Digimarc (DMRC) 10-Q 25 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 19, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	DMRC
Entity Registrant Name	Digimarc CORP
Entity Central Index Key	0001438231
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-34108
Entity Tax Identification Number	262828185
Entity Address, Address Line One	9405 SW Gemini Drive
Entity Address, City or Town	Beaverton
Entity Address, State or Province	Oregon
Entity Address, Postal Zip Code	97008
City Area Code	503
Local Phone Number	469-4800
Entity Common Stock, Shares Outstanding		12,433,246

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 33,166	$ 27,278
Marketable securities	16,792	16,378
Trade accounts receivable, net	4,239	3,888
Other current assets	2,140	2,100
Total current assets	56,337	49,644
Property and equipment, net	3,632	3,955
Intangibles, net	6,699	6,649
Goodwill	1,114	1,114
Other assets	3,057	425
Total assets	70,839	61,787
Current liabilities:
Accounts payable and other accrued liabilities	2,660	1,092
Deferred revenue	2,824	3,226
Total current liabilities	5,484	4,318
Lease liability and other long-term liabilities	2,953	854
Total liabilities	8,437	5,172
Commitments and contingencies (Note 13)
Shareholders’ equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at June 30, 2019 and December 31, 2018)	50	50
Common stock (par value $0.001 per share, 50,000 authorized, 12,433 and 11,891 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively)	12	12
Additional paid-in capital	184,611	162,428
Accumulated deficit	(122,271)	(105,875)
Total shareholders’ equity	62,402	56,615
Total liabilities and shareholders’ equity	$ 70,839	$ 61,787

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2019	Dec. 31, 2018
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	12,433	11,891
Common stock, shares outstanding	12,433	11,891

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total revenue	$ 6,180	$ 5,438	$ 11,840	$ 11,051
Cost of revenue:
Total cost of revenue	2,185	2,205	4,319	4,390
Gross profit	3,995	3,233	7,521	6,661
Operating expenses:
Sales and marketing	5,087	4,757	10,037	9,644
Research, development and engineering	3,981	4,058	8,019	8,005
General and administrative	2,686	2,416	5,538	5,048
Intellectual property	393	305	751	620
Total operating expenses	12,147	11,536	24,345	23,317
Operating loss	(8,152)	(8,303)	(16,824)	(16,656)
Other income, net	231	274	468	526
Loss before income taxes	(7,921)	(8,029)	(16,356)	(16,130)
Provision for income taxes	(12)	(9)	(40)	(20)
Net loss	$ (7,933)	$ (8,038)	$ (16,396)	$ (16,150)
Earnings (loss) per common share:
Loss per common share — basic	$ (0.68)	$ (0.71)	$ (1.42)	$ (1.43)
Loss per common share — diluted	$ (0.68)	$ (0.71)	$ (1.42)	$ (1.43)
Weighted average common shares outstanding — basic	11,665	11,337	11,576	11,302
Weighted average common shares outstanding — diluted	11,665	11,337	11,576	11,302
Service [Member]
Revenue:
Total revenue	$ 3,529	$ 3,336	$ 7,164	$ 6,843
Cost of revenue:
Total cost of revenue	1,553	1,548	3,084	3,111
Subscription [Member]
Revenue:
Total revenue	2,088	1,444	3,651	3,022
Cost of revenue:
Total cost of revenue	465	508	910	990
License [Member]
Revenue:
Total revenue	563	658	1,025	1,186
Cost of revenue:
Total cost of revenue	$ 167	$ 149	$ 325	$ 289

