Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 25, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PRSS | |
Entity Registrant Name | CAFEPRESS INC. | |
Entity Central Index Key | 1,117,733 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 16,986,189 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,406 | $ 24,924 |
Short-term investments | 8,011 | 6,007 |
Accounts receivable | 818 | 1,496 |
Inventory, net | 2,372 | 3,128 |
Deferred costs | 550 | 781 |
Prepaid expenses and other current assets | 2,122 | 2,412 |
Total current assets | 28,279 | 38,748 |
Property and equipment, net | 10,003 | 10,679 |
Restricted cash | 1,513 | 1,513 |
Other assets | 177 | 232 |
TOTAL ASSETS | 39,972 | 51,172 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,097 | 2,351 |
Accrued royalties payable | 1,643 | 2,872 |
Accrued liabilities | 3,643 | 8,693 |
Deferred revenue | 654 | 1,020 |
Total current liabilities | 7,037 | 14,936 |
Other long-term liabilities | 305 | 305 |
TOTAL LIABILITIES | 7,342 | 15,241 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Preferred stock, $0.0001 par value: 10,000 shares authorized as of March 31, 2018 and December 31, 2017; none issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value — 500,000 shares authorized and 16,978 and 16,932 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 2 | 2 |
Additional paid-in capital | 101,994 | 101,697 |
Accumulated other comprehensive income (loss) | 1 | (4) |
Accumulated deficit | (69,367) | (65,764) |
TOTAL STOCKHOLDERS’ EQUITY | 32,630 | 35,931 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 39,972 | $ 51,172 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, share authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, share issued (in shares) | 0 | 0 |
Preferred stock, share outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 16,978,000 | 16,932,000 |
Common stock, shares outstanding (in shares) | 16,978,000 | 16,932,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net revenue | $ 14,550 | $ 18,289 |
Cost of net revenue | 9,181 | 11,328 |
Gross profit | 5,369 | 6,961 |
Operating expense: | ||
Sales and marketing | 3,580 | 4,410 |
Technology and development | 2,478 | 2,976 |
General and administrative | 2,402 | 2,957 |
Restructuring costs | 605 | 0 |
Total operating expense | 9,065 | 10,343 |
Loss from operations | (3,696) | (3,382) |
Interest income | 47 | 42 |
Interest expense | 0 | (6) |
Other income (expense), net | 46 | (26) |
Loss before income taxes | (3,603) | (3,372) |
Provision for income taxes | 0 | 1 |
Net loss | $ (3,603) | $ (3,373) |
Net loss per share of common stock: | ||
Basic (in dollars per share) | $ (0.21) | $ (0.20) |
Diluted (in dollars per share) | $ (0.21) | $ (0.20) |
Shares used in computing net loss per share of common stock: | ||
Basic (in shares) | 16,946 | 16,639 |
Diluted (in shares) | 16,946 | 16,639 |
Other comprehensive income: | ||
Unrealized holding gains on available-for-sale securities, net of tax | $ 5 | $ 0 |
Other comprehensive income | 5 | 0 |
Comprehensive loss | $ (3,598) | $ (3,373) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (3,603) | $ (3,373) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,101 | 1,055 |
Loss on disposal of fixed assets | 88 | 10 |
Stock-based compensation | 297 | 419 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 678 | 649 |
Inventory | 756 | 457 |
Prepaid expenses and other current assets | 521 | 161 |
Other assets | 55 | (30) |
Accounts payable | (1,254) | (447) |
Accrued royalties payables | (1,229) | (1,627) |
Accrued and other liabilities | (5,050) | (6,420) |
Deferred revenue | (366) | 33 |
Net cash used in operating activities | (8,006) | (9,113) |
Cash Flows from Investing Activities: | ||
Purchase of short-term investments | (1,999) | (2,232) |
Proceeds from maturities of short-term investments | 0 | 4,464 |
Purchase of property and equipment | (43) | (454) |
Capitalization of software and website development costs | (553) | (591) |
Proceeds from disposal of fixed assets | 83 | 3 |
Net cash (used in) provided by investing activities | (2,512) | 1,190 |
Cash Flows from Financing Activities: | ||
Principal payments on capital lease obligations | 0 | (147) |
Repurchases of common stock | 0 | (58) |
Net cash used in financing activities | 0 | (205) |
Net decrease in cash, cash equivalents and restricted cash | (10,518) | (8,128) |
Cash, cash equivalents and restricted cash — beginning of period | 26,437 | 19,980 |
Cash, cash equivalents and restricted cash— end of period | 15,919 | 11,852 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 92 | 24 |
Income taxes paid during the period | 4 | 0 |
Non-cash Investing and Financing Activities: | ||
Accrued purchases of property and equipment | $ 0 | $ 246 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business CafePress Inc. (the "Company," "we," "us," "our") is a provider of gifts and expressories. We take pride in helping to facilitate human connections by inspiring people to express themselves with the best assortment of engaging merchandise. We were founded in 1999 as a California corporation, we reincorporated in Delaware in 2005 and we completed our initial public offering in April 2012. We are a leading provider of personalized products offering a wide variety of expressive gifts and accessories, including t-shirts and apparel, mugs and drinkware and home goods such as custom shower curtains and bed coverings. We conduct most of our business on our primary United States-based domain, CafePress.com and operate CafePress branded websites for the markets in the United Kingdom, Canada and Australia. We also sell CafePress branded products through other online retail partners such as Amazon and Walmart. Our products are customized with expressive designs contributed through a variety of means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with large entertainment companies and brands. Our distinctive items bring our customers' passions to life and connect people to each other. Our production facility and fulfillment center in Louisville, Kentucky has innovative technology and manufacturing processes that enable us to provide high-quality customized products that are individually built to order. Our proprietary processes enable us to produce a broad range of merchandise efficiently and profitably. We also maintain a diverse network of contract manufacturers that give us the ability to broaden our manufacturing capabilities and produce in certain international locales. Most of our net revenue is generated from sales of customized products through our e-commerce websites (collectively referred to as "CafePress.com"), other third-party marketplaces (collectively referred to as "Retail Partner Channel") or through storefronts hosted by CafePress ("Shops"). In addition, we currently generate limited revenue from third-party printing and fulfillment services. Customized products include user-designed products as well as products designed by our content owners known as Shopkeepers. An important revenue driver is customer acquisition, primarily through online marketing efforts, including paid and organic search, e-mail, social, affiliate and an array of other channels, as well as the acquisition efforts of our content owners. As a result, our sales and marketing expense is our largest operating expense. Our consumers and content owner customers are increasingly accessing e-commerce sites from their mobile devices. This shift to mobile site access presents challenges for us as we cope with shifting traffic patterns, and we have experienced lower conversion rates on traffic from mobile devices. We expect that this shift to mobile site access will continue for the foreseeable future. Seasonal and cyclical influences impact our business volume. A significant portion of our sales are realized in conjunction with traditional retail holidays with the largest sales volume in the fourth quarter of each calendar year. Our offering of custom gifts for the holidays combined with consumers’ continued shift to online purchasing drive this trend. As a result of seasonality, our revenue in each of the first three quarters of the year are generally substantially lower than our revenue in the fourth quarter of each year, and we expect this to continue for the foreseeable future. