Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 | 10,689,383 | ||
Entity Public Float | $ 278 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 11,638 | $ 3,160 |
Marketable securities | 44,496 | 33,027 |
Trade accounts receivable, net | 5,078 | 4,616 |
Other current assets | 1,695 | 1,487 |
Total current assets | 62,907 | 42,290 |
Marketable securities | 4,392 | 2,999 |
Property and equipment, net | 3,570 | 3,010 |
Intangibles, net | 6,422 | 6,613 |
Goodwill | 1,114 | 1,114 |
Other assets | 331 | 338 |
Total assets | 78,736 | 56,364 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 1,523 | 1,657 |
Deferred revenue | 2,923 | 3,023 |
Total current liabilities | 4,446 | 4,680 |
Deferred rent and other long-term liabilities | 956 | 226 |
Total liabilities | 5,402 | 4,906 |
Commitments and contingencies (Note 13) | ||
Shareholders’ equity: | ||
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at December 31, 2016 and 2015) | 50 | 50 |
Common stock (par value $0.001 per share, 50,000 authorized, 10,523 and 8,919 shares issued and outstanding at December 31, 2016 and 2015, respectively) | 11 | 9 |
Additional paid-in capital | 120,985 | 77,439 |
Accumulated deficit | (47,712) | (26,040) |
Total shareholders’ equity | 73,334 | 51,458 |
Total liabilities and shareholders’ equity | $ 78,736 | $ 56,364 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
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 | 10,523 | 8,919 |
Common stock, shares outstanding | 10,523 | 8,919 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
Service | $ 12,667 | $ 12,517 | $ 11,727 |
Subscription | 5,808 | 6,377 | 6,203 |
License | 3,318 | 3,295 | 7,728 |
Total revenue | 21,793 | 22,189 | 25,658 |
Cost of revenue: | |||
Service | 5,673 | 5,488 | 5,077 |
Subscription | 2,410 | 3,113 | 3,020 |
License | 414 | 346 | 334 |
Total cost of revenue | 8,497 | 8,947 | 8,431 |
Gross profit | 13,296 | 13,242 | 17,227 |
Operating expenses: | |||
Sales and marketing | 11,888 | 9,275 | 7,974 |
Research, development and engineering | 13,394 | 12,465 | 13,711 |
General and administrative | 8,298 | 7,954 | 8,972 |
Intellectual property | 1,636 | 1,525 | 1,793 |
Total operating expenses | 35,216 | 31,219 | 32,450 |
Operating loss | (21,920) | (17,977) | (15,223) |
Other income, net | 258 | 109 | 55 |
Loss before income taxes | (21,662) | (17,868) | (15,168) |
Provision for income taxes | (10) | (66) | (652) |
Net loss | $ (21,672) | $ (17,934) | $ (15,820) |
Earnings (loss) per common share: | |||
Loss per common share—basic | $ (2.36) | $ (2.19) | $ (2.22) |
Loss per common share—diluted | $ (2.36) | $ (2.19) | $ (2.22) |
Weighted average common shares outstanding—basic | 9,188 | 8,198 | 7,187 |
Weighted average common shares outstanding—diluted | 9,188 | 8,198 | 7,187 |
Cash dividends declared per common share | $ 0.22 |
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, 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, shares | 283 | ||||
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, shares | 150 | ||||
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 | |||
Issuance of common stock, net of issuance costs | 39,700 | $ 2 | 39,698 | ||
Issuance of common stock, net of issuance costs, shares | 1,418 | ||||
Exercise of stock options | $ 668 | 668 | |||
Exercise of stock options, shares | 69 | 69 | |||
Issuance of restricted common stock, shares | 212 | ||||
Forfeiture of restricted common stock, shares | (12) | ||||
Purchase and retirement of common stock | $ (2,537) | (2,537) | |||
Purchase and retirement of common stock, shares | (83) | ||||
Stock-based compensation | 5,717 | 5,717 | |||
Net loss | (21,672) | (21,672) | |||
Balance at Dec. 31, 2016 | $ 73,334 | $ 50 | $ 11 | $ 120,985 | $ (47,712) |
Balance, shares at Dec. 31, 2016 | 10 | 10,523 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (21,672) | $ (17,934) | $ (15,820) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation, amortization and write-off of property and equipment | 1,336 | 1,237 | 974 |
Amortization and write-off of intangibles | 1,121 | 1,196 | 1,340 |
Changes in allowance for doubtful accounts | (7) | (23) | |
Stock-based compensation | 5,553 | 5,077 | 5,403 |
Deferred income taxes | 2,085 | ||
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (462) | (64) | 1,316 |
Other current assets | (208) | 1,124 | (1,028) |
Other assets | 7 | 40 | 192 |
Accounts payable and other accrued liabilities | 637 | 125 | (635) |
Deferred revenue | (176) | (534) | (537) |
Net cash used in operating activities | (13,864) | (9,740) | (6,733) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,837) | (1,218) | (1,399) |
Capitalized patent costs | (790) | (895) | (1,190) |
Maturity of marketable securities | 41,052 | 42,264 | 28,074 |
Purchase of marketable securities | (53,914) | (45,340) | (29,871) |
Net cash used in investing activities | (15,489) | (5,189) | (4,386) |
Cash flows from financing activities: | |||
Issuance of common stock, net of issuance costs | 39,700 | 12,896 | 15,989 |
Exercise of stock options | 668 | 1,514 | 1,487 |
Purchase of common stock | (2,537) | (2,443) | (2,392) |
Cash dividends paid | (1,654) | ||
Net cash provided by financing activities | 37,831 | 11,967 | 13,430 |
Net increase (decrease) in cash and cash equivalents | 8,478 | (2,962) | 2,311 |
Cash and cash equivalents at beginning of period | 3,160 | 6,122 | 3,811 |
Cash and cash equivalents at end of period | 11,638 | 3,160 | 6,122 |
Supplemental disclosure of cash flow information: | |||
Cash received (paid) for income taxes, net | (38) | 1,233 | 263 |
Supplemental schedule of non-cash investing activities: | |||
Property and equipment and patent costs in accounts payable | 35 | 73 | 140 |
Stock-based compensation capitalized to software and patent costs | $ 164 | $ 174 | $ 177 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 management 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. Management 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 $10,881 and $2,401 at December 31, 2016 and 2015, 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, commercial paper, corporate notes, pre-refunded municipal bonds and U.S. treasuries. 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, 2016 and 2015, respectively, was as follows: December 31, 2016 Level 1 Level 2 Level 3 Total Money market securities $ 1,218 $ — $ — $ 1,218 Federal agency notes — 16,810 — 16,810 Commercial paper — 16,757 — 16,757 Corporate notes — 15,753 — 15,753 Pre-refunded municipal bonds (1) — 6,716 — 6,716 U.S. treasuries — 2,515 — 2,515 Total $ 1,218 $ 58,551 $ — $ 59,769 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 (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, 2016 are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 59,769 $ 55,377 $ 4,392 $ — $ — 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 February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230). |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2016 | |
