Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
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 Common Stock, Shares Outstanding | 13,098,718 | |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 10,044 | $ 7,712 |
Restricted cash | 600 | 600 |
Short-term investments | 2,249 | |
Accounts receivable, net of allowance for doubtful accounts of $65 and $31 at March 31, 2020 and December 31, 2019, respectively | 10,092 | 9,216 |
Contract assets | 558 | 494 |
Prepaid expenses and other current assets | 708 | 244 |
Total current assets | 22,002 | 20,515 |
Equipment, furniture and leasehold improvements, less accumulated depreciation | 155 | 252 |
Deferred tax assets | 7 | 7 |
Intangible assets, less accumulated amortization | 144 | 169 |
Right-of-use lease asset, net | 1,499 | 1,828 |
Other non-current assets | 166 | 284 |
Total assets | 23,973 | 23,055 |
Current liabilities: | ||
Third-party software fees payable | 8,579 | 7,224 |
Accounts payable | 457 | 408 |
Accrued compensation | 576 | 1,001 |
Other accrued expenses | 771 | 306 |
Deferred revenue | 2,052 | 1,559 |
Operating lease | 421 | 702 |
Total current liabilities | 12,856 | 11,200 |
Deferred revenue, long-term | 548 | 903 |
Operating lease, long-term | 1,168 | 1,256 |
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; 13,098,718 and 13,042,293 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 139,091 | 138,877 |
Accumulated other comprehensive loss | (1,022) | (987) |
Accumulated deficit | (128,668) | (128,194) |
Total shareholders' equity | 9,401 | 9,696 |
Total liabilities and shareholders' equity | $ 23,973 | $ 23,055 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 65 | $ 31 |
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 | 13,098,718 | 13,042,293 |
Common stock, shares outstanding | 13,098,718 | 13,042,293 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 16,729 | $ 15,096 |
Cost of revenue: | ||
Total cost of revenue | 14,144 | 12,705 |
Gross profit | 2,585 | 2,391 |
Operating expenses: | ||
Selling, general and administrative | 2,897 | 2,934 |
Research and development | 127 | 2,336 |
Total operating expenses | 3,024 | 5,270 |
Loss from operations | (439) | (2,879) |
Other income (loss), net | (35) | 33 |
Loss before income taxes | (474) | (2,846) |
Net loss | $ (474) | $ (2,846) |
Basic loss per share | $ (0.04) | $ (0.22) |
Diluted loss per share | $ (0.04) | $ (0.22) |
Shares used in per share calculations: | ||
Basic | 13,055 | 12,795 |
Diluted | 13,055 | 12,795 |
Net loss | $ (474) | $ (2,846) |
Other comprehensive income (loss) | ||
Foreign currency translation, net of tax | (34) | 2 |
Unrealized gain (loss) on investments, net of tax | (1) | 8 |
Total other comprehensive income (loss) | (35) | 10 |
Comprehensive loss | (509) | (2,836) |
Partner Solutions [Member] | ||
Revenue: | ||
Total revenue | 15,905 | 13,101 |
Cost of revenue: | ||
Total cost of revenue | 13,156 | 11,149 |
Gross profit | 2,749 | 1,952 |
Edge to Cloud [Member] | ||
Revenue: | ||
Total revenue | 824 | 1,995 |
Cost of revenue: | ||
Total cost of revenue | 988 | 1,556 |
Gross profit | $ (164) | $ 439 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (474) | $ (2,846) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 196 | 194 |
Stock-based compensation | 215 | 168 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (876) | 1,868 |
Contract assets | (81) | 75 |
Prepaid expenses and other assets | (331) | (176) |
Third-party software fees payable | 1,355 | (303) |
Accounts payable and accrued expenses | 89 | (382) |
Operating lease | (40) | 416 |
Deferred revenue | 138 | 24 |
Deferred rent | (497) | |
Net cash provided by (used in) operating activities | 191 | (1,459) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (33) | (246) |
Proceeds from maturities of short-term investments | 2,250 | 4,390 |
Purchases of short-term investments | (5,127) | |
Net cash provided by (used in) investing activities | 2,217 | (983) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 9 | |
Effect of exchange rate changes on cash and cash equivalents | (76) | (8) |
Net increase (decrease) in cash and cash equivalents | 2,332 | (2,441) |
Cash, restricted cash, and cash equivalents, beginning of period | 8,312 | 10,531 |
Cash, restricted cash, and cash equivalents, end of period | $ 10,644 | $ 8,090 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 3 months ended Mar. 31, 2020 - USD ($) $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2019 | $ 9,696 | $ 138,877 | $ (987) | $ (128,194) |
Balance, Shares at Dec. 31, 2019 | 13,042,293 | 13,042,293 | ||
Share-based compensation, including issuance of restricted stock | $ 215 | $ 215 | ||
Share-based compensation, including issuance of restricted stock, Shares | 56,425 | |||
Net loss | (474) | (474) | ||
Foreign currency translation adjustment, net of tax | (35) | $ (1) | (34) | |
Unrealized gain on investments, net of tax | (1) | (1) | ||
Balance at Mar. 31, 2020 | $ 9,401 | $ 139,091 | $ (1,022) | $ (128,668) |
