar. 31, 2019USD ($) |
Third Party Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 9 months |
Estimated revenue expected to be recognized in future | $ 37 |
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 recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 14 |
Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 9 months |
Estimated revenue expected to be recognized in future | $ 2,179 |
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 recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 1,755 |
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 recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 1,936 |
Proprietary Software [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 196 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||||
Cash | $ 5,976 | $ 6,780 | ||
Cash equivalents | 1,513 | 3,225 | ||
Restricted cash | 338 | 263 | ||
Restricted cash, long-term | 263 | 263 | ||
Total cash and cash equivalents | 8,090 | 10,531 | $ 10,692 | $ 12,859 |
Short-term investments | 7,173 | 6,409 | ||
Total cash, cash equivalents and short-term investments | $ 15,263 | $ 16,940 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted cash: | ||
Restricted cash | $ 338 | $ 263 |
Short-term investments: | ||
Total short-term investments | 7,173 | 6,409 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,513 | 3,225 |
Short-term investments: | ||
Total short-term investments | 7,173 | 6,409 |
Total assets measured at fair value | 9,287 | 10,160 |
Government and agencies [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 500 | |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 749 | 1,198 |
Short-term investments: | ||
Total short-term investments | 5,276 | 3,874 |
Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | |
Short-term investments: | ||
Total short-term investments | 1,897 | 2,535 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 264 | 1,277 |
Restricted cash: | ||
Restricted cash | 601 | 526 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 264 | 1,277 |
Short-term investments: | ||
Total assets measured at fair value | 865 | 1,803 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 264 | 1,277 |
Restricted cash: | ||
Restricted cash | 601 | 526 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,249 | 1,948 |
Short-term investments: | ||
Total short-term investments | 7,173 | 6,409 |
Total assets measured at fair value | 8,422 | 8,357 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Government and agencies [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 500 | |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 749 | 1,198 |
Short-term investments: | ||
Total short-term investments | 5,276 | 3,874 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | |
Short-term investments: | ||
Total short-term investments | $ 1,897 | $ 2,535 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 242 | $ 267 |
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 | (1,033) | (1,008) |
Net Book Value | $ 242 | $ 267 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 25,000 | $ 25,000 |
Intangible Assets - Expected Am
Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2019 | $ 73 | |
2020 | 98 | |
2021 | 71 | |
Net Book Value | $ 242 | $ 267 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Lessee Lease Description [Line Items] | ||
Net lease liabilities | $ 1,505 | |
Operating lease, right-of-use assets | $ 1,089 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining terms | 1 year | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining terms | 4 years | |
ASU 2016-02 [Member] | ||
Lessee Lease Description [Line Items] | ||
Net lease liabilities | $ 1,700 | |
Operating lease, right-of-use assets | 1,200 | |
Deferred rent, de-recognized | $ (500) |
Leases - Component of Lease Exp
Leases - Component of Lease Expense, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Total component lease expense was as follows (in thousands): | |
Operating leases | $ 348 |
Supplemental cash flow information related to leases was as follows (in thousands): | |
Cash paid for amounts included in the measurement of lease liabilities | 429 |
Operating leases: | |
Right of use | 1,089 |
Current portion of operating lease liability | 1,131 |
Operating lease liability, net of current portion | 374 |
Total operating lease liabilities | $ 1,505 |
Weighted Average Remaining Lease Term | 1 year 4 months 24 days |
Weighted Average Discount Rate | 7.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Remainder of 2019 | $ 900 |
Operating Leases, Year Ending December 31, 2020 | 624 |
Operating Leases, Year Ending December 31, 2021 | 61 |
Operating Leases, Total minimum lease payments | 1,585 |
Operating Leases, Less: amount representing interest | (80) |
Opearating Leases, Present value of lease liabilities | $ 1,505 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
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 | $ 159,524 |
Amortization cost, weighted-average period | 1 year 10 months 24 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 3 months 18 days |
Compensation cost related to restricted stock units granted but not yet recognized, net of estimated forfeitures | $ 161,747 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 6 years | 5 years 4 months 24 days |
Expected volatility | 64.00% | 54.00% |
Risk-free interest rate | 2.20% | 2.40% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 168 | $ 331 |
Per diluted share | $ 0.01 | $ 0.03 |
Cost of revenue - professional engineering service [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 6 | $ 11 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 188 | 264 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ (26) | $ 56 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Beginning Balance | 1,390,012 | |
Granted, Number of Shares | 575,625 | |
Forfeited, Number of Shares | (54,194) | |
Expired, Number of Shares | (20,296) | |
Number of Shares, Ending Balance | 1,891,147 | 1,390,012 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,638,226 | |