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, 2017	$ 82,347	$ 50	$ 12	$ 155,793	$ (73,508)
Balance, shares at Dec. 31, 2017		10	11,651
Exercise of stock options	914	$ 0	$ 0	914	0
Exercise of stock options, shares		0	72
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	210
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(19)
Purchase and retirement of common stock	(1,120)	$ 0	$ 0	(1,120)	0
Purchase and retirement of common stock, shares		0	(38)
Stock-based compensation	3,573	$ 0	$ 0	3,573	0
Cumulative effect of the adoption of the new revenue standard, net of tax	139	0	0	0	139
Net loss	(16,150)	0	0	0	(16,150)
Balance at Jun. 30, 2018	69,703	$ 50	$ 12	159,160	(89,519)
Balance, shares at Jun. 30, 2018		10	11,876
Balance at Mar. 31, 2018	76,121	$ 50	$ 12	157,540	(81,481)
Balance, shares at Mar. 31, 2018		10	11,847
Exercise of stock options	354	$ 0	$ 0	354	0
Exercise of stock options, shares		0	26
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	32
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(9)
Purchase and retirement of common stock	(592)	$ 0	$ 0	(592)	0
Purchase and retirement of common stock, shares		0	(20)
Stock-based compensation	1,858	$ 0	$ 0	1,858	0
Net loss	(8,038)	0	0	0	(8,038)
Balance at Jun. 30, 2018	69,703	$ 50	$ 12	159,160	(89,519)
Balance, shares at Jun. 30, 2018		10	11,876
Balance at Dec. 31, 2018	56,615	$ 50	$ 12	162,428	(105,875)
Balance, shares at Dec. 31, 2018		10	11,891
Issuance of common stock, net of issuance costs	19,615	$ 0	$ 0	19,615	0
Issuance of common stock, net of issuance costs, shares		0	336
Exercise of stock options	$ 293	$ 0	$ 0	293	0
Exercise of stock options, shares	23	0	23
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	273
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(46)
Purchase and retirement of common stock	(1,868)	$ 0	$ 0	(1,868)	0
Purchase and retirement of common stock, shares		0	(44)
Stock-based compensation	4,143	$ 0	$ 0	4,143	0
Net loss	(16,396)	0	0	0	(16,396)
Balance at Jun. 30, 2019	62,402	$ 50	$ 12	184,611	(122,271)
Balance, shares at Jun. 30, 2019		10	12,433
Balance at Mar. 31, 2019	49,843	$ 50	$ 12	164,119	(114,338)
Balance, shares at Mar. 31, 2019		10	12,135
Issuance of common stock, net of issuance costs	19,615	$ 0	$ 0	19,615	0
Issuance of common stock, net of issuance costs, shares		0	336
Exercise of stock options	$ 194	$ 0	$ 0	194	0
Exercise of stock options, shares	13	0	13
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	18
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(45)
Purchase and retirement of common stock	(1,382)	$ 0	$ 0	(1,382)	0
Purchase and retirement of common stock, shares		0	(24)
Stock-based compensation	2,065	$ 0	$ 0	2,065	0
Net loss	(7,933)	0	0	0	(7,933)
Balance at Jun. 30, 2019	$ 62,402	$ 50	$ 12	$ 184,611	$ (122,271)
Balance, shares at Jun. 30, 2019		10	12,433

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (16,396)	$ (16,150)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	747	764
Amortization and write-off of intangibles	372	287
Stock-based compensation	4,053	3,480
Changes in operating assets and liabilities:
Trade accounts receivable	(351)	2,561
Other current assets	(40)	210
Other assets	77	(35)
Accounts payable and other accrued liabilities	1,132	(227)
Deferred revenue	(244)	(658)
Lease liability and other long-term liabilities	(325)	(21)
Net cash used in operating activities	(10,975)	(9,789)
Cash flows from investing activities:
Purchase of property and equipment	(404)	(557)
Capitalized patent costs	(359)	(402)
Maturity of marketable securities	14,671	20,839
Purchase of marketable securities	(15,085)	(15,637)
Net cash provided by (used in) investing activities	(1,177)	4,243
Cash flows from financing activities:
Issuance of common stock, net of issuance costs	19,615	0
Exercise of stock options	293	914
Purchase of common stock	(1,868)	(1,120)
Net cash provided by (used in) financing activities	18,040	(206)
Net increase (decrease) in cash and cash equivalents	5,888	(5,752)
Cash and cash equivalents at beginning of period	27,278	40,823
Cash and cash equivalents at end of period	33,166	35,071
Supplemental disclosure of cash flow information:
Cash received for income taxes, net	93	98
Supplemental schedule of non-cash activities:
Property and equipment and patent costs in accounts payable	(7)	8
Stock-based compensation capitalized to software and patent costs	90	93
Right of use assets obtained in exchange for lease obligations	$ 2,709	$ 0

