Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DMRC | ||
Entity Registrant Name | Digimarc CORP | ||
Entity Central Index Key | 1,438,231 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 9,072,067 | ||
Entity Public Float | $ 371 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 3,160 | $ 6,122 |
Marketable securities | 33,027 | 32,201 |
Trade accounts receivable, net | 4,616 | 4,545 |
Other current assets | 1,487 | 2,611 |
Total current assets | 42,290 | 45,479 |
Marketable securities | 2,999 | 749 |
Property and equipment, net | 3,010 | 2,976 |
Intangibles, net | 6,613 | 6,720 |
Goodwill | 1,114 | 1,114 |
Other assets | 338 | 378 |
Total assets | 56,364 | 57,416 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 1,657 | 1,379 |
Deferred revenue | 3,023 | 3,660 |
Total current liabilities | 4,680 | 5,039 |
Deferred rent and other long-term liabilities | 226 | 203 |
Total liabilities | $ 4,906 | $ 5,242 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at December 31, 2015 and 2014) | $ 50 | $ 50 |
Common stock (par value $0.001 per share, 50,000 authorized, 8,919 and 8,427 shares issued and outstanding at December 31, 2015 and 2014, respectively) | 9 | 8 |
Additional paid-in capital | 77,439 | 60,222 |
Accumulated deficit | (26,040) | (8,106) |
Total shareholders' equity | 51,458 | 52,174 |
Total liabilities and shareholders' equity | $ 56,364 | $ 57,416 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,500 | 2,500 |
Preferred stock, shares issued | 10 | 10 |
Preferred stock, shares outstanding | 10 | 10 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 8,919 | 8,427 |
Common stock, shares outstanding | 8,919 | 8,427 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Service | $ 12,517 | $ 11,727 | $ 11,631 |
Subscription | 6,377 | 6,203 | 5,591 |
License | 3,295 | 7,728 | 17,742 |
Total revenue | 22,189 | 25,658 | 34,964 |
Cost of revenue: | |||
Service | 5,488 | 5,077 | 5,327 |
Subscription | 3,113 | 3,020 | 2,491 |
License | 346 | 334 | 387 |
Total cost of revenue | 8,947 | 8,431 | 8,205 |
Gross profit | 13,242 | 17,227 | 26,759 |
Operating expenses: | |||
Sales and marketing | 9,275 | 7,974 | 6,144 |
Research, development and engineering | 12,465 | 13,711 | 12,274 |
General and administrative | 7,954 | 8,972 | 9,624 |
Intellectual property | 1,525 | 1,793 | 1,129 |
Total operating expenses | 31,219 | 32,450 | 29,171 |
Operating loss | (17,977) | (15,223) | (2,412) |
Other income, net | 109 | 55 | 109 |
Loss before income taxes | (17,868) | (15,168) | (2,303) |
(Provision) benefit for income taxes | (66) | (652) | 1,796 |
Net loss | $ (17,934) | $ (15,820) | $ (507) |
Earnings (loss) per common share: | |||
Loss per common share-basic | $ (2.19) | $ (2.22) | $ (0.10) |
Loss per common share-diluted | $ (2.19) | $ (2.22) | $ (0.10) |
Weighted average common shares outstanding-basic | 8,198 | 7,187 | 6,866 |
Weighted average common shares outstanding-diluted | 8,198 | 7,187 | 6,866 |
Cash dividends declared per common share | $ 0.22 | $ 0.44 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Balance at Dec. 31, 2012 | $ 53,003 | $ 50 | $ 7 | $ 39,869 | $ 13,077 |
Balance, shares at Dec. 31, 2012 | 10 | 7,169 | |||
Exercise of stock options, shares | 42 | 42 | |||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 388 | ||||
Forfeiture of restricted common stock | 0 | 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | (89) | ||||
Purchase and retirement of common stock | (1,822) | (1,822) | |||
Purchase and retirement of common stock, shares | (109) | ||||
Stock-based compensation | 4,639 | 4,639 | |||
Tax impact from stock-based awards | (1,188) | (1,188) | |||
Net loss | (507) | (507) | |||
Cash dividends declared | (3,202) | (3,202) | |||
Balance at Dec. 31, 2013 | 50,923 | $ 50 | $ 7 | 41,498 | 9,368 |
Balance, shares at Dec. 31, 2013 | 10 | 7,401 | |||
Issuance of common stock, net of issuance costs | 15,989 | $ 1 | 15,988 | ||
Issuance of common stock, net of issuance costs, shares | 684 | ||||
Exercise of stock options | $ 1,487 | 1,487 | |||
Exercise of stock options, shares | 202 | 202 | |||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 283 | ||||
Forfeiture of restricted common stock | 0 | 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | (38) | ||||
Purchase and retirement of common stock | (2,392) | (2,392) | |||
Purchase and retirement of common stock, shares | (105) | ||||
Stock-based compensation | 5,580 | 5,580 | |||
Tax impact from stock-based awards | (1,939) | (1,939) | |||
Net loss | (15,820) | (15,820) | |||
Cash dividends declared | (1,654) | (1,654) | |||
Balance at Dec. 31, 2014 | 52,174 | $ 50 | $ 8 | 60,222 | (8,106) |
Balance, shares at Dec. 31, 2014 | 10 | 8,427 | |||
Issuance of common stock, net of issuance costs | 12,896 | $ 1 | 12,895 | ||
Issuance of common stock, net of issuance costs, shares | 342 | ||||
Exercise of stock options | $ 1,514 | 1,514 | |||
Exercise of stock options, shares | 111 | 111 | |||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 150 | ||||
Forfeiture of restricted common stock | 0 | 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | (31) | ||||
Purchase and retirement of common stock | (2,443) | (2,443) | |||
Purchase and retirement of common stock, shares | (80) | ||||
Stock-based compensation | 5,251 | 5,251 | |||
Net loss | (17,934) | (17,934) | |||
Balance at Dec. 31, 2015 | $ 51,458 | $ 50 | $ 9 | $ 77,439 | $ (26,040) |
Balance, shares at Dec. 31, 2015 | 10 | 8,919 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (17,934) | $ (15,820) | $ (507) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization and write-off of property and equipment | 1,237 | 974 | 742 |
Amortization and write-off of intangibles | 1,196 | 1,340 | 1,247 |
Changes in allowance for doubtful accounts | (7) | (23) | 45 |
Gain on reversal of contingent merger consideration | (190) | ||
Stock-based compensation | 5,077 | 5,403 | 4,502 |
Deferred income taxes | 2,085 | (715) | |
Tax expense from stock-based awards | (855) | ||
Excess tax benefit from stock-based awards | (201) | ||
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (64) | 1,316 | (1,667) |
Other current assets | 1,124 | (1,028) | (342) |
Other assets | 40 | 192 | (404) |
Accounts payable and other liabilities | 125 | (635) | 124 |
Deferred revenue | (534) | (537) | 1,694 |
Net cash provided by (used in) operating activities | (9,740) | (6,733) | 3,473 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,218) | (1,399) | (1,644) |
Capitalized patent costs | (895) | (1,190) | (1,098) |
Sale or maturity of marketable securities | 110,029 | 78,174 | 55,627 |
Purchase of marketable securities | (113,105) | (79,971) | (54,590) |
Net cash used in investing activities | (5,189) | (4,386) | (1,705) |
Cash flows from financing activities: | |||
Issuance of common stock, net of issuance costs | 12,896 | 15,989 | |
Exercise of stock options | 1,514 | 1,487 | |
Purchase of common stock | (2,443) | (2,392) | (1,822) |
Cash dividends paid | (1,654) | (3,202) | |
Excess tax benefit from stock-based awards | 201 | ||
Net cash provided by (used in) financing activities | 11,967 | 13,430 | (4,823) |
Net increase (decrease) in cash and cash equivalents | (2,962) | 2,311 | (3,055) |
Cash and cash equivalents at beginning of period | 6,122 | 3,811 | 6,866 |
Cash and cash equivalents at end of period | 3,160 | 6,122 | 3,811 |
Supplemental disclosure of cash flow information: | |||
Cash received (paid) for income taxes | 1,233 | 263 | (46) |
Supplemental schedule of non-cash investing activities: | |||
Property and equipment and patent costs included in accounts payable | 73 | 140 | 40 |
Stock-based compensation capitalized to fixed assets and patent costs | $ 174 | $ 177 | $ 137 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | (1) Description of Business and Summary of Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company has developed the Digimarc Discover ® Principles of Consolidation The consolidated financial statements include the accounts of Digimarc and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the U.S. requires Digimarc to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Certain of the Company’s accounting policies require higher degrees of judgment than others in their application. These include revenue recognition, goodwill, impairment of long-lived assets, contingencies and income taxes. Digimarc bases its estimates on historical experience and on other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. Cash Equivalents The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include primarily money market securities, corporate notes and certificates of deposits totaling $2,401 and $5,344 at December 31, 2015 and 2014, respectively. Cash equivalents are carried at cost or amortized cost, which approximates market. Marketable Securities The Company considers all investments with original maturities over 90 days that mature in less than one-year from the balance sheet date to be short-term marketable securities. Short- and long-term marketable securities primarily include federal agency notes, U.S. treasuries, corporate notes, pre-refunded municipal bonds, commercial paper and certificates of deposits. The Company’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates market. A decline in the market value of any security below amortized cost that is deemed to be other-than-temporary results in a reduction in the carrying amount. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating that the cost of the investment is recoverable outweighs evidence to the contrary. There have been no other-than-temporary impairments identified or recorded by the Company. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using a method that approximates the effective interest method. Under this method, dividend and interest income are recognized when earned. Fair Value of Financial Instruments Accounting Standards Certification (“ASC”) 820 “ Fair Value Measurements and Disclosures • Level 1—Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. • Level 2—Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. • Level 3—Pricing inputs are unobservable for the investment; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying values due to the short-term nature of these instruments. The Company records marketable securities at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities as of December 31, 2015 and 2014, respectively, was as follows: December 31, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 2,001 $ — $ — $ 2,001 Federal agency notes — 11,722 — 11,722 U.S. treasuries — 7,059 — 7,059 Corporate notes — 6,884 — 6,884 Pre-refunded municipal bonds (1) — 4,747 — 4,747 Commercial paper — 3,794 — 3,794 Certificates of deposits — 2,220 — 2,220 Total $ 2,001 $ 36,426 $ — $ 38,427 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries. The fair value maturities of the Company’s cash equivalents and marketable securities as of December 31, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Maturities $ 38,427 $ 35,428 $ 2,999 $ — $ — Concentrations of Business and Credit Risk A significant portion of the Company’s business depends on a limited number of large contracts. The loss of any large contract may result in loss of revenue and margin on a prospective basis. Financial instruments that potentially subject Digimarc to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. Digimarc places its cash and cash equivalents with major banks and financial institutions and at times deposits may exceed insured limits. Other than cash used for operating needs, which may include short-term marketable securities with the Company’s principal banks, Digimarc’s investment policy limits its credit exposure to any one financial institution or type of financial instrument by limiting the maximum of 5% of its cash equivalents and marketable securities or $1,000, whichever is greater, to be invested in any one issuer except for the U.S. government, U.S. federal agencies and U.S. backed securities, which have no limits, at the time of purchase. The Company’s investment policy also limits its credit exposure by limiting the maximum of 40% of its cash equivalents and marketable securities, or $15,000, whichever is greater, to be invested in any one industry category, (e.g., financial or energy industries), at the time of purchase. As a result, Digimarc’s credit risk associated with cash and cash equivalents and marketable securities is believed to be minimal. Contingencies The Company evaluates all pending or threatened contingencies or commitments, if any, that are reasonably likely to have a material adverse effect on the Company’s operations or financial position. The Company assesses the probability of an adverse outcome and determines if it is remote, reasonably possible or probable as defined in accordance with the provisions of ASC 450 “ Contingencies Equity Method Investments The Company accounts for its joint ventures under the equity method of accounting pursuant to ASC 323 “ Investments—Equity Method and Joint Ventures a b c Goodwill The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “ Business Combinations Contingent consideration, if any, is recorded at the acquisition date based upon the estimated fair value of the contingent payments. The fair value of the contingent consideration is re-measured each reporting period with any adjustments in fair value being recognized in earnings from operations. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to their carrying value. The Company operates as a single reporting unit. The Company estimates the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. Impairment of Long-Lived Assets The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in accordance with the provisions of ASC 360 “ Property, Plant and Equipment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows expected to be generated by the assets over their remaining useful life. If such assets are considered to be impaired, the impairment would be recognized in operating results at the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Research and Development Research and development costs are expensed as incurred in accordance with ASC 730 “ Research and Development. Software Development Costs Under ASC 985 “ Software, Patent Costs Costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Capitalized patent costs, also referred to as patent prosecution costs, include internal legal labor, professional legal fees, government filing fees and translation fees related to expanding the Company’s patent portfolio. Costs associated with the maintenance and annuity fees of patents are accounted for as prepaid assets at the time of payment and amortized over the shorter of the maintenance period or remaining life of the related patent. Revenue Recognition See Note 2 for detailed disclosures of the Company’s revenue recognition policy. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 “ Compensation—Stock Compensation, For stock option awards, the Company uses the Black-Scholes option pricing model as its method of valuation. The Company’s determination of the fair value on the date of grant is affected by its stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected life of the award, the Company’s expected stock price volatility over the term of the award, the risk-free interest rate and the expected dividend yield. Although the fair value of stock-based awards is determined in accordance with ASC 718 and SAB No. 107 “ Shared-Based Payment ” The fair value of restricted stock awards is based on the fair market value of the Company’s common stock on the date of the grant (measurement date), and is recognized over the vesting period of the award using the straight-line method. Income Taxes The Company accounts for income taxes in accordance with ASC 740 “ Income Taxes The Company records valuation allowances on deferred tax assets if, based on available evidence, it is more-likely-than-not that all or some portion of the assets will not be realized. The Company is subject to federal and state income taxes within the U.S., and, in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. The Company reports a liability (or contra asset) for unrecognized tax benefits resulting from uncertain tax positions taken (or expected to be taken) on a tax return. The Company recognizes interest and penalties, if any, related to the unrecognized tax benefits in income tax expense. Accounting Pronouncements Issued But Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In April 2015, the FASB issued ASU 2015-05, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. No. 2015-05 In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments-Overall, Recognition and Measurement of Financial Assets and Liabilities (Subtopic 825-10). |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Revenue Recognition | (2) Revenue Recognition The Company derives its revenue primarily from professional services, subscriptions and licensing of its intellectual property: • Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. • Subscription revenue includes Digimarc Discover, Digimarc Barcode and Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription. • License revenue originates primarily from licensing the Company’s intellectual property where the Company receives license fees and/or royalties as its income stream. Revenue is recognized in accordance with ASC 605 “ Revenue Recognition Software (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collection is reasonably assured. Some customer arrangements encompass multiple deliverables, such as patent licenses, professional services, software licenses, and maintenance and support fees. For arrangements that include multiple deliverables, the Company identifies separate units of accounting at inception based on the consensus reached under ASC 605-25 “ Multiple-Element Arrangements The relative selling price method allocates the consideration based on the Company’s specific assumptions rather than assumptions of a marketplace participant, and any discount in the arrangement proportionally to each deliverable on the basis of each deliverable’s selling price. Applicable revenue recognition criteria are considered separately for each separate unit of accounting as follows: • Service revenue is generally determined based on time and materials. Revenue for development and consulting services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. • Subscription revenue, which includes Digimarc Discover, Digimarc Barcode and Guardian products and services, is generally paid in advance and recognized over the term of the subscription, which is generally one to three years. • License revenue is recognized when amounts owed to the Company have been earned, are fixed or determinable (within the Company’s normal 30 to 60 day payment terms), and collection is reasonably assured. If the payment terms extend beyond the normal 30 to 60 days, the fee may not be considered to be fixed or determinable, and the revenue would then be recognized when installments are due. • The Company records revenue from certain license agreements upon cash receipt as a result of collectability not being reasonably assured. • The Company’s standard payment terms for license arrangements are 30 to 60 days. Extended payment terms on patent license arrangements are not considered to be fixed or determinable if payments are due beyond the Company’s standard payment terms, primarily because of the risk of substantial modification present in the Company’s patent licensing business. As such, revenue on license arrangements with extended payment terms are recognized as fees become fixed or determinable. Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which revenue has not been earned. |
Patent Licensing Arrangement wi
Patent Licensing Arrangement with Intellectual Ventures | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Patent Licensing Arrangement with Intellectual Ventures | (3) Patent Licensing Arrangement with Intellectual Ventures On October 5, 2010, the Company entered into a patent licensing arrangement with IV Digital Multimedia Inventions, LLC, a Delaware limited liability company affiliated with Intellectual Ventures (“IV”), pursuant to which the Company granted an exclusive license to sublicense, subject to pre-existing encumbrances and a grant-back license, 597 patents and 288 patent applications held by the Company. As of December 31, 2015, there are approximately 570 patents and 30 patent applications exclusively licensed to IV. The Company also assigned to IV the related causes of action and other enforcement rights and IV has the sole right, but not the obligation, to prepare, file, prosecute, maintain, defend and enforce the licensed patents at its expense. IV may at any time abandon its license or other rights to all or any of the licensed patents, in which case, certain licensed patents that IV opts to release revert back to the Company. The Company also entered into a patent rights agreement pursuant to which the Company granted IV an exclusive call option to purchase all or any number of the licensed patents and/or patent applications. The agreement further provides for the grant by IV to the Company of the right to put all or any number of patents within the licensed patents to IV if IV threatens or commences an action or proceeding with respect to infringement of a licensed patent. The financial aspects of the IV agreement for the Company include: • a license fee of $36 million, paid to the Company in increasing quarterly installments through May 2013 ($5,275 in 2010, $11,400 in 2011, $12,550 in 2012 and $6,775 in 2013); • 20% of the profits generated from the IV licensing program, which profits consist of sublicensing and other monetization revenue less specified expenses, including the license fee; • IV assumed responsibility for approximately $1 million per year in prosecution and maintenance costs previously borne by the Company; • a minimum of $4 million of paid support services over five years from the Company to assist IV in maximizing the value of the licensed assets; and • a royalty-free grant-back license to the licensed patents to continue the Company’s existing business related to those assets, including maintaining and renewing existing patent licenses, and providing software and services. The payment terms extended beyond the Company’s normal 30 to 60 day payment terms, thus the license revenue was recognized when the installments were due, and the support services are recognized as the services are performed. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | (4) Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through licensing of intellectual property, subscriptions to various products and services, and the delivery of professional services pursuant to contracts with various customers. The Company markets its products in the U.S. and in non-U.S. countries through its sales and licensing personnel. Revenue by geographic area, based upon the “bill-to” location, was as follows: Year Ended Year Ended Year Ended Domestic $ 6,304 $ 9,596 $ 18,857 International (1) 15,885 16,062 16,107 Total $ 22,189 $ 25,658 $ 34,964 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. Major Customers Customers who accounted for 10% or more of the Company’s revenue are as follows: Year Ended Year Ended Year Ended Central Banks 57 % 47 % 33 % Verance Corporation (“Verance”) * 12 % * IV * * 22 % The Nielsen Company (“Nielsen”) * * 11 % * Less than 10% In September 2014, the Company extended the patent license agreement with Verance through 2023, in effect waiving any future royalties and license fees, in exchange for a $1.0 million license fee payment. The license fee payment was recorded as revenue upon receipt in the third quarter of 2014. In January 2014, Nielsen made its final quarterly license fee payment under its patent license agreement. In May 2013, IV made its final quarterly license fee payment under its patent license agreement. No profit sharing under the patent license agreement has been earned to date. Long-lived assets by geographical area The Company’s long-lived assets are all domestic, domiciled in the U.S. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (5) Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include option grants and restricted stock awards. Stock-based compensation expense related to internal labor is capitalized to fixed assets and patents based on direct labor hours charged to capitalized fixed assets and patent costs. Determining Fair Value Stock Options Valuation and Amortization Method. Expected Life. Expected Volatility. Risk-Free Interest Rate. Expected Dividend Yield. There were no stock options granted during the years ended December 31, 2015, 2014 and 2013. The Company records stock-based compensation expense for stock option awards only for those awards that are expected to vest. Restricted Stock The fair value of restricted stock awarded is based on the fair market value of the Company’s common stock on the date of the grant (measurement date), and is recognized over the vesting period of the award using the straight-line method. The Company records stock-based compensation expense for restricted stock awards only for those awards that are expected to vest. Stock-based Compensation Year Ended Year Ended Year Ended Stock-based compensation: Cost of revenue $ 740 $ 545 $ 533 Sales and marketing 775 674 422 Research, development and engineering 1,308 1,406 1,116 General and administrative 1,978 2,454 2,183 Intellectual property 276 324 248 Stock compensation expense 5,077 5,403 4,502 Capitalized to fixed assets and patent costs 174 177 137 Total stock-based compensation $ 5,251 $ 5,580 $ 4,639 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: Year Ended Year Ended Year Ended Total unrecognized compensation costs $ 9,549 $ 11,206 $ 9,711 Total unrecognized compensation costs will be adjusted for any future changes in estimated forfeitures. The Company expects to recognize the total unrecognized compensation costs as of December 31, 2015 for stock options and restricted stock over weighted average periods through December 2019 as follows: Stock Restricted Weighted average period 0.0 years 1.36 years |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | (6) Earnings Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The following table reconciles earnings (loss) per common share for the years ended December 31, 2015, 2014 and 2013: Year Ended Year Ended Year Ended Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (17,934 ) $ (15,820 ) $ (507 ) Distributed earnings to common shares — 1,553 3,013 Distributed earnings to participating securities — 101 189 Total distributed earnings — 1,654 3,202 Undistributed loss allocable to common shares (17,934 ) (17,474 ) (3,709 ) Undistributed earnings allocable to participating securities — — — Total undistributed loss (17,934 ) (17,474 ) (3,709 ) Loss to common shares—basic $ (17,934 ) $ (15,921 ) $ (696 ) Denominator Weighted average common shares outstanding—basic 8,198 7,187 6,866 Basic loss per common share $ (2.19 ) $ (2.22 ) $ (0.10 ) Year Ended Year Ended Year Ended Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (17,934 ) $ (15,921 ) $ (696 ) Undistributed earnings allocated to participating securities — — — Undistributed earnings reallocated to participating securities — — — Loss to common shares—diluted $ (17,934 ) $ (15,921 ) $ (696 ) Denominator Weighted average common shares outstanding—basic 8,198 7,187 6,866 Dilutive effect of stock options — — — Weighted average common shares outstanding—dilutive 8,198 7,187 6,866 Diluted loss per common share $ (2.19 ) $ (2.22 ) $ (0.10 ) There were 0, 175 and 215 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the years ended December 31, 2015, 2014 and 2013, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the period. There were 230, 217 and 224 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the years ended December 31, 2015, 2014 and 2013, respectively, because the Company incurred a net loss for the period. |
Trade Accounts Receivable and A
Trade Accounts Receivable and Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Trade Accounts Receivable and Allowance for Doubtful Accounts | (7) Trade Accounts Receivable and Allowance for Doubtful Accounts Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. December 31, 2015 December 31, 2014 Trade accounts receivable $ 4,631 $ 4,567 Allowance for doubtful accounts (15 ) (22 ) Trade accounts receivable, net $ 4,616 $ 4,545 Unpaid deferred revenue included in accounts receivable $ 2,012 $ 1,974 Allowance for doubtful accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing trade accounts receivable. The Company determines the allowance based on historical write-off experience and current information. The Company reviews its allowance for doubtful accounts each reporting period. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Unpaid deferred revenue The unpaid deferred revenue that are included in trade accounts receivable are billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers are not included in trade accounts receivable nor deferred revenue. Major customers Customers who accounted for 10% or more of trade accounts receivable, net are as follows: December 31, 2015 December 31, 2014 Central Banks 62 % 61 % Civolution * 13 % * Less than 10% |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (8) Property and Equipment Property and Equipment Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. December 31, 2015 December 31, 2014 Office furniture and fixtures $ 1,068 $ 845 Software 1,748 1,312 Equipment 3,416 3,072 Leasehold improvements 1,276 1,198 Gross property and equipment 7,508 6,427 Less accumulated depreciation and amortization (4,498 ) (3,451 ) Property and equipment, net $ 3,010 $ 2,976 Leases Future minimum lease payments under non-cancelable operating leases are as follows: Year ending December 31: Operating 2016 $ 841 2017 756 2018 960 2019 990 2020 829 Thereafter 2,703 Total minimum lease payments $ 7,079 Rent expense on the operating leases was as follows: Year Ended Year Ended Year Ended Rent expense $ 1,045 $ 951 $ 925 |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | (9) Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges were recorded for the years ended December 31, 2015, 2014 and 2013. Amortization of capitalized patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life December 31, 2015 December 31, 2014 Capitalized patent costs 17-20 $ 6,779 $ 6,183 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 10,049 9,453 Accumulated amortization (3,436 ) (2,733 ) Intangible assets, net $ 6,613 $ 6,720 The aggregate amortization expense recorded in the years ended December 31, 2015, 2014 and 2013 was $722, $1,047 and $1,196, respectively. For intangible assets recorded at December 31, 2015, the estimated future aggregate amortization expense for the years ending December 31, 2016 through 2020 is approximately as follows: Year ending December 31: Amortization 2016 $ 613 2017 576 2018 278 2019 274 2020 213 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | (10) Shareholders’ Equity Preferred Stock In June 2008, the Board of Directors authorized 2,500 shares of preferred stock, par value $0.001 per share. The Board of Directors has the authority to issue the undesignated preferred stock in one or more series and to determine the powers, preferences and rights and the qualifications, limitations or restrictions granted to or imposed upon any wholly unissued series of undesignated preferred stock and to fix the number of shares constituting any series and the designation of such series, without any further vote or action by the shareholders. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change of control of the Company without further action by shareholders and may adversely affect the voting and other rights of the holders of common stock. The Board of Directors authorized 10 shares of Series A Redeemable Nonvoting Preferred stock (“Series A Preferred”) that were issued to certain executive officers at the time of formation. The Series A Preferred has no voting rights, except as required by law, and may be redeemed at the option of the Company’s Board of Directors at any time on or after June 18, 2013. The Series A Preferred is redeemable based on the stated fair value of $5.00 per share. The Series A Preferred has no dividend rights and no rights to the undistributed earnings of the Company. Common Stock In June 2008, the Board of Directors authorized 50,000 shares of common stock, par value $0.001 per share. The holders of Digimarc common stock are entitled to one vote for each share held of record on all matters submitted to a vote of its shareholders, including the election of directors. Subject to preferences that may be granted to any then outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends as may be declared by the Board of Directors out of funds legally available for such purpose, as well as any distributions to the Company’s shareholders. In the event of the Company’s liquidation, dissolution or winding up, holders of common stock are entitled to share ratably in all of the Company’s assets remaining after payment of liabilities and the liquidation preference of any then outstanding preferred stock. Holders of common stock have no preemptive or other subscription or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of common stock are fully paid and non-assessable. In August 2014, the Company entered into an Equity Distribution Agreement, whereby the Company could sell from time to time through Wells Fargo Securities, LLC, as sales agent, the Company’s common stock having an aggregate offering price of up to $30 million. As of December 31, 2015, the Company had sold 1,026 shares under the Equity Distribution Agreement at an average price of $29.24 resulting in $29,300 of cash proceeds, net of sales commissions of $700, and paid $415 in stock issuance costs. There are no shares remaining to be sold under the Equity Distribution Agreement. Stock Incentive Plan In July 2008, the Company’s Board of Directors initially adopted the 2008 Incentive Plan, or the 2008 Plan. The 2008 Plan provides for the grant of stock options, stock appreciation rights, stock awards, restricted stock, stock units, performance shares, performance units, and cash-based awards, which may be granted to officers, directors, employees, consultants, agents, advisors and independent contractors who provide services to the Company and its affiliated companies. The 2008 Plan authorizes the issuance of up to 3,500 shares of common stock. The shares authorized under the 2008 Plan are subject to adjustment in the event of a stock split, stock dividend, recapitalization or similar event. Shares issued under the 2008 Plan will consist of authorized and unissued shares or shares held by the Company as treasury shares. If an award granted under the 2008 Plan lapses, expires, terminates or is forfeited or surrendered without having been fully exercised or without the issuance of all the shares subject to the award, the shares covered by that award will again be available for issuance under the 2008 Plan. Shares that are (i) tendered by a participant or retained by the Company as payment for the purchase price of an award or to satisfy tax withholding obligations or (ii) covered by an award that is settled in cash, or in some manner that some or all of the shares covered by the award are not issued, will again be available for issuance under the 2008 Plan. In addition, awards granted as substitute awards in connection with acquisition transactions will not reduce the number of shares authorized for issuance under the 2008 Plan. Stock Options As of December 31, 2015, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,441 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. Options granted, exercised and canceled under the stock incentive plan are summarized as follows: Number of Weighted Average Weighted Average Aggregate Options outstanding, December 31, 2012 856 $ 15.16 $ 7.88 Granted — — — Exercised (42 ) $ 9.64 $ 6.30 Forfeited or expired (1 ) $ 14.99 $ 8.12 Options outstanding, December 31, 2013 813 $ 15.44 $ 7.96 Granted — — — Exercised (202 ) $ 10.48 $ 6.48 Forfeited or expired (10 ) $ 24.35 $ 9.84 Options outstanding, December 31, 2014 601 $ 16.97 $ 8.42 Granted — — — Exercised (111 ) $ 13.61 $ 7.25 Forfeited or expired — — — Options outstanding, December 31, 2015 490 $ 17.73 $ 8.69 $ 9,203 Options exercisable, December 31, 2015 490 $ 17.73 $ 8.69 $ 9,203 The aggregate intrinsic value is based on the closing price of $36.51 per share of Digimarc common stock on December 31, 2015, which would have been received by the optionees had all of the options with exercise prices less than $36.51 per share been exercised on that date. The following table summarizes information about stock options outstanding at December 31, 2015: Options Outstanding Options Exercisable Exercise Price Number Remaining Weighted Number Remaining Weighted $9.64 – $9.91 210 2.88 $ 9.67 210 2.88 $ 9.67 $14.99 – $18.01 105 4.08 $ 15.63 105 4.08 $ 15.63 $27.61 – $30.01 175 5.49 $ 28.64 175 5.49 $ 28.64 $9.64 – $30.01 490 4.07 $ 17.73 490 4.07 $ 17.73 Restricted Stock The Compensation Committee of the Board of Directors has awarded shares of restricted stock under the Company’s 2008 Plan to certain employees. The shares subject to the restricted stock awards vest over a certain period, usually four years, following the date of the grant. Specific terms of the restricted stock awards are governed by Restricted Stock Agreements between the Company and the award recipients. The following table reconciles the unvested balance of restricted stock: Number of Weighted Unvested balance, December 31, 2012 369 $ 21.72 Granted 388 $ 20.15 Vested (220 ) $ 23.21 Forfeited (89 ) $ 20.35 Unvested balance, December 31, 2013 448 $ 19.89 Granted 283 $ 28.79 Vested (191 ) $ 23.56 Forfeited (38 ) $ 25.44 Unvested balance, December 31, 2014 502 $ 23.09 Granted 150 $ 28.96 Vested (213 ) $ 24.78 Forfeited (31 ) $ 23.96 Unvested balance, December 31, 2015 408 $ 24.30 The following table indicates the fair value of all restricted stock awards that vested during the years ended December 31, 2015, 2014 and 2013: Year Ended Year Ended Year Ended Fair value of restricted stock awards vested $ 6,350 $ 5,632 $ 4,387 |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Contribution Plan | (11) Defined Contribution Plan The Company sponsors an employee retirement savings plan (the “Plan”) which qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. The Plan combines both an employee savings plan and company matching plan into one plan under Section 401(k), including a 401(k) Roth option. Employees become eligible to participate in the Plan at the beginning of the month following the employee’s hire date. Employees may contribute up to 75% of their pay to the Plan, subject to the limitations of the Internal Revenue Code. Company matching contributions are mandatory under the Plan. The Company made matching contributions in the aggregate amount as follows: Year Ended Year Ended Year Ended Matching contributions $ 523 $ 511 $ 396 |
