Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DMRC | |
Entity Registrant Name | Digimarc CORP | |
Entity Central Index Key | 1,438,231 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,847,280 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 48,449 | $ 40,823 |
Marketable securities | 15,219 | 26,915 |
Trade accounts receivable, net | 3,790 | 6,404 |
Other current assets | 1,888 | 2,171 |
Total current assets | 69,346 | 76,313 |
Property and equipment, net | 4,103 | 4,236 |
Intangibles, net | 6,478 | 6,381 |
Goodwill | 1,114 | 1,114 |
Other assets | 324 | 326 |
Total assets | 81,365 | 88,370 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 1,464 | 1,914 |
Deferred revenue | 2,839 | 3,124 |
Total current liabilities | 4,303 | 5,038 |
Deferred rent and other long-term liabilities | 941 | 985 |
Total liabilities | 5,244 | 6,023 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at March 31, 2018 and December 31, 2017) | 50 | 50 |
Common stock (par value $0.001 per share, 50,000 authorized, 11,847 and 11,651 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively) | 12 | 12 |
Additional paid-in capital | 157,540 | 155,793 |
Accumulated deficit | (81,481) | (73,508) |
Total shareholders’ equity | 76,121 | 82,347 |
Total liabilities and shareholders’ equity | $ 81,365 | $ 88,370 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 11,847 | 11,651 |
Common stock, shares outstanding | 11,847 | 11,651 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Service | $ 3,507 | $ 3,696 |
Subscription | 1,578 | 1,445 |
License | 528 | 950 |
Total revenue | 5,613 | 6,091 |
Cost of revenue: | ||
Service | 1,563 | 1,635 |
Subscription | 482 | 556 |
License | 140 | 118 |
Total cost of revenue | 2,185 | 2,309 |
Gross profit | 3,428 | 3,782 |
Operating expenses: | ||
Sales and marketing | 4,887 | 3,992 |
Research, development and engineering | 3,947 | 3,459 |
General and administrative | 2,632 | 2,385 |
Intellectual property | 315 | 392 |
Total operating expenses | 11,781 | 10,228 |
Operating loss | (8,353) | (6,446) |
Other income, net | 252 | 118 |
Loss before income taxes | (8,101) | (6,328) |
Benefit (provision) for income taxes | (11) | 110 |
Net loss | $ (8,112) | $ (6,218) |
Earnings (loss) per common share: | ||
Loss per common share — basic | $ (0.72) | $ (0.61) |
Loss per common share — diluted | $ (0.72) | $ (0.61) |
Weighted average common shares outstanding — basic | 11,266 | 10,161 |
Weighted average common shares outstanding — diluted | 11,266 | 10,161 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2016 | $ 73,334 | $ 50 | $ 11 | $ 120,985 | $ (47,712) |
Balance, shares at Dec. 31, 2016 | 10 | 10,523 | |||
Exercise of stock options | 177 | $ 0 | $ 0 | 177 | 0 |
Exercise of stock options, shares | 0 | 19 | |||
Issuance of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 178 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (2) | |||
Purchase and retirement of common stock | (583) | $ 0 | $ 0 | (583) | 0 |
Purchase and retirement of common stock, shares | 0 | (23) | |||
Stock-based compensation | 1,548 | $ 0 | $ 0 | 1,573 | (25) |
Net loss | (6,218) | 0 | 0 | 0 | (6,218) |
Balance at Mar. 31, 2017 | 68,258 | $ 50 | $ 11 | 122,152 | (53,955) |
Balance, shares at Mar. 31, 2017 | 10 | 10,695 | |||
Balance at Dec. 31, 2017 | 82,347 | $ 50 | $ 12 | 155,793 | (73,508) |
Balance, shares at Dec. 31, 2017 | 10 | 11,651 | |||
Exercise of stock options | $ 560 | $ 0 | $ 0 | 560 | 0 |
Exercise of stock options, shares | 46 | 0 | 46 | ||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 178 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (10) | |||
Purchase and retirement of common stock | (528) | $ 0 | $ 0 | (528) | 0 |
Purchase and retirement of common stock, shares | 0 | (18) | |||
Stock-based compensation | 1,715 | $ 0 | $ 0 | 1,715 | 0 |
Cumulative effect of the adoption of the new revenue standard, net of tax | 139 | 0 | 0 | 0 | 139 |
Net loss | (8,112) | 0 | 0 | 0 | (8,112) |
Balance at Mar. 31, 2018 | $ 76,121 | $ 50 | $ 12 | $ 157,540 | $ (81,481) |
Balance, shares at Mar. 31, 2018 | 10 | 11,847 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (8,112) | $ (6,218) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and write-off of property and equipment | 380 | 299 |
Amortization and write-off of intangibles | 146 | 257 |
Stock-based compensation | 1,671 | 1,503 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 2,614 | 1,274 |
Other current assets | 304 | 70 |
Other assets | 44 | 55 |
Accounts payable and other accrued liabilities | (420) | 128 |
Deferred revenue | (219) | (498) |
Net cash used in operating activities | (3,592) | (3,130) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (302) | (605) |
Capitalized patent costs | (208) | (200) |
Maturity of marketable securities | 18,657 | 16,399 |