Balance, Shares at Mar. 31, 2020 | 13,098,718 | 13,098,718 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Description of business BSQUARE Corporation (“BSQUARE,” “we,” “us” and “our”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Bsquare builds technology that is powering the next generation of intelligent systems. We help companies realize the promise of the Internet of Things (“IoT”) through the development of devices and systems that are cloud-enabled, share data seamlessly, facilitate distributed learning and control, and operate securely at scale. We believe that IoT-enabled systems can not only deliver value to our customers but also help people make better use of the resources of our planet. Bsquare's suite of services and software components create new revenue streams and operating models for our customers while providing opportunities for lowering costs and improving operations. 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 management’s 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, 2020 and our operating results and cash flows for three months ended March 31, 2020 and 2019. The accompanying financial information as of December 31, 2019 is derived from our audited financial statements as of that date. These unaudited condensed financial statements and related notes should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 24, 2020. 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. Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates and assumptions. Actual results may differ from these estimates and assumptions. Income (Loss) Per Share We compute basic loss per share using the weighted average number of shares of common stock outstanding during the period. We consider restricted stock units as outstanding shares of common stock 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 shares of common stock 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, 2020 2019 Stock options 1,574,500 1,485,981 Restricted stock units 74,981 77,532 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Disaggregation of revenue The following table Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographic area: North America $ 13,171 $ 605 $ 13,776 $ 12,727 $ 1,801 $ 14,528 Europe 426 213 639 320 141 461 Asia 2,308 6 2,314 54 53 107 Total $ 15,905 $ 824 $ 16,729 $ 13,101 $ 1,995 $ 15,096 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 months ended March 31, 2020 and 2019. Significant changes in the contract assets and the deferred revenue three months ended March 31, 2020 Three Months Ended March 31, 2020 Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2019 $ — $ 278 Transferred to receivables from contract assets recognized at December 31, 2019 15 — Contract acquisition costs We capitalize contract acquisition costs for contracts with a mortization of contract acquisition costs was $35,000 and $7,000 for the three months ended March 31, 2020 and 2019, 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 2020 2021 After 2021 Partner Solutions $ 13 $ 3 $ 9 Edge to Cloud 1,352 2,268 274 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 | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 December 31, 2019 Cash $ 4,189 $ 4,092 Cash equivalents (see detail in Note 4) 5,855 3,620 Restricted cash 600 600 Total cash and cash equivalents 10,644 8,312 Short-term investments (see detail in Note 4) — 2,249 Total cash, cash equivalents and short-term investments $ 10,644 $ 10,561 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 are summarized below March 31, 2020 December 31, 2019 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 $ 3,607 $ — $ 3,607 $ 1,871 $ — $ 1,871 Corporate commercial paper — 1,748 1,748 — 999 999 Corporate debt — 500 500 — 750 750 Total cash equivalents 3,607 2,248 5,855 1,871 1,749 3,620 Restricted cash: Money market funds 600 — 600 600 — 600 Short-term investments: Corporate commercial paper — — — — 748 748 Corporate debt — — — — 1,501 1,501 Total short-term investments — — — — 2,249 2,249 Total assets measured at fair value $ 4,207 $ 2,248 $ 6,455 $ 2,471 $ 3,998 $ 6,469 As of March 31, 2020 and December 31, 2019, 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, 2020 | |
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, 2020 December 31, 2019 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 1,275 $ (1,131 ) $ 144 $ 1,275 $ (1,106 ) $ 169 Amortization Remainder of 2020 $ 73 2021 71 Total $ 144 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases We determine if an arrangement is a lease at inception. On our balance sheet, our office leases are included in right-of-use (“ROU”) lease asset, net and related lease liabilities are included in operating lease and operating lease, long-term. 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 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. In December 2019, we entered into an operating lease agreement for a new corporate office facility in Seattle, Washington. The term of the lease is 87 months, with a rent date starting on May 1, 2020 and the lease term ending on July 31, 2027. As a result of entering this lease agreement, in December 2019, we recorded additional ROU assets and net lease liabilities of $1.2 million on our consolidated balance sheets. There was no material impact to our statement of operations or statement of cash flows as a result of entering into this lease. Our leases have remaining terms of one to eight years. The only leases that contain renewal options are for office space leases at our Seattle, Bellevue and Taiwan locations. In