Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
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 Common Stock, Shares Outstanding | 12,982,252 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 000-27687 | |
Entity Tax Identification Number | 91-1650880 | |
Entity Address, Address Line One | 110 110th Avenue NE | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Bellevue | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98004 | |
City Area Code | 425 | |
Local Phone Number | 519-5900 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock, no par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | WA | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 6,763 | $ 10,005 |
Restricted cash | 600 | 263 |
Short-term investments | 4,247 | 6,409 |
Accounts receivable, net of allowance for doubtful accounts of $31 and $40 at September 30, 2019 and December 31, 2018, respectively | 8,777 | 11,581 |
Contract assets | 629 | 1,053 |
Prepaid expenses and other current assets | 426 | 685 |
Total current assets | 21,442 | 29,996 |
Restricted cash, long-term | 263 | |
Deferred tax assets | 7 | 7 |
Equipment, furniture and leasehold improvements, less accumulated depreciation | 351 | 911 |
Intangible assets, less accumulated amortization | 193 | 267 |
Right-of-use lease asset, net | 702 | |
Other non-current assets | 361 | 550 |
Total assets | 23,056 | 31,994 |
Current liabilities: | ||
Third-party software fees payable | 7,008 | 7,620 |
Accounts payable | 203 | 565 |
Accrued compensation | 1,332 | 1,629 |
Other accrued expenses | 42 | 653 |
Deferred rent | 347 | |
Deferred revenue | 1,806 | 1,652 |
Operating lease | 835 | |
Total current liabilities | 11,226 | 12,466 |
Deferred rent, long-term | 150 | |
Deferred revenue, long-term | 835 | 1,037 |
Operating lease, long-term | 107 | |
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; 12,982,252 and 12,777,573 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 138,726 | 138,280 |
Accumulated other comprehensive loss | (1,004) | (926) |
Accumulated deficit | (126,834) | (119,013) |
Total shareholders' equity | 10,888 | 18,341 |
Total liabilities and shareholders' equity | $ 23,056 | $ 31,994 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 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 | 12,982,252 | 12,777,573 |
Common stock, shares outstanding | 12,982,252 | 12,777,573 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 14,641 | $ 16,694 | $ 43,917 | $ 56,575 |
Cost of revenue: | ||||
Total cost of revenue | 12,009 | 13,335 | 36,471 | 44,755 |
Gross profit | 2,632 | 3,359 | 7,446 | 11,820 |
Operating expenses: | ||||
Selling, general and administrative | 2,462 | 3,199 | 8,478 | 13,548 |
Research and development | 1,046 | 2,292 | 5,276 | 6,600 |
Restructuring costs | 253 | 1,629 | ||
Total operating expenses | 3,761 | 5,491 | 15,383 | 20,148 |
Loss from operations | (1,129) | (2,132) | (7,937) | (8,328) |
Other income, net | 22 | 65 | 116 | 156 |
Loss before income taxes | (1,107) | (2,067) | (7,821) | (8,172) |
Income tax benefit (expense) | (20) | (32) | ||
Net loss | $ (1,107) | $ (2,087) | $ (7,821) | $ (8,204) |
Basic loss per share | $ (0.09) | $ (0.16) | $ (0.60) | $ (0.65) |
Diluted loss per share | $ (0.09) | $ (0.16) | $ (0.60) | $ (0.65) |
Shares used in per share calculations: | ||||
Basic | 12,934 | 12,721 | 12,982 | 12,697 |
Diluted | 12,934 | 12,721 | 12,982 | 12,697 |
Net loss | $ (1,107) | $ (2,087) | $ (7,821) | $ (8,204) |
Other comprehensive income (loss) | ||||
Foreign currency translation, net of tax | (2) | 15 | (82) | 25 |
Unrealized gain (loss) on investments, net of tax | (2) | 4 | 4 | 6 |
Total other comprehensive income (loss) | (4) | 19 | (78) | 31 |
Comprehensive loss | (1,111) | (2,068) | (7,899) | (8,173) |
Partner Solutions [Member] | ||||
Revenue: | ||||
Total revenue | 12,556 | 14,241 | 37,341 | 47,297 |
Cost of revenue: | ||||
Total cost of revenue | 10,762 | 12,003 | 31,834 | 39,837 |
Gross profit | 1,794 | 2,238 | 5,507 | 7,460 |
Edge to Cloud [Member] | ||||
Revenue: | ||||
Total revenue | 2,085 | 2,453 | 6,576 | 9,278 |
Cost of revenue: | ||||
Total cost of revenue | 1,247 | 1,332 | 4,637 | 4,918 |
Gross profit | $ 838 | $ 1,121 | $ 1,939 | $ 4,360 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (7,821) | $ (8,204) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 696 | 466 |
Stock-based compensation | 371 | 620 |
Impairment of capitalized software development costs | 375 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,804 | 4,890 |
Contract assets | 424 | (244) |
Prepaid expenses and other assets | 344 | (112) |
Third-party software fees payable | (612) | (2,665) |
Accounts payable and accrued expenses | (1,270) | (442) |
Operating lease | 240 | |
Deferred revenue | (48) | (854) |
Deferred rent | (497) | (253) |
Net cash used in operating activities | (4,994) | (6,798) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (300) | (709) |
Proceeds from maturities of short-term investments | 9,640 | 14,125 |
Purchases of short-term investments | (7,370) | (8,092) |
Net cash provided by investing activities | 1,970 | 5,324 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 9 | |
Effect of exchange rate changes on cash and cash equivalents | (144) | (2) |
Net decrease in cash and cash equivalents | (3,168) | (1,467) |
Cash, restricted cash, and cash equivalents, beginning of period | 10,531 | 12,859 |
Cash, restricted cash, and cash equivalents, end of period | $ 7,363 | $ 11,392 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 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 | $ 371 | $ 371 | ||