Purchase of marketable securities | (6,961) | (10,561) |
Net cash provided by investing activities | 11,186 | 5,033 |
Cash flows from financing activities: | ||
Exercise of stock options | 560 | 177 |
Purchase of common stock | (528) | (583) |
Net cash provided by (used in) financing activities | 32 | (406) |
Net increase in cash and cash equivalents | 7,626 | 1,497 |
Cash and cash equivalents at beginning of period | 40,823 | 11,638 |
Cash and cash equivalents at end of period | 48,449 | 13,135 |
Supplemental disclosure of cash flow information: | ||
Cash received (paid) for income taxes, net | 113 | (13) |
Supplemental schedule of non-cash investing activities: | ||
Property and equipment and patent costs in accounts payable | (64) | (120) |
Stock-based compensation capitalized to software and patent costs | $ 44 | $ 45 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments, banks and businesses around the world to automatically and reliably identify and interact with virtually any media. The Company has pioneered the Digimarc® Intuitive Computing Platform (ICP TM Interim Consolidated Financial Statements Our significant accounting policies are detailed in "Note 1: Description of Business and Summary of Significant Accounting Policies" of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 22, 2018. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. 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. 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 Accounting Pronouncements 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 August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230). Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Topic 840, Leases |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments 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 March 31, 2018 and December 31, 2017, respectively, was as follows: March 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,082 $ — $ — $ 1,082 Commercial paper — 50,997 — 50,997 Federal agency notes — 5,006 — 5,006 Corporate notes — 3,744 — 3,744 U.S. treasuries — 2,000 — 2,000 Total $ 1,082 $ 61,747 $ — $ 62,829 December 31, 2017 Level 1 Level 2 Level 3 Total Money market securities $ 2,197 $ — $ — $ 2,197 Commercial paper — 49,834 — 49,834 Federal agency notes — 10,715 — 10,715 U.S. treasuries — 1,996 — 1,996 Corporate notes — 1,934 — 1,934 Total $ 2,197 $ 64,479 $ — $ 66,676 The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2018 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 $ 62,829 $ 62,829 $ — $ — $ — 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 money market funds and commercial paper totaling $47,610 and $39,761 at March 31, 2018 and December 31, 2017, respectively. Cash equivalents are carried at cost or amortized cost, which approximates fair value. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition The Company adopted ASC 606 “ Revenue from Contracts with Customers” Revenue Recognition Software. ASC 606 Effective January 1, 2018, revenue is recognized in accordance with ASC 606 by applying the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize when (or as) the entity satisfies a performance obligation. The Company derives its revenue primarily from professional services, subscriptions and licensing of its intellectual property. Applicable revenue recognition criteria are considered separately for each performance obligation as follows: • Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. 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 includes revenue derived from the sale of Digimarc Discover, Digimarc Barcode and Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription, which is generally one to three years. • License revenue originates primarily from licensing the Company’s intellectual property where the Company receives license fees and/or royalties as its income stream. License fees are recognized when the customer has the right to the intellectual property and the license period has begun and royalties are recognized in the quarter in which the royalty was earned. Some customer arrangements contain multiple performance obligations such as professional services, software licenses, and maintenance and support fees. The Company accounts for individual products and services separately if they are distinct. The consideration is allocated between distinct products and services based on their stand-alone selling prices. For items that are not sold separately, the Company estimates the standalone selling price based on reasonably available information, including market conditions, specific factors affecting the Company, and information about the customer. ASC 605 and ASC 985 For the comparative periods, revenue was recognized under ASC 605 and ASC 985 when the following four