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and follow the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of our financial information. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any other interim period or for any other future year. The balance sheet as of December 31, 2017 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K as filed on February 28, 2018 with the SEC. Our critical accounting policies are revenue recognition, property and equipment, inventory and income taxes. Our significant accounting policies are more fully described in Note 1 to the Consolidated Financial Statements included in Item 8. "Financial Statements and Supplementary Data of our Annual Report on Form 10-K. Segments Our Chief Executive Officer manages our operations on a consolidated basis for purposes of allocating resources. Thus, we have a single operating segment which is our single reportable segment. Our principal operations and decision-making functions are in the United States. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including but not limited to those related to revenue recognition, provisions for doubtful accounts, credit card chargebacks, sales returns, inventory write-downs, stock-based compensation, legal contingencies, depreciable lives and income taxes, including required valuation allowances. We base our estimates on historical experience, projections for future performance and other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. Revenue recognition We derive our revenue primarily from our e-commerce websites (collectively referred to as “CafePress.com”) and other third-party marketplaces (collectively referred to as “Retail Partner Channel”). Revenue is recognized when control of the goods is transferred to our customers upon receipt, in an amount that reflects the consideration to which we expect to be entitled in exchange for delivering these goods. We recognize revenue when the following revenue recognition criteria are met: (1) identification of the contract with a customer; (2) identification of the performance obligation in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligation in the contract; and (5) recognition of revenue when we satisfy a performance obligation. CafePress.com and Retail Partner Channel revenue primarily consist of the sale of customized products such as t-shirts and apparel, mugs and drinkware and home goods such as shower curtains and bed coverings. Each item included in orders from CafePress.com or our Retail Partner Channel is a separate performance obligation because our customers can benefit from each item individually on its own, and we sometimes fulfill an order in multiple shipments. As control transfers to the customer upon delivery, we account for shipping as a fulfillment cost, and, therefore, fees received for shipping are included in our transaction price. Revenue is recognized at the point in time when the customer receives the goods and is recorded net of promotional discounts and return allowances. Revenue is also recorded net of sales and consumption taxes following the practical expedient in Accounting Standards Codification ("ASC") 606. We periodically provide incentive offers to customers to encourage purchases. Such offers include current discount offers such as percentage discounts off current purchases and other similar offers. Current discount offers, when used by customers are treated as a reduction of revenue. We maintain an allowance for estimated returns and credit card chargebacks under the expected value method based on current period revenue, judgement and historical experience. Because of the seasonality of our business, our allowance is further reviewed during the fourth quarter to determine whether the liability is sufficient for returns processed after the holiday season. Our net revenue is settled through credit cards and PayPal, and our accounts receivable primarily consists of credit card receivables that settle in less than 7 days. Sales settled through PayPal are collected within one business day of the customer order. We evaluated principal vs. agent considerations to determine whether it is appropriate to record platform fees paid to our Retail Partner Channel as an expense or as a reduction of revenue. Platform fees are recorded as sales and marketing expense and are not recorded as a reduction of revenue because we control the goods before they are transferred to the customer. Specifically, we are responsible for fulfilling the order in the transaction, are subject to inventory and credit risk and have latitude in establishing prices and selecting suppliers. Deferred revenue includes funds received in advance of product fulfillment and is deferred until the customer receives the shipped goods. Direct and incremental costs such as materials, shipping, labor and platform fees associated with deferred revenue are classified as deferred costs and recognized in the period revenue is recognized. Net revenue is summarized as follows (in thousands): Three Months Ended 2018 2017 CafePress.com revenue $ 9,776 $ 13,651 Retail Partner Channel revenue 4,774 4,638 Total revenue $ 14,550 $ 18,289 We disaggregate our revenue between CafePress.com and our Retail Partner Channel as well as to customers located in the United States and to customers located outside of the United States. We determined that disaggregating revenue into these categories achieves the disclosure objectives for ASC 606 to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. As discussed in Note 1 - Business and Summary of Significant Accounting Policies - Segments, our business consists of one reportable segment. All disaggregated revenue is recorded within the one operating segment. Revenue by geography is based on the location to where the product was shipped and is summarized in Note 8- Geographic Information. Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows. March 31, December 31, Cash and cash equivalents $ 14,406 $ 24,924 Restricted cash 1,513 1,513 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 15,919 $ 26,437 Previously, we had an outstanding letter of credit of $1.5 million ("Letter of Credit"), secured by our existing operating cash, as required under the terms of our production facility and fulfillment center lease. As of March 31, 2018 , as further disclosed in Note 4, amounts included in restricted cash represents funds set aside and required by the production facility and fulfillment center lease and corresponding escrow agreement negotiated with our landlord to replace the Letter of Credit. Income taxes On December 22, 2017 , the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affected our 2017 deferred tax asset balances and establishes new tax laws that will affect 2018 and after, including a reduction in the U.S. federal corporate income tax rate from 35% to 21% . There was no unrecognized tax benefit for any period presented. We recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. No interest or penalties have been accrued for any period presented. We have weighed both positive and negative evidence and have determined that there is a need for a valuation allowance due to the existence of three years of historical cumulative losses, which we considered significant verifiable negative evidence. As of March 31, 2018 , we maintain a valuation allowance on substantially all of our deferred tax assets. Recent accounting pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects from the Tax Act. This guidance will become effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We are currently evaluating the impact of this updated standard, but we do not believe this update will have an impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. ASU 2017-09 will clarify and reduce both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, to a change to the terms and conditions of a share-based payment award. We adopted ASU 2017-09 on January 1, 2018, and this standard did not have an impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be treated prospectively as of the earliest date practicable. We adopted ASU 2016-15 on January 1, 2018, and this standard did not have an impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 introduces a new forward-looking "expected loss" approach, to estimate credit losses on most financial assets and certain other instruments, including trade receivables and available-for-sale securities. The estimate of expected credit losses will incorporate the consideration of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity's assumptions, models and methods for estimating credit losses. ASU 2016-13 is effective for financial statements issued for annual periods beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this updated standard on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . The ASU exempts prepaid gift certificates from the guidance on extinguishing financial liabilities. The gift certificates will be subject to breakage accounting consistent with ASU 2014-09 Revenue from Contracts with Customers (Topic 606). Breakage should only be recognized to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. We adopted ASU 2016-04 on January 1, 2018, and this standard did not have an impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018. Our preliminary analysis indicates that, for our one remaining operating lease that will be in effect, upon adoption of Topic 842, we will record an estimated lease right-of-use asset of $2.1 million and a corresponding lease liability of $2.1 million . We anticipate electing the practical expedient in ASC 842 and will not separate the nonlease components from the lease component. We are still evaluating the qualitative and quantitative disclosures that will be required when we adopt the standard. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This ASU is based on the principle that revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASU 2014-09 on January 1, 2018 and used the full retrospective transition approach. The adoption of the new standard did not have any impact to our previously reported results as the impact to the timing and measurement of revenue recognized was not significant. Revenue related to our Retail Partner Channel will be recognized on a gross basis, as it was under ASC 605, as we control the goods before the goods are transferred to the customer. |
Investments and Fair Value of F
Investments and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value of Financial Instruments | Investments and Fair Value of Financial Instruments Our investment policy is consistent with the definition of available-for-sale securities. We do not buy and hold securities principally for the purpose of selling them in the near future. Our policy is focused on the preservation of capital, liquidity and return. From time to time, we may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. The following tables summarize, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy and where they are classified on the Consolidated Balance Sheets (in thousands): March 31, 2018 Amortized Gross Gross Estimated Fair Value Cash and cash equivalents Short-term investments Non-current assets (1) Cash $5,778 $— $— $5,778 $5,778 — $1,513 Level 1 securities: Money market funds 8,628 — — 8,628 8,628 — — Level 2 securities: Corporate debt securities 2,607 — (10) 2,597 — 2,597 Government securities 5,153 $13 (2) 5,164 — 5,164 Certificate of deposit 250 250 250 Total $22,416 $13 $(12) $22,417 $14,406 $8,011 $1,513 (1) Restricted cash represents funds set aside and required by the production facility and fulfillment center lease and corresponding escrow agreement negotiated with our landlord. December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Estimated Fair Value Cash and cash equivalents Short-term investments Non-current assets (1) Cash $17,675 $— $— $17,675 $17,675 — $1,513 Level 1 securities: Money market funds 7,249 — — 7,249 7,249 — — Level 2 securities: Corporate debt securities 2,212 — (6) 2,206 — 2,206 Government securities 3,549 $3 (1) 3,551 — 3,551 Certificate of deposit 250 250 250 Total $30,935 $3 $(7) $30,931 $24,924 $6,007 $1,513 (1) Restricted cash represents funds set aside and required by the production facility and fulfillment center lease and corresponding escrow agreement negotiated with our landlord. Fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy level assigned to each security in our available-for-sale portfolio and cash equivalents is based on its assessment of the transparency and reliability of the inputs used in the valuation of such instrument at the measurement date. The fair value of available-for-sale securities and cash equivalents included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. The fair value of available-for-sale securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from an independent pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. Because we do not intend to sell the investments that are in an unrealized loss position, and it is not likely that we will be required to sell any investments before recovery of their amortized cost basis, we do not consider those investments with an unrealized loss to be other-than-temporarily impaired at March 31, 2018 and December 31, 2017 , respectively. There were no material other-than-temporary impairment or credit losses related to available-for-sale securities in the three months ended March 31, 2018 and 2017 , respectively. There were no material gross unrealized gains or losses from the sale of available-for-sale investments in the three months ended March 31, 2018 and 2017 , respectively. Realized gains and losses and interest income are included in other income (expense) on the Consolidated Statements of Comprehensive Loss. The following table summarize the short-term investment activity (in thousands): Three Months Ended 2018 2017 Proceeds from sale of short-term investments $ — $ — Proceeds from maturities and calls of short-term investments — 4,464 Purchases of short-term investments 1,999 2,232 Gross realized gains (losses) on sales of short-term investments — — The estimated fair value of short-term investments by contractual maturity as of March 31, 2018 is as follows (in thousands): Due within one year $ 6,278 Due after one year and through five years 1,733 Total short-term investments $ 8,011 |
Balance Sheet Items
Balance Sheet Items | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Items | Balance Sheet Items Inventory, net, is comprised of the following (in thousands): March 31, December 31, Raw materials $ 2,643 $ 3,404 Finished goods — — Less: reserve for obsolescence (271 ) (276 ) Inventory, net $ 2,372 $ 3,128 Property and equipment, net, is comprised of the following (in thousands): March 31, December 31, Land and building $ 3,675 $ 3,675 Computer equipment and office furniture 7,921 7,897 Computer software 1,943 1,925 Internal use software and website development 14,905 14,270 Internal use software and website development in progress 121 204 Production equipment 14,229 14,435 Leasehold improvements 3,061 3,061 Total property and equipment 45,855 45,467 Less: accumulated depreciation and amortization (35,852 ) (34,788 ) Property and equipment, net $ 10,003 $ 10,679 Depreciation and amortization expense was $1.1 million for both of the three months ended March 31, 2018 and 2017 , respectively. Accrued liabilities consist of the following (in thousands): March 31, December 31, Production costs $ 1,020 $ 4,037 Payroll and employee related expense 755 1,382 Accrued sales and business taxes 391 919 Accrued advertising 380 1,323 Restructuring 253 20 Royalties-minimum guarantee 226 194 Unclaimed royalty payments 220 207 Professional services 190 226 Other accrued liabilities 153 204 Allowance for sales returns and chargebacks 55 181 Accrued liabilities $ 3,643 $ 8,693 The following table presents the changes in the allowance for sales returns and chargebacks (in thousands): Three Months Ended 2018 2017 Balance, beginning of period $ 181 $ 219 Add: provision 403 528 Less: deductions and other adjustments (529 ) (675 ) Balance, end of period $ 55 $ 72 |