Revenue Recognition [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 or probable. Some customer arrangements encompass multiple deliverables, such as 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 revenue from the sale of 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. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | (3) Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through development services, subscriptions and licensing of intellectual property. 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 December 31, December 31, December 31, 2016 2015 2014 Domestic $ 4,776 $ 6,304 $ 9,596 International (1) 17,017 $ 15,885 16,062 Total $ 21,793 $ 22,189 $ 25,658 (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 December 31, December 31, December 31, 2016 2015 2014 Central Banks 62 % 57 % 47 % Verance Corporation ("Verance") * * 12 % * 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. 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, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (4) 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 software and patents based on direct labor hours charged to capitalized software and patent costs. Determining Fair Value Stock Options Valuation and Amortization Method. The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. The Company amortizes the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods. Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and pre-vesting and post-vesting forfeitures. Stock options granted generally vest over three to four years for employee grants and one to two years for director grants, and have contractual terms of ten years. Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock based on historical prices over the most recent period commensurate with the expected life of the award. Risk-Free Interest Rate. The Company determines the risk-free interest rate using current U.S. treasury yields for bonds with a maturity commensurate with the expected life of the award. Expected Dividend Yield. The expected dividend yield is derived by the Company’s expected annual dividend rate over the expected term divided by the fair value of the Company’s common stock at the grant date. There were no stock options granted during the years ended December 31, 2016, 2015 and 2014. 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 December 31, December 31, December 31, 2016 2015 2014 Stock-based compensation: Cost of revenue $ 709 $ 740 $ 545 Sales and marketing 975 775 674 Research, development and engineering 1,381 1,308 1,406 General and administrative 2,182 1,978 2,454 Intellectual property 306 276 324 Stock-based compensation expense 5,553 5,077 5,403 Capitalized to software and patent costs 164 174 177 Total stock-based compensation $ 5,717 $ 5,251 $ 5,580 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 December 31, December 31, December 31, 2016 2015 2014 Total unrecognized compensation costs $ 9,728 $ 9,549 $ 11,206 Total unrecognized compensation costs will be adjusted for any future forfeitures. The Company expects to recognize the total unrecognized compensation costs as of December 31, 2016 for stock options and restricted stock over weighted average periods through December 2020 as follows: Stock Restricted Options Stock Weighted average period 0.0 years 1.3 years |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | (5) 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, 2016, 2015 and 2014: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (21,672 ) $ (17,934 ) $ (15,820 ) Distributed earnings to common shares — — 1,553 Distributed earnings to participating securities — — 101 Total distributed earnings — — 1,654 Undistributed loss allocable to common shares (21,672 ) (17,934 ) (17,474 ) Undistributed earnings allocable to participating securities — — — Total undistributed loss (21,672 ) (17,934 ) (17,474 ) Loss to common shares—basic $ (21,672 ) $ (17,934 ) $ (15,921 ) Denominator Weighted average common shares outstanding— basic 9,188 8,198 7,187 Basic earnings (loss) per common share $ (2.36 ) $ (2.19 ) $ (2.22 ) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (21,672 ) $ (17,934 ) $ (15,921 ) Undistributed earnings allocated to participating securities — — — Undistributed earnings reallocated to participating securities — — — Loss to common shares—diluted $ (21,672 ) $ (17,934 ) $ (15,921 ) Denominator Weighted average common shares outstanding— basic 9,188 8,198 7,187 Dilutive effect of stock options — — — Weighted average common shares outstanding— dilutive 9,188 8,198 7,187 Diluted earnings (loss) per common share $ (2.36 ) $ (2.19 ) $ (2.22 ) There were 0, 0 and 175 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, 2016, 2015 and 2014, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the period. There were 187, 230 and 217 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, 2016, 2015 and 2014, 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, 2016 | |
Receivables [Abstract] | |
Trade Accounts Receivable and Allowance for Doubtful Accounts | (6) Trade Accounts Receivable and Allowance for Doubtful Accounts Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. December 31, December 31, 2016 2015 Trade accounts receivable $ 5,093 $ 4,631 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 5,078 $ 4,616 Unpaid deferred revenue included in trade accounts receivable $ 2,245 $ 2,012 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, December 31, 2016 2015 Central Banks 57 % 62 % |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (7) 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 ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. December 31, December 31, 2016 2015 Office furniture and fixtures $ 1,168 $ 1,068 Software 2,146 1,748 Equipment 4,071 3,416 Leasehold improvements 1,617 1,276 Gross property and equipment 9,002 7,508 Less accumulated depreciation and amortization (5,432 ) (4,498 ) Property and equipment, net $ 3,570 $ 3,010 Leases Future minimum lease payments under non-cancelable operating leases are as follows: Operating Year ending December 31: Leases 2017 $ 784 2018 992 2019 1,023 2020 848 2021 804 Thereafter 1,899 Total minimum lease payments $ 6,350 Rent expense on the operating leases was as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Rent expense $ 1,022 $ 1,045 $ 951 |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles | (8) 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, 2016, 2015 and 2014. 