criteria were met: (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. All revenue recognized in the Consolidated Statements of Operations is considered to be revenue from contracts with customers. The following table provides information about disaggregated revenue by major product line in the Company’s single reporting segment: Three Months Ended March 31, 2018 Service $ 3,507 Subscription Guardian 989 Digimarc Discover and Digimarc Barcode 589 License 528 Total $ 5,613 The Company has contract assets from contracts with customers that are classified as “trade accounts receivables.” Financial information about trade accounts receivable is included in Note 7. The Company has contract liabilities from contracts with customers which are classified as “deferred revenue.” Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which the performance obligation has not been satisfied. The following table provides information about contract liabilities from contracts with customers: March 31, December 31, 2018 2017 Deferred revenue, current $ 2,839 $ 3,124 Deferred revenue, long term 32 42 Total $ 2,871 $ 3,166 In addition to deferred revenue, the Company has backlog of $23,905 representing the transaction price from contractual obligations that are unsatisfied or partially unsatisfied as of March 31, 2018. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through development services, subscriptions and licensing of intellectual property. The Company markets its products in the United States (“U.S.”) and in non-U.S. countries through its sales and licensing personnel and channel partners. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Domestic $ 1,451 $ 1,501 International (1) 4,162 4,590 Total $ 5,613 $ 6,091 (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 per Regulation S-K, Item 101(c)(1)(vii) are as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Central Banks 67 % 62 % 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 | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 5. Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include stock 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 on the date of grant (measurement date) 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 and vesting schedules of the awards. Stock options granted generally vest over three years 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 three months ended March 31, 2018 and 2017. 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. Restricted stock awards granted generally vest over three to four years for employee grants and one to three years for director grants. Stock-based Compensation Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Stock-based compensation: Cost of revenue $ 155 $ 176 Sales and marketing 345 368 Research, development and engineering 298 308 General and administrative 801 573 Intellectual property 72 78 Stock-based compensation expense 1,671 1,503 Capitalized to software and patent costs 44 45 Total stock-based compensation $ 1,715 $ 1,548 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: As of As of March 31, December 31, 2018 2017 Total unrecognized compensation costs $ 17,072 $ 13,669 Total unrecognized compensation costs will be adjusted for any future forfeitures if and when they occur. The Company expects to recognize the total unrecognized compensation costs as of March 31, 2018 for stock options and restricted stock over weighted average periods through March 2022 as follows: Stock Restricted Options Stock Weighted average period 1.37 years 1.58 years As of March 31, 2018, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 783 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. Stock Option Activity The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended March 31, 2018: Options Price Fair Value Value Outstanding at December 31, 2017 515 $ 25.13 $ 11.64 Granted — — Exercised (46 ) 12.30 6.84 Forfeited or expired — — — Outstanding at March 31, 2018 469 $ 26.38 $ 12.10 $ 992 Exercisable at March 31, 2018 302 $ 24.10 $ 992 Unvested at March 31, 2018 167 $ 30.50 $ — The aggregate intrinsic value is based on the closing price of $23.95 per share of Digimarc common stock on March 31, 2018, which would have been received by the optionees had all of the options with exercise prices less than $23.95 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Weighted Average Number Grant Date Three months ended March 31, 2018: Shares Fair Value Unvested balance, December 31, 2017 426 $ 28.44 Granted 178 $ 30.30 Vested (42 ) $ 28.80 Forfeited (10 ) $ 28.39 Unvested balance, March 31, 2018 552 $ 29.01 The following table indicates the fair value of all restricted stock awards that vested during the three months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Fair value of restricted