Escrow Agreement
Escrow Agreement | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Escrow Agreement | Escrow Agreement On September 15, 2017 , the Letter of Credit provided to the landlord under our production facility and fulfillment center lease was replaced by a fully-negotiated escrow agreement. Pursuant to the terms of the escrow agreement, we deposited $1.5 million in a non-interest bearing account, representing the maximum amount owed to the landlord, only to be drawn on by the landlord should we exercise our right to terminate the production facility and fulfillment center lease prior to the expiration of the term. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock option activity The following table summarizes stock option activity related to shares of common stock (in thousands, except the weighted average exercise price): Number of Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding — December 31, 2017 2,270 $ 3.99 6.81 $ — Granted 195 1.40 Exercised — — Forfeited (408 ) 2.99 Outstanding — March 31, 2018 2,057 $ 3.94 6.08 $ — Vested and expected to vest — March 31, 2018 2,057 6.08 $ — Options exercisable — March 31, 2018 1,002 4.14 $ — Included in the stock options outstanding as of March 31, 2018 are 281,624 non-statutory stock options that have both three -year service criteria and vesting contingent on financial performance measures at the end of a three -year performance period ended December 31, 2018 . The performance criteria for these awards consist of the following financial measures during the performance period: (i) revenue during each period, (ii) cumulative Adjusted EBITDA and (iii) cumulative free cash flow, which we define as cash flows from operations minus capital expenditures. Compensation cost associated with these performance-based stock options is recognized using an attribution model and ultimately based on whether satisfaction of the performance criteria is probable. The total compensation cost we recognize under these option awards will be based upon the results of the financial measures. As of March 31, 2018 , we have estimated that it is not probable that the performance criteria will be met, and, accordingly, no stock compensation expense for the performance shares has been recorded. At March 31, 2018 , we had $0.6 million of unrecognized compensation expense related to the performance awards. Restricted stock unit activity We may grant restricted stock units, ("RSUs") to our employees, consultants or outside directors under the provisions of our Amended and Restated 2012 Stock Incentive Plan. The cost of RSUs is determined using the fair value of our common stock on the date of grant. Compensation cost is amortized on a straight-line basis over the requisite service period. Restricted stock unit activity is summarized as follows (unit numbers in thousands): Number of Units Outstanding Weighted Average Grant Date Fair Value Per Unit Awarded and unvested at December 31, 2017 740 $ 3.22 Granted 70 1.55 Vested (45 ) 3.40 Forfeited and canceled (151 ) 3.02 Awarded and unvested at March 31, 2018 614 $ 3.07 Included in the restricted stock units outstanding as of March 31, 2018 are 129,651 performance-based restricted stock units ("PSUs") that have both three -year service criteria and vesting contingent on financial performance measures at the end of a three -year performance period ended December 31, 2019 . The performance criteria for these awards consist of the following financial measures during the performance period: (i) cumulative Adjusted EBITDA and (ii) cumulative free cash flow, which we define as cash flows from operations minus capital expenditures. Compensation cost associated with these PSUs will be recognized based on whether satisfaction of the performance criteria is probable. The total compensation cost we recognize under these awards will be based upon the results of the financial measures. As of March 31, 2018 , we have estimated that it is not probable that the performance criteria will be met, and, accordingly, no stock compensation expense for the PSUs has been recorded. At March 31, 2018 , we had $0.4 million of unrecognized compensation expense related to the PSUs. Stock-based compensation expense We estimated the fair value of each option award on the date of grant using the Black-Scholes option-pricing model and the assumptions noted in the following table. In the three months ended March 31, 2018 and 2017 , we calculated volatility using our historical volatility as we had sufficient public trading history. The expected term of options granted gave consideration to historical exercises, assumed forfeitures when they occur and the options’ contractual term. For all periods presented, the risk-free rate is based on the rates in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to each grant’s expected life, and a dividend yield of zero is applied since we have not historically paid dividends and have no intention to pay dividends in the near future. Three Months Ended 2018 2017 Expected term (in years) 5.6 4.1 Risk-free interest rate 2.6 % 1.9 % Expected volatility 54 % 55 % Expected dividend rate 0.0 % 0.0 % The weighted average fair value of options granted was $0.72 and $1.37 for the three months ended March 31, 2018 and 2017 respectively. Cost of net revenue and operating expense include stock-based compensation as follows (in thousands): Three Months Ended 2018 2017 Cost of net revenue $ 4 $ 4 Sales and marketing 11 25 Technology and development 5 9 General and administrative 277 381 Total stock-based compensation expense $ 297 $ 419 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring costs were $0.6 million for the three months ended March 31, 2018 and are included in "Restructuring costs" in the accompanying Condensed Consolidated Statements of Comprehensive Loss. During the first quarter of 2018 , in light of our revenue declines, which we believe are related to changes in search engine algorithms, we recorded severance costs and completed a plan to unify and simplify our organization in order to improve business performance, profitability, cash flow generation and productivity. The change in the restructuring liability is summarized as follows (in thousands): Three Months Ended 2018 2017 Accrued restructuring balance, beginning of period $ 20 $ 570 Employee severance 605 — Cash payments (372 ) (363 ) Accrued restructuring balance, end of period $ 253 $ 207 |
Net Loss per Share of Common St