Share-based compensation, including issuance of restricted stock, Shares | 204,679 | |||
Shares of restricted stock withheld for taxes | (23) | $ (23) | ||
Net loss | (7,821) | (7,821) | ||
Foreign currency translation adjustment, net of tax | 16 | 98 | (82) | |
Unrealized gain on investments, net of tax | 4 | 4 | ||
Balance at Sep. 30, 2019 | $ 10,888 | $ 138,726 | (1,004) | (126,834) |
Balance, Shares at Sep. 30, 2019 | 12,982,252 | 12,982,252 | ||
Balance at Jun. 30, 2019 | $ 11,835 | $ 138,562 | (1,000) | (125,727) |
Balance, Shares at Jun. 30, 2019 | 12,879,252 | |||
Share-based compensation, including issuance of restricted stock | 164 | $ 164 | ||
Share-based compensation, including issuance of restricted stock, Shares | 103,000 | |||
Shares of restricted stock withheld for taxes | (6) | $ (6) | ||
Net loss | (1,107) | (1,107) | ||
Foreign currency translation adjustment, net of tax | 4 | 6 | (2) | |
Unrealized gain on investments, net of tax | (2) | (2) | ||
Balance at Sep. 30, 2019 | $ 10,888 | $ 138,726 | $ (1,004) | $ (126,834) |
Balance, Shares at Sep. 30, 2019 | 12,982,252 | 12,982,252 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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. 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, 2019, our operating results for nine months ended September 30, 2019 and 2018 and our cash flows for the nine months ended September 30, 2019 and 2018. The accompanying financial information as of December 31, 2018 is derived from audited financial statements as of that date. 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. Effective July 1, 2019, we have made the following changes to our operating segments: • Our Third-Party Software operating segment has been renamed to Partner Solutions; • Our Professional Engineering Service operating segment has been renamed to Edge to Cloud, consistent with the suite of software and services we offer; and • We combined our Proprietary Software operating segment into our Edge to Cloud operating segment as a result of management’s decision to stop marketing of DataV tm See Note 9. “Information about Geographic Areas and Operating Segments,” for additional information on our segments. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 1,534,817 1,679,969 1,560,546 1,584,046 Restricted stock units 59,130 51,679 78,430 64,043 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Disaggregation of revenue The following table Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographical markets: North America $ 10,851 $ 1,863 $ 12,714 $ 13,715 $ 1,726 $ 15,441 Europe 164 177 341 526 148 674 Asia 1,541 45 1,586 — 579 579 Total $ 12,556 $ 2,085 $ 14,641 $ 14,241 $ 2,453 $ 16,694 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographical markets: North America $ 33,363 $ 5,918 $ 39,281 $ 45,115 $ 7,794 $ 52,909 Europe 1,004 496 1,500 1,821 681 2,502 Asia 2,974 162 3,136 361 803 1,164 Total $ 37,341 $ 6,576 $ 43,917 $ 47,297 $ 9,278 $ 56,575 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, 2019 and 2018. Significant changes in the contract assets and the deferred revenue nine months ended September 30, 2019 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Contract Assets Contract Liabilities Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2018 $ 204 $ — $ 1,189 $ 984 Transferred to receivables from contract assets recognized at December 31, 2018 — — 302 — Contract acquisition costs We capitalize contract acquisition costs for contracts with a TM mortization of contract acquisition costs was $35,000 and $7,000 for the three months ended September 30, 2019 and 2018, respectively, and was $42,000 and $93,000 for the nine months ended September 30, 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 Partner Solutions $ 11 $ 14 $ — $ — Edge to Cloud 1,315 2,049 2,115 274 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2019 December 31, 2018 Cash $ 5,147 $ 6,780 Cash equivalents (see detail in Note 4) 1,616 3,225 Restricted cash 600 263 Restricted cash, long-term — 263 Total cash and cash equivalents 7,363 10,531 Short-term investments (see detail in Note 4) 4,247 6,409 Total cash, cash equivalents and short-term investments $ 11,610 $ 16,940 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018 are summarized below September 30, 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 $ 1,616 $ — $ 1,616 $ 1,277 $ — $ 1,277 Government and agencies — — $ — — — — Corporate commercial paper — — — — 1,198 1,198 Corporate debt — — — — 750 750 Total cash equivalents 1,616 — 1,616 1,277 1,948 3,225 Restricted cash: Money market funds 600 — 600 526 — 526 Short-term investments: Corporate commercial paper — 2,244 2,244 — 3,874 3,874 Corporate debt — 2,003 2,003 — 2,535 2,535 Total short-term investments — 4,247 4,247 — 6,409 6,409 Total assets measured at fair value $ 2,216 $ 4,247 $ 6,463 $ 1,803 $ 8,357 $ 10,160 As of September 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2019 December 31, 2018 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (1,082 ) $ 193 $ 1,275 $ (1,008 ) $ 267 Amortization Remainder of 2019 $ 24 2020 98 2021 71 Total $ 193 |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 fiscal years beginning after December 31, 2018 and interim periods within those years, 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 we will renew our Bellevue lease, and we do not intend to renew our Taiwan lease (see Note 12, “Restructuring Costs”). As a result, we have not considered renewal options when recording ROU assets, lease liabilities or lease