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, December 31, (years) 2016 2015 Capitalized patent costs 17-20 $ 7,281 $ 6,779 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 10,551 10,049 Accumulated amortization (4,129 ) (3,436 ) Intangibles, net $ 6,422 $ 6,613 Amortization expense on intangible assets was as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Amortization expense $ 693 $ 722 $ 1,047 For intangible assets recorded at December 31, 2016, the estimated future aggregate amortization expense for the years ending December 31, 2017 through 2021 is approximately as follows: Amortization Year ending December 31: Expense 2017 $ 657 2018 364 2019 344 2020 300 2021 238 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | (9) 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 2016, the Company sold 1,233 shares of its common stock in an underwritten public offering, plus an additional 185 shares in full exercise of the underwriters’ option to purchase additional shares of common stock, at the price to the public of $30.00 per share. The Company received $39,953 of cash proceeds, net of discount of $2,447 and underwriter fees of $150, from the offering, and paid $253 in stock issuance costs for legal and accounting fees. 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 $30,000. 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 for legal and accounting fees. 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 (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. As of December 31, 2016, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,325 shares were authorized for future grants under the plans. Stock Options The Company issues new shares upon option exercises. Options granted, exercised and forfeited under the stock incentive plan are summarized as follows: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Options Price Fair Value Value 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 Granted — — — Exercised (69 ) $ 9.64 $ 6.75 Forfeited or expired — — — Options outstanding, December 31, 2016 421 $ 19.06 $ 9.01 $ 4,601 Options exercisable, December 31, 2016 421 $ 19.06 $ 4,601 The aggregate intrinsic value is based on the closing price of $30.00 per share of Digimarc common stock on December 31, 2016, which would have been received by the optionees had all of the options with exercise prices less than $30.00 per share been exercised on that date. The following table summarizes information about stock options outstanding at December 31, 2016: Options Outstanding Options Exercisable Weighted Weighted Remaining Average Remaining Average Number Contractual Exercise Number Contractual Exercise Exercise Price Outstanding Life (Years) Price Outstanding Life (Years) Price $9.64 - $9.91 140 1.91 $ 9.68 140 1.91 $ 9.68 $14.99 - $18.01 106 3.08 $ 15.63 106 3.08 $ 15.63 $27.61 - $30.01 175 4.49 $ 28.64 175 4.49 $ 28.64 $9.64 - $30.01 421 3.28 $ 19.06 421 3.28 $ 19.06 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: Weighted Average Number of Grant Date Shares Fair Value 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 Granted 212 $ 29.42 Vested (223 ) $ 25.50 Forfeited (12 ) $ 29.15 Unvested balance, December 31, 2016 385 $ 26.28 The following table indicates the fair value of all restricted stock awards that vested during the years ended December 31, 2016, 2015 and 2014: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Fair value of restricted stock awards vested $ 6,688 $ 6,350 $ 5,632 |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | (10) 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 December 31, December 31, December 31, 2016 2015 2014 Matching contributions $ 775 $ 523 $ 511 |
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 | (11) 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. Neither Digimarc nor Nielsen has contributed any capital to the joint venture since reactivation. As of December 31, 2016, both Digimarc and Nielsen continued to assess the market opportunities of the TVaura LLC joint venture. The Company’s investment in each joint venture was $0 as of December 31, 2016 and 2015. 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 during the last three fiscal years. The joint venture had no revenue or expenses for the years ended December 31, 2016, 2015 and 2014, and there were no assets or liabilities as of December 31, 2016 and 2015. Summarized financial data for TVaura Mobile LLC: December 31, December 31, 2016 2015 Current assets $ 40 $ 45 Noncurrent assets $ — $ — Current liabilities $ 11 $ 10 Noncurrent liabilities $ — $ — Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 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, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) 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, 2016, 2015 and 2014 were 0%, 0% and (4)%, respectively. The Company continues 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 December 31, December 31, December 31, 2016 2015 2014 Current: Federal $ — $ (2 ) $ (3,378 ) State (11 ) 49 1 Foreign 21 19 5 Sub-total $ 10 $ 66 $ (3,372 ) Deferred: Federal $ — $ — $ 3,516 State — — 508 Foreign — — — Sub-total $ — $ — $ 4,024 Total tax provision (benefit) $ 10 $ 66 $ 652 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 December 31, December 31, December 31, 2016 % 2015 % 2014 % Income taxes computed at statutory rates $ (7,369 ) 34 % $ (6,081 ) 34 % $ (5,159 ) 34 % Increases (decreases) resulting from: State income taxes, net of federal tax benefit (1,219 ) 6 % (1,298 ) 7 % (700 ) 5 % Impact of federal graduated rates - 0 % (4 ) 0 % — — Federal and state research and experimentation credits (1,112 ) 5 % (917 ) 5 % (563 ) 4 % Change in valuation allowance 9,468 (44 )% 8,132 (45 )% 6,916 (46 )% Other 242 (1 )% 234 (1 )% 158 (1 )% Total $ 10 0 % $ 66 0 % $ 652 (4 )% 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: Year Ended Year Ended December 31, December 31, 2016 2015 Deferred tax assets: Stock based compensation $ 1,524 $ 1,751 Federal and state net operating losses 21,089 12,551 Goodwill 715 826 Accrued compensation 19 51 Deferred rent 344 62 Federal and state research and experimentation credit 3,434 2,322 AMT credit 92 92 Intangible asset differences 253 167 Other 39 74 Total gross deferred tax assets 27,509 17,896 Less valuation allowance (24,888 ) (15,420 ) Net deferred tax assets $ 2,621 $ 2,476 Deferred tax liabilities: Patent expenditures $ (2,012 ) $ (2,017 ) Fixed asset differences (609 ) (459 ) Total gross deferred tax liabilities $ (2,621 ) $ (2,476 ) Total net deferred tax assets $ — $ — The Company had a valuation allowance of $24,888 and $15,420 on deferred tax assets as of December 31, 2016 and 2015, respectively, an increase of $9,468 during the year ended December 31, 2016. As of December 31, 2016, the Company has federal and state net operating loss carry-forwards of $63,309 and $81,436, respectively, which have a carry-forward of 5 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, 2016, the Company has federal and state research and experimental tax credits of $4,303 and $1,390, respectively, which have a carry-forward of 5 to 20 years depending on the jurisdiction. 