Net Loss per Share of Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per share is computed by dividing the net loss attributable to common shares for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share attributed to common shares is computed by dividing the net loss attributable to common shares for the period by the weighted average number of common and potential common shares outstanding during the period, if the effect of each class of potential common shares is dilutive. Potential common shares include restricted stock units and incremental shares of common stock issuable upon the exercise of stock options. The following table sets forth the computation of our basic and diluted net loss per share of common stock (in thousands, except for per share amounts). Three Months Ended 2018 2017 Numerator: Net loss $ (3,603 ) $ (3,373 ) Denominator used in computing net loss per share of common stock: Basic 16,946 16,639 Diluted 16,946 16,639 Net loss per share of common stock: Basic $ (0.21 ) $ (0.20 ) Diluted $ (0.21 ) $ (0.20 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share of common stock for the periods in which we incurred a net loss because including them would have been antidilutive (in thousands): Three Months Ended 2018 2017 Stock options to purchase common stock and restricted stock units 84 87 |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Our revenue by geographic region, based on the location to where the product was shipped, is summarized as follows (in thousands): Three Months Ended 2018 2017 United States $ 12,890 $ 16,664 International 1,660 1,625 Total $ 14,550 $ 18,289 All of our long-lived assets are located in the United States. |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction On September 1, 2015, we sold our EZ Prints business, which provided a suite of enterprise class deployable software products and services focused on private label e-commerce customization services, pursuant to an asset purchase agreement with EZP Holdings. Vincent Sarrecchia, the chief executive officer of EZP Holdings, was previously serving as the interim chief executive officer of the EZ Prints business pursuant to a consulting agreement with the Company. Total consideration for the sale was $0.6 million , of which $0.1 million has been received by the Company, and $0.5 million is in the form of a non-interest bearing note receivable which is outstanding at March 31, 2018 , and it is due on or before December 31, 2018. |
Business and Summary of Signi15
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and follow the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of our financial information. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any other interim period or for any other future year. The balance sheet as of December 31, 2017 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K as filed on February 28, 2018 with the SEC. |
Segments | Segments Our Chief Executive Officer manages our operations on a consolidated basis for purposes of allocating resources. Thus, we have a single operating segment which is our single reportable segment. Our principal operations and decision-making functions are in the United States. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including but not limited to those related to revenue recognition, provisions for doubtful accounts, credit card chargebacks, sales returns, inventory write-downs, stock-based compensation, legal contingencies, depreciable lives and income taxes, including required valuation allowances. We base our estimates on historical experience, projections for future performance and other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue recognition We derive our revenue primarily from our e-commerce websites (collectively referred to as “CafePress.com”) and other third-party marketplaces (collectively referred to as “Retail Partner Channel”). Revenue is recognized when control of the goods is transferred to our customers upon receipt, in an amount that reflects the consideration to which we expect to be entitled in exchange for delivering these goods. We recognize revenue when the following revenue recognition criteria are met: (1) identification of the contract with a customer; (2) identification of the performance obligation in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligation in the contract; and (5) recognition of revenue when we satisfy a performance obligation. CafePress.com and Retail Partner Channel revenue primarily consist of the sale of customized products such as t-shirts and apparel, mugs and drinkware and home goods such as shower curtains and bed coverings. Each item included in orders from CafePress.com or our Retail Partner Channel is a separate performance obligation because our customers can benefit from each item individually on its own, and we sometimes fulfill an order in multiple shipments. As control transfers to the customer upon delivery, we account for shipping as a fulfillment cost, and, therefore, fees received for shipping are included in our transaction price. Revenue is recognized at the point in time when the customer receives the goods and is recorded net of promotional discounts and return allowances. Revenue is also recorded net of sales and consumption taxes following the practical expedient in Accounting Standards Codification ("ASC") 606. We periodically provide incentive offers to customers to encourage purchases. Such offers include current discount offers such as percentage discounts off current purchases and other similar offers. Current discount offers, when used by customers are treated as a reduction of revenue. We maintain an allowance for estimated returns and credit card chargebacks under the expected value method based on current period revenue, judgement and historical experience. Because of the seasonality of our business, our allowance is further reviewed during the fourth quarter to determine whether the liability is sufficient for returns processed after the holiday season. Our net revenue is settled through credit cards and PayPal, and our accounts receivable primarily consists of credit card receivables that settle in less than 7 days. Sales settled through PayPal are collected within one business day of the customer order. We evaluated principal vs. agent considerations to determine whether it is appropriate to record platform fees paid to our Retail Partner Channel as an expense or as a reduction of revenue. Platform fees are recorded as sales and marketing expense and are not recorded as a reduction of revenue because we control the goods before they are transferred to the customer. Specifically, we are responsible for fulfilling the order in the transaction, are subject to inventory and credit risk and have latitude in establishing prices and selecting suppliers. Deferred revenue includes funds received in advance of product fulfillment and is deferred until the customer receives the shipped goods. Direct and incremental costs such as materials, shipping, labor and platform fees associated with deferred revenue are classified as deferred costs and recognized in the period revenue is recognized. Net revenue is summarized as follows (in thousands): Three Months Ended 2018 2017 CafePress.com revenue $ 9,776 $ 13,651 Retail Partner Channel revenue 4,774 4,638 Total revenue $ 14,550 $ 18,289 We disaggregate our revenue between CafePress.com and our Retail Partner Channel as well as to customers located in the United States and to customers located outside of the United States. We determined that disaggregating revenue into these categories achieves the disclosure objectives for ASC 606 to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. As discussed in Note 1 - Business and Summary of Significant Accounting Policies - Segments, our business consists of one reportable segment. All disaggregated revenue is recorded within the one operating segment. Revenue by geography is based on the location to where the product was shipped and is summarized in Note 8- Geographic Information. |