Description of Business and Sig

Description of Business and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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, retailers, consumer brands and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has pioneered the Digimarc Intuitive Computing Platform (“ICP”), a comprehensive set of technologies for identifying, discovering and interacting with digitally-enhanced media. The platform includes Digimarc Barcode, a proprietary method for imperceptibly enhancing packaging, print, images, thermal labels, audio and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners and machine-vision equipment. Digimarc Discover software enables an ecosystem of connected devices to easily identify content or materials and deliver information. 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, 2018. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases 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, 2018, which was filed with the SEC on February 22, 2019. 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 Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may exceed the fair 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. In connection with the Company’s annual impairment test of goodwill as of June 30, 2019 and 2018, it was concluded that there was no impairment to goodwill as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value. Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) , Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2019
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’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows: June 30, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 6,547 $ — $ — $ 6,547 Commercial paper — 39,262 — 39,262 Federal agency notes — 2,002 — 2,002 Corporate notes — 1,644 — 1,644 Total $ 6,547 $ 42,908 $ — $ 49,455 December 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,472 $ — $ — $ 1,472 Commercial paper — 28,343 — 28,343 Corporate notes — 12,106 — 12,106 Total $ 1,472 $ 40,449 $ — $ 41,921 The fair value maturities of the Company’s cash equivalents and marketable securities as of June 30, 2019 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 $ 49,455 $ 49,455 $ — $ — $ — 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 commercial paper and money market funds totaling $32,663 and $25,543 at June 30, 2019 and December 31, 2018, respectively. Cash equivalents are carried at either cost or amortized cost depending on the type of security, which approximates fair value.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2019
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition 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 revenue received from 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 Digimarc Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years. • License revenue includes revenue from licensing the Company’s intellectual property where the Company receives license fees and/or royalties. License fees are typically paid in advance and recognized when the customer has the right to the intellectual property and the license period has begun, and royalties are typically billed in arrears and 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. To determine the transaction price, the Company considers the terms of the contract and the Company’s customary business practices. Some contracts may contain variable consideration. In those cases, the Company estimates the amount of variable consideration based on the sum of probability-weighted amounts in a range of possible consideration amounts. As part of this assessment, the Company will evaluate whether any of the variable consideration is constrained, and if it is the Company will not include it in the transaction price. 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. For distinct products and services, the Company typically recognizes the revenue associated with these performance obligations as they are delivered to the customer. For performance obligations that are not considered distinct, the Company typically recognizes revenue over the term of the contract as the customer simultaneously receives and consumes the goods and services as the Company performs them. 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 Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Service $ 3,529 $ 3,336 $ 7,164 $ 6,843 Subscription Digimarc Guardian 859 888 1,705 1,877 Digimarc Discover and Digimarc Barcode 1,229 556 1,946 1,145 License 563 658 1,025 1,186 Total $ 6,180 $ 5,438 $ 11,840 $ 11,051 The Company has contract assets from contracts with customers that are classified as “trade accounts receivable.” Financial information about trade accounts receivable is included in Note 8. The Company has contract liabilities from contracts with customers that 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: June 30, December 31, 2019 2018 Deferred revenue, current $ 2,824 $ 3,226 Deferred revenue, long term 204 46 Total $ 3,028 $ 3,272 The aggregate amount of transaction price from contractual obligations that are unsatisfied or partially unsatisfied was $16,377 and $17,496 as of June 30, 2019 and December 31, 2018, respectively.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2019
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 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 Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Domestic $ 1,772 $ 1,289 $ 3,089 $ 2,740 International (1) 4,408 4,149 8,751 8,311 Total $ 6,180 $ 5,438 $ 11,840 $ 11,051 (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 The following customers accounted for 10% or more of revenue: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Central Banks 62 % 67 % 65 % 67 % Long-Lived Assets by Geographical Area The Company’s long-lived assets are all domiciled in the U.S.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
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 patent costs 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 six months ended June 30, 2019 and 2018. 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 Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Stock-based compensation: Cost of revenue $ 179 $ 167 $ 361 $ 322 Sales and marketing 489 411 1,008 756 Research, development and engineering 357 350 711 648 General and administrative 927 814 1,839 1,615 Intellectual property 64 67 134 139 Stock-based compensation expense 2,016 1,809 4,053 3,480 Capitalized to software and patent costs 49 49 90 93 Total stock-based compensation $ 2,065 $ 1,858 $ 4,143 $ 3,573 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 June 30, December 31, 2019 2018 Total unrecognized compensation costs $ 15,205 $ 14,055 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 June 30, 2019 for stock options and restricted stock over weighted average periods through June 30, 2023 as follows: Stock Restricted Options Stock Weighted average period 0.99 years 1.53 years As of June 30, 2019, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,388 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 June 30, 2019: Options Price Fair Value Value Outstanding at March 31, 2019 503 $ 28.89 $ 13.26 Granted — — — Exercised (13 ) 14.99 8.12 Forfeited or expired — — — Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 $ 7,414 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Six months ended June 30, 2019: Options Price Fair Value Value Outstanding at December 31, 2018 513 $ 28.52 $ 13.10 Granted — — — Exercised (23 ) 12.77 6.81 Forfeited or expired — — — Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 $ 7,414 Exercisable at June 30, 2019 332 $ 28.88 $ 5,144 Unvested at June 30, 2019 158 $ 30.05 $ 2,270 The aggregate intrinsic value is based on the closing price of $44.39 per share of Digimarc common stock on June 28, 2019, the last trading day before the end of the second fiscal quarter, which would have been received by the optionees had all of the options with exercise prices less than $44.39 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended June 30, 2019: Shares Fair Value Unvested balance, March 31, 2019 628 $ 26.59 Granted 18 $ 32.75 Vested (76 ) $ 27.61 Forfeited (45 ) $ 27.13 Unvested balance, June 30, 2019 525 $ 26.61 Weighted Average Number of Grant Date Six months ended June 30, 2019: Shares Fair Value Unvested balance, December 31, 2018 426 $ 28.85 Granted 273 $ 23.93 Vested (128 ) $ 28.13 Forfeited (46 ) $ 27.13 Unvested balance, June 30, 2019 525 $ 26.61 The following table indicates the fair value of all restricted stock awards that vested: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Fair value of restricted stock awards vested $ 3,992 $ 2,016 $ 5,232 $ 3,272