the fourth quarter of 2019, we made the decision not to renew our Bellevue lease, which expires at the end of May 2020, and we made the decision not to renew our Taiwan lease, exiting that facility in February 2020 (see Note 11, “Restructuring Costs”). Because of changes in our business, we are not able to determine with reasonable certainty whether we will renew our Seattle lease. As a result, we have not considered renewal options when recording ROU assets, lease liabilities or lease expense. The following tables present the components of our lease expense and supplemental cash flow information related to our leases for the three months ended March 31, 2020 (in thousands): Three months ended Total component lease expense was as follows (in thousands): March 31, 2020 Operating leases $ 264 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 173 The following table presents supplemental balance sheet information related to our operating leases as of March 31, 2020 (dollars in thousands): March 31, 2020 Right-of-use lease assets $ 1,499 Current portion of operating lease liability $ 421 Operating lease liability, net of current portion 1,168 Total operating lease liabilities $ 1,589 Weighted average remaining lease term 6.2 years Weighted average discount rate 8.2 % The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of March 31, 2020 (in thousands): Years Ended December 31, 2020, remainder of year $ 349 2021 272 2022 249 2023 255 2024 262 After 2024 709 Total minimum lease payments 2,096 Less: amount representing interest (507 ) Present value of lease liabilities $ 1,589 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Dividend yield 0 % 0 % Expected life 4.9 years 6.0 years Expected volatility 60 % 64 % Risk-free interest rate 1.1 % 2.2 % 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, 2020 2019 Cost of revenue — Edge to Cloud $ 4 $ 6 Selling, general and administrative 206 188 Research and development 5 (26 ) Total stock-based compensation expense $ 215 $ 168 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, 2019 1,544,826 $ 2.74 7.47 $ 46,582 Granted 564,900 1.02 Exercised — — Forfeited (1,500 ) 4.02 Expired (168,448 ) 4.79 Balance at March 31, 2020 1,939,778 2.06 8.62 — Vested and expected to vest at March 31, 2020 1,631,708 2.19 8.46 — Exercisable at March 31, 2020 467,687 $ 3.88 6.14 $ — At March 31, 2020, total compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures, Three Months Ended March 31, 2020 2019 Weighted average grant-date fair value of options granted during the period $ 1.02 $ 1.97 Options in-the-money (in shares) — 6,000 Aggregate intrinsic value of options exercised during the period $ — $ — 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, 2019 112,846 $ 1.44 Granted — — Vested (56,425 ) 1.44 Forfeited — — Unvested at March 31, 2020 56,421 $ 1.44 Expected to vest after March 31, 2020 159,795 $ 1.44 At March 31, 2020, 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, 2020 Stock options outstanding 1,939,778 Restricted stock units outstanding 56,421 Stock options and restricted stock units available for future grant 1,335,084 Common stock reserved for future issuance 3,331,283 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 2027 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, 2020 | |
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 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 March 31, 2020 2019 Partner Solutions: Revenue $ 15,905 $ 13,101 Cost of revenue 13,156 11,149 Gross profit 2,749 1,952 Edge to Cloud: Revenue 824 1,995 Cost of revenue 988 1,556 Gross profit (164 ) 439 Total gross profit 2,585 2,391 Operating expenses 3,024 5,270 Other income, net (35 ) 33 Income tax (expense) benefit — — Net loss $ (474 ) $ (2,846 ) Revenue by geographic area is based on the sales region of the customer. The following tables Three Months Ended March 31, 2020 2019 Total revenue: North America $ 13,776 $ 14,528 Asia 2,314 107 Europe 639 461 Total revenue $ 16,729 $ 15,096 March 31, 2020 December 31, 2019 Long-lived assets: North America $ 1,688 $ 2,016 Asia — 177 Europe 275 340 Total long-lived assets $ 1,963 $ 2,533 Long-lived assets decreased due to utilization of ROU leased assets in North America and from retirement of ROU leased assets in Asia due to closure of our Taiwan office. |
Significant Risk Concentrations
Significant Risk Concentrations | 3 Months Ended |
Mar. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Significant Risk Concentrations | 10. Significant Risk Concentrations Significant Customers No customer accounted for 10% or more of total revenue for each of the three months ended March 31, 2020 and 2019. Kodak Alaris, Inc. had accounts receivable balances of $1.6 million or approximately 16% of total accounts receivable at March 31, 2020. 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, Columbia, and several Caribbean countries. Of our total revenue, 79% in 2019 and 75% in 2018 resulted from the sale of Windows IoT operating systems. Our existing distribution agreement for sales of Windows IoT operating systems in the European Union, the European Free Trade Association, Turkey and Africa, expired on June 30, 2019 and was not renewed thereafter. We generated approximately 3% of our Partner Solutions software sales under this agreement in 2019. 