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, 2016, 2015 and 2014, the Company recognized accrued interest and penalties associated with uncertain tax positions of $0, $4 and $6, 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 December 31, December 31, December 31, 2016 2015 2014 Beginning balance $ 425 $ 306 $ 219 Addition for current year tax positions 100 74 58 Addition for prior year tax positions 2 45 29 Reduction for prior year positions resolved during the current year (41 ) — — Ending balance $ 486 $ 425 $ 306 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 Company’s open tax years subject to examination in the U.S. federal jurisdiction are 2012 through 2015 and applicable state jurisdictions for the tax years 2012 through 2015. 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, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (13) 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, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information—Unaudited | (14) Quarterly Financial Information—Unaudited Quarter Ending March 31 June 30 September 30 December 31 2016 Service revenue $ 3,250 $ 3,148 $ 3,252 $ 3,017 Subscription revenue 1,463 1,494 1,417 1,434 License revenue 867 815 907 729 Total revenue 5,580 5,457 5,576 5,180 Total cost revenue 2,190 2,094 2,162 2,051 Gross profit 3,390 3,363 3,414 3,129 Gross profit percent, service revenue 56 % 55 % 55 % 54 % Gross profit percent, subscription revenue 55 % 60 % 58 % 61 % Gross profit percent, license revenue 89 % 88 % 88 % 85 % Gross profit percent, total 61 % 62 % 61 % 60 % Sales and marketing $ 2,955 $ 2,856 $ 2,945 $ 3,132 Research, development and engineering 3,305 3,379 3,291 3,419 General and administrative 2,170 1,976 2,039 2,113 Intellectual property 434 462 394 346 Operating loss (5,474 ) (5,310 ) (5,255 ) (5,881 ) Net loss (5,435 ) (5,283 ) (5,198 ) (5,756 ) Earnings (loss) per common share: Loss per common share—basic $ (0.64 ) $ (0.62 ) $ (0.55 ) $ (0.57 ) Loss per common share—diluted $ (0.64 ) $ (0.62 ) $ (0.55 ) $ (0.57 ) Weighted average common shares outstanding— basic 8,533 8,587 9,506 10,111 Weighted average common shares outstanding— diluted 8,533 8,587 9,506 10,111 Quarter Ending 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 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: Loss per common share—basic $ (0.52 ) $ (0.50 ) $ (0.54 ) $ (0.62 ) 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 |
Description of Business and S21
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 management 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. Management 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 $10,881 and $2,401 at December 31, 2016 and 2015, 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, commercial paper, corporate notes, pre-refunded municipal bonds and U.S. treasuries. 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, 2016 and 2015, respectively, was as follows: December 31, 2016 Level 1 Level 2 Level 3 Total Money market securities $ 1,218 $ — $ — $ 1,218 Federal agency notes — 16,810 — 16,810 Commercial paper — 16,757 — 16,757 Corporate notes — 15,753 — 15,753 Pre-refunded municipal bonds (1) — 6,716 — 6,716 U.S. treasuries — 2,515 — 2,515 Total $ 1,218 $ 58,551 $ — $ 59,769 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 (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, 2016 are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 59,769 $ 55,377 $ 4,392 $ — $ — |
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 February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230). |
Earnings Per Share | The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share |
Description of Business and S22
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, respectively, was as follows: December 31, 2016 Level 1 Level 2 Level 3 Total Money market securities $ 1,218 $ — $ — $ 1,218 Federal agency notes — 16,810 — 16,810 Commercial paper — 16,757 — 16,757 Corporate notes — 15,753 — 15,753 Pre-refunded municipal bonds (1) — 6,716 — 6,716 U.S. treasuries — 2,515 — 2,515 Total $ 1,218 $ 58,551 $ — $ 59,769 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 (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, 2016 are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 59,769 $ 55,377 $ 4,392 $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, December 31, December 31, 2016 2015 2014 Domestic $ 4,776 $ 6,304 $ 9,596 International (1) 17,017 $ 15,885 16,062 Total $ 21,793 $ 22,189 $ 25,658 (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 December 31, December 31, December 31, 2016 2015 2014 Central Banks 62 % 57 % 47 % Verance Corporation ("Verance") * * 12 % * Less than 10% |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Allocation of Stock-Based Compensation | Stock-based Compensation Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Stock-based compensation: Cost of revenue $ 709 $ 740 $ 545 Sales and marketing 975 775 674 Research, development and engineering 1,381 1,308 1,406 General and administrative 2,182 1,978 2,454 Intellectual property 306 276 324 Stock-based compensation expense 5,553 5,077 5,403 Capitalized to software and patent costs 164 174 177 Total stock-based compensation $ 5,717 $ 5,251 $ 5,580 |
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 December 31, December 31, December 31, 2016 2015 2014 Total unrecognized compensation costs $ 9,728 $ 9,549 $ 11,206 |
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, 2016 for stock options and restricted stock over weighted average periods through December 2020 as follows: Stock Restricted Options Stock Weighted average period 0.0 years 1.3 years |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (21,672 ) $ (17,934 ) $ (15,820 ) Distributed earnings to common shares — — 1,553 Distributed earnings to participating securities — — 101 Total distributed earnings — — 1,654 Undistributed loss allocable to common shares (21,672 ) (17,934 ) (17,474 ) Undistributed earnings allocable to participating securities — — — Total undistributed loss (21,672 ) (17,934 ) (17,474 ) Loss to common shares—basic $ (21,672 ) $ (17,934 ) $ (15,921 ) Denominator Weighted average common shares outstanding— basic 9,188 8,198 7,187 Basic earnings (loss) per common share $ (2.36 ) $ (2.19 ) $ (2.22 ) Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (21,672 ) $ (17,934 ) $ (15,921 ) Undistributed earnings allocated to participating securities — — — Undistributed earnings reallocated to participating securities — — — Loss to common shares—diluted $ (21,672 ) $ (17,934 ) $ (15,921 ) Denominator Weighted average common shares outstanding— basic 9,188 8,198 7,187 Dilutive effect of stock options — — — Weighted average common shares outstanding— dilutive 9,188 8,198 7,187 Diluted earnings (loss) per common share $ (2.36 ) $ (2.19 ) $ (2.22 ) |
Trade Accounts Receivable and26
Trade Accounts Receivable and Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Trade Accounts Receivable | Trade accounts receivable are recorded at the invoiced amount. December 31, December 31, 2016 2015 Trade accounts receivable $ 5,093 $ 4,631 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 5,078 $ 4,616 Unpaid deferred revenue included in trade accounts receivable $ 2,245 $ 2,012 |