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Shareholders' Equity	6 . Shareholders’ Equity In May 2019, the Company entered into an Equity Distribution Agreement, whereby the Company may sell from time to time through Wells Fargo Securities, LLC, as its sales agent, the Company’s common stock having an aggregate offering price of up to $30,000. For the three months ended June 30, 2019, the Company sold 336 shares at an average price of $60.61 under this Equity Distribution Agreement totaling $20,349 of cash proceeds, less $483 of commissions and $251 of stock issuance costs, for net cash proceeds of $19,615.

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Common Share	7 . 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: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (7,933 ) (8,038 ) (16,396 ) (16,150 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (7,933 ) (8,038 ) (16,396 ) (16,150 ) Loss to common shares — basic $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Denominator Weighted average common shares outstanding — basic 11,665 11,337 11,576 11,302 Basic earnings (loss) per common share $ (0.68 ) $ (0.71 ) $ (1.42 ) $ (1.43 ) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares — diluted $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Denominator Weighted average common shares outstanding — basic 11,665 11,337 11,576 11,302 Dilutive effect of stock options — — — — Weighted average common shares outstanding — diluted 11,665 11,337 11,576 11,302 Diluted earnings (loss) per common share $ (0.68 ) $ (0.71 ) $ (1.42 ) $ (1.43 ) There were no common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for each of the three and six months ended June 30, 2019, because their exercise prices were higher than the average market price of the underlying common stock for each of the periods. There were 275 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for each of the three and six months ended June 30, 2018, because their exercise prices were higher than the average market price of the underlying common stock for each of the periods. There were 124 and 12 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three and six months ended June 30, 2019, respectively, because the Company incurred a net loss for each of the periods. There were no common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for each of the three and six months ended June 30, 2018, because the Company incurred a net loss for each of the periods.

Trade Accounts Receivable

Trade Accounts Receivable	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Trade Accounts Receivable	8 . Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. June 30, December 31, 2019 2018 Trade accounts receivable $ 4,259 $ 3,903 Allowance for doubtful accounts (20 ) (15 ) Trade accounts receivable, net $ 4,239 $ 3,888 Unpaid deferred revenue included in trade accounts receivable $ 1,051 $ 2,030 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: June 30, December 31, 2019 2018 Central Banks 55 % 48 %

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2019
Property Plant And Equipment [Abstract]
Property and Equipment	9 . 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. June 30, December 31, 2019 2018 Office furniture and fixtures $ 1,636 $ 1,626 Software 3,970 3,686 Equipment 4,911 4,814 Leasehold improvements 1,721 1,721 Gross property and equipment 12,238 11,847 Less accumulated depreciation and amortization (8,606 ) (7,892 ) Property and equipment, net $ 3,632 $ 3,955

Intangibles

Intangibles	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Intangibles	10 . 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 six months ended June 30, 2019 and 2018. 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 17 years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life June 30, December 31, (years) 2019 2018 Capitalized patent costs 17-20 $ 9,084 $ 8,757 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 12,354 12,027 Accumulated amortization (5,655 ) (5,378 ) Intangibles, net $ 6,699 $ 6,649

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	11 . Leases The Company adopted ASC 842, “ Leases The Company leases office spaces in Beaverton, Oregon and San Mateo, California. In July 2015, the Company entered into an amendment with the landlord of its corporate offices in Beaverton, Oregon to extend the lease term through March 2024 with remaining rent payments as of June 30, 2019 totaling $4,054, payable in monthly installments. In February 2015, the Company entered into a new facilities lease agreement in San Mateo, California with a lease term through March 2020, with remaining rent payments as of June 30, 2019 totaling $234, payable in monthly installments. The Company currently subleases this facility to a third party with a lease term through March 2020. All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the balance sheets: June 30, 2019 Right of use assets $ 2,489 Lease liabilities, current $ 692 Lease liabilities, long-term $ 2,749 Weighted-average remaining life 4.4 years Weighted-average discount rate 8.20 % The carrying value of the right of use assets is included in “Other assets” and the current and long-term lease liabilities are included in “Accounts payable and other accrued liabilities” and “Lease liability and other long-term liabilities,” respectively, in the consolidated balance sheets. Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Six Months Months Ended Ended June 30, June 30, 2019 2019 Operating lease expense $ 260 $ 521 Cash paid for operating leases $ 320 $ 692 The table below reconciles the undiscounted cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of June 30, 2019: Cash Payment Year ending December 31: Obligations 2019 (remaining) $ 498 2020 870 2021 838 2022 862 2023 867 Thereafter 218 Total lease payments 4,153 Imputed interest (712 ) Total minimum lease payments $ 3,441