stock awards vested $ 1,256 $ 1,277 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 6. Earnings Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The following table reconciles earnings (loss) per common share for the three months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (8,112 ) $ (6,218 ) Distributed earnings to common shares — — Distributed earnings to participating securities — — Total distributed earnings — — Undistributed loss allocable to common shares (8,112 ) (6,218 ) Undistributed earnings allocable to participating securities — — Total undistributed loss (8,112 ) (6,218 ) Loss to common shares — basic $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Basic earnings (loss) per common share $ (0.72 ) $ (0.61 ) Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (8,112 ) $ (6,218 ) Undistributed earnings allocated to participating securities — — Undistributed earnings reallocated to participating securities — — Loss to common shares — diluted $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Dilutive effect of stock options — — Weighted average common shares outstanding — diluted 11,266 10,161 Diluted earnings (loss) per common share $ (0.72 ) $ (0.61 ) There were 0 and 175 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three months ended March 31, 2018 and 2017, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the periods. There were 0 and 119 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three months ended March 31, 2018 and 2017, respectively, because the Company incurred a net loss for the periods. |
Trade Accounts Receivable
Trade Accounts Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Trade Accounts Receivable | 7. Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. March 31, December 31, 2018 2017 Trade accounts receivable $ 3,805 $ 6,419 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,790 $ 6,404 Unpaid deferred revenue included in trade accounts receivable $ 909 $ 2,217 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 is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers is not included in trade accounts receivable nor deferred revenue. Major customers The following customers accounted for 10% or more of trade accounts receivable, net: March 31, December 31, 2018 2017 Central Banks 60 % 47 % |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 8. 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. March 31, December 31, 2018 2017 Office furniture and fixtures $ 1,558 $ 1,551 Software 3,227 3,068 Equipment 4,473 4,390 Leasehold improvements 1,718 1,720 Gross property and equipment 10,976 10,729 Less accumulated depreciation and amortization (6,873 ) (6,493 ) Property and equipment, net $ 4,103 $ 4,236 |
Intangibles
Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles | 9. Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges were recorded for the three months ended March 31, 2018 and 2017. 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 March 31, December 31, (years) 2018 2017 Capitalized patent costs 17-20 $ 8,200 $ 7,978 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 11,470 11,248 Accumulated amortization (4,992 ) (4,867 ) Intangibles, net $ 6,478 $ 6,381 |
Joint Ventures and Related Part
Joint Ventures and Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Joint Ventures and Related Party Transactions | 10. Joint Ventures and Related Party Transactions In March 2012, Digimarc and The Nielsen Company (“Nielsen”) reduced the investments in their two joint ventures, TVaura LLC (in which Digimarc holds a 51% ownership interest) and TVaura Mobile LLC (in which Digimarc holds a 49% ownership interest), 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. Neither Digimarc nor Nielsen has contributed any capital to the joint venture upon reactivation. Digimarc and Nielsen continue to assess the market opportunities of the TVaura LLC joint venture. Summarized financial information for the joint ventures has not been provided because the disclosures are immaterial to the Company’s filing. TVaura LLC and TVaura Mobile LLC had no revenue or expenses for the three months ended March 31, 2018 and 2017. The Company’s investment in each joint venture was $0 as of March 31, 2018 and December 31, 2017. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The benefit (provision) for income taxes for the three months ended March 31, 2018 and 2017 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rates for the three months ended March 31, 2018 and 2017 were 0% and 2%, respectively. The valuation allowance against net deferred tax assets as of March 31, 2018 was $35,337, an increase of $3,012 from $32,325 as of December 31, 2017. The Company adopted the provisions of ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718),” The U.S. enacted tax reform legislation on December 22, 2017 commonly known as the Tax Cuts and Jobs Act, (“the Act”), resulting in significant modifications to existing U.S. tax law. The provisions of the Act effective in 2018 have been recorded as applicable as of March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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. At this time, the Company does not believe that the resolution of any such matters will have a material adverse effect on its financial position, results of operations or cash flows. |