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, December 31, 2016 2015 Central Banks 57 % 62 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. December 31, December 31, 2016 2015 Office furniture and fixtures $ 1,168 $ 1,068 Software 2,146 1,748 Equipment 4,071 3,416 Leasehold improvements 1,617 1,276 Gross property and equipment 9,002 7,508 Less accumulated depreciation and amortization (5,432 ) (4,498 ) Property and equipment, net $ 3,570 $ 3,010 |
Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases are as follows: Operating Year ending December 31: Leases 2017 $ 784 2018 992 2019 1,023 2020 848 2021 804 Thereafter 1,899 Total minimum lease payments $ 6,350 |
Operating Leases Rent Expense | Rent expense on the operating leases was as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Rent expense $ 1,022 $ 1,045 $ 951 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, December 31, (years) 2016 2015 Capitalized patent costs 17-20 $ 7,281 $ 6,779 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 10,551 10,049 Accumulated amortization (4,129 ) (3,436 ) Intangibles, net $ 6,422 $ 6,613 |
Amortization Expense on Intangible Assets | Amortization expense on intangible assets was as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Amortization expense $ 693 $ 722 $ 1,047 |
Estimated Future Aggregate Amortization Expense | For intangible assets recorded at December 31, 2016, the estimated future aggregate amortization expense for the years ending December 31, 2017 through 2021 is approximately as follows: Amortization Year ending December 31: Expense 2017 $ 657 2018 364 2019 344 2020 300 2021 238 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Summary of Options Granted, Exercised and Forfeited | Options granted, exercised and forfeited under the stock incentive plan are summarized as follows: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Options Price Fair Value Value 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 Granted — — — Exercised (69 ) $ 9.64 $ 6.75 Forfeited or expired — — — Options outstanding, December 31, 2016 421 $ 19.06 $ 9.01 $ 4,601 Options exercisable, December 31, 2016 421 $ 19.06 $ 4,601 |
Summary of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2016: Options Outstanding Options Exercisable Weighted Weighted Remaining Average Remaining Average Number Contractual Exercise Number Contractual Exercise Exercise Price Outstanding Life (Years) Price Outstanding Life (Years) Price $9.64 - $9.91 140 1.91 $ 9.68 140 1.91 $ 9.68 $14.99 - $18.01 106 3.08 $ 15.63 106 3.08 $ 15.63 $27.61 - $30.01 175 4.49 $ 28.64 175 4.49 $ 28.64 $9.64 - $30.01 421 3.28 $ 19.06 421 3.28 $ 19.06 |
Reconciliation of Unvested Balance of Restricted Stock | The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Shares Fair Value 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 Granted 212 $ 29.42 Vested (223 ) $ 25.50 Forfeited (12 ) $ 29.15 Unvested balance, December 31, 2016 385 $ 26.28 |
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, 2016, 2015 and 2014: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Fair value of restricted stock awards vested $ 6,688 $ 6,350 $ 5,632 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, December 31, December 31, 2016 2015 2014 Matching contributions $ 775 $ 523 $ 511 |
Joint Venture and Related Par31
Joint Venture and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
TVaura Mobile LLC [Member] | |
Summarized Financial Data | Summarized financial data for TVaura Mobile LLC: December 31, December 31, 2016 2015 Current assets $ 40 $ 45 Noncurrent assets $ — $ — Current liabilities $ 11 $ 10 Noncurrent liabilities $ — $ — Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 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, 2016 | |
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 December 31, December 31, December 31, 2016 2015 2014 Current: Federal $ — $ (2 ) $ (3,378 ) State (11 ) 49 1 Foreign 21 19 5 Sub-total $ 10 $ 66 $ (3,372 ) Deferred: Federal $ — $ — $ 3,516 State — — 508 Foreign — — — Sub-total $ — $ — $ 4,024 Total tax provision (benefit) $ 10 $ 66 $ 652 |
Reconciliation of Statutory Federal Income Tax Rate to 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 December 31, December 31, December 31, 2016 % 2015 % 2014 % Income taxes computed at statutory rates $ (7,369 ) 34 % $ (6,081 ) 34 % $ (5,159 ) 34 % Increases (decreases) resulting from: State income taxes, net of federal tax benefit (1,219 ) 6 % (1,298 ) 7 % (700 ) 5 % Impact of federal graduated rates - 0 % (4 ) 0 % — — Federal and state research and experimentation credits (1,112 ) 5 % (917 ) 5 % (563 ) 4 % Change in valuation allowance 9,468 (44 )% 8,132 (45 )% 6,916 (46 )% Other 242 (1 )% 234 (1 )% 158 (1 )% Total $ 10 0 % $ 66 0 % $ 652 (4 )% |
Components of 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: Year Ended Year Ended December 31, December 31, 2016 2015 Deferred tax assets: Stock based compensation $ 1,524 $ 1,751 Federal and state net operating losses 21,089 12,551 Goodwill 715 826 Accrued compensation 19 51 Deferred rent 344 62 Federal and state research and experimentation credit 3,434 2,322 AMT credit 92 92 Intangible asset differences 253 167 Other 39 74 Total gross deferred tax assets 27,509 17,896 Less valuation allowance (24,888 ) (15,420 ) Net deferred tax assets $ 2,621 $ 2,476 Deferred tax liabilities: Patent expenditures $ (2,012 ) $ (2,017 ) Fixed asset differences (609 ) (459 ) Total gross deferred tax liabilities $ (2,621 ) $ (2,476 ) Total net deferred tax assets $ — $ — |
Summary of Reconciliation of Uncertain Tax Positions | A summary reconciliation of the Company’s uncertain tax positions is as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2016 2015 2014 Beginning balance $ 425 $ 306 $ 219 Addition for current year tax positions 100 74 58 Addition for prior year tax positions 2 45 29 Reduction for prior year positions resolved during the current year (41 ) — — Ending balance $ 486 $ 425 $ 306 |
Quarterly Financial Informati33
Quarterly Financial Information-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ending March 31 June 30 September 30 December 31 2016 Service revenue $ 3,250 $ 3,148 $ 3,252 $ 3,017 Subscription revenue 1,463 1,494 1,417 1,434 License revenue 867 815 907 729 Total revenue 5,580 5,457 5,576 5,180 Total cost revenue 2,190 2,094 2,162 2,051 Gross profit 3,390 3,363 3,414 3,129 Gross profit percent, service revenue 56 % 55 % 55 % 54 % Gross profit percent, subscription revenue 55 % 60 % 58 % 61 % Gross profit percent, license revenue 89 % 88 % 88 % 85 % Gross profit percent, total 61 % 62 % 61 % 60 % Sales and marketing $ 2,955 $ 2,856 $ 2,945 $ 3,132 Research, development and engineering 3,305 3,379 3,291 3,419 General and administrative 2,170 1,976 2,039 2,113 Intellectual property 434 462 394 346 Operating loss (5,474 ) (5,310 ) (5,255 ) (5,881 ) Net loss (5,435 ) (5,283 ) (5,198 ) (5,756 ) Earnings (loss) per common share: Loss per common share—basic $ (0.64 ) $ (0.62 ) $ (0.55 ) $ (0.57 ) Loss per common share—diluted $ (0.64 ) $ (0.62 ) $ (0.55 ) $ (0.57 ) Weighted average common shares outstanding— basic 8,533 8,587 9,506 10,111 Weighted average common shares outstanding— diluted 8,533 8,587 9,506 10,111 Quarter Ending 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 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: Loss per common share—basic $ (0.52 ) $ (0.50 ) $ (0.54 ) $ (0.62 ) 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 |