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	12 . Income Taxes The provision for income taxes for the six months ended June 30, 2019 and 2018 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for each of the six months ended June 30, 2019 and 2018 was 0%. The valuation allowance against net deferred tax assets as of June 30, 2019 was $47,577, an increase of $5,228 from $42,349 as of December 31, 2018. Excess tax benefits of $2,236 and $2,044 were recognized in the provision for income taxes for the three and six months ended June 30, 2019, respectively, which were offset by $2,236 and $2,044 of valuation allowance, respectively. Excess tax benefits of $186 and $711 were recognized in the provision for income taxes for the three and six months ended June 30, 2018, respectively, which were offset by $186 and $711 of valuation allowance, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
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 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 S_2

Description of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
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, retailers, consumer brands and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has pioneered the Digimarc Intuitive Computing Platform (“ICP”), a comprehensive set of technologies for identifying, discovering and interacting with digitally-enhanced media. The platform includes Digimarc Barcode, a proprietary method for imperceptibly enhancing packaging, print, images, thermal labels, audio and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners and machine-vision equipment. Digimarc Discover software enables an ecosystem of connected devices to easily identify content or materials and deliver information.
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, 2018. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases 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, 2018, which was filed with the SEC on February 22, 2019. 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
Goodwill	Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may exceed the fair 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. In connection with the Company’s annual impairment test of goodwill as of June 30, 2019 and 2018, it was concluded that there was no impairment to goodwill as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value.
Accounting Pronouncements	Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) , Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements
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 Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
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 was as follows: June 30, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 6,547 $ — $ — $ 6,547 Commercial paper — 39,262 — 39,262 Federal agency notes — 2,002 — 2,002 Corporate notes — 1,644 — 1,644 Total $ 6,547 $ 42,908 $ — $ 49,455 December 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,472 $ — $ — $ 1,472 Commercial paper — 28,343 — 28,343 Corporate notes — 12,106 — 12,106 Total $ 1,472 $ 40,449 $ — $ 41,921
Summary of Fair Value Maturities for Financial Asset	The fair value maturities of the Company’s cash equivalents and marketable securities as of June 30, 2019 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 $ 49,455 $ 49,455 $ — $ — $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2019
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 Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Service $ 3,529 $ 3,336 $ 7,164 $ 6,843 Subscription Digimarc Guardian 859 888 1,705 1,877 Digimarc Discover and Digimarc Barcode 1,229 556 1,946 1,145 License 563 658 1,025 1,186 Total $ 6,180 $ 5,438 $ 11,840 $ 11,051
Schedule of Contract Liabilities from Contracts with Customers	The following table provides information about contract liabilities from contracts with customers: June 30, December 31, 2019 2018 Deferred revenue, current $ 2,824 $ 3,226 Deferred revenue, long term 204 46 Total $ 3,028 $ 3,272