Description of Business and S19
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, banks and businesses around the world to automatically and reliably identify and interact with virtually any media. The Company has pioneered the Digimarc® Intuitive Computing Platform (ICP TM |
Interim Consolidated Financial Statements | Interim Consolidated Financial Statements Our significant accounting policies are detailed in "Note 1: Description of Business and Summary of Significant Accounting Policies" of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 22, 2018. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. |
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. |
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 |
Accounting Pronouncements | Accounting Pronouncements 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 August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230). Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Topic 840, Leases |
Earnings Per Share | The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy for Financial Assets | The Company’s fair value hierarchy for its cash equivalents and marketable securities as of March 31, 2018 and December 31, 2017, respectively, was as follows: March 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,082 $ — $ — $ 1,082 Commercial paper — 50,997 — 50,997 Federal agency notes — 5,006 — 5,006 Corporate notes — 3,744 — 3,744 U.S. treasuries — 2,000 — 2,000 Total $ 1,082 $ 61,747 $ — $ 62,829 December 31, 2017 Level 1 Level 2 Level 3 Total Money market securities $ 2,197 $ — $ — $ 2,197 Commercial paper — 49,834 — 49,834 Federal agency notes — 10,715 — 10,715 U.S. treasuries — 1,996 — 1,996 Corporate notes — 1,934 — 1,934 Total $ 2,197 $ 64,479 $ — $ 66,676 |
Summary of Fair Value Maturities for Financial Asset | The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2018 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 $ 62,829 $ 62,829 $ — $ — $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment | The following table provides information about disaggregated revenue by major product line in the Company’s single reporting segment: Three Months Ended March 31, 2018 Service $ 3,507 Subscription Guardian 989 Digimarc Discover and Digimarc Barcode 589 License 528 Total $ 5,613 |
Schedule of Contract Liabilities from Contracts with Customers | The following table provides information about contract liabilities from contracts with customers: March 31, December 31, 2018 2017 Deferred revenue, current $ 2,839 $ 3,124 Deferred revenue, long term 32 42 Total $ 2,871 $ 3,166 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographical Segment Revenue | Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Domestic $ 1,451 $ 1,501 International (1) 4,162 4,590 Total $ 5,613 $ 6,091 (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 Per Regulation S-K | Customers per Regulation S-K, Item 101(c)(1)(vii) are as follows: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Central Banks 67 % 62 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Allocation of Stock-Based Compensation | Stock-based Compensation Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Stock-based compensation: Cost of revenue $ 155 $ 176 Sales and marketing 345 368 Research, development and engineering 298 308 General and administrative 801 573 Intellectual property 72 78 Stock-based compensation expense 1,671 1,503 Capitalized to software and patent costs 44 45 Total stock-based compensation $ 1,715 $ 1,548 |
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: As of As of March 31, December 31, 2018 2017 Total unrecognized compensation costs $ 17,072 $ 13,669 |
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 March 31, 2018 for stock options and restricted stock over weighted average periods through March 2022 as follows: Stock Restricted Options Stock Weighted average period 1.37 years 1.58 years |
Reconciliation of Outstanding Balance of Stock Options | The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended March 31, 2018: Options Price Fair Value Value Outstanding at December 31, 2017 515 $ 25.13 $ 11.64 Granted — — Exercised (46 ) 12.30 6.84 Forfeited or expired — — — Outstanding at March 31, 2018 469 $ 26.38 $ 12.10 $ 992 Exercisable at March 31, 2018 302 $ 24.10 $ 992 Unvested at March 31, 2018 167 $ 30.50 $ — |