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 Partner Solutions 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, 2020 and March 31, 2019, respectively, 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. Under this rebate program, we recorded rebate credits Three Months Ended March 31, 2020 2019 Reductions to cost of revenue $ 113 $ 82 Reductions to marketing expense $ 219 $ 413 There was a balance |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 11. Restructuring costs In May 2019, we approved a severance plan that included a workforce elimination of approximately 38 positions in the United States and internationally. In October 2019, we determined to close our Taiwan branch office, which resulted in elimination of approximately 17 additional positions. An 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 consisted 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 incurred aggregate restructuring charges of approximately $2.3 million associated with these actions during 2019, The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in For the three months ended March 31, 2020 Balance at beginning of period $ 472 Restructuring costs — Cash payments (428 ) Balance at end of period $ 44 As of March 31,2020 Estimated timing of future payments: Remainder of 2020 $ 44 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. On April 10, 2020, the Company received loan proceeds of $1.6 million (the “PPP Loan”) under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying companies in amounts up to 2.5 times their average monthly payroll expenses. The PPP Loan is evidenced by a promissory note, dated as of April 7, 2020 (the “Note”), between the Company and JPMorgan Chase Bank, N.A. (the “Lender”). The Note has a two-year term, bears interest at the rate of 0.98% per annum, and may be prepaid at any time without payment of any premium. No payments of principal or interest are due during the six-month period beginning on the date of the Note (the “Deferral Period”). The principal and accrued interest under the Note is forgivable after eight weeks if the Company uses the PPP Loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and otherwise complies with PPP requirements. In order to obtain forgiveness of the PPP Loan, the Company must submit a request and provide satisfactory documentation regarding its compliance with applicable requirements. The Company must repay any unforgiven principal amount of the Note, with interest, on a monthly basis following the Deferral Period. The Company intends to use the proceeds of the PPP Loan for eligible purposes and to pursue forgiveness, although the Company may take action that could cause some or all of the PPP Loan to become ineligible for forgiveness. The Note contains customary events of default relating to, among other things, payment defaults and breaches of representations, warranties or covenants. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company. In March 2020, the World Health Organization declared a pandemic related to the rapidly spreading coronavirus (COVID-19) outbreak. In addition, multiple governmental authorities have imposed “stay home,” “shelter-in-place” and similar orders that may disrupt business operations and present economic uncertainties that could impact our results and financial position. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on many factors, including the duration and spread of the outbreak, all of which are uncertain and cannot be predicted. The related financial impact cannot be reasonably estimated at this time. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of business | Description of business BSQUARE Corporation (“BSQUARE,” “we,” “us” and “our”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Bsquare builds technology that is powering the next generation of intelligent systems. We help companies realize the promise of the Internet of Things (“IoT”) through the development of devices and systems that are cloud-enabled, share data seamlessly, facilitate distributed learning and control, and operate securely at scale. We believe that IoT-enabled systems can not only deliver value to our customers but also help people make better use of the resources of our planet. Bsquare's suite of services and software components create new revenue streams and operating models for our customers while providing opportunities for lowering costs and improving operations. |
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 management’s 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, 2020 and our operating results and cash flows for three months ended March 31, 2020 and 2019. The accompanying financial information as of December 31, 2019 is derived from our audited financial statements as of that date. These unaudited condensed financial statements and related notes should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 24, 2020. |
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. |
Use of estimates | Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates and assumptions. Actual results may differ from these estimates and assumptions. |