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Domestic $ 1,772 $ 1,289 $ 3,089 $ 2,740 International (1) 4,408 4,149 8,751 8,311 Total $ 6,180 $ 5,438 $ 11,840 $ 11,051 (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 Accounted for 10% or More of Revenue	The following customers accounted for 10% or more of revenue: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Central Banks 62 % 67 % 65 % 67 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Allocation of Stock-Based Compensation	Stock-Based Compensation Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Stock-based compensation: Cost of revenue $ 179 $ 167 $ 361 $ 322 Sales and marketing 489 411 1,008 756 Research, development and engineering 357 350 711 648 General and administrative 927 814 1,839 1,615 Intellectual property 64 67 134 139 Stock-based compensation expense 2,016 1,809 4,053 3,480 Capitalized to software and patent costs 49 49 90 93 Total stock-based compensation $ 2,065 $ 1,858 $ 4,143 $ 3,573
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 June 30, December 31, 2019 2018 Total unrecognized compensation costs $ 15,205 $ 14,055
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 June 30, 2019 for stock options and restricted stock over weighted average periods through June 30, 2023 as follows: Stock Restricted Options Stock Weighted average period 0.99 years 1.53 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 June 30, 2019: Options Price Fair Value Value Outstanding at March 31, 2019 503 $ 28.89 $ 13.26 Granted — — — Exercised (13 ) 14.99 8.12 Forfeited or expired — — — Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 $ 7,414 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Six months ended June 30, 2019: Options Price Fair Value Value Outstanding at December 31, 2018 513 $ 28.52 $ 13.10 Granted — — — Exercised (23 ) 12.77 6.81 Forfeited or expired — — — Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 $ 7,414 Exercisable at June 30, 2019 332 $ 28.88 $ 5,144 Unvested at June 30, 2019 158 $ 30.05 $ 2,270
Reconciliation of Unvested Balance of Restricted Stock	The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended June 30, 2019: Shares Fair Value Unvested balance, March 31, 2019 628 $ 26.59 Granted 18 $ 32.75 Vested (76 ) $ 27.61 Forfeited (45 ) $ 27.13 Unvested balance, June 30, 2019 525 $ 26.61 Weighted Average Number of Grant Date Six months ended June 30, 2019: Shares Fair Value Unvested balance, December 31, 2018 426 $ 28.85 Granted 273 $ 23.93 Vested (128 ) $ 28.13 Forfeited (46 ) $ 27.13 Unvested balance, June 30, 2019 525 $ 26.61
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Fair value of restricted stock awards vested $ 3,992 $ 2,016 $ 5,232 $ 3,272

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Summary of Reconciliation of Earnings (Loss) Per Common Share	The following table reconciles earnings (loss) per common share: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (7,933 ) (8,038 ) (16,396 ) (16,150 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (7,933 ) (8,038 ) (16,396 ) (16,150 ) Loss to common shares — basic $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Denominator Weighted average common shares outstanding — basic 11,665 11,337 11,576 11,302 Basic earnings (loss) per common share $ (0.68 ) $ (0.71 ) $ (1.42 ) $ (1.43 ) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares — diluted $ (7,933 ) $ (8,038 ) $ (16,396 ) $ (16,150 ) Denominator Weighted average common shares outstanding — basic 11,665 11,337 11,576 11,302 Dilutive effect of stock options — — — — Weighted average common shares outstanding — diluted 11,665 11,337 11,576 11,302 Diluted earnings (loss) per common share $ (0.68 ) $ (0.71 ) $ (1.42 ) $ (1.43 )

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. June 30, December 31, 2019 2018 Trade accounts receivable $ 4,259 $ 3,903 Allowance for doubtful accounts (20 ) (15 ) Trade accounts receivable, net $ 4,239 $ 3,888 Unpaid deferred revenue included in trade accounts receivable $ 1,051 $ 2,030
Customers Accounted for 10% or More of Trade Accounts Receivable, Net	The following customers accounted for 10% or more of trade accounts receivable, net: June 30, December 31, 2019 2018 Central Banks 55 % 48 %

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
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. June 30, December 31, 2019 2018 Office furniture and fixtures $ 1,636 $ 1,626 Software 3,970 3,686 Equipment 4,911 4,814 Leasehold improvements 1,721 1,721 Gross property and equipment 12,238 11,847 Less accumulated depreciation and amortization (8,606 ) (7,892 ) Property and equipment, net $ 3,632 $ 3,955

Intangibles (Tables)

Intangibles (Tables)	6 Months Ended
	Jun. 30, 2019
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 June 30, December 31, (years) 2019 2018 Capitalized patent costs 17-20 $ 9,084 $ 8,757 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 12,354 12,027 Accumulated amortization (5,655 ) (5,378 ) Intangibles, net $ 6,699 $ 6,649

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Additional Details of Leases Presented in Balance Sheets	All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the balance sheets: June 30, 2019 Right of use assets $ 2,489 Lease liabilities, current $ 692 Lease liabilities, long-term $ 2,749 Weighted-average remaining life 4.4 years Weighted-average discount rate 8.20 %
Additional Details of Operating Lease Expense	Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Six Months Months Ended Ended June 30, June 30, 2019 2019 Operating lease expense $ 260 $ 521 Cash paid for operating leases $ 320 $ 692
Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability	The table below reconciles the undiscounted cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of June 30, 2019: Cash Payment Year ending December 31: Obligations 2019 (remaining) $ 498 2020 870 2021 838 2022 862 2023 867 Thereafter 218 Total lease payments 4,153 Imputed interest (712 ) Total minimum lease payments $ 3,441