Reconciliation of Unvested Balance of Restricted Stock | The following table reconciles the unvested balance of restricted stock: Weighted Average Number Grant Date Three months ended March 31, 2018: Shares Fair Value Unvested balance, December 31, 2017 426 $ 28.44 Granted 178 $ 30.30 Vested (42 ) $ 28.80 Forfeited (10 ) $ 28.39 Unvested balance, March 31, 2018 552 $ 29.01 |
Fair Value of Restricted Stock Awards Vested | The following table indicates the fair value of all restricted stock awards that vested during the three months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Fair value of restricted stock awards vested $ 1,256 $ 1,277 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Earnings (Loss) Per Common Share | The following table reconciles earnings (loss) per common share for the three months ended March 31, 2018 and 2017: Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (8,112 ) $ (6,218 ) Distributed earnings to common shares — — Distributed earnings to participating securities — — Total distributed earnings — — Undistributed loss allocable to common shares (8,112 ) (6,218 ) Undistributed earnings allocable to participating securities — — Total undistributed loss (8,112 ) (6,218 ) Loss to common shares — basic $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Basic earnings (loss) per common share $ (0.72 ) $ (0.61 ) Three Three Months Months Ended Ended March 31, March 31, 2018 2017 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (8,112 ) $ (6,218 ) Undistributed earnings allocated to participating securities — — Undistributed earnings reallocated to participating securities — — Loss to common shares — diluted $ (8,112 ) $ (6,218 ) Denominator Weighted average common shares outstanding — basic 11,266 10,161 Dilutive effect of stock options — — Weighted average common shares outstanding — diluted 11,266 10,161 Diluted earnings (loss) per common share $ (0.72 ) $ (0.61 ) |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Summary of Trade Accounts Receivable | Trade accounts receivable are recorded at the invoiced amount. March 31, December 31, 2018 2017 Trade accounts receivable $ 3,805 $ 6,419 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,790 $ 6,404 Unpaid deferred revenue included in trade accounts receivable $ 909 $ 2,217 |
Customers Accounted for 10% or More of Trade Accounts Receivable, Net | The following customers accounted for 10% or more of trade accounts receivable, net: March 31, December 31, 2018 2017 Central Banks 60 % 47 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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. March 31, December 31, 2018 2017 Office furniture and fixtures $ 1,558 $ 1,551 Software 3,227 3,068 Equipment 4,473 4,390 Leasehold improvements 1,718 1,720 Gross property and equipment 10,976 10,729 Less accumulated depreciation and amortization (6,873 ) (6,493 ) Property and equipment, net $ 4,103 $ 4,236 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, December 31, (years) 2018 2017 Capitalized patent costs 17-20 $ 8,200 $ 7,978 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 11,470 11,248 Accumulated amortization (4,992 ) (4,867 ) Intangibles, net $ 6,478 $ 6,381 |
Description of Business and S28
Description of Business and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Increase to opening retained earnings | $ 139 |
ASU No. 2014-09 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Increase to opening retained earnings | $ 139 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 62,829 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 62,829 | $ 66,676 |
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,082 | 2,197 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 50,997 | 49,834 |
Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 5,006 | 10,715 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,000 | 1,996 |
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3,744 | 1,934 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,082 | 2,197 |
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 | 1,082 | 2,197 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 61,747 | 64,479 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
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 | 50,997 | 49,834 |
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 | 5,006 | 10,715 |
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 | 2,000 | 1,996 |
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 | 3,744 | 1,934 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 0 | $ 0 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Cash equivalents and marketable securities, Maturities by Period, Total | $ 62,829 |