Income (Loss) Per Share | Income (Loss) Per Share We compute basic loss per share using the weighted average number of shares of common stock outstanding during the period. We consider restricted stock units as outstanding shares of common stock 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 shares of common stock 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, 2020 2019 Stock options 1,574,500 1,485,981 Restricted stock units 74,981 77,532 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Stock options 1,574,500 1,485,981 Restricted stock units 74,981 77,532 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographic area: North America $ 13,171 $ 605 $ 13,776 $ 12,727 $ 1,801 $ 14,528 Europe 426 213 639 320 141 461 Asia 2,308 6 2,314 54 53 107 Total $ 15,905 $ 824 $ 16,729 $ 13,101 $ 1,995 $ 15,096 |
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, 2020 Three Months Ended March 31, 2020 Contract Assets Deferred Revenue Revenue recognized that was included in deferred revenue at December 31, 2019 $ — $ 278 Transferred to receivables from contract assets recognized at December 31, 2019 15 — |
Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The following table Remainder of 2020 2021 After 2021 Partner Solutions $ 13 $ 3 $ 9 Edge to Cloud 1,352 2,268 274 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 December 31, 2019 Cash $ 4,189 $ 4,092 Cash equivalents (see detail in Note 4) 5,855 3,620 Restricted cash 600 600 Total cash and cash equivalents 10,644 8,312 Short-term investments (see detail in Note 4) — 2,249 Total cash, cash equivalents and short-term investments $ 10,644 $ 10,561 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 are summarized below March 31, 2020 December 31, 2019 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 $ 3,607 $ — $ 3,607 $ 1,871 $ — $ 1,871 Corporate commercial paper — 1,748 1,748 — 999 999 Corporate debt — 500 500 — 750 750 Total cash equivalents 3,607 2,248 5,855 1,871 1,749 3,620 Restricted cash: Money market funds 600 — 600 600 — 600 Short-term investments: Corporate commercial paper — — — — 748 748 Corporate debt — — — — 1,501 1,501 Total short-term investments — — — — 2,249 2,249 Total assets measured at fair value $ 4,207 $ 2,248 $ 6,455 $ 2,471 $ 3,998 $ 6,469 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Relate to Customer Relationships | Information March 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Book Gross Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value Customer relationships $ 1,275 $ (1,131 ) $ 144 $ 1,275 $ (1,106 ) $ 169 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): Remainder of 2020 $ 73 2021 71 Total $ 144 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Component of Lease Expense and Supplemental Cash Flow Information Related to Leases | The following tables present the components of our lease expense and supplemental cash flow information related to our leases for the three months ended March 31, 2020 (in thousands): Three months ended Total component lease expense was as follows (in thousands): March 31, 2020 Operating leases $ 264 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 173 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | The following table presents supplemental balance sheet information related to our operating leases as of March 31, 2020 (dollars in thousands): March 31, 2020 Right-of-use lease assets $ 1,499 Current portion of operating lease liability $ 421 Operating lease liability, net of current portion 1,168 Total operating lease liabilities $ 1,589 Weighted average remaining lease term 6.2 years Weighted average discount rate 8.2 % |
Schedule of Amounts Obligated to Pay, by Maturity, Under Operating Leases Liabilities | The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of March 31, 2020 (in thousands): Years Ended December 31, 2020, remainder of year $ 349 2021 272 2022 249 2023 255 2024 262 After 2024 709 Total minimum lease payments 2,096 Less: amount representing interest (507 ) Present value of lease liabilities $ 1,589 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Dividend yield 0 % 0 % Expected life 4.9 years 6.0 years Expected volatility 60 % 64 % Risk-free interest rate 1.1 % 2.2 % |
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, 2020 2019 Cost of revenue — Edge to Cloud $ 4 $ 6 Selling, general and administrative 206 188 Research and development 5 (26 ) Total stock-based compensation expense $ 215 $ 168 |
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, 2019 1,544,826 $ 2.74 7.47 $ 46,582 Granted 564,900 1.02 Exercised — — Forfeited (1,500 ) 4.02 Expired (168,448 ) 4.79 Balance at March 31, 2020 1,939,778 2.06 8.62 — Vested and expected to vest at March 31, 2020 1,631,708 2.19 8.46 — Exercisable at March 31, 2020 467,687 $ 3.88 6.14 $ — |
Summary of Certain Additional Information about Stock Options | The following table summarizes Three Months Ended March 31, 2020 2019 Weighted average grant-date fair value of options granted during the period $ 1.02 $ 1.97 Options in-the-money (in shares) — 6,000 Aggregate intrinsic value of options exercised during the period $ — $ — |