expense. Nine months ended Total component lease expense was as follows (in thousands): September 30, 2019 Operating leases $ 767 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 1,024 Supplemental balance sheet information related to leases was as follows (dollars in thousands): September 30, 2019 Operating leases: Right of use $ 702 Current portion of operating lease liability $ 835 Operating lease liability, net of current portion 107 Total operating lease liabilities $ 942 Weighted Average Remaining Lease Term 1.1 years Weighted Average Discount Rate 7.0 % As of September 30, 2019, maturities of lease liabilities were as follows: Operating leases Years Ended December 31, 2019, remainder of year $ 300 2020 617 2021 53 Total minimum lease payments 970 Less: amount representing interest (28 ) Present value of lease liabilities $ 942 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Dividend yield 0 % 0 % 0 % 0 % Expected life 5.6 years 4.4 years 5.8 years 5.3 years Expected volatility 64 % 56 % 64 % 55 % Risk-free interest rate 1.6 % 2.7 % 2.1 % 2.5 % 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, 2019 2018 2019 2018 Cost of revenue — Edge to Cloud $ 1 $ 11 $ 10 $ 30 Selling, general and administrative 175 237 373 421 Research and development 12 57 (12 ) 169 Total stock-based compensation expense $ 188 $ 305 $ 371 $ 620 Per diluted share $ 0.01 $ 0.02 $ 0.03 $ 0.05 Stock Option Activity The following table summarizes stock option activity under the Plans Weighted Average Remaining Number of Weighted Average Contractual Life Aggregate Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2018 1,390,012 $ 4.77 6.83 $ — Granted 933,423 1.70 Exercised — — Forfeited (218,889 ) 4.98 Expired (467,490 ) 5.00 Balance at September 30, 2019 1,637,056 $ 2.93 7.67 $ 505 Vested and expected to vest at September 30, 2019 1,349,818 $ 3.17 7.28 $ 343 Exercisable at September 30, 2019 596,324 $ 4.69 4.67 $ — At September 30, 2019, total compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures, Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Weighted average grant-date fair value of options granted during the period $ 1.23 $ 1.02 $ 1.70 $ 1.89 Options in-the-money (in shares) — 26,000 — 26,000 Aggregate intrinsic value of options exercised during the period $ — $ — $ — $ 1,853 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 225,693 1.44 Vested (204,679 ) 2.19 Forfeited (34,643 ) 4.68 Unvested at September 30, 2019 172,887 $ 1.46 Expected to vest after September 30, 2019 159,795 $ 1.46 At September 30, 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 September 30, 2019 Stock options outstanding 1,637,056 Restricted stock units outstanding 172,887 Stock options and restricted stock units available for future grant 1,637,806 Common stock reserved for future issuance 3,447,749 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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. Effective as of July 1, 2019, we made the following changes to our operating segments: • Our Third-Party Software operating segment has been renamed to Partner Solutions; • Our Professional Engineering Service operating segment has been renamed to Edge to Cloud; and • We no longer present separate information for the Proprietary Software operating segment. Results are no longer quantifiably significant, nor does management view the segment as of continuing significance after deciding to stop marketing of DataV TM As of July 1, 2019, we have two major product lines – Partner Solutions and Edge to Cloud– 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Partner Solutions: Revenue $ 12,556 $ 14,241 $ 37,341 $ 47,297 Cost of revenue 10,762 12,003 31,834 39,837 Gross profit 1,794 2,238 5,507 7,460 Edge to Cloud: Revenue 2,085 2,453 6,576 9,278 Cost of revenue 1,247 1,332 4,637 4,918 Gross profit 838 1,121 1,939 4,360 Total gross profit 2,632 3,359 7,446 11,820 Operating expenses 3,761 5,491 15,383 20,148 Other income, net 22 65 116 156 Income tax (expense) benefit — (20 ) — (32 ) Net loss $ (1,107 ) $ (2,087 ) $ (7,821 ) $ (8,204 ) Revenue by geography is based on the sales region of the customer. The following tables Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total revenue: North America $ 12,714 $ 15,441 $ 39,281 $ 52,909 Asia 1,586 579 3,136 1,164 Europe 341 674 1,500 2,502 Total revenue $ 14,641 $ 16,694 $ 43,917 $ 56,575 September 30, 2019 December 31, 2018 Long-lived assets: North America $ 1,027 $ 1,578 Asia 200 91 Europe 380 4,023 Total long-lived assets $ 1,607 $ 5,692 |
Significant Risk Concentrations
Significant Risk Concentrations | 9 Months Ended |
Sep. 30, 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 each of the three and nine months ended September 30, 2019 and 2018. Honeywell Honeywell 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 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, expired on June 30, 2019 and was not renewed. We have also entered into OEM Distribution Agreements (“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 and nine months ended September 30, 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 and nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Reductions to cost of revenue $ 87 $ 159 $ 240 $ 577 Reductions to marketing expense $ 597 $ 294 $ 1,027 $ 673 There was a balance |
Impairment of Software Developm