Joint Venture and Related Party
Joint Venture and Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Joint Venture and Related Party Transactions | (12) Joint Venture and Related Party Transactions In June 2009, the Company entered into two joint venture agreements with Nielsen to launch two new companies: TVaura LLC (in which Digimarc holds a 51% ownership interest) and TVaura Mobile LLC (in which Digimarc holds a 49% ownership interest). The two joint venture agreements and a revised patent license agreement expanded and replaced the previous license and services agreement between the Company and Nielsen that had been in operation since late 2007. Under the joint venture agreements, the Company and Nielsen agreed to work together to develop new products and services, including the expansion and deployment of those products and services that were in development under the prior agreement. Under the terms of the revised patent license agreement, Nielsen agreed to pay Digimarc $18,750 during the period from July 2009 through January 2014, and Digimarc granted to Nielsen a non-exclusive license to Digimarc’s patents for use within Nielsen’s business. The term of the license continues until the expiration of the last patent under the license. The payment terms extended beyond the Company’s normal 30 to 60 day payment terms, thus the license revenue was recognized when the installments were due. In March 2012, Digimarc and Nielsen decided to reduce investments in their two joint ventures to minimal levels while assessing alternative approaches to achieving each of their goals in the emerging market opportunity of synchronized second screen television. In October 2015, Digimarc and Nielsen reactivated the TVaura Mobile LLC joint venture to develop solutions for programmers and advertisers to engage with consumers on second screens and otherwise provide enhanced flexibility to brand strategies targeting modern consumers. The enhanced cooperation represents another building block in developing the market for Digimarc Discover and Digimarc Barcode. Initially, neither Digimarc nor Nielsen will be contributing any capital to the joint venture upon reactivation. The Company’s investment in each joint venture was $0 as of December 31, 2015 and 2014. Pursuant to the terms of the agreements and ASC 810 “ Consolidation, Related Party Transactions Summarized financial information for TVaura LLC has not been provided as the disclosures are immaterial to the Company’s filing given the operations of the joint venture were suspended through December 31, 2015. The joint venture had no revenue or expenses for the years ended December 31, 2015, 2014 and 2013, and there were no assets or liabilities as of December 31, 2015 and 2014. Summarized financial data for TVaura Mobile LLC: December 31, December 31, Current assets $ 45 $ 50 Noncurrent assets $ — $ — Current liabilities $ 10 $ 10 Noncurrent liabilities $ — $ — Year Ended Year Ended Year Ended Revenue $ — $ — $ — Gross profit $ — $ — $ — Operating expenses $ 5 $ 5 $ 5 Net loss from continuing operations $ (5 ) $ (5 ) $ (5 ) The Company’s pro-rata share—net loss $ — $ — $ — The Company’s loss on investment $ — $ — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (13) Income Taxes The provision (benefit) for income taxes reflects current taxes, deferred taxes, and withholding taxes. The effective tax rates for the years ended December 31, 2015, 2014 and 2013 were 0%, (4)% and 78%, respectively. The Company continued to provide for a full valuation allowance to offset its net deferred tax assets until such time it is more likely than not the tax assets or portions thereof will be realized. During 2015, the Company amended its 2012 federal tax return to carryback the tax loss generated in 2014 to offset the tax liability, which resulted in a tax refund of $1.3 million. Components of tax provision (benefit) allocated to continuing operations include the following: Year Ended Year Ended Year Ended Current: Federal $ (2 ) $ (3,378 ) $ (1,420 ) State 49 1 1 Foreign 19 5 5 Sub-total 66 (3,372 ) (1,414 ) Deferred: Federal — 3,516 (204 ) State — 508 (178 ) Foreign — — — Sub-total — 4,024 (382 ) Total tax provision (benefit) $ 66 $ 652 $ (1,796 ) The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Year Ended % Year Ended % Year Ended % Income taxes computed at statutory rates $ (6,081 ) 34 % $ (5,159 ) 34 % $ (783 ) 34 % Increases (decreases) resulting from: State income taxes, net of federal tax benefit (1,298 ) 7 % (700 ) 5 % (301 ) 13 % Impact of federal graduated rates (4 ) 0 % — — — — Federal and state research and experimentation credits (917 ) 5 % (563 ) 4 % (918 ) 40 % Change in valuation allowance 8,132 (45 )% 6,916 (46 )% 187 (8 )% Other 234 (1 )% 158 (1 )% 19 (1 ) Total $ 66 0 % $ 652 (4 )% $ (1,796 ) 78 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising the Company’s deferred tax assets and deferred tax liabilities are as follows: December 31, December 31, Deferred tax assets: Stock based compensation $ 1,751 $ 2,107 Federal and state net operating losses 12,551 5,020 Goodwill 826 917 Accrued compensation 51 27 Deferred rent 62 109 Federal and state research and experimentation credits 2,322 1,404 AMT credit 92 117 Intangible asset differences 167 48 Other 74 19 Total gross deferred tax assets 17,896 9,768 Less valuation allowance (15,420 ) (7,288 ) Net deferred tax assets $ 2,476 $ 2,480 Deferred tax liabilities: Patent expenditures $ (2,017 ) $ (1,918 ) Fixed asset differences (459 ) (562 ) Total deferred tax liabilities $ (2,476 ) $ (2,480 ) Total net deferred tax assets $ — $ — The Company had a valuation allowance of $15.4 million and $7.3 million on deferred tax assets as of December 31, 2015 and 2014, respectively, an increase of $8.1 million during the year ended December 31, 2015. As of December 31, 2015, the Company has federal and state net operating loss carry-forwards of $40,000 and $54,536, respectively, which have a carry-forward of 10 to 20 years depending on the jurisdiction. The gross deferred tax assets for federal and state net operating loss carryforwards acquired in the Attributor acquisition have been reduced to the amount of losses allowed to be utilized in the post-acquisition period before expiration after considering the applicable limitations of IRC Sec. 382. As of December 31, 2015, the Company has federal and state research and experimental tax credits of $3,407 and $907, respectively, which have a carry-forward of 5 to 20 years depending on the jurisdiction and for which the benefits upon usage will be recorded in additional paid-in capital from the effects of stock options. The Company records accrued interest and penalties associated with uncertain tax positions in income tax expense in the consolidated statements of operations. For the years ended December 31, 2015, 2014 and 2013, the Company recognized accrued interest and penalties associated with uncertain tax positions of $4, $6 and $3, respectively. The Company does not anticipate any of its unrecognized benefits will significantly increase or decrease within the next 12 months. A summary reconciliation of the Company’s uncertain tax positions is as follows: Year Ended Year Ended Year Ended Beginning balance $ 306 $ 219 $ 108 Addition for current year tax positions 74 58 105 Addition for prior year tax positions 45 29 6 Settlements with taxing authorities — — — Lapsing of statutes of limitations — — — Ending balance $ 425 $ 306 $ 219 Uncertain tax positions are classified as a long-term liability (or a contra deferred tax asset) on the consolidated balance sheets for uncertain tax positions taken (or expected to be taken) on a tax return. The reversal of uncertain tax positions would not affect the effective tax rate due to a full valuation allowance. The Company’s open tax years subject to examination in the U.S. federal jurisdiction are 2012 through 2014 and applicable state jurisdictions for the tax years 2011 through 2014. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or tax credit carryforward. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies. The Company is subject from time to time to other legal proceedings and claims arising in the ordinary course of business. |
Quarterly Financial Information
Quarterly Financial Information-Unaudited | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information-Unaudited | (15) Quarterly Financial Information—Unaudited Quarter ended: March 31 June 30 September 30 December 31 2015 Service revenue $ 3,501 $ 3,235 $ 3,072 $ 2,709 Subscription revenue 1,716 1,670 1,561 1,430 License revenue 772 893 753 877 Total revenue 5,989 5,798 5,386 5,016 Total cost of revenue 2,416 2,449 2,098 1,984 Gross profit 3,573 3,349 3,288 3,032 Gross profit percent, service revenue 55 % 54 % 61 % 55 % Gross profit percent, subscription revenue 56 % 48 % 48 % 52 % Gross profit percent, license revenue 89 % 90 % 89 % 90 % Gross profit percent, total 60 % 58 % 61 % 60 % Sales and marketing $ 2,090 $ 2,098 $ 2,309 $ 2,778 Research, development and engineering 3,084 3,025 3,236 3,120 General and administrative 2,206 1,980 1,847 1,921 Intellectual property 367 291 367 500 Operating loss (4,174 ) (4,045 ) (4,471 ) (5,287 ) Net loss (4,150 ) (4,012 ) (4,469 ) (5,303 ) Earnings (loss) per common share: Earnings (loss) per common share—basic $ (0.52 ) $ (0.50 ) $ (0.54 ) $ (0.62 ) Earnings (loss) per common share—diluted $ (0.52 ) $ (0.50 ) $ (0.54 ) $ (0.62 ) Weighted average common shares outstanding—basic 7,960 8,029 8,309 8,485 Weighted average common shares outstanding—diluted 7,960 8,029 8,309 8,485 Quarter ended: March 31 June 30 September 30 December 31 2014 Service revenue $ 2,988 $ 2,716 $ 3,155 $ 2,868 Subscription revenue 1,412 1,496 1,452 1,843 License revenue 2,805 1,451 2,320 1,152 Total revenue 7,205 5,663 6,927 5,863 Total cost of revenue 2,146 1,952 2,120 2,213 Gross profit 5,059 3,711 4,807 3,650 Gross profit percent, service revenue 53 % 57 % 61 % 56 % Gross profit percent, subscription revenue 54 % 53 % 44 % 53 % Gross profit percent, license revenue 97 % 94 % 96 % 93 % Gross profit percent, total 70 % 66 % 69 % 62 % Sales and marketing $ 1,879 $ 2,052 $ 1,999 $ 2,044 Research, development and engineering 3,546 3,404 3,499 3,262 General and administrative 2,421 2,326 2,183 2,042 Intellectual property 534 387 366 506 Operating loss (3,321 ) (4,458 ) (3,240 ) (4,204 ) Net loss (1,986 ) (2,680 ) (1,985 ) (9,169 ) Earnings (loss) per common share: Earnings (loss) per common share—basic $ (0.29 ) $ (0.38 ) $ (0.28 ) $ (1.23 ) Earnings (loss) per common share—diluted $ (0.29 ) $ (0.38 ) $ (0.28 ) $ (1.23 ) Weighted average common shares outstanding—basic 7,000 7,113 7,176 7,453 Weighted average common shares outstanding—diluted 7,000 7,113 7,176 7,453 |
Description of Business and S22
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company has developed the Digimarc Discover ® |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Digimarc and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the U.S. requires Digimarc to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Certain of the Company’s accounting policies require higher degrees of judgment than others in their application. These include revenue recognition, goodwill, impairment of long-lived assets, contingencies and income taxes. Digimarc bases its estimates on historical experience and on other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Reclassifications | Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include primarily money market securities, corporate notes and certificates of deposits totaling $2,401 and $5,344 at December 31, 2015 and 2014, respectively. Cash equivalents are carried at cost or amortized cost, which approximates market. |