Summary of Restricted Stock Unit Activity | The following table Number of Weighted Average Shares Award Price Unvested at December 31, 2019 112,846 $ 1.44 Granted — — Vested (56,425 ) 1.44 Forfeited — — Unvested at March 31, 2020 56,421 $ 1.44 Expected to vest after March 31, 2020 159,795 $ 1.44 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table March 31, 2020 Stock options outstanding 1,939,778 Restricted stock units outstanding 56,421 Stock options and restricted stock units available for future grant 1,335,084 Common stock reserved for future issuance 3,331,283 |
Information about Geographic _2
Information about Geographic Areas and Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table Three Months Ended March 31, 2020 2019 Partner Solutions: Revenue $ 15,905 $ 13,101 Cost of revenue 13,156 11,149 Gross profit 2,749 1,952 Edge to Cloud: Revenue 824 1,995 Cost of revenue 988 1,556 Gross profit (164 ) 439 Total gross profit 2,585 2,391 Operating expenses 3,024 5,270 Other income, net (35 ) 33 Income tax (expense) benefit — — Net loss $ (474 ) $ (2,846 ) |
Total Revenue and Long-Lived Assets by Geographic Area | Revenue by geographic area is based on the sales region of the customer. The following tables Three Months Ended March 31, 2020 2019 Total revenue: North America $ 13,776 $ 14,528 Asia 2,314 107 Europe 639 461 Total revenue $ 16,729 $ 15,096 March 31, 2020 December 31, 2019 Long-lived assets: North America $ 1,688 $ 2,016 Asia — 177 Europe 275 340 Total long-lived assets $ 1,963 $ 2,533 Long-lived assets decreased due to utilization of ROU leased assets in North America and from retirement of ROU leased assets in Asia due to closure of our Taiwan office. |
Significant Risk Concentratio_2
Significant Risk Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Reductions to cost of revenue $ 113 $ 82 Reductions to marketing expense $ 219 $ 413 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
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 For the three months ended March 31, 2020 Balance at beginning of period $ 472 Restructuring costs — Cash payments (428 ) Balance at end of period $ 44 As of March 31,2020 Estimated timing of future payments: Remainder of 2020 $ 44 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Potentially Dilutive Shares Excluded From Calculation of Diluted Net Loss Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | 1,574,500 | 1,485,981 |
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 | 74,981 | 77,532 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 16,729 | $ 15,096 |
Partner Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,905 | 13,101 |
Edge to Cloud [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 824 | 1,995 |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 13,776 | 14,528 |
North America [Member] | Partner Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 13,171 | 12,727 |
North America [Member] | Edge to Cloud [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 605 | 1,801 |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 639 | 461 |
Europe [Member] | Partner Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 426 | 320 |
Europe [Member] | Edge to Cloud [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 213 | 141 |
Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,314 | 107 |
Asia [Member] | Partner Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,308 | 54 |
Asia [Member] | Edge to Cloud [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 6 | $ 53 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Deferred Revenue (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Changes in the Contract Assets | |
Transferred to receivables from contract assets recognized at December 31, 2019 | $ 15 |
Changes in the Contract Liabilities | |
Revenue recognized that was included in deferred revenue at December 31, 2019 | $ 278 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Topic 606 [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary Of Accounting Policies [Line Items] | ||
Amortization of contract acquisition costs | $ 35,000 | $ 7,000 |
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) $ in Thousands | Mar. 31, 2020USD ($) |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
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 | $ 13 |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 3 |
Partner Solutions [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 to be recognized in future | $ 9 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
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 | $ 1,352 |
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 | $ 2,268 |
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 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||||
Cash | $ 4,189 | $ 4,092 | ||
Cash equivalents | 5,855 | 3,620 | ||
Restricted cash | 600 | 600 | ||
Total cash and cash equivalents | 10,644 | 8,312 | $ 8,090 | $ 10,531 |
Short-term investments | 2,249 | |||
Total cash, cash equivalents and short-term investments | $ 10,644 | $ 10,561 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Restricted cash: | ||
Restricted cash | $ 600 | $ 600 |
Short-term investments: | ||
Total short-term investments | 2,249 | |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 5,855 | 3,620 |
Short-term investments: | ||
Total short-term investments | 2,249 | |
Total assets measured at fair value | 6,455 | 6,469 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,748 | 999 |
Short-term investments: | ||