Impairment of Software Development Costs | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Impairment of Software Development Costs | 11. Impairment of Software Development Costs As a result of an impairment analysis associated with our long-lived equipment, furniture and leasehold improvement assets, the Company recorded a charge of $0.4 million related to certain software development cost assets during the three months ended June 30, 2019. For the third quarter and first nine months of 2019, we incurred charges of none and $0.4 million, respectively, for impairment of software development costs. The charges are reflected in the “Restructuring costs” line item on the Company’s consolidated statement of operations and comprehensive loss. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 12. Restructuring costs In May 2019, we approved a severance plan that included a workforce elimination of approximately 38 positions in the U.S. and internationally. In October 2019, we determined to close our Taiwan branch office by December 31, 2019, which will result in elimination of approximately 17 additional positions. Of these 55 total positions, 34 positions had been eliminated as of September 30, 2019. This involuntary termination benefit plan was done in order to reduce go-forward operating costs and re-align our go-forward business model to support future business initiatives. The costs associated with these actions consist primarily of charges for restructuring costs related to severance and benefits, and a non-cash impairment charge related to certain software development cost assets. We expect to incur aggregate restructuring charges of approximately $2.1 million associated with these actions. During the third quarter and the first nine months of 2019, we incurred $0.3 million and $1.6 million, respectively, in charges for restructuring costs under this plan. For the nine months ended September 30, 2019, $0.8 million in restructuring costs were paid. The ending balance for accrued restructuring charges is $0.5 million as of September 30, 2019 and is included as part of accrued compensation on the consolidated balance sheets. Summary of Restructuring Costs The types of charges for restructuring costs for the three and nine months ended September 30, 2019 and September 30, 2018 were (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Severance and benefits $ 253 $ — $ 1,254 $ — Asset impairment charge (see Note 11) — — 375 — Total $ 253 $ — $ 1,629 $ — Accrued Restructuring Costs The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in thousand): Three Months Ended September 30, 2019 2018 Balance as of June 30, 2019 $ 661 $ — Restructuring costs 253 — Adjustments of prior estimates — — Non-cash asset impairment charge — — Cash payments (442 ) — Balance as of September 30, 2019 $ 472 $ — Nine Months Ended September 30, 2019 2018 Balance as of December 31, 2018 $ — $ — Restructuring costs 1,629 — Adjustments of prior estimates — — Non-cash asset impairment charge (375 ) — Cash payments (782 ) — Balance as of September 30, 2019 $ 472 $ — As of September 30, Estimated timing of future payments: 2019 2018 Remainder of 2019 $ 310 $ — 2020 162 — Total stock-based compensation expense $ 472 $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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. 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, 2019, our operating results for nine months ended September 30, 2019 and 2018 and our cash flows for the nine months ended September 30, 2019 and 2018. The accompanying financial information as of December 31, 2018 is derived from audited financial statements as of that date. 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. Effective July 1, 2019, we have made the following changes to our operating segments: • Our Third-Party Software operating segment has been renamed to Partner Solutions; • Our Professional Engineering Service operating segment has been renamed to Edge to Cloud, consistent with the suite of software and services we offer; and • We combined our Proprietary Software operating segment into our Edge to Cloud operating segment as a result of management’s decision to stop marketing of DataV tm See Note 9. “Information about Geographic Areas and Operating Segments,” for additional information on our segments. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 1,534,817 1,679,969 1,560,546 1,584,046 Restricted stock units 59,130 51,679 78,430 64,043 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 1,534,817 1,679,969 1,560,546 1,584,046 Restricted stock units 59,130 51,679 78,430 64,043 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographical markets: North America $ 10,851 $ 1,863 $ 12,714 $ 13,715 $ 1,726 $ 15,441 Europe 164 177 341 526 148 674 Asia 1,541 45 1,586 — 579 579 Total $ 12,556 $ 2,085 $ 14,641 $ 14,241 $ 2,453 $ 16,694 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographical markets: North America $ 33,363 $ 5,918 $ 39,281 $ 45,115 $ 7,794 $ 52,909 Europe 1,004 496 1,500 1,821 681 2,502 Asia 2,974 162 3,136 361 803 1,164 Total $ 37,341 $ 6,576 $ 43,917 $ 47,297 $ 9,278 $ 56,575 |