Marketable Securities | Marketable Securities The Company considers all investments with original maturities over 90 days that mature in less than one-year from the balance sheet date to be short-term marketable securities. Short- and long-term marketable securities primarily include federal agency notes, U.S. treasuries, corporate notes, pre-refunded municipal bonds, commercial paper and certificates of deposits. The Company’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates market. A decline in the market value of any security below amortized cost that is deemed to be other-than-temporary results in a reduction in the carrying amount. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating that the cost of the investment is recoverable outweighs evidence to the contrary. There have been no other-than-temporary impairments identified or recorded by the Company. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using a method that approximates the effective interest method. Under this method, dividend and interest income are recognized when earned. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Accounting Standards Certification (“ASC”) 820 “ Fair Value Measurements and Disclosures • Level 1—Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. • Level 2—Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. • Level 3—Pricing inputs are unobservable for the investment; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying values due to the short-term nature of these instruments. The Company records marketable securities at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities as of December 31, 2015 and 2014, respectively, was as follows: December 31, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 2,001 $ — $ — $ 2,001 Federal agency notes — 11,722 — 11,722 U.S. treasuries — 7,059 — 7,059 Corporate notes — 6,884 — 6,884 Pre-refunded municipal bonds (1) — 4,747 — 4,747 Commercial paper — 3,794 — 3,794 Certificates of deposits — 2,220 — 2,220 Total $ 2,001 $ 36,426 $ — $ 38,427 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries. The fair value maturities of the Company’s cash equivalents and marketable securities as of December 31, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Maturities $ 38,427 $ 35,428 $ 2,999 $ — $ — |
Concentrations of Business and Credit Risk | Concentrations of Business and Credit Risk A significant portion of the Company’s business depends on a limited number of large contracts. The loss of any large contract may result in loss of revenue and margin on a prospective basis. Financial instruments that potentially subject Digimarc to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. Digimarc places its cash and cash equivalents with major banks and financial institutions and at times deposits may exceed insured limits. Other than cash used for operating needs, which may include short-term marketable securities with the Company’s principal banks, Digimarc’s investment policy limits its credit exposure to any one financial institution or type of financial instrument by limiting the maximum of 5% of its cash equivalents and marketable securities or $1,000, whichever is greater, to be invested in any one issuer except for the U.S. government, U.S. federal agencies and U.S. backed securities, which have no limits, at the time of purchase. The Company’s investment policy also limits its credit exposure by limiting the maximum of 40% of its cash equivalents and marketable securities, or $15,000, whichever is greater, to be invested in any one industry category, (e.g., financial or energy industries), at the time of purchase. As a result, Digimarc’s credit risk associated with cash and cash equivalents and marketable securities is believed to be minimal. |
Contingencies | Contingencies The Company evaluates all pending or threatened contingencies or commitments, if any, that are reasonably likely to have a material adverse effect on the Company’s operations or financial position. The Company assesses the probability of an adverse outcome and determines if it is remote, reasonably possible or probable as defined in accordance with the provisions of ASC 450 “ Contingencies |
Equity Method Investments | Equity Method Investments The Company accounts for its joint ventures under the equity method of accounting pursuant to ASC 323 “ Investments—Equity Method and Joint Ventures a b c |
Goodwill | Goodwill The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “ Business Combinations Contingent consideration, if any, is recorded at the acquisition date based upon the estimated fair value of the contingent payments. The fair value of the contingent consideration is re-measured each reporting period with any adjustments in fair value being recognized in earnings from operations. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to their carrying value. The Company operates as a single reporting unit. The Company estimates the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in accordance with the provisions of ASC 360 “ Property, Plant and Equipment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows expected to be generated by the assets over their remaining useful life. If such assets are considered to be impaired, the impairment would be recognized in operating results at the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
Research and Development | Research and Development Research and development costs are expensed as incurred in accordance with ASC 730 “ Research and Development. |
Software Development Costs | Software Development Costs Under ASC 985 “ Software, |
Patent Costs | Patent Costs Costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Capitalized patent costs, also referred to as patent prosecution costs, include internal legal labor, professional legal fees, government filing fees and translation fees related to expanding the Company’s patent portfolio. Costs associated with the maintenance and annuity fees of patents are accounted for as prepaid assets at the time of payment and amortized over the shorter of the maintenance period or remaining life of the related patent. |
Revenue Recognition | Revenue Recognition See Note 2 for detailed disclosures of the Company’s revenue recognition policy. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 “ Compensation—Stock Compensation, For stock option awards, the Company uses the Black-Scholes option pricing model as its method of valuation. The Company’s determination of the fair value on the date of grant is affected by its stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected life of the award, the Company’s expected stock price volatility over the term of the award, the risk-free interest rate and the expected dividend yield. Although the fair value of stock-based awards is determined in accordance with ASC 718 and SAB No. 107 “ Shared-Based Payment ” The fair value of restricted stock awards is based on the fair market value of the Company’s common stock on the date of the grant (measurement date), and is recognized over the vesting period of the award using the straight-line method. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740 “ Income Taxes The Company records valuation allowances on deferred tax assets if, based on available evidence, it is more-likely-than-not that all or some portion of the assets will not be realized. The Company is subject to federal and state income taxes within the U.S., and, in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. The Company reports a liability (or contra asset) for unrecognized tax benefits resulting from uncertain tax positions taken (or expected to be taken) on a tax return. The Company recognizes interest and penalties, if any, related to the unrecognized tax benefits in income tax expense. |
Accounting Pronouncements Issued But Not Yet Adopted | Accounting Pronouncements Issued But Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In April 2015, the FASB issued ASU 2015-05, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. No. 2015-05 In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments-Overall, Recognition and Measurement of Financial Assets and Liabilities (Subtopic 825-10). |
Earnings Per Share | The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share |
Contingencies | Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies. |
Description of Business and S23
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Fair Value Hierarchy for Financial Assets | The Company’s fair value hierarchy for its cash equivalents and marketable securities as of December 31, 2015 and 2014, respectively, was as follows: December 31, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 2,001 $ — $ — $ 2,001 Federal agency notes — 11,722 — 11,722 U.S. treasuries — 7,059 — 7,059 Corporate notes — 6,884 — 6,884 Pre-refunded municipal bonds (1) — 4,747 — 4,747 Commercial paper — 3,794 — 3,794 Certificates of deposits — 2,220 — 2,220 Total $ 2,001 $ 36,426 $ — $ 38,427 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries. |
Summary of Fair Value Maturities for Financial Asset | The fair value maturities of the Company’s cash equivalents and marketable securities as of December 31, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Maturities $ 38,427 $ 35,428 $ 2,999 $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographical Segment Revenue | Revenue by geographic area, based upon the “bill-to” location, was as follows: Year Ended Year Ended Year Ended Domestic $ 6,304 $ 9,596 $ 18,857 International (1) 15,885 16,062 16,107 Total $ 22,189 $ 25,658 $ 34,964 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. |
Customers Who Accounted for 10% or More of Company's Revenue | Customers who accounted for 10% or more of the Company’s revenue are as follows: Year Ended Year Ended Year Ended Central Banks 57 % 47 % 33 % Verance Corporation (“Verance”) * 12 % * IV * * 22 % The Nielsen Company (“Nielsen”) * * 11 % * Less than 10% |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Allocation of Stock-Based Compensation | Stock-based Compensation Year Ended Year Ended Year Ended Stock-based compensation: Cost of revenue $ 740 $ 545 $ 533 Sales and marketing 775 674 422 Research, development and engineering 1,308 1,406 1,116 General and administrative 1,978 2,454 2,183 Intellectual property 276 324 248 Stock compensation expense 5,077 5,403 4,502 Capitalized to fixed assets and patent costs 174 177 137 Total stock-based compensation $ 5,251 $ 5,580 $ 4,639 |
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted | The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: Year Ended Year Ended Year Ended Total unrecognized compensation costs $ 9,549 $ 11,206 $ 9,711 |
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock | The Company expects to recognize the total unrecognized compensation costs as of December 31, 2015 for stock options and restricted stock over weighted average periods through December 2019 as follows: Stock Restricted Weighted average period 0.0 years 1.36 years |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Earnings (Loss) Per Common Share | The following table reconciles earnings (loss) per common share for the years ended December 31, 2015, 2014 and 2013: Year Ended Year Ended Year Ended Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (17,934 ) $ (15,820 ) $ (507 ) Distributed earnings to common shares — 1,553 3,013 Distributed earnings to participating securities — 101 189 Total distributed earnings — 1,654 3,202 Undistributed loss allocable to common shares (17,934 ) (17,474 ) (3,709 ) Undistributed earnings allocable to participating securities — — — Total undistributed loss (17,934 ) (17,474 ) (3,709 ) Loss to common shares—basic $ (17,934 ) $ (15,921 ) $ (696 ) Denominator Weighted average common shares outstanding—basic 8,198 7,187 6,866 Basic loss per common share $ (2.19 ) $ (2.22 ) $ (0.10 ) Year Ended Year Ended Year Ended Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (17,934 ) $ (15,921 ) $ (696 ) Undistributed earnings allocated to participating securities — — — Undistributed earnings reallocated to participating securities — — — Loss to common shares—diluted $ (17,934 ) $ (15,921 ) $ (696 ) Denominator Weighted average common shares outstanding—basic 8,198 7,187 6,866 Dilutive effect of stock options — — — Weighted average common shares outstanding—dilutive 8,198 7,187 6,866 Diluted loss per common share $ (2.19 ) $ (2.22 ) $ (0.10 ) |
Trade Accounts Receivable and27
Trade Accounts Receivable and Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Trade Accounts Receivable | Trade accounts receivable are recorded at the invoiced amount. December 31, 2015 December 31, 2014 Trade accounts receivable $ 4,631 $ 4,567 Allowance for doubtful accounts (15 ) (22 ) Trade accounts receivable, net $ 4,616 $ 4,545 Unpaid deferred revenue included in accounts receivable $ 2,012 $ 1,974 |
Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net | Customers who accounted for 10% or more of trade accounts receivable, net are as follows: December 31, 2015 December 31, 2014 Central Banks 62 % 61 % Civolution * 13 % * Less than 10% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Depreciation and Amortization on Property and Equipment Using the Straight-Line Method | Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. December 31, 2015 December 31, 2014 Office furniture and fixtures $ 1,068 $ 845 Software 1,748 1,312 Equipment 3,416 3,072 Leasehold improvements 1,276 1,198 Gross property and equipment 7,508 6,427 Less accumulated depreciation and amortization (4,498 ) (3,451 ) Property and equipment, net $ 3,010 $ 2,976 |
Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases are as follows: Year ending December 31: Operating 2016 $ 841 2017 756 2018 960 2019 990 2020 829 Thereafter 2,703 Total minimum lease payments $ 7,079 |
Operating Leases Rent Expense | Rent expense on the operating leases was as follows: Year Ended Year Ended Year Ended Rent expense $ 1,045 $ 951 $ 925 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization of Intangible Assets Acquired | Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life December 31, 2015 December 31, 2014 Capitalized patent costs 17-20 $ 6,779 $ 6,183 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 10,049 9,453 Accumulated amortization (3,436 ) (2,733 ) Intangible assets, net $ 6,613 $ 6,720 |
Estimated Future Aggregate Amortization Expense | The aggregate amortization expense recorded in the years ended December 31, 2015, 2014 and 2013 was $722, $1,047 and $1,196, respectively. For intangible assets recorded at December 31, 2015, the estimated future aggregate amortization expense for the years ending December 31, 2016 through 2020 is approximately as follows: Year ending December 31: Amortization 2016 $ 613 2017 576 2018 278 2019 274 2020 213 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Options Granted, Exercised and Canceled | Options granted, exercised and canceled under the stock incentive plan are summarized as follows: Number of Weighted Average Weighted Average Aggregate Options outstanding, December 31, 2012 856 $ 15.16 $ 7.88 Granted — — — Exercised (42 ) $ 9.64 $ 6.30 Forfeited or expired (1 ) $ 14.99 $ 8.12 Options outstanding, December 31, 2013 813 $ 15.44 $ 7.96 Granted — — — Exercised (202 ) $ 10.48 $ 6.48 Forfeited or expired (10 ) $ 24.35 $ 9.84 Options outstanding, December 31, 2014 601 $ 16.97 $ 8.42 Granted — — — Exercised (111 ) $ 13.61 $ 7.25 Forfeited or expired — — — Options outstanding, December 31, 2015 490 $ 17.73 $ 8.69 $ 9,203 Options exercisable, December 31, 2015 490 $ 17.73 $ 8.69 $ 9,203 |
Summary of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2015: Options Outstanding Options Exercisable Exercise Price Number Remaining Weighted Number Remaining Weighted $9.64 – $9.91 210 2.88 $ 9.67 210 2.88 $ 9.67 $14.99 – $18.01 105 4.08 $ 15.63 105 4.08 $ 15.63 $27.61 – $30.01 175 5.49 $ 28.64 175 5.49 $ 28.64 $9.64 – $30.01 490 4.07 $ 17.73 490 4.07 $ 17.73 |
Reconciliation of Unvested Balance of Restricted Stock | The following table reconciles the unvested balance of restricted stock: Number of Weighted Unvested balance, December 31, 2012 369 $ 21.72 Granted 388 $ 20.15 Vested (220 ) $ 23.21 Forfeited (89 ) $ 20.35 Unvested balance, December 31, 2013 448 $ 19.89 Granted 283 $ 28.79 Vested (191 ) $ 23.56 Forfeited (38 ) $ 25.44 Unvested balance, December 31, 2014 502 $ 23.09 Granted 150 $ 28.96 Vested (213 ) $ 24.78 Forfeited (31 ) $ 23.96 Unvested balance, December 31, 2015 408 $ 24.30 |
Fair Value of Restricted Stock Awards Vested | The following table indicates the fair value of all restricted stock awards that vested during the years ended December 31, 2015, 2014 and 2013: Year Ended Year Ended Year Ended Fair value of restricted stock awards vested $ 6,350 $ 5,632 $ 4,387 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Statement of Company Made Matching Contributions | The Company made matching contributions in the aggregate amount as follows: Year Ended Year Ended Year Ended Matching contributions $ 523 $ 511 $ 396 |
Joint Venture and Related Par32
Joint Venture and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
TVaura Mobile LLC [Member] | |
Summarized Financial Data | Summarized financial data for TVaura Mobile LLC: December 31, December 31, Current assets $ 45 $ 50 Noncurrent assets $ — $ — Current liabilities $ 10 $ 10 Noncurrent liabilities $ — $ — Year Ended Year Ended Year Ended Revenue $ — $ — $ — Gross profit $ — $ — $ — Operating expenses $ 5 $ 5 $ 5 Net loss from continuing operations $ (5 ) $ (5 ) $ (5 ) The Company’s pro-rata share—net loss $ — $ — $ — The Company’s loss on investment $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Tax Provision (Benefit) Allocated to Continuing Operations | Components of tax provision (benefit) allocated to continuing operations include the following: Year Ended Year Ended Year Ended Current: Federal $ (2 ) $ (3,378 ) $ (1,420 ) State 49 1 1 Foreign 19 5 5 Sub-total 66 (3,372 ) (1,414 ) Deferred: Federal — 3,516 (204 ) State — 508 (178 ) Foreign — — — Sub-total — 4,024 (382 ) Total tax provision (benefit) $ 66 $ 652 $ (1,796 ) |
Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate | The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Year Ended % Year Ended % Year Ended % Income taxes computed at statutory rates $ (6,081 ) 34 % $ (5,159 ) 34 % $ (783 ) 34 % Increases (decreases) resulting from: State income taxes, net of federal tax benefit (1,298 ) 7 % (700 ) 5 % (301 ) 13 % Impact of federal graduated rates (4 ) 0 % — — — — Federal and state research and experimentation credits (917 ) 5 % (563 ) 4 % (918 ) 40 % Change in valuation allowance 8,132 (45 )% 6,916 (46 )% 187 (8 )% Other 234 (1 )% 158 (1 )% 19 (1 ) Total $ 66 0 % $ 652 (4 )% $ (1,796 ) 78 % |
Tax Effects of Significant Items Comprising the Company's Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of significant items comprising the Company’s deferred tax assets and deferred tax liabilities are as follows: December 31, December 31, Deferred tax assets: Stock based compensation $ 1,751 $ 2,107 Federal and state net operating losses 12,551 5,020 Goodwill 826 917 Accrued compensation 51 27 Deferred rent 62 109 Federal and state research and experimentation credits 2,322 1,404 AMT credit 92 117 Intangible asset differences 167 48 Other 74 19 Total gross deferred tax assets 17,896 9,768 Less valuation allowance (15,420 ) (7,288 ) Net deferred tax assets $ 2,476 $ 2,480 Deferred tax liabilities: Patent expenditures $ (2,017 ) $ (1,918 ) Fixed asset differences (459 ) (562 ) Total deferred tax liabilities $ (2,476 ) $ (2,480 ) Total net deferred tax assets $ — $ — |
Summary of Reconciliation of the Company's Uncertain Tax Positions | A summary reconciliation of the Company’s uncertain tax positions is as follows: Year Ended Year Ended Year Ended Beginning balance $ 306 $ 219 $ 108 Addition for current year tax positions 74 58 105 Addition for prior year tax positions 45 29 6 Settlements with taxing authorities — — — Lapsing of statutes of limitations — — — Ending balance $ 425 $ 306 $ 219 |
Quarterly Financial Informati34
Quarterly Financial Information-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter ended: March 31 June 30 September 30 December 31 2015 Service revenue $ 3,501 $ 3,235 $ 3,072 $ 2,709 Subscription revenue 1,716 1,670 1,561 1,430 License revenue 772 893 753 877 Total revenue 5,989 5,798 5,386 5,016 Total cost of revenue 2,416 2,449 2,098 1,984 Gross profit 3,573 3,349 3,288 3,032 Gross profit percent, service revenue 55 % 54 % 61 % 55 % Gross profit percent, subscription revenue 56 % 48 % 48 % 52 % Gross profit percent, license revenue 89 % 90 % 89 % 90 % Gross profit percent, total 60 % 58 % 61 % 60 % Sales and marketing $ 2,090 $ 2,098 $ 2,309 $ 2,778 Research, development and engineering 3,084 3,025 3,236 3,120 General and administrative 2,206 1,980 1,847 1,921 Intellectual property 367 291 367 500 Operating loss (4,174 ) (4,045 ) (4,471 ) (5,287 ) Net loss (4,150 ) (4,012 ) (4,469 ) (5,303 ) Earnings (loss) per common share: Earnings (loss) per common share—basic $ (0.52 ) $ (0.50 ) $ (0.54 ) $ (0.62 ) Earnings (loss) per common share—diluted $ (0.52 ) $ (0.50 ) $ (0.54 ) $ (0.62 ) Weighted average common shares outstanding—basic 7,960 8,029 8,309 8,485 Weighted average common shares outstanding—diluted 7,960 8,029 8,309 8,485 Quarter ended: March 31 June 30 September 30 December 31 2014 Service revenue $ 2,988 $ 2,716 $ 3,155 $ 2,868 Subscription revenue 1,412 1,496 1,452 1,843 License revenue 2,805 1,451 2,320 1,152 Total revenue 7,205 5,663 6,927 5,863 Total cost of revenue 2,146 1,952 2,120 2,213 Gross profit 5,059 3,711 4,807 3,650 Gross profit percent, service revenue 53 % 57 % 61 % 56 % Gross profit percent, subscription revenue 54 % 53 % 44 % 53 % Gross profit percent, license revenue 97 % 94 % 96 % 93 % Gross profit percent, total 70 % 66 % 69 % 62 % Sales and marketing $ 1,879 $ 2,052 $ 1,999 $ 2,044 Research, development and engineering 3,546 3,404 3,499 3,262 General and administrative 2,421 2,326 2,183 2,042 Intellectual property 534 387 366 506 Operating loss (3,321 ) (4,458 ) (3,240 ) (4,204 ) Net loss (1,986 ) (2,680 ) (1,985 ) (9,169 ) Earnings (loss) per common share: Earnings (loss) per common share—basic $ (0.29 ) $ (0.38 ) $ (0.28 ) $ (1.23 ) Earnings (loss) per common share—diluted $ (0.29 ) $ (0.38 ) $ (0.28 ) $ (1.23 ) Weighted average common shares outstanding—basic 7,000 7,113 7,176 7,453 Weighted average common shares outstanding—diluted 7,000 7,113 7,176 7,453 |
Description of Business and Sig
Description of Business and Significant of Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Highly liquid marketable securities with original maturities | 90 days or less | |
Cash equivalents include primarily money market securities, corporate notes and certificates of deposits | $ 2,401,000 | $ 5,344,000 |
Short-term marketable securities maturity description | Over 90 days that mature in less than one-year | |
Marketable securities other-than temporary impairments | $ 0 | |
Credit exposure to any one financial institution or type of financial instrument | 5% of its cash equivalents and marketable securities or $1,000, whichever is greater | |
Percentage of credit exposure to any one financial institution or type of financial instrument | 5.00% | |
Maximum amount of credit exposure to any one financial institution or type of financial instrument | $ 1,000,000 | |
Credit exposure limits of cash and cash equivalents and marketable securities | 40% of its cash equivalents and marketable securities, or $15,000, whichever is greater | |
Percentage of credit exposure limits based on cash and cash equivalents and marketable securities | 40.00% | |
Credit exposure limits of cash and cash equivalents and marketable securities under option two | $ 15,000,000 | |
Purchase price adjustment date | 1 year | |
Term of patent | 17 years |
Description of Business and S36
Description of Business and Summary of Significant of Accounting Policies - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 38,427 | |
Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 38,427 | $ 38,294 |
Fair value, measurements, recurring [Member] | U.S. treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,059 | |
Fair value, measurements, recurring [Member] | Pre-refunded municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,747 | 13,317 |
Fair value, measurements, recurring [Member] | Money market securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,001 | 3,556 |
Fair value, measurements, recurring [Member] | Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 6,884 | 19,245 |
Fair value, measurements, recurring [Member] | Federal agency notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 11,722 | |
Fair value, measurements, recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3,794 | |
Fair value, measurements, recurring [Member] | Certificates of deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,220 | 2,176 |
Fair value, measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,001 | 3,556 |
Fair value, measurements, recurring [Member] | Level 1 [Member] | Money market securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,001 | 3,556 |
Fair value, measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 36,426 | 34,738 |
Fair value, measurements, recurring [Member] | Level 2 [Member] | U.S. treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,059 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Pre-refunded municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,747 | 13,317 |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 6,884 | 19,245 |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Federal agency notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 11,722 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3,794 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Certificates of deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 2,220 | $ 2,176 |
Description of Business and S37
Description of Business and Summary of Significant Accounting Policies - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Maturities, Total | $ 38,427 |
Maturities, Less than 1 year | 35,428 |
Maturities, 1-5 years | 2,999 |
Maturities, 5-10 years | 0 |
Maturities, More than 10 years | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Revenue Recognition [Abstract] | |
Period of revenue from services | 1 month |
Subscription revenue term, minimum | 1 year |
