Bsquare (BSQR) 10-Q 12 May 20 2020 Q1 Quarterly report Financial data

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