Total short-term investments | 748 | |
Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 500 | 750 |
Short-term investments: | ||
Total short-term investments | 1,501 | |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,607 | 1,871 |
Restricted cash: | ||
Restricted cash | 600 | 600 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,607 | 1,871 |
Short-term investments: | ||
Total assets measured at fair value | 4,207 | 2,471 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,607 | 1,871 |
Restricted cash: | ||
Restricted cash | 600 | 600 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,248 | 1,749 |
Short-term investments: | ||
Total short-term investments | 2,249 | |
Total assets measured at fair value | 2,248 | 3,998 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,748 | 999 |
Short-term investments: | ||
Total short-term investments | 748 | |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | $ 500 | 750 |
Short-term investments: | ||
Total short-term investments | $ 1,501 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 144 | $ 169 |
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 | (1,131) | (1,106) |
Net Book Value | $ 144 | $ 169 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 73 | |
2021 | 71 | |
Net Book Value | $ 144 | $ 169 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | ||
Lease expiration date | May 31, 2020 | |
Right-of-use lease asset, net | $ 1,499 | $ 1,828 |
Net lease liabilities | $ 1,589 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease terms | 1 year | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease terms | 8 years | |
Seattle, Washington [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease terms | 87 months | |
Operating lease rent starting date | May 1, 2020 | |
Lease expiration date | Jul. 31, 2027 | |
Right-of-use lease asset, net | $ 1,200 | |
Net lease liabilities | $ 1,200 |
Leases - Component of Lease Exp
Leases - Component of Lease Expense and Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Total component lease expense was as follows (in thousands): | |
Operating leases | $ 264 |
Supplemental cash flow information related to leases was as follows (in thousands): | |
Cash paid for amounts included in the measurement of lease liabilities | $ 173 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right-of-use lease asset, net | $ 1,499 | $ 1,828 |
Operating lease | 421 | 702 |
Operating lease, long-term | 1,168 | $ 1,256 |
Total operating lease liabilities | $ 1,589 | |
Weighted average remaining lease term | 6 years 2 months 12 days | |
Weighted average discount rate | 8.20% |
Leases - Schedule of Amounts Ob
Leases - Schedule of Amounts Obligated to Pay, by Maturity, Under Operating Leases Liabilities (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Operating Leases, 2020, remainder of year | $ 349 |
Operating Leases, Year Ending December 31, 2021 | 272 |
Operating Leases, Year Ending December 31, 2022 | 249 |
Operating Leases, Year Ending December 31, 2023 | 255 |
Operating Leases, Year Ending December 31, 2024 | 262 |
Operating Leases, Year Ending December 31, 2024 and After | 709 |
Operating Leases, Total minimum lease payments | 2,096 |
Operating Leases, Less: amount representing interest | (507) |
Operating Leases, Present value of lease liabilities | $ 1,589 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
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 | $ 764,296 |
Amortization cost, weighted-average period | 1 year 9 months 18 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 2 months 12 days |
Compensation cost related to restricted stock units granted but not yet recognized, net of estimated forfeitures | $ 15,561 |
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, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 4 years 10 months 24 days | 6 years |
Expected volatility | 60.00% | 64.00% |
Risk-free interest rate | 1.10% | 2.20% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 215 | $ 168 |
Cost of revenue - Edge to Cloud [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4 | 6 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 206 | 188 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 5 | $ (26) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Beginning Balance | 1,544,826 | |
Granted, Number of Shares | 564,900 | |
Forfeited, Number of Shares | (1,500) | |
Expired, Number of Shares | (168,448) | |
Number of Shares, Ending Balance | 1,939,778 | 1,544,826 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,631,708 | |
Exercisable, Number of Shares, Ending Balance | 467,687 | |
Weighted Average Exercise Price, Beginning Balance | $ 2.74 | |
Granted, Weighted Average Exercise Price | 1.02 | |
Forfeited, Weighted Average Exercise Price | 4.02 | |
Expired, Weighted Average Exercise Price | 4.79 | |
Weighted Average Exercise Price, Ending Balance | 2.06 | $ 2.74 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 2.19 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 3.88 | |
Weighted Average Remaining Contractual Life (in years) | 8 years 7 months 13 days | 7 years 5 months 19 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 8 years 5 months 15 days | |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 1 month 20 days | |