Subscription revenue term, maximum | 3 years |
License revenue recognized payment terms, maximum | 60 days |
License revenue recognized payment terms, minimum | 30 days |
Patent Licensing Arrangement 39
Patent Licensing Arrangement with Intellectual Ventures - Additional Information (Detail) $ in Thousands | Oct. 05, 2010Patents | Dec. 31, 2015USD ($)Patents | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of patents | Patents | 597 | |||||
Number of patent applications | Patents | 288 | |||||
License fee | $ | $ 36,000 | |||||
Increase in installments | $ | $ 6,775 | $ 12,550 | $ 11,400 | $ 5,275 | ||
Percentage of profits including license fee | 20.00% | |||||
Responsibility in prosecution and maintenance costs per year | $ | $ 1,000 | |||||
Minimum value of paid support for maximizing the value of licensed assets | $ | $ 4,000 | |||||
Period for maximizing value of licensed assets | 5 years | |||||
Intellectual Ventures (''IV'') [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of patents | Patents | 570 | |||||
Number of patent applications | Patents | 30 | |||||
Minimum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Company's normal payment term | 30 days | |||||
Maximum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Company's normal payment term | 60 days |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)Segment | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||||
Number of reporting segment | Segment | 1 | |||
License fee | $ 36 | |||
Verance Corporation [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Patent license agreement expiration, year | 2,023 | |||
License fee | $ 1 | |||
Sales [Member] | Verance Corporation [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from segment | 12.00% | |||
Sales [Member] | Minimum [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from segment | 10.00% |
Segment Information - Geographi
Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total | $ 5,016 | $ 5,386 | $ 5,798 | $ 5,989 | $ 5,863 | $ 6,927 | $ 5,663 | $ 7,205 | $ 22,189 | $ 25,658 | $ 34,964 |
Domestic [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total | 6,304 | 9,596 | 18,857 | ||||||||
International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total | $ 15,885 | $ 16,062 | $ 16,107 |
Segment Information - Customers
Segment Information - Customers Who Accounted for 10% or More of Company's Revenue (Detail) - Customer Concentration Risk [Member] - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Central Banks [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 57.00% | 47.00% | 33.00% |
Verance Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 12.00% | ||
Intellectual Ventures [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 22.00% | ||
Nielsen Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 11.00% |
Segment Information - Custome43
Segment Information - Customers Who Accounted for 10% or More of Company's Revenue (Parenthetical) (Detail) - Sales [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Verance Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 12.00% | ||
Verance Corporation [Member] | Maximum [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 10.00% | 10.00% | |
Intellectual Ventures [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 22.00% | ||
Intellectual Ventures [Member] | Maximum [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 10.00% | 10.00% | |
Nielsen Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 11.00% | ||
Nielsen Company [Member] | Maximum [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 10.00% | 10.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual terms | 10 years | ||
Stock options granted | 0 | 0 | 0 |
Minimum [Member] | Employee [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for stock options and restricted stock | 3 years | ||
Minimum [Member] | Director [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for stock options and restricted stock | 1 year | ||
Maximum [Member] | Employee [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for stock options and restricted stock | 4 years | ||
Maximum [Member] | Director [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for stock options and restricted stock | 2 years |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 5,077 | $ 5,403 | $ 4,502 |
Capitalized to fixed assets and patent costs | 174 | 177 | 137 |
Total stock-based compensation | 5,251 | 5,580 | 4,639 |
Cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 740 | 545 | 533 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 775 | 674 | 422 |
Research, development and engineering [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,308 | 1,406 | 1,116 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,978 | 2,454 | 2,183 |
Intellectual property [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 276 | $ 324 | $ 248 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total unrecognized compensation costs | $ 9,549 | $ 11,206 | $ 9,711 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 0 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 1 year 4 months 10 days |
Earnings Per Common Share - Sum
Earnings Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic Earnings (Loss) per Common Share: | |||||||||||
Net loss | $ (5,303) | $ (4,469) | $ (4,012) | $ (4,150) | $ (9,169) | $ (1,985) | $ (2,680) | $ (1,986) | $ (17,934) | $ (15,820) | $ (507) |
Distributed earnings to common shares | 1,553 | 3,013 | |||||||||
Distributed earnings to participating securities | 101 | 189 | |||||||||
Total distributed earnings | 1,654 | 3,202 | |||||||||
Undistributed loss allocable to common shares | (17,934) | (17,474) | (3,709) | ||||||||
Undistributed earnings allocable to participating securities | 0 | 0 | 0 | ||||||||
Total undistributed loss | (17,934) | (17,474) | (3,709) | ||||||||
Loss to common shares-basic | $ (17,934) | $ (15,921) | $ (696) | ||||||||
Weighted average common shares outstanding-basic | 8,485 | 8,309 | 8,029 | 7,960 | 7,453 | 7,176 | 7,113 | 7,000 | 8,198 | 7,187 | 6,866 |
Basic loss per common share | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (1.23) | $ (0.28) | $ (0.38) | $ (0.29) | $ (2.19) | $ (2.22) | $ (0.10) |
Diluted Earnings (Loss) per Common Share: | |||||||||||
Loss to common shares-basic | $ (17,934) | $ (15,921) | $ (696) | ||||||||
Undistributed earnings allocated to participating securities | 0 | 0 | 0 | ||||||||
Undistributed earnings reallocated to participating securities | 0 | 0 | 0 | ||||||||
Loss to common shares-diluted | $ (17,934) | $ (15,921) | $ (696) | ||||||||
Weighted average common shares outstanding-basic | 8,485 | 8,309 | 8,029 | 7,960 | 7,453 | 7,176 | 7,113 | 7,000 | 8,198 | 7,187 | 6,866 |
Dilutive effect of stock options | 0 | 0 | 0 | ||||||||
Weighted average common shares outstanding-dilutive | 8,485 | 8,309 | 8,029 | 7,960 | 7,453 | 7,176 | 7,113 | 7,000 | 8,198 | 7,187 | 6,866 |
Diluted loss per common share | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (1.23) | $ (0.28) | $ (0.38) | $ (0.29) | $ (2.19) | $ (2.22) | $ (0.10) |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 230 | 217 | 224 |
Higher than average market price [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 0 | 175 | 215 |
Trade Accounts Receivable and50
Trade Accounts Receivable and Allowance for Doubtful Accounts - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net, Current [Abstract] | ||
Trade accounts receivable | $ 4,631 | $ 4,567 |
Allowance for doubtful accounts | (15) | (22) |
Trade accounts receivable, net | 4,616 | 4,545 |
Unpaid deferred revenue included in accounts receivable | $ 2,012 | $ 1,974 |
Trade Accounts Receivable and51
Trade Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts receivable [Member] | Minimum [Member] | Credit Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of trade accounts receivable of major customers | 10.00% |
Trade Accounts Receivable and52
Trade Accounts Receivable and Allowance for Doubtful Accounts - Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net (Detail) - Accounts receivable [Member] - Credit Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Central Banks [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 62.00% | 61.00% |
Civolution [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 13.00% |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 2 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 7 years |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Office furniture and fixtures | $ 1,068 | $ 845 |
Software | 1,748 | 1,312 |
Equipment | 3,416 | 3,072 |
Leasehold improvements | 1,276 | 1,198 |
Gross property and equipment | 7,508 | 6,427 |
Less accumulated depreciation and amortization | (4,498) | (3,451) |
Property and equipment, net | $ 3,010 | $ 2,976 |
Property and Equipment - Future
Property and Equipment - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 841 |
2,017 | 756 |
2,018 | 960 |
2,019 | 990 |
2,020 | 829 |
Thereafter | 2,703 |
Total minimum lease payments | $ 7,079 |
Property and Equipment - Operat
Property and Equipment - Operating Leases Rent Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Rent expense | $ 1,045 | $ 951 | $ 925 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges on intangible | $ 0 | $ 0 | $ 0 |
Aggregate amortization expense | $ 722,000 | $ 1,047,000 | $ 1,196,000 |
Capitalized patent costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 17 years |
Intangibles - Amortization of I
Intangibles - Amortization of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized patent costs | $ 6,779 | $ 6,183 |
Intangible assets acquired: | ||
Gross intangible assets | 10,049 | 9,453 |
Accumulated amortization | (3,436) | (2,733) |
Intangible assets, net | 6,613 | 6,720 |
Purchased patents and intellectual property [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | $ 250 | 250 |
Purchased patents and intellectual property [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Purchased patents and intellectual property [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 10 years | |
Existing technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 5 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 1,560 | 1,560 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 7 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 290 | 290 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 2 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 760 | 760 |
Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 290 | 290 |
Non-solicitation agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 1 year | |
Intangible assets acquired: | ||
Intangible assets amount | $ 120 | $ 120 |
Capitalized patent costs [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 17 years | |
Capitalized patent costs [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 20 years |
Intangibles - Estimated Future
Intangibles - Estimated Future Aggregate Amortization Expense (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,016 | $ 613 |
2,017 | 576 |
2,018 | 278 |
2,019 | 274 |
2,020 | $ 213 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shareholders Equity [Line Items] | |||||
Preferred stock, shares authorized | 2,500,000 | 2,500,000 | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Options with exercise prices less than per share | $ 17.73 | $ 16.97 | $ 15.44 | $ 15.16 | |
Stock options [Member] | |||||
Shareholders Equity [Line Items] | |||||
Stock-based compensation plans, shares authorized for future grants | 1,441,000 | ||||
Intrinsic value is based on closing price of per share of Digimarc common stock | $ 36.51 | ||||
Options with exercise prices less than per share | $ 36.51 | ||||
Restricted Stock [Member] | |||||
Shareholders Equity [Line Items] | |||||
Vesting period for stock options and restricted stock | 4 years | ||||
Series A Preferred Stock [Member] | |||||
Shareholders Equity [Line Items] | |||||
Authorized shares of Series A Redeemable Nonvoting Preferred stock | 10,000 | ||||
Series A Preferred redeemable stated fair value | $ 5 | ||||
Series A Preferred stock dividend rights | $ 0 | ||||
Series A Preferred stock undistributed earnings | 0 | ||||
Equity Distribution Agreement [Member] | |||||
Shareholders Equity [Line Items] | |||||
Net sales commissions | 700,000 | ||||
Stock issuance cost | $ 415,000 | ||||
Shares sold under equity distribution agreement | 0 | ||||
Common Stock [Member] | |||||
Shareholders Equity [Line Items] | |||||
Issuance of common stock | 342,000 | 684,000 | |||
Common Stock [Member] | Stock Incentive Plan [Member] | |||||
Shareholders Equity [Line Items] | |||||
Authorized shares of Series A Redeemable Nonvoting Preferred stock | 3,500,000 | ||||
Common Stock [Member] | Equity Distribution Agreement [Member] | |||||
Shareholders Equity [Line Items] | |||||
Issuance of common stock | 1,026,000 | ||||
Weighted average price per share | $ 29.24 | ||||