Description of Business and S34
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 10,881,000 | $ 2,401,000 |
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 S35
Description of Business and Summary of Significant Accounting Policies - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 59,769 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 59,769 | $ 38,427 |
Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 6,716 | 4,747 |
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,218 | 2,001 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 16,757 | 3,794 |
Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 16,810 | 11,722 |
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 15,753 | 6,884 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,515 | 7,059 |
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 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,218 | 2,001 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,218 | 2,001 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 58,551 | 36,426 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 6,716 | 4,747 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 16,757 | 3,794 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 16,810 | 11,722 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 15,753 | 6,884 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 2,515 | 7,059 |
Level 2 [Member] | 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 |
Description of Business and S36
Description of Business and Summary of Significant Accounting Policies - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Fair Value Disclosures [Abstract] | |
Cash equivalents and marketable securities, Total | $ 59,769 |
Cash equivalents and marketable securities, Less than 1 year | 55,377 |
Cash equivalents and marketable securities, 1-5 years | $ 4,392 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 |
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, 2016Segment | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||||
Number of reporting segment | Segment | 1 | |||
Verance Corporation [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Patent license agreement expiration, year | 2,023 | |||
License fee | $ | $ 1 | |||
Sales [Member] | Customer Concentration Risk [Member] | Verance Corporation [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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total | $ 5,180 | $ 5,576 | $ 5,457 | $ 5,580 | $ 5,016 | $ 5,386 | $ 5,798 | $ 5,989 | $ 21,793 | $ 22,189 | $ 25,658 |
Domestic [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total | 4,776 | 6,304 | 9,596 | ||||||||
International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total | $ 17,017 | $ 15,885 | $ 16,062 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Central Banks [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 62.00% | 57.00% | 47.00% |
Verance Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 12.00% |
Segment Information - Custome41
Segment Information - Customers Who Accounted for 10% or More of Company's Revenue (Parenthetical) (Detail) - Customer Concentration Risk [Member] - Verance Corporation [Member] - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Entity wide revenue major customers percentage | 12.00% | ||
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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 5,553 | $ 5,077 | $ 5,403 |
Capitalized to software and patent costs | 164 | 174 | 177 |
Total stock-based compensation | 5,717 | 5,251 | 5,580 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 709 | 740 | 545 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 975 | 775 | 674 |
Research, Development and Engineering [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,381 | 1,308 | 1,406 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,182 | 1,978 | 2,454 |
Intellectual Property [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 306 | $ 276 | $ 324 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total unrecognized compensation costs | $ 9,728 | $ 9,549 | $ 11,206 |
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, 2016 | |
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 3 months 18 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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic Earnings (Loss) per Common Share: | |||||||||||
Net loss | $ (5,756) | $ (5,198) | $ (5,283) | $ (5,435) | $ (5,303) | $ (4,469) | $ (4,012) | $ (4,150) | $ (21,672) | $ (17,934) | $ (15,820) |
Distributed earnings to common shares | 1,553 | ||||||||||
Distributed earnings to participating securities | 101 | ||||||||||
Total distributed earnings | 1,654 | ||||||||||
Undistributed loss allocable to common shares | (21,672) | (17,934) | (17,474) | ||||||||
Total undistributed loss | (21,672) | (17,934) | (17,474) | ||||||||
Loss to common shares—basic | $ (21,672) | $ (17,934) | $ (15,921) | ||||||||
Weighted average common shares outstanding—basic | 10,111 | 9,506 | 8,587 | 8,533 | 8,485 | 8,309 | 8,029 | 7,960 | 9,188 | 8,198 | 7,187 |
Basic earnings (loss) per common share | $ (0.57) | $ (0.55) | $ (0.62) | $ (0.64) | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (2.36) | $ (2.19) | $ (2.22) |
Diluted Earnings (Loss) per Common Share: | |||||||||||
Loss to common shares—basic | $ (21,672) | $ (17,934) | $ (15,921) | ||||||||
Loss to common shares—diluted | $ (21,672) | $ (17,934) | $ (15,921) | ||||||||
Weighted average common shares outstanding— basic | 10,111 | 9,506 | 8,587 | 8,533 | 8,485 | 8,309 | 8,029 | 7,960 | 9,188 | 8,198 | 7,187 |
Weighted average common shares outstanding— dilutive | 10,111 | 9,506 | 8,587 | 8,533 | 8,485 | 8,309 | 8,029 | 7,960 | 9,188 | 8,198 | 7,187 |
Diluted earnings (loss) per common share | $ (0.57) | $ (0.55) | $ (0.62) | $ (0.64) | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (2.36) | $ (2.19) | $ (2.22) |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 187 | 230 | 217 |
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 | 0 | 175 |
Trade Accounts Receivable and48
Trade Accounts Receivable and Allowance for Doubtful Accounts - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable Net Current [Abstract] | ||
Trade accounts receivable | $ 5,093 | $ 4,631 |
Allowance for doubtful accounts | (15) | (15) |
Trade accounts receivable, net | 5,078 | 4,616 |
Unpaid deferred revenue included in trade accounts receivable | $ 2,245 | $ 2,012 |