Balance outstanding, Aggregate Intrinsic Value | $ 46,582 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant-date fair value of options granted during the period | $ 1.02 | $ 1.97 |
Options in-the-money (in shares) | 6,000 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 56,421 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 112,846 |
Vested, Number of Shares | (56,425) |
Unvested, Number of Shares, Ending Balance | 56,421 |
Expected to vest, Number of Shares, Ending Balance | 159,795 |
Unvested, Weighted Average Award Price, Beginning Balance | $ / shares | $ 1.44 |
Vested, Weighted Average Award Price | $ / shares | 1.44 |
Unvested, Weighted Average Award Price, Ending Balance | $ / shares | 1.44 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 1.44 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 1,939,778 | 1,544,826 |
Restricted stock units outstanding | 56,421 | |
Stock options and restricted stock units available for future grant | 1,335,084 | |
Common stock reserved for future issuance | 3,331,283 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating leases, expiration year | 2027 |
Information about Geographic _3
Information about Geographic Areas and Operating Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 16,729 | $ 15,096 |
Cost of revenue | 14,144 | 12,705 |
Gross profit | 2,585 | 2,391 |
Operating expenses | 3,024 | 5,270 |
Other income (loss), net | (35) | 33 |
Net loss | (474) | (2,846) |
Partner Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15,905 | 13,101 |
Cost of revenue | 13,156 | 11,149 |
Gross profit | 2,749 | 1,952 |
Edge to Cloud [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 824 | 1,995 |
Cost of revenue | 988 | 1,556 |
Gross profit | $ (164) | $ 439 |
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, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Total revenue: | |||
Total revenue | $ 16,729 | $ 15,096 | |
Long-lived assets: | |||
Total long-lived assets | 1,963 | $ 2,533 | |
North America [Member] | |||
Total revenue: | |||
Total revenue | 13,776 | 14,528 | |
Long-lived assets: | |||
Total long-lived assets | 1,688 | 2,016 | |
Asia [Member] | |||
Total revenue: | |||
Total revenue | 2,314 | 107 | |
Long-lived assets: | |||
Total long-lived assets | 177 | ||
Europe [Member] | |||
Total revenue: | |||
Total revenue | 639 | $ 461 | |
Long-lived assets: | |||
Total long-lived assets | $ 275 | $ 340 |
Significant Risk Concentratio_3
Significant Risk Concentrations - Additional Information (Detail) - USD ($) | Mar. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 10,092,000 | $ 9,216,000 | |||
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 | $ 168,000 | ||||
Cost of revenue [Member] | |||||
Concentration Risk [Line Items] | |||||
Allocation of rebate values, percentage | 20.00% | 20.00% | |||
Reduction to marketing expense [Member] | |||||
Concentration Risk [Line Items] | |||||
Allocation of rebate values, percentage | 80.00% | 80.00% | |||
Third Party Software [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of sales from existing distribution agreements on total revenues | 3.00% | ||||
Revenue [Member] | Supplier Concentration Risk [Member] | Windows Operating Systems [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 79.00% | 75.00% | |||
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 1,200,000 | $ 1,200,000 | |||
Honeywell International Inc and affiliated entities [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 12.00% | 13.00% | |||
Kodak Alaris, Inc [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 1,600,000 | ||||
Kodak Alaris, Inc [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 16.00% |
Significant Risk Concentratio_4
Significant Risk Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cost of revenue [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 113 | $ 82 |
Reduction to marketing expense [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 219 | $ 413 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2019Employee | May 31, 2019Employee | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs paid | $ 428 | |||
Accrued restructuring charges | 44 | $ 472 | ||
Severance Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of workforce elimination | Employee | 38 | |||
Severance Plan [Member] | Taiwan | ||||
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] | ||||
Aggregate restructuring charges | 2,300 | |||
Restructuring costs | $ 0 | |||
Restructuring costs paid | 400 | |||
Accrued restructuring charges | $ 100 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Activity and Estimated Timing of Future Payouts for Accrued Restructuring Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 472 |
Cash payments | (428) |
Ending Balance | 44 |
Estimated timing of future payments: | |
Remainder of 2020 | $ 44 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - PPP Loan [Member] - Subsequent Event [Member] - USD ($) | Apr. 10, 2020 | Apr. 07, 2020 |
Subsequent Event [Line Items] | ||
CARES act of 2020 proceeds from loan amount | $ 1,600,000 | |
JPMorgan Chase Bank, N.A [Member] | ||
Subsequent Event [Line Items] | ||
Promissory note term | 2 years | |
Promissory note interest rate | 0.98% | |
Principal or interest due | $ 0 | |
Promissory note deferral period | 6 months |