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year | 62,829 |
Cash equivalents and marketable securities, Maturities by Period, 1-5 years | 0 |
Cash equivalents and marketable securities, Maturities by Period, 5-10 years | 0 |
Cash equivalents and marketable securities, Maturities by Period, More than 10 years | $ 0 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Highly liquid marketable securities with original maturities | 90 days or less | |
Cash equivalents include money market funds and commercial paper | $ 47,610 | $ 39,761 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue Recognition [Abstract] | |
Period of revenue from services | 1 month |
Subscription revenue term, minimum | 1 year |
Subscription revenue term, maximum | 3 years |
Transaction price from contractual obligations | $ 23,905 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Service | $ 3,507 | $ 3,696 |
Subscription | 1,578 | 1,445 |
License | 528 | 950 |
Total revenue | 5,613 | $ 6,091 |
Guardian [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Subscription | 989 | |
Digimarc Discover and Digimarc Barcode [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Subscription | $ 589 |
Revenue Recognition - Schedul34
Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue Recognition [Abstract] | ||
Deferred revenue, current | $ 2,839 | $ 3,124 |
Deferred revenue, long term | 32 | 42 |
Total | $ 2,871 | $ 3,166 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reporting segment | 1 |
Segment Information - Geographi
Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 5,613 | $ 6,091 |
Domestic [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 1,451 | 1,501 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 4,162 | $ 4,590 |
Segment Information - Major Cus
Segment Information - Major Customers Per Regulation S-K (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Customer Concentration Risk [Member] | Sales [Member] | Central Banks [Member] | ||
Revenue, Major Customer [Line Items] | ||
Entity wide revenue major customers percentage | 67.00% | 62.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 0 | 0 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for stock options and restricted stock | 3 years | |
Contractual terms | 10 years | |
Stock-based compensation plans, number of additional shares authorized for future grants | 783,000 | |
Closing price per share of Digimarc common stock | $ 23.95 | |
Restricted Stock [Member] | Minimum [Member] | Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for stock options and restricted stock | 3 years | |
Restricted Stock [Member] | Minimum [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for stock options and restricted stock | 1 year | |
Restricted Stock [Member] | Maximum [Member] | Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for stock options and restricted stock | 4 years | |
Restricted Stock [Member] | Maximum [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for stock options and restricted stock | 3 years |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,671 | $ 1,503 |
Capitalized to software and patent costs | 44 | 45 |
Total stock-based compensation | 1,715 | 1,548 |
Cost of Revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 155 | 176 |
Sales and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 345 | 368 |
Research, Development and Engineering [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 298 | 308 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 801 | 573 |
Intellectual Property [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 72 | $ 78 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Total unrecognized compensation costs | $ 17,072 | $ 13,669 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 1 year 4 months 13 days |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 1 year 6 months 29 days |
Stock-Based Compensation - Reco
Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options, Outstanding at beginning | 515,000 | |
Options, Granted | 0 | 0 |
Options, Exercised | (46,000) | |
Options, Forfeited or expired | 0 | |
Options, Outstanding at ending | 469,000 | |
Options, Exercisable at ending | 302,000 | |
Options, Unvested at ending | 167,000 | |
Weighted Average Exercise Price, Outstanding at beginning | $ 25.13 | |
Weighted Average Exercise Price, Granted | 0 | |
Weighted Average Exercise Price, Exercised | 12.30 | |
Weighted Average Exercise Price, Forfeited or expired | 0 | |
Weighted Average Exercise Price, Outstanding at ending | 26.38 | |
Weighted Average Exercise Price, Exercisable at ending | 24.10 | |
Weighted Average Exercise Price, Unvested at ending | 30.50 | |
Weighted Average Grant Date Fair Value, Outstanding at beginning | 11.64 | |
Weighted Average Grant Date Fair Value, Granted | 0 | |