Income taxes | Income taxes On December 22, 2017 , the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affected our 2017 deferred tax asset balances and establishes new tax laws that will affect 2018 and after, including a reduction in the U.S. federal corporate income tax rate from 35% to 21% . We recognize interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects from the Tax Act. This guidance will become effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We are currently evaluating the impact of this updated standard, but we do not believe this update will have an impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. ASU 2017-09 will clarify and reduce both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, to a change to the terms and conditions of a share-based payment award. We adopted ASU 2017-09 on January 1, 2018, and this standard did not have an impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be treated prospectively as of the earliest date practicable. We adopted ASU 2016-15 on January 1, 2018, and this standard did not have an impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 introduces a new forward-looking "expected loss" approach, to estimate credit losses on most financial assets and certain other instruments, including trade receivables and available-for-sale securities. The estimate of expected credit losses will incorporate the consideration of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity's assumptions, models and methods for estimating credit losses. ASU 2016-13 is effective for financial statements issued for annual periods beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this updated standard on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . The ASU exempts prepaid gift certificates from the guidance on extinguishing financial liabilities. The gift certificates will be subject to breakage accounting consistent with ASU 2014-09 Revenue from Contracts with Customers (Topic 606). Breakage should only be recognized to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. We adopted ASU 2016-04 on January 1, 2018, and this standard did not have an impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018. Our preliminary analysis indicates that, for our one remaining operating lease that will be in effect, upon adoption of Topic 842, we will record an estimated lease right-of-use asset of $2.1 million and a corresponding lease liability of $2.1 million . We anticipate electing the practical expedient in ASC 842 and will not separate the nonlease components from the lease component. We are still evaluating the qualitative and quantitative disclosures that will be required when we adopt the standard. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This ASU is based on the principle that revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASU 2014-09 on January 1, 2018 and used the full retrospective transition approach. The adoption of the new standard did not have any impact to our previously reported results as the impact to the timing and measurement of revenue recognized was not significant. Revenue related to our Retail Partner Channel will be recognized on a gross basis, as it was under ASC 605, as we control the goods before the goods are transferred to the customer. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per share is computed by dividing the net loss attributable to common shares for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share attributed to common shares is computed by dividing the net loss attributable to common shares for the period by the weighted average number of common and potential common shares outstanding during the period, if the effect of each class of potential common shares is dilutive. Potential common shares include restricted stock units and incremental shares of common stock issuable upon the exercise of stock options. |
Business and Summary of Signi16
Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of net revenue, disaggregated | Net revenue is summarized as follows (in thousands): Three Months Ended 2018 2017 CafePress.com revenue $ 9,776 $ 13,651 Retail Partner Channel revenue 4,774 4,638 Total revenue $ 14,550 $ 18,289 |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows. March 31, December 31, Cash and cash equivalents $ 14,406 $ 24,924 Restricted cash 1,513 1,513 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 15,919 $ 26,437 |
Restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows. March 31, December 31, Cash and cash equivalents $ 14,406 $ 24,924 Restricted cash 1,513 1,513 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 15,919 $ 26,437 |
Investments and Fair Value of17
Investments and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets Measured on Recurring Basis | The following tables summarize, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy and where they are classified on the Consolidated Balance Sheets (in thousands): March 31, 2018 Amortized Gross Gross Estimated Fair Value Cash and cash equivalents Short-term investments Non-current assets (1) Cash $5,778 $— $— $5,778 $5,778 — $1,513 Level 1 securities: Money market funds 8,628 — — 8,628 8,628 — — Level 2 securities: Corporate debt securities 2,607 — (10) 2,597 — 2,597 Government securities 5,153 $13 (2) 5,164 — 5,164 Certificate of deposit 250 250 250 Total $22,416 $13 $(12) $22,417 $14,406 $8,011 $1,513 (1) Restricted cash represents funds set aside and required by the production facility and fulfillment center lease and corresponding escrow agreement negotiated with our landlord. December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Estimated Fair Value Cash and cash equivalents Short-term investments Non-current assets (1) Cash $17,675 $— $— $17,675 $17,675 — $1,513 Level 1 securities: Money market funds 7,249 — — 7,249 7,249 — — Level 2 securities: Corporate debt securities 2,212 — (6) 2,206 — 2,206 Government securities 3,549 $3 (1) 3,551 — 3,551 Certificate of deposit 250 250 250 Total $30,935 $3 $(7) $30,931 $24,924 $6,007 $1,513 (1) Restricted cash represents funds set aside and required by the production facility and fulfillment center lease and corresponding escrow agreement negotiated with our landlord. |
Short-Term Investment Maturity | The estimated fair value of short-term investments by contractual maturity as of March 31, 2018 is as follows (in thousands): Due within one year $ 6,278 Due after one year and through five years 1,733 Total short-term investments $ 8,011 The following table summarize the short-term investment activity (in thousands): Three Months Ended 2018 2017 Proceeds from sale of short-term investments $ — $ — Proceeds from maturities and calls of short-term investments — 4,464 Purchases of short-term investments 1,999 2,232 Gross realized gains (losses) on sales of short-term investments — — |
Balance Sheet Items (Tables)
Balance Sheet Items (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventory, Net | Inventory, net, is comprised of the following (in thousands): March 31, December 31, Raw materials $ 2,643 $ 3,404 Finished goods — — Less: reserve for obsolescence (271 ) (276 ) Inventory, net $ 2,372 $ 3,128 |
Property and Equipment, Net | Property and equipment, net, is comprised of the following (in thousands): March 31, December 31, Land and building $ 3,675 $ 3,675 Computer equipment and office furniture 7,921 7,897 Computer software 1,943 1,925 Internal use software and website development 14,905 14,270 Internal use software and website development in progress 121 204 Production equipment 14,229 14,435 Leasehold improvements 3,061 3,061 Total property and equipment 45,855 45,467 Less: accumulated depreciation and amortization (35,852 ) (34,788 ) Property and equipment, net $ 10,003 $ 10,679 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 31, December 31, Production costs $ 1,020 $ 4,037 Payroll and employee related expense 755 1,382 Accrued sales and business taxes 391 919 Accrued advertising 380 1,323 Restructuring 253 20 Royalties-minimum guarantee 226 194 Unclaimed royalty payments 220 207 Professional services 190 226 Other accrued liabilities 153 204 Allowance for sales returns and chargebacks 55 181 Accrued liabilities $ 3,643 $ 8,693 |