Trade Accounts Receivable and49
Trade Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 and50
Trade Accounts Receivable and Allowance for Doubtful Accounts - Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Central Banks [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 57.00% | 62.00% |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 | 10 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, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Abstract] | ||
Office furniture and fixtures | $ 1,168 | $ 1,068 |
Software | 2,146 | 1,748 |
Equipment | 4,071 | 3,416 |
Leasehold improvements | 1,617 | 1,276 |
Gross property and equipment | 9,002 | 7,508 |
Less accumulated depreciation and amortization | (5,432) | (4,498) |
Property and equipment, net | $ 3,570 | $ 3,010 |
Property and Equipment - Future
Property and Equipment - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,017 | $ 784 |
2,018 | 992 |
2,019 | 1,023 |
2,020 | 848 |
2,021 | 804 |
Thereafter | 1,899 |
Total minimum lease payments | $ 6,350 |
Property and Equipment - Operat
Property and Equipment - Operating Leases Rent Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases Rent Expense [Abstract] | |||
Rent expense | $ 1,022 | $ 1,045 | $ 951 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges on intangible | $ 0 | $ 0 | $ 0 |
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, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized patent costs | $ 7,281 | $ 6,779 |
Intangible assets acquired: | ||
Gross intangible assets | 10,551 | 10,049 |
Accumulated amortization | (4,129) | (3,436) |
Intangibles, net | $ 6,422 | 6,613 |
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 | |
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 |
Intangibles - Amortization Expe
Intangibles - Amortization Expense on Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 693 | $ 722 | $ 1,047 |
Intangibles - Estimated Future
Intangibles - Estimated Future Aggregate Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 657 |
2,018 | 364 |
2,019 | 344 |
2,020 | 300 |
2,021 | $ 238 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2016 | Aug. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | |||
Discount on common stock | $ 2,447,000 | ||||
Underwriter fees | 150,000 | ||||
Stock issuance cost for legal and accounting fees | $ 253,000 | ||||
Stock Options [Member] | |||||
Shareholders Equity [Line Items] | |||||
Stock-based compensation plans, number of additional shares authorized for future grants | 1,325,000 | ||||
Closing price per share of Digimarc common stock | $ 30 | ||||
Restricted Stock [Member] | |||||
Shareholders Equity [Line Items] | |||||
Vesting period for stock options and restricted stock | 4 years | ||||
Maximum [Member] | Wells Fargo Securities LLC [Member] | |||||
Shareholders Equity [Line Items] | |||||
Aggregate offering price for common stock | $ 30,000,000 | ||||
Equity Distribution Agreement [Member] | |||||
Shareholders Equity [Line Items] | |||||
Stock issuance cost for legal and accounting fees | $ 415,000 | ||||
Net sales commissions | $ 700,000 | ||||
Shares sold under equity distribution agreement | 0 | ||||
Common Stock [Member] | |||||
Shareholders Equity [Line Items] | |||||
Issuance of common stock | 1,233,000 | 1,418,000 | 342,000 | 684,000 | |
Common stock price per share | $ 30 | ||||
Cash proceeds from sale of common stock | $ 39,953,000 | ||||
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 | ||||
Cash proceeds from sale of common stock | $ 29,300,000 | ||||
Weighted average price per share | $ 29.24 | ||||
Over Allotment Option [Member] | Common Stock [Member] | |||||
Shareholders Equity [Line Items] | |||||
Issuance of common stock | 185,000 | ||||
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 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options, Outstanding at beginning | 490,000 | 601,000 | 813,000 |
Options granted | 0 | 0 | 0 |
Options exercised | (69,000) | (111,000) | (202,000) |
Options forfeited or expired | (10,000) | ||
Options, Outstanding at ending | 421,000 | 490,000 | 601,000 |
Options, Exercisable at ending | 421,000 | ||
Weighted Average Exercise Price, Outstanding at beginning | $ 17.73 | $ 16.97 | $ 15.44 |
Weighted Average Exercise Price, Exercised | 9.64 | 13.61 | 10.48 |
Weighted Average Exercise Price, Forfeited or expired | 24.35 | ||
Weighted Average Exercise Price, Outstanding at ending | 19.06 | 17.73 | 16.97 |
Weighted Average Exercise Price, Exercisable at ending | 19.06 | ||
Weighted Average Grant Date Fair Value, Outstanding at beginning | 8.69 | 8.42 | 7.96 |
Weighted Average Grant Date Fair Value, Exercised | 6.75 | 7.25 | 6.48 |
Weighted Average Grant Date Fair Value, Forfeited or expired | 9.84 | ||
Weighted Average Grant Date Fair Value, Outstanding at ending | $ 9.01 | $ 8.69 | $ 8.42 |
Aggregate Intrinsic Value, Outstanding | $ 4,601 | ||
Aggregate Intrinsic Value, Exercisable | $ 4,601 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Information about Stock Options Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / 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 | 421 |
Remaining Contractual Life (Years), Outstanding | 3 years 3 months 11 days |
Weighted Average Price, Outstanding | $ 19.06 |
Number Exercisable | shares | 421 |
Remaining Contractual Life (Years), Exercisable | 3 years 3 months 11 days |
Weighted Average Price, Exercisable | $ 19.06 |
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 | 140 |
Remaining Contractual Life (Years), Outstanding | 1 year 10 months 28 days |
Weighted Average Price, Outstanding | $ 9.68 |
Number Exercisable | shares | 140 |
Remaining Contractual Life (Years), Exercisable | 1 year 10 months 28 days |
Weighted Average Price, Exercisable | $ 9.68 |
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 | 106 |
Remaining Contractual Life (Years), Outstanding | 3 years 29 days |
Weighted Average Price, Outstanding | $ 15.63 |
Number Exercisable | shares | 106 |
Remaining Contractual Life (Years), Exercisable | 3 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 | 4 years 5 months 27 days |
Weighted Average Price, Outstanding | $ 28.64 |
Number Exercisable | shares | 175 |
Remaining Contractual Life (Years), Exercisable | 4 years 5 months 27 days |
Weighted Average Price, Exercisable | $ 28.64 |
Shareholders' Equity - Reconc62
Shareholders' Equity - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Unvested, beginning balance | 408 | 502 | 448 |
Granted | 212 | 150 | 283 |
Vested | (223) | (213) | (191) |
Forfeited | (12) | (31) | (38) |
Unvested, ending balance | 385 | 408 | 502 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 24.30 | $ 23.09 | $ 19.89 |
Granted | 29.42 | 28.96 | 28.79 |
Vested | 25.50 | 24.78 | 23.56 |
Forfeited | 29.15 | 23.96 | 25.44 |
Unvested, ending balance | $ 26.28 | $ 24.30 | $ 23.09 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock awards vested | $ 6,688 | $ 6,350 | $ 5,632 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Matching contributions | $ 775 | $ 523 | $ 511 |