Schedule of Significant Changes in Contract Assets and Deferred Revenue | Significant changes in the contract assets and the deferred revenue nine months ended September 30, 2019 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Contract Assets Contract Liabilities Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2018 $ 204 $ — $ 1,189 $ 984 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 Partner Solutions $ 11 $ 14 $ — $ — Edge to Cloud 1,315 2,049 2,115 274 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, cash equivalents and short-term investments consisted of the following September 30, 2019 December 31, 2018 Cash $ 5,147 $ 6,780 Cash equivalents (see detail in Note 4) 1,616 3,225 Restricted cash 600 263 Restricted cash, long-term — 263 Total cash and cash equivalents 7,363 10,531 Short-term investments (see detail in Note 4) 4,247 6,409 Total cash, cash equivalents and short-term investments $ 11,610 $ 16,940 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018 are summarized below September 30, 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 $ 1,616 $ — $ 1,616 $ 1,277 $ — $ 1,277 Government and agencies — — $ — — — — Corporate commercial paper — — — — 1,198 1,198 Corporate debt — — — — 750 750 Total cash equivalents 1,616 — 1,616 1,277 1,948 3,225 Restricted cash: Money market funds 600 — 600 526 — 526 Short-term investments: Corporate commercial paper — 2,244 2,244 — 3,874 3,874 Corporate debt — 2,003 2,003 — 2,535 2,535 Total short-term investments — 4,247 4,247 — 6,409 6,409 Total assets measured at fair value $ 2,216 $ 4,247 $ 6,463 $ 1,803 $ 8,357 $ 10,160 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Relate to Customer Relationships | Information September 30, 2019 December 31, 2018 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships: $ 1,275 $ (1,082 ) $ 193 $ 1,275 $ (1,008 ) $ 267 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): Remainder of 2019 $ 24 2020 98 2021 71 Total $ 193 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Component of Lease Expense, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Related to Leases | Nine months ended Total component lease expense was as follows (in thousands): September 30, 2019 Operating leases $ 767 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 1,024 Supplemental balance sheet information related to leases was as follows (dollars in thousands): September 30, 2019 Operating leases: Right of use $ 702 Current portion of operating lease liability $ 835 Operating lease liability, net of current portion 107 Total operating lease liabilities $ 942 Weighted Average Remaining Lease Term 1.1 years Weighted Average Discount Rate 7.0 % |
Schedule of Maturities of Lease Liabilities | As of September 30, 2019, maturities of lease liabilities were as follows: Operating leases Years Ended December 31, 2019, remainder of year $ 300 2020 617 2021 53 Total minimum lease payments 970 Less: amount representing interest (28 ) Present value of lease liabilities $ 942 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Dividend yield 0 % 0 % 0 % 0 % Expected life 5.6 years 4.4 years 5.8 years 5.3 years Expected volatility 64 % 56 % 64 % 55 % Risk-free interest rate 1.6 % 2.7 % 2.1 % 2.5 % |
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, 2019 2018 2019 2018 Cost of revenue — Edge to Cloud $ 1 $ 11 $ 10 $ 30 Selling, general and administrative 175 237 373 421 Research and development 12 57 (12 ) 169 Total stock-based compensation expense $ 188 $ 305 $ 371 $ 620 Per diluted share $ 0.01 $ 0.02 $ 0.03 $ 0.05 |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Plans Weighted Average Remaining Number of Weighted Average Contractual Life Aggregate Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2018 1,390,012 $ 4.77 6.83 $ — Granted 933,423 1.70 Exercised — — Forfeited (218,889 ) 4.98 Expired (467,490 ) 5.00 Balance at September 30, 2019 1,637,056 $ 2.93 7.67 $ 505 Vested and expected to vest at September 30, 2019 1,349,818 $ 3.17 7.28 $ 343 Exercisable at September 30, 2019 596,324 $ 4.69 4.67 $ — |
Summary of Certain Additional Information about Stock Options | The following table summarizes Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Weighted average grant-date fair value of options granted during the period $ 1.23 $ 1.02 $ 1.70 $ 1.89 Options in-the-money (in shares) — 26,000 — 26,000 Aggregate intrinsic value of options exercised during the period $ — $ — $ — $ 1,853 |
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 225,693 1.44 Vested (204,679 ) 2.19 Forfeited (34,643 ) 4.68 Unvested at September 30, 2019 172,887 $ 1.46 Expected to vest after September 30, 2019 159,795 $ 1.46 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table September 30, 2019 Stock options outstanding 1,637,056 Restricted stock units outstanding 172,887 Stock options and restricted stock units available for future grant 1,637,806 Common stock reserved for future issuance 3,447,749 |
Information about Geographic _2
Information about Geographic Areas and Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Partner Solutions: Revenue $ 12,556 $ 14,241 $ 37,341 $ 47,297 Cost of revenue 10,762 12,003 31,834 39,837 Gross profit 1,794 2,238 5,507 7,460 Edge to Cloud: Revenue 2,085 2,453 6,576 9,278 Cost of revenue 1,247 1,332 4,637 4,918 Gross profit 838 1,121 1,939 4,360 Total gross profit 2,632 3,359 7,446 11,820 Operating expenses 3,761 5,491 15,383 20,148 Other income, net 22 65 116 156 Income tax (expense) benefit — (20 ) — (32 ) Net loss $ (1,107 ) $ (2,087 ) $ (7,821 ) $ (8,204 ) |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total revenue: North America $ 12,714 $ 15,441 $ 39,281 $ 52,909 Asia 1,586 579 3,136 1,164 Europe 341 674 1,500 2,502 Total revenue $ 14,641 $ 16,694 $ 43,917 $ 56,575 September 30, 2019 December 31, 2018 Long-lived assets: North America $ 1,027 $ 1,578 Asia 200 91 Europe 380 4,023 Total long-lived assets $ 1,607 $ 5,692 |
Significant Risk Concentratio_2