Cash proceeds from shares sold | $ 29,300,000 | ||||
Maximum [Member] | Wells Fargo Securities LLC [Member] | |||||
Shareholders Equity [Line Items] | |||||
Aggregate offering price for common stock | $ 30 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding at beginning | 601 | 813 | 856 |
Options granted | 0 | 0 | 0 |
Options exercised | (111) | (202) | (42) |
Options forfeited or expired | (10) | (1) | |
Outstanding at ending | 490 | 601 | 813 |
Exercisable at ending | 490 | ||
Weighted Average Exercise Price at beginning | $ 16.97 | $ 15.44 | $ 15.16 |
Weighted Average Exercise Price, Options granted | 0 | 0 | 0 |
Weighted Average Exercise Price, Options exercised | 13.61 | 10.48 | 9.64 |
Weighted Average Exercise Price, Options forfeited or expired | 24.35 | 14.99 | |
Weighted Average Exercise Price at ending | 17.73 | 16.97 | 15.44 |
Weighted Average Grant Date Fair Value at beginning | 8.42 | 7.96 | 7.88 |
Weighted Average Exercise Price, Exercisable at ending | 17.73 | ||
Weighted Average Grant Date Fair Value, Options granted | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value, Options exercised | 7.25 | 6.48 | 6.30 |
Weighted Average Grant Date Fair Value, Options forfeited or expired | 9.84 | 8.12 | |
Weighted Average Grant Date Fair Value at ending | 8.69 | $ 8.42 | $ 7.96 |
Weighted Average Grant Date Fair Value, Exercisable at ending | $ 8.69 | ||
Aggregate Intrinsic Value Outstanding at ending | $ 9,203 | ||
Aggregate Intrinsic Value, Exercisable at ending | $ 9,203 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Information about Stock Options Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range Limit | $ 9.64 |
Exercise Price, Upper Range Limit | $ 30.01 |
Number Outstanding | shares | 490 |
Remaining Contractual Life (Years), Outstanding | 4 years 26 days |
Weighted Average Price, Outstanding | $ 17.73 |
Number Exercisable | shares | 490 |
Remaining Contractual Life (Years), Exercisable | 4 years 26 days |
Weighted Average Price, Exercisable | $ 17.73 |
Exercise Price $9.64 - $9.91 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range Limit | 9.64 |
Exercise Price, Upper Range Limit | $ 9.91 |
Number Outstanding | shares | 210 |
Remaining Contractual Life (Years), Outstanding | 2 years 10 months 17 days |
Weighted Average Price, Outstanding | $ 9.67 |
Number Exercisable | shares | 210 |
Remaining Contractual Life (Years), Exercisable | 2 years 10 months 17 days |
Weighted Average Price, Exercisable | $ 9.67 |
Exercise Price $14.99 - $18.01 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range Limit | 14.99 |
Exercise Price, Upper Range Limit | $ 18.01 |
Number Outstanding | shares | 105 |
Remaining Contractual Life (Years), Outstanding | 4 years 29 days |
Weighted Average Price, Outstanding | $ 15.63 |
Number Exercisable | shares | 105 |
Remaining Contractual Life (Years), Exercisable | 4 years 29 days |
Weighted Average Price, Exercisable | $ 15.63 |
Exercise Price $27.61 - $30.01 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower Range Limit | 27.61 |
Exercise Price, Upper Range Limit | $ 30.01 |
Number Outstanding | shares | 175 |
Remaining Contractual Life (Years), Outstanding | 5 years 5 months 27 days |
Weighted Average Price, Outstanding | $ 28.64 |
Number Exercisable | shares | 175 |
Remaining Contractual Life (Years), Exercisable | 5 years 5 months 27 days |
Weighted Average Price, Exercisable | $ 28.64 |
Shareholders' Equity - Reconc63
Shareholders' Equity - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Unvested, beginning balance | 502 | 448 | 369 |
Granted | 150 | 283 | 388 |
Vested | (213) | (191) | (220) |
Forfeited | (31) | (38) | (89) |
Unvested, ending balance | 408 | 502 | 448 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 23.09 | $ 19.89 | $ 21.72 |
Granted | 28.96 | 28.79 | 20.15 |
Vested | 24.78 | 23.56 | 23.21 |
Forfeited | 23.96 | 25.44 | 20.35 |
Unvested, ending balance | $ 24.30 | $ 23.09 | $ 19.89 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock awards vested | $ 6,350 | $ 5,632 | $ 4,387 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employees may contribute their pay to the Plan | 75.00% |
Defined Contribution Plan - Sta
Defined Contribution Plan - Statement of Company Made Matching Contributions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Matching contributions | $ 523 | $ 511 | $ 396 |
Joint Venture and Related Par67
Joint Venture and Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 55 Months Ended | ||
Jun. 30, 2009JointVenture | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | |||||
Number of joint venture agreements | JointVenture | 2 | ||||
License agreement payment | $ 18,750,000 | ||||
TVaura LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 51.00% | ||||
Investment in joint venture | $ 0 | $ 0 | |||
Joint ventures revenue or expenses | 0 | 0 | $ 0 | ||
Joint ventures assets | 0 | 0 | |||
Joint ventures liability | 0 | 0 | |||
TVaura Mobile LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 49.00% | ||||
Investment in joint venture | 0 | 0 | |||
Joint ventures revenue or expenses | $ 0 | $ 0 | $ 0 |
Joint Venture and Related Par68
Joint Venture and Related Party Transactions - Summarized Financial Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||||||||||
Current assets | $ 42,290 | $ 45,479 | $ 42,290 | $ 45,479 | |||||||
Current liabilities | 4,680 | 5,039 | 4,680 | 5,039 | |||||||
Noncurrent liabilities | 226 | 203 | 226 | 203 | |||||||
Revenue | 5,016 | $ 5,386 | $ 5,798 | $ 5,989 | 5,863 | $ 6,927 | $ 5,663 | $ 7,205 | 22,189 | 25,658 | $ 34,964 |
Gross profit | 3,032 | $ 3,288 | $ 3,349 | $ 3,573 | 3,650 | $ 4,807 | $ 3,711 | $ 5,059 | 13,242 | 17,227 | 26,759 |
Operating expenses | 31,219 | 32,450 | 29,171 | ||||||||
TVaura Mobile LLC [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Current assets | 45 | 50 | 45 | 50 | |||||||
Noncurrent assets | 0 | 0 | 0 | 0 | 0 | ||||||
Current liabilities | 10 | 10 | 10 | 10 | |||||||
Noncurrent liabilities | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Revenue | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses | 5 | 5 | 5 | ||||||||
Net loss from continuing operations | (5) | (5) | (5) | ||||||||
The Company's pro-rata share-net loss | 0 | 0 | 0 | ||||||||
The Company's loss on investment | $ 0 | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | |||
Effective tax rate | 0.00% | (4.00%) | 78.00% |
Deferred tax assets, valuation allowance | $ 15,420 | $ 7,288 | |
Change in valuation allowance | 8,132 | 6,916 | $ 187 |
Federal net operating loss carry-forwards | 40,000 | ||
State net operating loss carry-forwards | $ 54,536 | ||
Minimum maturity period for federal net operating loss carry-forward | 10 years | ||
Maximum maturity period for federal net operating loss carry-forward | 20 years | ||
Minimum maturity period for state net operating loss carry-forward | 10 years | ||
Maximum maturity period for state net operating loss carry-forward | 20 years | ||
Federal research and experimental tax credits | $ 3,407 | ||
State research and experimental tax credits | $ 907 | ||
Minimum maturity period for federal research and experimental tax credit carry-forward | 5 years | ||
Maximum maturity period for federal research and experimental tax credit carry-forward | 20 years | ||
Minimum maturity period for state research and experimental tax credit carry-forward | 5 years | ||
Maximum maturity period for state research and experimental tax credit carry-forward | 20 years | ||
Accrued interest and penalties associated with uncertain tax positions | $ 4 | $ 6 | $ 3 |
2014 Offset Tax Liability [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax refund | $ 1,300 |
Income Taxes - Components of Ta
Income Taxes - Components of Tax Expense (Benefit) Allocated to Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ (2) | $ (3,378) | $ (1,420) |
State | 49 | 1 | 1 |
Foreign | 19 | 5 | 5 |
Sub-total | 66 | (3,372) | (1,414) |
Deferred: | |||
Federal | 3,516 | (204) | |
State | 508 | (178) | |
Foreign | 0 | 0 | 0 |
Sub-total | 4,024 | (382) | |
Total tax provision (benefit) | $ 66 | $ 652 | $ (1,796) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at statutory rates | $ (6,081) | $ (5,159) | $ (783) |
Increases (decreases) resulting from: | |||
State income taxes, net of federal tax benefit | (1,298) | (700) | (301) |
Impact of federal graduated rates | (4) | ||
Federal and state research and experimentation credits | (917) | (563) | (918) |
Change in valuation allowance | 8,132 | 6,916 | 187 |
Other | 234 | 158 | 19 |
Total tax provision (benefit) | $ 66 | $ 652 | $ (1,796) |
Income taxes computed at statutory rates, Percentage | 34.00% | 34.00% | 34.00% |
Increases (decreases) resulting from: | |||
State income taxes, net of federal tax benefit, Percentage | 7.00% | 5.00% | 13.00% |
Impact of federal graduated rates, Percentage | 0.00% | ||
Federal and state research and experimentation credits, Percentage | 5.00% | 4.00% | 40.00% |
Change in valuation allowance, Percentage | (45.00%) | (46.00%) | (8.00%) |
Other, Percentage | (1.00%) | (1.00%) | (1.00%) |
Total, Percentage | 0.00% | (4.00%) | 78.00% |
Income Taxes - Tax Effects of S
Income Taxes - Tax Effects of Significant Items Comprising the Company's Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Stock based compensation | $ 1,751 | $ 2,107 |
Federal and state net operating losses | 12,551 | 5,020 |
Goodwill | 826 | 917 |
Accrued compensation | 51 | 27 |
Deferred rent | 62 | 109 |
Federal and state research and experimentation credits | 2,322 | 1,404 |
AMT credit | 92 | 117 |
Intangible asset differences | 167 | 48 |
Other | 74 | 19 |
Total gross deferred tax assets | 17,896 | 9,768 |
Less valuation allowance | (15,420) | (7,288) |
Net deferred tax assets | 2,476 | 2,480 |
Deferred tax liabilities: | ||
Patent expenditures | (2,017) | (1,918) |
Fixed asset differences | (459) | (562) |
Total deferred tax liabilities | (2,476) | (2,480) |
Total net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the Company's Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 306 | $ 219 | $ 108 |
Addition for current year tax positions | 74 | 58 | 105 |
Addition for prior year tax positions | 45 | 29 | 6 |
Settlements with taxing authorities | 0 | 0 | 0 |
Lapsing of statutes of limitations | 0 | 0 | 0 |
Ending balance | $ 425 | $ 306 | $ 219 |
Quarterly Financial Informati74
Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Service revenue | $ 2,709 | $ 3,072 | $ 3,235 | $ 3,501 | $ 2,868 | $ 3,155 | $ 2,716 | $ 2,988 | $ 12,517 | $ 11,727 | $ 11,631 |
Subscription revenue | 1,430 | 1,561 | 1,670 | 1,716 | 1,843 | 1,452 | 1,496 | 1,412 | 6,377 | 6,203 | 5,591 |
License revenue | 877 | 753 | 893 | 772 | 1,152 | 2,320 | 1,451 | 2,805 | 3,295 | 7,728 | 17,742 |
Total revenue | 5,016 | 5,386 | 5,798 | 5,989 | 5,863 | 6,927 | 5,663 | 7,205 | 22,189 | 25,658 | 34,964 |
Total cost of revenue | 1,984 | 2,098 | 2,449 | 2,416 | 2,213 | 2,120 | 1,952 | 2,146 | 8,947 | 8,431 | 8,205 |
Gross profit | $ 3,032 | $ 3,288 | $ 3,349 | $ 3,573 | $ 3,650 | $ 4,807 | $ 3,711 | $ 5,059 | 13,242 | 17,227 | 26,759 |
Gross profit percent, service revenue | 55.00% | 61.00% | 54.00% | 55.00% | 56.00% | 61.00% | 57.00% | 53.00% | |||
Gross profit percent, subscription revenue | 52.00% | 48.00% | 48.00% | 56.00% | 53.00% | 44.00% | 53.00% | 54.00% | |||
Gross profit percent, license revenue | 90.00% | 89.00% | 90.00% | 89.00% | 93.00% | 96.00% | 94.00% | 97.00% | |||
Gross profit percent, total | 60.00% | 61.00% | 58.00% | 60.00% | 62.00% | 69.00% | 66.00% | 70.00% | |||
Sales and marketing | $ 2,778 | $ 2,309 | $ 2,098 | $ 2,090 | $ 2,044 | $ 1,999 | $ 2,052 | $ 1,879 | 9,275 | 7,974 | 6,144 |
Research, development and engineering | 3,120 | 3,236 | 3,025 | 3,084 | 3,262 | 3,499 | 3,404 | 3,546 | 12,465 | 13,711 | 12,274 |
General and administrative | 1,921 | 1,847 | 1,980 | 2,206 | 2,042 | 2,183 | 2,326 | 2,421 | 7,954 | 8,972 | 9,624 |
Intellectual property | 500 | 367 | 291 | 367 | 506 | 366 | 387 | 534 | 1,525 | 1,793 | 1,129 |
Operating loss | (5,287) | (4,471) | (4,045) | (4,174) | (4,204) | (3,240) | (4,458) | (3,321) | (17,977) | (15,223) | (2,412) |
Net income (loss) | $ (5,303) | $ (4,469) | $ (4,012) | $ (4,150) | $ (9,169) | $ (1,985) | $ (2,680) | $ (1,986) | $ (17,934) | $ (15,820) | $ (507) |
Earnings (loss) per common share: | |||||||||||
Earnings (loss) per common share-basic | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (1.23) | $ (0.28) | $ (0.38) | $ (0.29) | $ (2.19) | $ (2.22) | $ (0.10) |
Earnings (loss) per common share-diluted | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (1.23) | $ (0.28) | $ (0.38) | $ (0.29) | $ (2.19) | $ (2.22) | $ (0.10) |
Weighted average common shares outstanding-basic | 8,485 | 8,309 | 8,029 | 7,960 | 7,453 | 7,176 | 7,113 | 7,000 | 8,198 | 7,187 | 6,866 |
Weighted average common shares outstanding-diluted | 8,485 | 8,309 | 8,029 | 7,960 | 7,453 | 7,176 | 7,113 | 7,000 | 8,198 | 7,187 | 6,866 |