Joint Venture and Related Par66
Joint Venture and Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 55 Months Ended | ||
Jun. 30, 2009JointVenture | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 31, 2014USD ($) | |
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 ventures assets | 0 | 0 | |||
Joint ventures liability | $ 0 | $ 0 |
Joint Venture and Related Par67
Joint Venture and Related Party Transactions - Summarized Financial Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||||||||
Current assets | $ 62,907 | $ 42,290 | $ 62,907 | $ 42,290 | |||||||
Current liabilities | 4,446 | 4,680 | 4,446 | 4,680 | |||||||
Noncurrent liabilities | 956 | 226 | 956 | 226 | |||||||
Revenue | 5,180 | $ 5,576 | $ 5,457 | $ 5,580 | 5,016 | $ 5,386 | $ 5,798 | $ 5,989 | 21,793 | 22,189 | $ 25,658 |
Gross profit | 3,129 | $ 3,414 | $ 3,363 | $ 3,390 | 3,032 | $ 3,288 | $ 3,349 | $ 3,573 | 13,296 | 13,242 | 17,227 |
Operating expenses | 35,216 | 31,219 | 32,450 | ||||||||
TVaura Mobile LLC [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Current assets | 40 | 45 | 40 | 45 | |||||||
Current liabilities | $ 11 | $ 10 | 11 | 10 | |||||||
Operating expenses | 5 | 5 | 5 | ||||||||
Net loss from continuing operations | $ (5) | $ (5) | $ (5) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Effective tax rate | 0.00% | 0.00% | (4.00%) |
Deferred tax assets, valuation allowance | $ 24,888 | $ 15,420 | |
Change in valuation allowance | 9,468 | 8,132 | $ 6,916 |
Federal net operating loss carry-forwards | 63,309 | ||
State net operating loss carry-forwards | $ 81,436 | ||
Minimum maturity period for federal net operating loss carry-forward | 5 years | ||
Maximum maturity period for federal net operating loss carry-forward | 20 years | ||
Minimum maturity period for state net operating loss carry-forward | 5 years | ||
Maximum maturity period for state net operating loss carry-forward | 20 years | ||
Federal research and experimental tax credits | $ 4,303 | ||
State research and experimental tax credits | $ 1,390 | ||
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 | $ 0 | 4 | $ 6 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (2) | $ (3,378) | |
State | $ (11) | 49 | 1 |
Foreign | 21 | 19 | 5 |
Sub-total | 10 | 66 | (3,372) |
Deferred: | |||
Federal | 3,516 | ||
State | 508 | ||
Sub-total | 4,024 | ||
Total tax provision (benefit) | $ 10 | $ 66 | $ 652 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at statutory rates | $ (7,369) | $ (6,081) | $ (5,159) |
Increases (decreases) resulting from: | |||
State income taxes, net of federal tax benefit | (1,219) | (1,298) | (700) |
Impact of federal graduated rates | (4) | ||
Federal and state research and experimentation credits | (1,112) | (917) | (563) |
Change in valuation allowance | 9,468 | 8,132 | 6,916 |
Other | 242 | 234 | 158 |
Total tax provision (benefit) | $ 10 | $ 66 | $ 652 |
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 | 6.00% | 7.00% | 5.00% |
Impact of federal graduated rates, Percentage | 0.00% | 0.00% | |
Federal and state research and experimentation credits, Percentage | 5.00% | 5.00% | 4.00% |
Change in valuation allowance, Percentage | (44.00%) | (45.00%) | (46.00%) |
Other, Percentage | (1.00%) | (1.00%) | (1.00%) |
Total, Percentage | 0.00% | 0.00% | (4.00%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Stock based compensation | $ 1,524 | $ 1,751 |
Federal and state net operating losses | 21,089 | 12,551 |
Goodwill | 715 | 826 |
Accrued compensation | 19 | 51 |
Deferred rent | 344 | 62 |
Federal and state research and experimentation credit | 3,434 | 2,322 |
AMT credit | 92 | 92 |
Intangible asset differences | 253 | 167 |
Other | 39 | 74 |
Total gross deferred tax assets | 27,509 | 17,896 |
Less valuation allowance | (24,888) | (15,420) |
Net deferred tax assets | 2,621 | 2,476 |
Deferred tax liabilities: | ||
Patent expenditures | (2,012) | (2,017) |
Fixed asset differences | (609) | (459) |
Total gross deferred tax liabilities | $ (2,621) | $ (2,476) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 425 | $ 306 | $ 219 |
Addition for current year tax positions | 100 | 74 | 58 |
Addition for prior year tax positions | 2 | 45 | 29 |
Reduction for prior year positions resolved during the current year | (41) | ||
Ending balance | $ 486 | $ 425 | $ 306 |
Quarterly Financial Informati73
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
Service revenue | $ 3,017 | $ 3,252 | $ 3,148 | $ 3,250 | $ 2,709 | $ 3,072 | $ 3,235 | $ 3,501 | $ 12,667 | $ 12,517 | $ 11,727 |
Subscription revenue | 1,434 | 1,417 | 1,494 | 1,463 | 1,430 | 1,561 | 1,670 | 1,716 | 5,808 | 6,377 | 6,203 |
License revenue | 729 | 907 | 815 | 867 | 877 | 753 | 893 | 772 | 3,318 | 3,295 | 7,728 |
Total revenue | 5,180 | 5,576 | 5,457 | 5,580 | 5,016 | 5,386 | 5,798 | 5,989 | 21,793 | 22,189 | 25,658 |
Total cost revenue | 2,051 | 2,162 | 2,094 | 2,190 | 1,984 | 2,098 | 2,449 | 2,416 | 8,497 | 8,947 | 8,431 |
Gross profit | $ 3,129 | $ 3,414 | $ 3,363 | $ 3,390 | $ 3,032 | $ 3,288 | $ 3,349 | $ 3,573 | 13,296 | 13,242 | 17,227 |
Gross profit percent, service revenue | 54.00% | 55.00% | 55.00% | 56.00% | 55.00% | 61.00% | 54.00% | 55.00% | |||
Gross profit percent, subscription revenue | 61.00% | 58.00% | 60.00% | 55.00% | 52.00% | 48.00% | 48.00% | 56.00% | |||
Gross profit percent, license revenue | 85.00% | 88.00% | 88.00% | 89.00% | 90.00% | 89.00% | 90.00% | 89.00% | |||
Gross profit percent, total | 60.00% | 61.00% | 62.00% | 61.00% | 60.00% | 61.00% | 58.00% | 60.00% | |||
Sales and marketing | $ 3,132 | $ 2,945 | $ 2,856 | $ 2,955 | $ 2,778 | $ 2,309 | $ 2,098 | $ 2,090 | 11,888 | 9,275 | 7,974 |
Research, development and engineering | 3,419 | 3,291 | 3,379 | 3,305 | 3,120 | 3,236 | 3,025 | 3,084 | 13,394 | 12,465 | 13,711 |
General and administrative | 2,113 | 2,039 | 1,976 | 2,170 | 1,921 | 1,847 | 1,980 | 2,206 | 8,298 | 7,954 | 8,972 |
Intellectual property | 346 | 394 | 462 | 434 | 500 | 367 | 291 | 367 | 1,636 | 1,525 | 1,793 |
Operating loss | (5,881) | (5,255) | (5,310) | (5,474) | (5,287) | (4,471) | (4,045) | (4,174) | (21,920) | (17,977) | (15,223) |
Net loss | $ (5,756) | $ (5,198) | $ (5,283) | $ (5,435) | $ (5,303) | $ (4,469) | $ (4,012) | $ (4,150) | $ (21,672) | $ (17,934) | $ (15,820) |
Earnings (loss) per common share: | |||||||||||
Loss per common share—basic | $ (0.57) | $ (0.55) | $ (0.62) | $ (0.64) | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (2.36) | $ (2.19) | $ (2.22) |
Loss per common share—diluted | $ (0.57) | $ (0.55) | $ (0.62) | $ (0.64) | $ (0.62) | $ (0.54) | $ (0.50) | $ (0.52) | $ (2.36) | $ (2.19) | $ (2.22) |
Weighted average common shares outstanding—basic | 10,111 | 9,506 | 8,587 | 8,533 | 8,485 | 8,309 | 8,029 | 7,960 | 9,188 | 8,198 | 7,187 |
Weighted average common shares outstanding—diluted | 10,111 | 9,506 | 8,587 | 8,533 | 8,485 | 8,309 | 8,029 | 7,960 | 9,188 | 8,198 | 7,187 |