Exercisable, Number of Shares, Ending Balance | 979,630 | |
Weighted Average Exercise Price, Beginning Balance | $ 4.77 | |
Granted, Weighted Average Exercise Price | 1.97 | |
Forfeited, Weighted Average Exercise Price | 4.90 | |
Expired, Weighted Average Exercise Price | 5.17 | |
Weighted Average Exercise Price, Ending Balance | 3.90 | $ 4.77 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 4.13 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.85 | |
Weighted Average Remaining Contractual Life (in years) | 6 years 11 months 15 days | 6 years 9 months 29 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 6 years 6 months 18 days | |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years | |
Balance outstanding, Aggregate Intrinsic Value | $ 180 | |
Vested and expected to vest, Aggregate Intrinsic Value | $ 117 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant-date fair value of options granted during the period | $ 1.97 | $ 2.09 |
Options in-the-money (in shares) | 6,000 | 737,632 |
Aggregate intrinsic value of options exercised during the period | $ 275 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 121,915 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 186,516 |
Vested, Number of Shares | (45,725) |
Forfeited, Number of Shares | (18,876) |
Unvested, Number of Shares, Ending Balance | 121,915 |
Expected to vest, Number of Shares, Ending Balance | 114,770 |
Unvested, Weighted Average Award Price, Beginning Balance | $ / shares | $ 2.88 |
Vested, Weighted Average Award Price | $ / shares | 2.82 |
Forfeited, Weighted Average Award Price | $ / shares | 4.23 |
Unvested, Weighted Average Award Price, Ending Balance | $ / shares | 2.69 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 2.65 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 1,891,147 | 1,390,012 |
Restricted stock units outstanding | 121,915 | |
Stock options and restricted stock units available for future grant | 1,593,641 | |
Common stock reserved for future issuance | 3,606,703 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating leases, expiration year | 2021 |
Information about Geographic _3
Information about Geographic Areas and Operating Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 15,096 | $ 20,678 |
Cost of revenue | 12,705 | 15,478 |
Gross profit | 2,391 | 5,200 |
Operating expenses | 5,270 | 7,678 |
Other income, net | 33 | 44 |
Net loss | (2,846) | (2,434) |
Third Party Software [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,101 | 16,064 |
Cost of revenue | 11,149 | 13,354 |
Gross profit | 1,952 | 2,710 |
Proprietary Software [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 251 | 1,795 |
Cost of revenue | 213 | 41 |
Gross profit | 38 | 1,754 |
Professional Engineering Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,744 | 2,819 |
Cost of revenue | 1,343 | 2,083 |
Gross profit | $ 401 | $ 736 |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Total revenue: | |||
Total revenue | $ 15,096 | $ 20,678 | |
Long-lived assets: | |||
Total long-lived assets | 1,886 | $ 5,692 | |
North America [Member] | |||
Total revenue: | |||
Total revenue | 14,528 | 19,289 | |
Long-lived assets: | |||
Total long-lived assets | 1,545 | 1,578 | |
Asia [Member] | |||
Total revenue: | |||
Total revenue | 107 | 450 | |
Long-lived assets: | |||
Total long-lived assets | 83 | 91 | |
Europe [Member] | |||
Total revenue: | |||
Total revenue | 461 | $ 939 | |
Long-lived assets: | |||
Total long-lived assets | $ 258 | $ 4,023 |
Significant Risk Concentratio_3
Significant Risk Concentrations - Additional Information (Detail) - USD ($) | Mar. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||||
Total revenue | $ 15,096,000 | $ 20,678,000 | ||
Accounts receivable | $ 9,713,000 | $ 11,581,000 | ||
Distribution partners in Europe, Turkey and Africa existing distribution agreements expiration date | Jun. 30, 2019 | |||
ODAs windows mobile operating system expiration date | Apr. 30, 2022 | |||
Rebate credits outstanding | $ 328,000 | |||
Cost of revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Allocation of rebate values, percentage | 20.00% | 30.00% | ||
Reduction to marketing expense [Member] | ||||
Concentration Risk [Line Items] | ||||
Allocation of rebate values, percentage | 80.00% | 70.00% | ||
Third Party Software [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | $ 13,101,000 | $ 16,064,000 | ||
Percentage of sales from existing distribution agreements on total revenues | 3.70% | |||
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | $ 2,700,000 | |||
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Accounts receivable | $ 2,300,000 | $ 2,800,000 | ||
Revenue [Member] | Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.00% | |||
Accounts receivable [Member] | Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 24.00% | 24.00% |
Significant Risk Concentratio_4
Significant Risk Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cost of revenue [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 82 | $ 260 |
Reduction to marketing expense [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 413 | $ 267 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - Unsecured Line of Credit Agreement [Member] - USD ($) | 1 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2018 | |
Line Of Credit Facility [Line Items] | |||
Line of credit, final due month and year | 2018-09 | ||
Line of credit, amount outstanding | $ 0 | ||
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 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - Severance Plan [Member] $ in Millions | May 09, 2019USD ($)Employee |
Subsequent Event [Line Items] | |
Number of workforce elimination | 38 |
Reduced workforce percentage | 25.00% |
Expected pre-tax severance charges | $ | $ 1.1 |
Employees [Member] | |
Subsequent Event [Line Items] | |
Number of workforce elimination | 32 |
Consultants [Member] | |
Subsequent Event [Line Items] | |
Number of workforce elimination | 6 |