Significant Risk Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Summary of Rebate Program Recorded Under Rebate Credits | Under this rebate program, we recorded rebate credits Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Reductions to cost of revenue $ 87 $ 159 $ 240 $ 577 Reductions to marketing expense $ 597 $ 294 $ 1,027 $ 673 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Costs | The types of charges for restructuring costs for the three and nine months ended September 30, 2019 and September 30, 2018 were (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Severance and benefits $ 253 $ — $ 1,254 $ — Asset impairment charge (see Note 11) — — 375 — Total $ 253 $ — $ 1,629 $ — |
Summary of Activity and Estimated Timing of Future Payouts for Accrued Restructuring Costs | The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in thousand): Three Months Ended September 30, 2019 2018 Balance as of June 30, 2019 $ 661 $ — Restructuring costs 253 — Adjustments of prior estimates — — Non-cash asset impairment charge — — Cash payments (442 ) — Balance as of September 30, 2019 $ 472 $ — Nine Months Ended September 30, 2019 2018 Balance as of December 31, 2018 $ — $ — Restructuring costs 1,629 — Adjustments of prior estimates — — Non-cash asset impairment charge (375 ) — Cash payments (782 ) — Balance as of September 30, 2019 $ 472 $ — As of September 30, Estimated timing of future payments: 2019 2018 Remainder of 2019 $ 310 $ — 2020 162 — Total stock-based compensation expense $ 472 $ — |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 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 | 1,534,817 | 1,679,969 | 1,560,546 | 1,584,046 |
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 | 59,130 | 51,679 | 78,430 | 64,043 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | $ 14,641 | $ 16,694 | $ 43,917 | $ 56,575 |
Partner Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 12,556 | 14,241 | 37,341 | 47,297 |
Edge to Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 2,085 | 2,453 | 6,576 | 9,278 |
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 12,714 | 15,441 | 39,281 | 52,909 |
North America [Member] | Partner Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 10,851 | 13,715 | 33,363 | 45,115 |
North America [Member] | Edge to Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 1,863 | 1,726 | 5,918 | 7,794 |
Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 341 | 674 | 1,500 | 2,502 |
Europe [Member] | Partner Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 164 | 526 | 1,004 | 1,821 |
Europe [Member] | Edge to Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 177 | 148 | 496 | 681 |
Asia [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 1,586 | 579 | 3,136 | 1,164 |
Asia [Member] | Partner Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | 1,541 | 2,974 | 361 | |
Asia [Member] | Edge to Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenue | $ 45 | $ 579 | $ 162 | $ 803 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Deferred Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Changes in the Contract Assets | ||
Transferred to receivables from contract assets recognized at December 31, 2018 | $ 302 | |
Revenue recognized that was included in contract assets at December 31, 2018 | $ 204 | 1,189 |
Changes in the Contract Liabilities | ||
Revenue recognized that was included in deferred revenue at December 31, 2018 | $ 984 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Topic 606 [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary Of Accounting Policies [Line Items] | ||||
Amortization of contract acquisition costs | $ 35,000 | $ 7,000 | $ 42,000 | $ 93,000 |
Asset impairment charges for contract acquisition cost | $ 0 | $ 0 | $ 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) $ in Thousands | Sep. 30, 2019USD ($) |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 3 months |
Estimated revenue expected to be recognized in future | $ 11 |
Partner Solutions [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 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 3 months |
Estimated revenue expected to be recognized in future | $ 1,315 |
Edge to Cloud [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 | $ 2,049 |
Edge to Cloud [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 | $ 2,115 |
Edge to Cloud [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 | $ 274 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||||
Cash | $ 5,147 | $ 6,780 | ||
Cash equivalents | 1,616 | 3,225 | ||
Restricted cash | 600 | 263 | ||
Restricted cash, long-term | 263 | |||
Total cash and cash equivalents | 7,363 | 10,531 | $ 11,392 | $ 12,859 |
Short-term investments | 4,247 | 6,409 | ||
Total cash, cash equivalents and short-term investments | $ 11,610 | $ 16,940 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Restricted cash: | ||
Restricted cash | $ 600 | $ 263 |
Short-term investments: | ||
Total short-term investments | 4,247 | 6,409 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,616 | 3,225 |
Short-term investments: | ||
Total short-term investments | 4,247 | 6,409 |
Total assets measured at fair value | 6,463 | 10,160 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,198 | |
Short-term investments: | ||
Total short-term investments | 2,244 | 3,874 |
Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | |
Short-term investments: | ||
Total short-term investments | 2,003 | 2,535 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,616 | 1,277 |
Restricted cash: | ||
Restricted cash | 600 | 526 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,616 | 1,277 |
Short-term investments: | ||
Total assets measured at fair value | 2,216 | 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 | 1,616 | 1,277 |
Restricted cash: | ||
Restricted cash | 600 | 526 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,948 | |