Weighted Average Grant Date Fair Value, Exercised | 6.84 | |
Weighted Average Grant Date Fair Value, Forfeited or expired | 0 | |
Weighted Average Grant Date Fair Value, Outstanding at ending | $ 12.10 | |
Aggregate Intrinsic Value, Outstanding | $ 992 | |
Aggregate Intrinsic Value, Exercisable | 992 | |
Aggregate Intrinsic Value, Unvested | $ 0 |
Stock-Based Compensation - Re43
Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares | |
Unvested, beginning balance | shares | 426 |
Granted | shares | 178 |
Vested | shares | (42) |
Forfeited | shares | (10) |
Unvested, ending balance | shares | 552 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance | $ / shares | $ 28.44 |
Granted | $ / shares | 30.30 |
Vested | $ / shares | 28.80 |
Forfeited | $ / shares | 28.39 |
Unvested, ending balance | $ / shares | $ 29.01 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of restricted stock awards vested | $ 1,256 | $ 1,277 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic Earnings (Loss) per Common Share: | ||
Net loss | $ (8,112) | $ (6,218) |
Distributed earnings to common shares | 0 | 0 |
Distributed earnings to participating securities | 0 | 0 |
Total distributed earnings | 0 | 0 |
Undistributed loss allocable to common shares | (8,112) | (6,218) |
Undistributed earnings allocable to participating securities | 0 | 0 |
Total undistributed loss | (8,112) | (6,218) |
Loss to common shares — basic | $ (8,112) | $ (6,218) |
Weighted average common shares outstanding — basic | 11,266 | 10,161 |
Basic earnings (loss) per common share | $ (0.72) | $ (0.61) |
Diluted Earnings (Loss) per Common Share: | ||
Loss to common shares — basic | $ (8,112) | $ (6,218) |
Undistributed earnings allocated to participating securities | 0 | 0 |
Undistributed earnings reallocated to participating securities | 0 | 0 |
Loss to common shares — diluted | $ (8,112) | $ (6,218) |
Weighted average common shares outstanding — basic | 11,266 | 10,161 |
Dilutive effect of stock options | 0 | 0 |
Weighted average common shares outstanding — diluted | 11,266 | 10,161 |
Diluted earnings (loss) per common share | $ (0.72) | $ (0.61) |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 119 |
Higher Than Average Market Price [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 0 | 175 |
Trade Accounts Receivable - Sum
Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable Net Current [Abstract] | ||
Trade accounts receivable | $ 3,805 | $ 6,419 |
Allowance for doubtful accounts | (15) | (15) |
Trade accounts receivable, net | 3,790 | 6,404 |
Unpaid deferred revenue included in trade accounts receivable | $ 909 | $ 2,217 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
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 - Cus
Trade Accounts Receivable - Customers Accounted for 10% or More of Trade Accounts Receivable, Net (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Central Banks [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 60.00% | 47.00% |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Office furniture and fixtures | $ 1,558 | $ 1,551 |
Software | 3,227 | 3,068 |
Equipment | 4,473 | 4,390 |
Leasehold improvements | 1,718 | 1,720 |
Gross property and equipment | 10,976 | 10,729 |
Less accumulated depreciation and amortization | (6,873) | (6,493) |
Property and equipment, net | $ 4,103 | $ 4,236 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charges on intangible | $ 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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized patent costs | $ 8,200 | $ 7,978 |
Intangible assets acquired: | ||
Gross intangible assets | 11,470 | 11,248 |
Accumulated amortization | (4,992) | (4,867) |
Intangibles, net | $ 6,478 | 6,381 |
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 |
Joint Ventures and Related Pa54
Joint Ventures and Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2012JointVenture | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||
Number of joint venture agreements | JointVenture | 2 | |||
TVaura LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 51.00% | |||
Joint ventures revenue or expenses | $ 0 | $ 0 | ||
Investment in joint venture | 0 | $ 0 | ||
TVaura Mobile LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% | |||
Joint ventures revenue or expenses | 0 | $ 0 | ||
Investment in joint venture | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets, valuation allowance | $ 35,337 | $ 32,325 | ||
Effective tax rates | 0.00% | 2.00% | ||
Change in valuation allowance | $ 3,012 | |||
ASU No. 2016-09 [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Unrecognized excess tax benefits of deferred tax assets offset by valuation allowance | $ 6,219 | |||
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance | $ 525 | $ 179 |