Description of Business and S_3

Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019
Accounting Policies [Abstract]
Impairment of goodwill	$ 0	$ 0
Estimated right of use assets	2,489,000		$ 2,709,000
Estimated lease liabilities	$ 3,441,000		3,792,000
Deferred rent liability			$ 1,083,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 49,455
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	49,455	$ 41,921
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,547	1,472
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	39,262	28,343
Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,002
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,644	12,106
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,547	1,472
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	6,547	1,472
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
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	42,908	40,449
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	39,262	28,343
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	2,002
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	1,644	12,106
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
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 Instr_4

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Jun. 30, 2019USD ($)
Fair Value Disclosures [Abstract]
Cash equivalents and marketable securities, Maturities by Period, Total	$ 49,455
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year	49,455
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 Instr_5

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include commercial paper and money market funds	$ 32,663	$ 25,543

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
Aggregate amount of transaction price from contractual obligations	$ 16,377	$ 17,496

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation Of Revenue [Line Items]
Total	$ 6,180	$ 5,438	$ 11,840	$ 11,051
Service [Member]
Disaggregation Of Revenue [Line Items]
Total	3,529	3,336	7,164	6,843
Subscription Digimarc Guardian [Member]
Disaggregation Of Revenue [Line Items]
Total	859	888	1,705	1,877
Subscription Digimarc Discover And Digimarc Barcode [Member]
Disaggregation Of Revenue [Line Items]
Total	1,229	556	1,946	1,145
License [Member]
Disaggregation Of Revenue [Line Items]
Total	$ 563	$ 658	$ 1,025	$ 1,186

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenue Recognition [Abstract]
Deferred revenue, current	$ 2,824	$ 3,226
Deferred revenue, long term	204	46
Total	$ 3,028	$ 3,272

Segment Information - Additiona

Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019Segment
Revenue, Major Customer [Line Items]
Number of reporting segment	1
Customer Concentration Risk [Member] | Minimum [Member] | Sales [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customers	10.00%

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 6,180	$ 5,438	$ 11,840	$ 11,051
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	1,772	1,289	3,089	2,740
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 4,408	$ 4,149	$ 8,751	$ 8,311

Segment Information - Customers

Segment Information - Customers Accounted for 10% or More of Revenue (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Customer Concentration Risk [Member] | Sales [Member] | Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	62.00%	67.00%	65.00%	67.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0	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		1,388,000
Closing price per share of Digimarc common stock				$ 44.39
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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,016	$ 1,809	$ 4,053	$ 3,480
Capitalized to software and patent costs	49	49	90	93
Total stock-based compensation	2,065	1,858	4,143	3,573
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	179	167	361	322
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	489	411	1,008	756
Research, Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	357	350	711	648
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	927	814	1,839	1,615
Intellectual Property [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 64	$ 67	$ 134	$ 139

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total unrecognized compensation costs	$ 15,205	$ 14,055

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	6 Months Ended
	Jun. 30, 2019
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	11 months 26 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 6 months 10 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	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at beginning	503,000	513,000
Options, Granted	0	0	0
Options, Exercised	(13,000)	(23,000)
Options, Forfeited or expired	0	0
Options, Outstanding at ending	490,000	490,000
Options, Exercisable at ending	332,000	332,000
Options, Unvested at ending	158,000	158,000
Weighted Average Exercise Price, Outstanding at beginning	$ 28.89	$ 28.52
Weighted Average Exercise Price, Granted	0	0
Weighted Average Exercise Price, Exercised	14.99	12.77
Weighted Average Exercise Price, Forfeited or expired	0	0
Weighted Average Exercise Price, Outstanding at ending	29.26	29.26
Weighted Average Exercise Price, Exercisable at ending	28.88	28.88
Weighted Average Exercise Price, Unvested at ending	30.05	30.05
Weighted Average Grant Date Fair Value, Outstanding at beginning	13.26	13.10
Weighted Average Grant Date Fair Value, Granted	0	0
Weighted Average Grant Date Fair Value, Exercised	8.12	6.81
Weighted Average Grant Date Fair Value, Forfeited or expired	0	0
Weighted Average Grant Date Fair Value, Outstanding at ending	$ 13.40	$ 13.40
Aggregate Intrinsic Value, Outstanding	$ 7,414	$ 7,414
Aggregate Intrinsic Value, Exercisable	5,144	5,144
Aggregate Intrinsic Value, Unvested	$ 2,270	$ 2,270

Stock-Based Compensation - Re_2

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Number of Shares
Unvested, beginning balance	628	426
Granted	18	273
Vested	(76)	(128)
Forfeited	(45)	(46)
Unvested, ending balance	525	525
Weighted Average Grant Date Fair Value
Unvested, beginning balance	$ 26.59	$ 28.85
Granted	32.75	23.93
Vested	27.61	28.13
Forfeited	27.13	27.13
Unvested, ending balance	$ 26.61	$ 26.61

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 3,992	$ 2,016	$ 5,232	$ 3,272