Short-term investments: | ||
Total short-term investments | 4,247 | 6,409 |
Total assets measured at fair value | 4,247 | 8,357 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,198 | |
Short-term investments: | ||
Total short-term investments | 2,244 | 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 | $ 2,003 | $ 2,535 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 193 | $ 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 | (1,082) | (1,008) |
Net Book Value | $ 193 | $ 267 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 25,000 | $ 25,000 | $ 74,000 | $ 74,000 |
Intangible Assets - Expected Am
Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2019 | $ 24 | |
2020 | 98 | |
2021 | 71 | |
Net Book Value | $ 193 | $ 267 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Lessee Lease Description [Line Items] | ||
Net lease liabilities | $ 942 | |
Operating lease, right-of-use assets | $ 702 | |
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 | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Total component lease expense was as follows (in thousands): | |
Operating leases | $ 767 |
Supplemental cash flow information related to leases was as follows (in thousands): | |
Cash paid for amounts included in the measurement of lease liabilities | 1,024 |
Operating leases: | |
Right of use | 702 |
Current portion of operating lease liability | 835 |
Operating lease liability, net of current portion | 107 |
Total operating lease liabilities | $ 942 |
Weighted Average Remaining Lease Term | 1 year 1 month 6 days |
Weighted Average Discount Rate | 7.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, 2019, remainder of year | $ 300 |
Operating Leases, Year Ending December 31, 2020 | 617 |
Operating Leases, Year Ending December 31, 2021 | 53 |
Operating Leases, Total minimum lease payments | 970 |
Operating Leases, Less: amount representing interest | (28) |
Operating Leases, Present value of lease liabilities | $ 942 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 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 | $ 141,634 |
Amortization cost, weighted-average period | 2 years 6 months |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 4 months 24 days |
Compensation cost related to restricted stock units granted but not yet recognized, net of estimated forfeitures | $ 157,583 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | 5 years 7 months 6 days | 4 years 4 months 24 days | 5 years 9 months 18 days | 5 years 3 months 18 days |
Expected volatility | 64.00% | 56.00% | 64.00% | 55.00% |
Risk-free interest rate | 1.60% | 2.70% | 2.10% | 2.50% |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 188 | $ 305 | $ 371 | $ 620 |
Per diluted share | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.05 |
Cost of revenue - Edge to Cloud [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1 | $ 11 | $ 10 | $ 30 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 175 | 237 | 373 | 421 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 12 | $ 57 | $ (12) | $ 169 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | 933,423 | |
Forfeited, Number of Shares | (218,889) | |
Expired, Number of Shares | (467,490) | |
Number of Shares, Ending Balance | 1,637,056 | 1,390,012 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,349,818 | |
Exercisable, Number of Shares, Ending Balance | 596,324 | |
Weighted Average Exercise Price, Beginning Balance | $ 4.77 | |
Granted, Weighted Average Exercise Price | 1.70 | |
Forfeited, Weighted Average Exercise Price | 4.98 | |
Expired, Weighted Average Exercise Price | 5 | |
Weighted Average Exercise Price, Ending Balance | 2.93 | $ 4.77 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 3.17 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.69 | |
Weighted Average Remaining Contractual Life (in years) | 7 years 8 months 1 day | 6 years 9 months 29 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 7 years 3 months 10 days | |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years 8 months 1 day | |
Balance outstanding, Aggregate Intrinsic Value | $ 505 | |
Vested and expected to vest, Aggregate Intrinsic Value | $ 343 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Weighted average grant-date fair value of options granted during the period | $ 1.23 | $ 1.02 | $ 1.70 | $ 1.89 |
Options in-the-money (in shares) | 26,000 | 26,000 | ||
Aggregate intrinsic value of options exercised during the period | $ 1,853 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 172,887 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 186,516 |
Granted, Number of Shares | 225,693 |
Vested, Number of Shares | (204,679) |
Forfeited, Number of Shares | (34,643) |
Unvested, Number of Shares, Ending Balance | 172,887 |
Expected to vest, Number of Shares, Ending Balance | 159,795 |
Unvested, Weighted Average Award Price, Beginning Balance | $ / shares | $ 2.88 |
Granted, Weighted Average Award Price | $ / shares | 1.44 |
Vested, Weighted Average Award Price | $ / shares | 2.19 |
Forfeited, Weighted Average Award Price | $ / shares | 4.68 |
Unvested, Weighted Average Award Price, Ending Balance | $ / shares | 1.46 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 1.46 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 1,637,056 | 1,390,012 |
Restricted stock units outstanding | 172,887 | |
Stock options and restricted stock units available for future grant | 1,637,806 | |
Common stock reserved for future issuance | 3,447,749 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 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) | Jul. 01, 2019Segment |