Allowances for Sales Returns and Chargebacks | The following table presents the changes in the allowance for sales returns and chargebacks (in thousands): Three Months Ended 2018 2017 Balance, beginning of period $ 181 $ 219 Add: provision 403 528 Less: deductions and other adjustments (529 ) (675 ) Balance, end of period $ 55 $ 72 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity Related to Shares of Common Stock | The following table summarizes stock option activity related to shares of common stock (in thousands, except the weighted average exercise price): Number of Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding — December 31, 2017 2,270 $ 3.99 6.81 $ — Granted 195 1.40 Exercised — — Forfeited (408 ) 2.99 Outstanding — March 31, 2018 2,057 $ 3.94 6.08 $ — Vested and expected to vest — March 31, 2018 2,057 6.08 $ — Options exercisable — March 31, 2018 1,002 4.14 $ — |
Restricted Stock Unit Activity | Restricted stock unit activity is summarized as follows (unit numbers in thousands): Number of Units Outstanding Weighted Average Grant Date Fair Value Per Unit Awarded and unvested at December 31, 2017 740 $ 3.22 Granted 70 1.55 Vested (45 ) 3.40 Forfeited and canceled (151 ) 3.02 Awarded and unvested at March 31, 2018 614 $ 3.07 |
Valuation Assumptions | We estimated the fair value of each option award on the date of grant using the Black-Scholes option-pricing model and the assumptions noted in the following table. In the three months ended March 31, 2018 and 2017 , we calculated volatility using our historical volatility as we had sufficient public trading history. The expected term of options granted gave consideration to historical exercises, assumed forfeitures when they occur and the options’ contractual term. For all periods presented, the risk-free rate is based on the rates in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to each grant’s expected life, and a dividend yield of zero is applied since we have not historically paid dividends and have no intention to pay dividends in the near future. Three Months Ended 2018 2017 Expected term (in years) 5.6 4.1 Risk-free interest rate 2.6 % 1.9 % Expected volatility 54 % 55 % Expected dividend rate 0.0 % 0.0 % |
Stock-Based Compensation Included in Cost of Net Revenues and Operating Expenses | Cost of net revenue and operating expense include stock-based compensation as follows (in thousands): Three Months Ended 2018 2017 Cost of net revenue $ 4 $ 4 Sales and marketing 11 25 Technology and development 5 9 General and administrative 277 381 Total stock-based compensation expense $ 297 $ 419 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring liability | The change in the restructuring liability is summarized as follows (in thousands): Three Months Ended 2018 2017 Accrued restructuring balance, beginning of period $ 20 $ 570 Employee severance 605 — Cash payments (372 ) (363 ) Accrued restructuring balance, end of period $ 253 $ 207 |
Net Loss per Share of Common 21
Net Loss per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss per Share of Common Stock | The following table sets forth the computation of our basic and diluted net loss per share of common stock (in thousands, except for per share amounts). Three Months Ended 2018 2017 Numerator: Net loss $ (3,603 ) $ (3,373 ) Denominator used in computing net loss per share of common stock: Basic 16,946 16,639 Diluted 16,946 16,639 Net loss per share of common stock: Basic $ (0.21 ) $ (0.20 ) Diluted $ (0.21 ) $ (0.20 ) |
Computation of Diluted Net Loss per Share of Common Stock | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share of common stock for the periods in which we incurred a net loss because including them would have been antidilutive (in thousands): Three Months Ended 2018 2017 Stock options to purchase common stock and restricted stock units 84 87 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | Our revenue by geographic region, based on the location to where the product was shipped, is summarized as follows (in thousands): Three Months Ended 2018 2017 United States $ 12,890 $ 16,664 International 1,660 1,625 Total $ 14,550 $ 18,289 |
Business and Summary of Signi23
Business and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Segmentlease | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | Segment | 1 | ||
Number of operating segments | Segment | 1 | ||
Unrecognized tax benefits | $ 0 | ||
Interest and penalties accrued | $ 0 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of operating leases | lease | 1 | ||
Accounting Standards Update 2016-02 | Forecast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right of use asset | $ 2,100,000 | ||
Operating lease, liability | $ 2,100,000 | ||
Lease Amendment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Outstanding letter of credit | $ 1,500,000 |
Business and Summary of Signi24
Business and Summary of Significant Accounting Policies - Net Revenue Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 14,550 | $ 18,289 |
CafePress.com | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,776 | 13,651 |
Retail Partner Channel | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,774 | $ 4,638 |
Business and Summary of Signi25
Business and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 14,406 | $ 24,924 | ||
Restricted cash | 1,513 | 1,513 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 15,919 | $ 26,437 | $ 11,852 | $ 19,980 |
Investments and Fair Value of26
Investments and Fair Value of Financial Instruments - Components of Cash Equivalents and Short-Term Investments, Including Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, amortized cost | $ 22,416 | $ 30,935 |
Gross unrealized gains | 13 | 3 |
Gross unrealized losses | (12) | (7) |
Assets | 22,417 | 30,931 |
Level 2 securities | 8,011 | |
Non-current assets | 1,513 | 1,513 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and money market securities | 5,778 | 17,675 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and money market securities | 8,628 | 7,249 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized cost | 2,607 | 2,212 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (10) | (6) |
Level 2 securities | 2,597 | 2,206 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized cost | 5,153 | 3,549 |
Gross unrealized gains | 13 | 3 |
Gross unrealized losses | (2) | (1) |
Level 2 securities | 5,164 | 3,551 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized cost | 250 | 250 |
Level 2 securities | 250 | 250 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 14,406 | 24,924 |
Cash and cash equivalents | Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and money market securities | 5,778 | 17,675 |
Cash and cash equivalents | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and money market securities | 8,628 | 7,249 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,011 | 6,007 |
Short-term investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level 2 securities | 2,597 | 2,206 |
Short-term investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level 2 securities | 5,164 | 3,551 |
Short-term investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level 2 securities | $ 250 | $ 250 |
Investments and Fair Value of27
Investments and Fair Value of Financial Instruments - Short-Term Investment Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Proceeds from sale of short-term investments | $ 0 | $ 0 |
Proceeds from maturities and calls of short-term investments | 0 | 4,464 |
Purchases of short-term investments | 1,999 | 2,232 |
Gross realized gains (losses) on sales of short-term investments | $ 0 | $ 0 |
Investments and Fair Value of28
Investments and Fair Value of Financial Instruments - Short-Term Investments Classified by Contractual Maturity Date (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Due within one year | $ 6,278 |
Due after one year and through five years | 1,733 |
Total short-term investments | $ 8,011 |
Balance Sheet Items - Inventory
Balance Sheet Items - Inventory, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 2,643 | $ 3,404 |
Finished goods | 0 | 0 |
Less: reserve for obsolescence | (271) | (276) |
Inventory, net | $ 2,372 | $ 3,128 |
Balance Sheet Items - Property