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - Common Stock [Member] - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	May 31, 2019
Issuance of common stock	336	336
Common stock price per share	$ 60.61	$ 60.61
Cash proceeds from sale of common stock	$ 20,349,000
Sale of common stock, sales agent commissions	483,000
Stock issuance cost	251,000
Net cash proceeds from sale of common stock	$ 19,615,000
Maximum [Member]
Aggregate offering price of common stock			$ 30,000,000

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Basic Earnings (Loss) per Common Share:
Net loss	$ (7,933)	$ (8,038)	$ (16,396)	$ (16,150)
Distributed earnings to common shares	0	0	0	0
Distributed earnings to participating securities	0	0	0	0
Total distributed earnings	0	0	0	0
Undistributed loss allocable to common shares	(7,933)	(8,038)	(16,396)	(16,150)
Undistributed earnings allocable to participating securities	0	0	0	0
Total undistributed loss	(7,933)	(8,038)	(16,396)	(16,150)
Loss to common shares — basic	$ (7,933)	$ (8,038)	$ (16,396)	$ (16,150)
Weighted average common shares outstanding — basic	11,665	11,337	11,576	11,302
Basic earnings (loss) per common share	$ (0.68)	$ (0.71)	$ (1.42)	$ (1.43)
Diluted Earnings (Loss) per Common Share:
Loss to common shares — basic	$ (7,933)	$ (8,038)	$ (16,396)	$ (16,150)
Undistributed earnings allocated to participating securities	0	0	0	0
Undistributed earnings reallocated to participating securities	0	0	0	0
Loss to common shares — diluted	$ (7,933)	$ (8,038)	$ (16,396)	$ (16,150)
Weighted average common shares outstanding — basic	11,665	11,337	11,576	11,302
Dilutive effect of stock options	0	0	0	0
Weighted average common shares outstanding — diluted	11,665	11,337	11,576	11,302
Diluted earnings (loss) per common share	$ (0.68)	$ (0.71)	$ (1.42)	$ (1.43)

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
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	124	0	12	0
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	275	0	275

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accounts Receivable Net Current [Abstract]
Trade accounts receivable	$ 4,259	$ 3,903
Allowance for doubtful accounts	(20)	(15)
Trade accounts receivable, net	4,239	3,888
Unpaid deferred revenue included in trade accounts receivable	$ 1,051	$ 2,030

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019
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)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	55.00%	48.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019
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	Jun. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Office furniture and fixtures	$ 1,636	$ 1,626
Software	3,970	3,686
Equipment	4,911	4,814
Leasehold improvements	1,721	1,721
Gross property and equipment	12,238	11,847
Less accumulated depreciation and amortization	(8,606)	(7,892)
Property and equipment, net	$ 3,632	$ 3,955

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
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	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 9,084	$ 8,757
Intangible assets acquired:
Gross intangible assets	12,354	12,027
Accumulated amortization	(5,655)	(5,378)
Intangibles, net	$ 6,699	6,649
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

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Jul. 31, 2015	Feb. 28, 2015	Jun. 30, 2019
Lessee Operating Lease [Line Items]
Remaining rent payments			$ 4,153
Beaverton, Oregon [Member]
Lessee Operating Lease [Line Items]
Existence of option to extend			true
Option to extend operating lease			extend the lease term through March 2024
Option to extend operating lease, month and year	2024-03
Remaining rent payments			$ 4,054
San Mateo, California [Member]
Lessee Operating Lease [Line Items]
Remaining rent payments			$ 234
Operating lease term, month and year		2020-03
Sublease term, month and year		2020-03

Leases - Additional Details of

Leases - Additional Details of Leases Presented in Balance Sheets (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
Right of use assets	$ 2,489	$ 2,709
Lease liabilities, current	692
Lease liabilities, long-term	$ 2,749
Weighted-average remaining life	4 years 4 months 24 days
Weighted-average discount rate	8.20%

Leases - Additional Details o_2

Leases - Additional Details of Operating Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease expense	$ 260	$ 521
Cash paid for operating leases	$ 320	$ 692

Leases - Reconciliation of Undi

Leases - Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
2019 (remaining)	$ 498
2020	870
2021	838
2022	862
2023	867
Thereafter	218
Total lease payments	4,153
Imputed interest	(712)
Total minimum lease payments	$ 3,441	$ 3,792

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Line Items]
Deferred tax assets, valuation allowance	$ 47,577		$ 47,577		$ 42,349
Effective tax rate			0.00%	0.00%
Change in valuation allowance			$ 5,228
ASU No. 2016-09 [Member]
Income Tax Disclosure [Line Items]
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance	$ 2,236	$ 186	$ 2,044	$ 711