Segment Reporting [Abstract] | |
Number of reportable segment | 2 |
Number of operating segment | 2 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 14,641 | $ 16,694 | $ 43,917 | $ 56,575 |
Cost of revenue | 12,009 | 13,335 | 36,471 | 44,755 |
Gross profit | 2,632 | 3,359 | 7,446 | 11,820 |
Operating expenses | 3,761 | 5,491 | 15,383 | 20,148 |
Other income, net | 22 | 65 | 116 | 156 |
Income tax (expense) benefit | (20) | (32) | ||
Net loss | (1,107) | (2,087) | (7,821) | (8,204) |
Partner Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,556 | 14,241 | 37,341 | 47,297 |
Cost of revenue | 10,762 | 12,003 | 31,834 | 39,837 |
Gross profit | 1,794 | 2,238 | 5,507 | 7,460 |
Edge to Cloud [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,085 | 2,453 | 6,576 | 9,278 |
Cost of revenue | 1,247 | 1,332 | 4,637 | 4,918 |
Gross profit | $ 838 | $ 1,121 | $ 1,939 | $ 4,360 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total revenue: | |||||
Total revenue | $ 14,641 | $ 16,694 | $ 43,917 | $ 56,575 | |
Long-lived assets: | |||||
Total long-lived assets | 1,607 | 1,607 | $ 5,692 | ||
North America [Member] | |||||
Total revenue: | |||||
Total revenue | 12,714 | 15,441 | 39,281 | 52,909 | |
Long-lived assets: | |||||
Total long-lived assets | 1,027 | 1,027 | 1,578 | ||
Asia [Member] | |||||
Total revenue: | |||||
Total revenue | 1,586 | 579 | 3,136 | 1,164 | |
Long-lived assets: | |||||
Total long-lived assets | 200 | 200 | 91 | ||
Europe [Member] | |||||
Total revenue: | |||||
Total revenue | 341 | $ 674 | 1,500 | $ 2,502 | |
Long-lived assets: | |||||
Total long-lived assets | $ 380 | $ 380 | $ 4,023 |
Significant Risk Concentratio_3
Significant Risk Concentrations - Additional Information (Detail) - USD ($) | Mar. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 8,777,000 | $ 8,777,000 | $ 11,581,000 | |||
Distribution partners in Europe, Turkey and Africa distribution agreements expiration date | Jun. 30, 2019 | |||||
ODAs windows mobile operating system expiration date | Apr. 30, 2022 | |||||
Rebate credits outstanding | $ 821,000 | $ 821,000 | ||||
Cost of revenue [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Allocation of rebate values, percentage | 20.00% | 30.00% | 20.00% | 30.00% | ||
Reduction to marketing expense [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Allocation of rebate values, percentage | 80.00% | 70.00% | 80.00% | 70.00% | ||
Third Party Software [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of sales from distribution agreements on total revenues | 3.70% | |||||
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable | $ 1,400,000 | $ 1,400,000 | $ 2,800,000 | |||
Honeywell International Inc and affiliated entities [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 16.00% | 24.00% |
Significant Risk Concentratio_4
Significant Risk Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cost of revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Earnings under the rebate program | $ 87 | $ 159 | $ 240 | $ 577 |
Reduction to marketing expense [Member] | ||||
Concentration Risk [Line Items] | ||||
Earnings under the rebate program | $ 597 | $ 294 | $ 1,027 | $ 673 |
Impairment of Software Develo_2
Impairment of Software Development Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | |
Property Plant And Equipment [Line Items] | |||
Asset impairment charge | $ 375,000 | ||
Software Development [Member] | |||
Property Plant And Equipment [Line Items] | |||
Asset impairment charge | $ 0 | $ 400,000 | $ 400,000 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) $ in Thousands | Sep. 30, 2019USD ($)Employee | Oct. 31, 2019Employee | May 31, 2019Employee | Sep. 30, 2019USD ($) | Dec. 31, 2019Employee | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Restructuring Cost And Reserve [Line Items] | |||||||
Expected aggregate restructuring charges | $ 472 | $ 472 | $ 472 | ||||
Restructuring costs | 253 | 1,629 | |||||
Restructuring costs paid | 442 | 782 | |||||
Accrued restructuring charges | $ 472 | 472 | 472 | $ 661 | |||
Severance Plan [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Number of workforce elimination | Employee | 34 | 38 | |||||
Severance Plan [Member] | Scenario Forecast [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Number of workforce expected to be eliminated | Employee | 55 | ||||||
Severance Plan [Member] | Taiwan | Subsequent Event [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Number of workforce expected to be eliminated | Employee | 17 | ||||||
Severance and Benefits and Non-cash Impairment Charge [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Expected aggregate restructuring charges | $ 2,100 | 2,100 | 2,100 | ||||
Restructuring costs | 300 | 1,600 | |||||
Restructuring costs paid | 800 | ||||||
Accrued restructuring charges | $ 500 | $ 500 | $ 500 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||
Severance and benefits | $ 253 | $ 1,254 |
Asset impairment charge (see Note 11) | 375 | |
Total | $ 253 | $ 1,629 |
Restructuring Costs - Summary_2
Restructuring Costs - Summary of Activity and Estimated Timing of Future Payouts for Accrued Restructuring Costs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 661 | |
Restructuring costs | 253 | $ 1,629 |
Non-cash asset impairment charge | (375) | |
Cash payments | (442) | (782) |
Ending Balance | 472 | 472 |
Estimated timing of future payments: | ||
Remainder of 2019 | 310 | 310 |
2020 | 162 | 162 |
Total stock-based compensation expense | $ 472 | $ 472 |