Balance Sheet Items - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 45,855 | $ 45,467 |
Less: accumulated depreciation and amortization | (35,852) | (34,788) |
Property and equipment, net | 10,003 | 10,679 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,943 | 1,925 |
Land and building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,675 | 3,675 |
Computer equipment and office furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,921 | 7,897 |
Internal use software and website development | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,905 | 14,270 |
Internal use software and website development in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 121 | 204 |
Production equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,229 | 14,435 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 3,061 | $ 3,061 |
Balance Sheet Items - Additiona
Balance Sheet Items - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Depreciation and amortization expense | $ 1,101 | $ 1,055 |
Balance Sheet Items - Component
Balance Sheet Items - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Production costs | $ 1,020 | $ 4,037 | ||
Payroll and employee related expense | 755 | 1,382 | ||
Accrued sales and business taxes | 391 | 919 | ||
Accrued advertising | 380 | 1,323 | ||
Restructuring | 253 | 20 | $ 207 | $ 570 |
Royalties-minimum guarantee | 226 | 194 | ||
Unclaimed royalty payments | 220 | 207 | ||
Professional services | 190 | 226 | ||
Other accrued liabilities | 153 | 204 | ||
Allowance for sales returns and chargebacks | 55 | 181 | $ 72 | $ 219 |
Accrued liabilities | $ 3,643 | $ 8,693 |
Balance Sheet Items - Allowance
Balance Sheet Items - Allowances for Sales Returns and Chargebacks (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ 181 | $ 219 |
Add: provision | 403 | 528 |
Less: deductions and other adjustments | (529) | (675) |
Balance, end of period | $ 55 | $ 72 |
Escrow Agreement - Additional I
Escrow Agreement - Additional Information (Detail) $ in Millions | Sep. 15, 2017USD ($) |
Debt Disclosure [Abstract] | |
Escrow deposit | $ 1.5 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity Related to Shares of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Number of Stock Options Outstanding | ||
Beginning balance, options (in shares) | 2,270 | |
Granted, options (in shares) | 195 | |
Exercised, options (in shares) | 0 | |
Forfeited, options (in shares) | (408) | |
Ending balance, options (in shares) | 2,057 | 2,270 |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 3.99 | |
Granted (in dollars per share) | 1.40 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 2.99 | |
Ending balance (in dollars per share) | $ 3.94 | $ 3.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Number of stock options outstanding, options vested and expected to vest (in shares) | 2,057 | |
Number of stock options outstanding, options exercisable (in shares) | 1,002 | |
Weighted-average exercise price, options vested and expected to vest (in dollars per share) | ||
Weighted-average exercise price, options exercisable (in dollars per share) | ||
Weighted-average remaining contractual life (years), outstanding | 6 years 29 days | 6 years 9 months 22 days |
Weighted-average remaining contractual life (years), options vested and expected to vest | 6 years 29 days | |
Weighted-average remaining contractual life (years), options exercisable | 4 years 1 month 19 days | |
Aggregate intrinsic value, outstanding | $ 0 | $ 0 |
Aggregate intrinsic value, options vested and expected to vest | 0 | |
Aggregate intrinsic value, options exercisable | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options (in shares) | 2,057,000 | 2,270,000 | |
Expected dividend rate (as a percent) | 0.00% | 0.00% | |
Weighted average fair value of options granted (in dollars per share) | $ 0.72 | $ 1.37 | |
Non-statutory stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options (in shares) | 281,624 | ||
Service criteria (in years) | 3 years | ||
Performance based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 0 | ||
Unrecognized compensation expense related to performance awards for stock options | $ 600,000 | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service criteria (in years) | 3 years | ||
Stock compensation expense | $ 0 | ||
Restricted stock units granted (in shares) | 129,651 | ||
Unrecognized compensation expense | $ 400,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Detail) - Restricted stock units shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Units Outstanding | |
Awarded and unvested, beginning balance (in shares) | shares | 740 |
Granted (in shares) | shares | 70 |
Vested (in shares) | shares | (45) |
Forfeited and canceled (in shares) | shares | (151) |
Awarded and unvested, ending balance (in shares) | shares | 614 |
Weighted Average Grant Date Fair Value Per Unit | |
Awarded and unvested, beginning balance (in dollars per share) | $ / shares | $ 3.22 |
Granted (in dollars per share) | $ / shares | 1.55 |
Vested (in dollars per share) | $ / shares | 3.40 |
Forfeited and canceled (in dollars per share) | $ / shares | 3.02 |
Awarded and unvested, ending balance (in dollars per share) | $ / shares | $ 3.07 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected term (in years) | 5 years 6 months 25 days | 4 years 19 days |
Risk-free interest rate | 2.60% | 1.90% |
Expected volatility | 54.00% | 55.00% |
Expected dividend rate | 0.00% | 0.00% |
Stock-Based Compensation - St39
Stock-Based Compensation - Stock-Based Compensation Included in Cost of Net Revenues and Operating Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 297 | $ 419 |
Cost of net revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4 | 4 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 11 | 25 |
Technology and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 5 | 9 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 277 | $ 381 |
Restructuring - Restructuring L
Restructuring - Restructuring Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Accrued restructuring balance, beginning of period | $ 20 | $ 570 |
Restructuring costs | 605 | 0 |
Cash payments | (372) | (363) |
Accrued restructuring balance, end of period | 253 | 207 |
Employee severance | Haywood, California | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring costs | $ 605 | $ 0 |
Restructuring -Additional Infor
Restructuring -Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring costs | $ 605 | $ 0 |
Net Loss per Share of Common 42
Net Loss per Share of Common Stock - Basic and Diluted Net Income (Loss) per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net loss | $ (3,603) | $ (3,373) |
Denominator used in computing net loss per share of common stock: | ||
Basic (in shares) | 16,946 | 16,639 |
Diluted (in shares) | 16,946 | 16,639 |
Net loss per share of common stock: | ||
Basic (in dollars per share) | $ (0.21) | $ (0.20) |
Diluted (in dollars per share) | $ (0.21) | $ (0.20) |
Net Loss per Share of Common 43
Net Loss per Share of Common Stock - Computation of Diluted Net Income (Loss) per Share of Common Stock (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock options to purchase common stock and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options to purchase common stock and restricted stock units | 84 | 87 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total | $ 14,550 | $ 18,289 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total | 12,890 | 16,664 |
International | ||
Segment Reporting Information [Line Items] | ||
Total | $ 1,660 | $ 1,625 |
Related Party Transaction (Deta
Related Party Transaction (Detail) - EZ Prints - USD ($) $ in Millions | Sep. 01, 2015 | Mar. 31, 2018 |
Related Party Transaction [Line Items] | ||
Total consideration for the sale of business | $ 0.6 | |
Proceeds from sale of businesses, net of expenses paid | $ 0.1 | |
Notes receivable as part of sale of business | $ 0.5 |