Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | Non-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 | 26-2828185 | |
Entity Address, Address Line One | 9405 SW Gemini Drive | |
Entity Address, City or Town | Beaverton | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97008 | |
City Area Code | 503 | |
Local Phone Number | 469-4800 | |
Entity Common Stock, Shares Outstanding | 16,930,460 | |
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | OR | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 21,358 | $ 19,696 |
Marketable securities | 39,592 | 58,032 |
Trade accounts receivable, net | 4,590 | 3,907 |
Other current assets | 1,805 | 2,197 |
Total current assets | 67,345 | 83,832 |
Marketable securities | 157 | 0 |
Property and equipment, net | 3,082 | 3,272 |
Intangibles, net | 6,606 | 6,612 |
Goodwill | 1,114 | 1,114 |
Other assets | 2,244 | 2,198 |
Total assets | 80,548 | 97,028 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 4,428 | 2,827 |
Note payable, current | 5,091 | 3,947 |
Deferred revenue | 2,659 | 3,002 |
Total current liabilities | 12,178 | 9,776 |
Lease liability and other long-term liabilities | 3,128 | 2,295 |
Note payable, long-term | 0 | 1,118 |
Total liabilities | 15,306 | 13,189 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity: | ||
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at June 30, 2021 and December 31, 2020) | 50 | 50 |
Common stock (par value $0.001 per share, 50,000 authorized, 16,943 and 16,735 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively) | 17 | 17 |
Additional paid-in capital | 260,071 | 255,024 |
Accumulated deficit | (194,896) | (171,252) |
Total shareholders’ equity | 65,242 | 83,839 |
Total liabilities and shareholders’ equity | $ 80,548 | $ 97,028 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 16,943 | 16,735 |
Common stock, shares outstanding | 16,943 | 16,735 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 6,278 | $ 6,497 | $ 12,978 | $ 12,686 |
Cost of revenue: | ||||
Total cost of revenue | 2,049 | 2,113 | 4,410 | 4,311 |
Gross profit | 4,229 | 4,384 | 8,568 | 8,375 |
Operating expenses: | ||||
Sales and marketing | 6,277 | 4,633 | 11,218 | 9,879 |
Research, development and engineering | 4,213 | 4,208 | 8,344 | 8,641 |
General and administrative | 9,175 | 3,081 | 12,668 | 6,448 |
Total operating expenses | 19,665 | 11,922 | 32,230 | 24,968 |
Operating loss | (15,436) | (7,538) | (23,662) | (16,593) |
Other income, net | 18 | 79 | 28 | 221 |
Loss before income taxes | (15,418) | (7,459) | (23,634) | (16,372) |
Benefit (provision) for income taxes | (4) | (2) | (10) | 3 |
Net loss | $ (15,422) | $ (7,461) | $ (23,644) | $ (16,369) |
Earnings (loss) per common share: | ||||
Loss per common share — basic | $ (0.94) | $ (0.62) | $ (1.44) | $ (1.36) |
Loss per common share — diluted | $ (0.94) | $ (0.62) | $ (1.44) | $ (1.36) |
Weighted average common shares outstanding — basic | 16,430 | 12,108 | 16,382 | 12,073 |
Weighted average common shares outstanding — diluted | 16,430 | 12,108 | 16,382 | 12,073 |
Service [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,791 | $ 3,892 | $ 7,575 | $ 7,630 |
Cost of revenue: | ||||
Total cost of revenue | 1,515 | 1,601 | 3,085 | 3,285 |
Subscription [Member] | ||||
Revenue: | ||||
Total revenue | 2,487 | 2,605 | 5,403 | 5,056 |
Cost of revenue: | ||||
Total cost of revenue | $ 534 | $ 512 | $ 1,325 | $ 1,026 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2019 | $ 49,450 | $ 50 | $ 12 | $ 188,103 | $ (138,715) |
Balance, shares at Dec. 31, 2019 | 10,000 | 12,446,000 | |||
Issuance of common stock, net of issuance costs | 574 | $ 0 | $ 1 | 573 | 0 |
Issuance of common stock, net of issuance costs, shares | 0 | 28,000 | |||
Exercise of stock options | 135 | $ 0 | $ 0 | 135 | 0 |
Exercise of stock options, shares | 0 | 8,000 | |||
Issuance of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 229,000 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (4,000) | |||
Purchase and retirement of common stock | (1,120) | $ 0 | $ 0 | (1,120) | 0 |
Purchase and retirement of common stock, shares | 0 | (48,000) | |||
Stock-based compensation | 4,607 | $ 0 | $ 0 | 4,607 | 0 |
Net loss | (16,369) | 0 | 0 | 0 | (16,369) |
Balance at Jun. 30, 2020 | 37,277 | $ 50 | $ 13 | 192,298 | (155,084) |
Balance, shares at Jun. 30, 2020 | 10,000 | 12,659,000 | |||
Balance at Mar. 31, 2020 | 42,743 | $ 50 | $ 13 | 190,303 | (147,623) |
Balance, shares at Mar. 31, 2020 | 10,000 | 12,645,000 | |||
Issuance of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 43,000 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (4,000) | |||
Purchase and retirement of common stock | (382) | $ 0 | $ 0 | (382) | 0 |
Purchase and retirement of common stock, shares | 0 | (25,000) | |||
Stock-based compensation | 2,377 | $ 0 | $ 0 | 2,377 | 0 |
Net loss | (7,461) | 0 | 0 | 0 | (7,461) |
Balance at Jun. 30, 2020 | 37,277 | $ 50 | $ 13 | 192,298 | (155,084) |
Balance, shares at Jun. 30, 2020 | 10,000 | 12,659,000 | |||
Balance at Dec. 31, 2020 | 83,839 | $ 50 | $ 17 | 255,024 | (171,252) |
Balance, shares at Dec. 31, 2020 | 10,000 | 16,735,000 | |||
Issuance of common stock, net of issuance costs, shares | 0 | ||||
Exercise of stock options | $ 1,075 | $ 0 | $ 0 | 1,075 | 0 |
Exercise of stock options, shares | 70,000 | 0 | 70,000 | ||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 198,000 | |||
Vesting of restricted stock units | 0 | $ 0 | $ 0 | 0 | 0 |
Vesting of restricted stock units,shares | 0 | 112,000 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (35,000) | |||
Purchase and retirement of common stock | (4,849) | $ 0 | $ 0 | (4,849) | 0 |
Purchase and retirement of common stock, shares | 0 | (137,000) | |||
Stock-based compensation | 8,821 | $ 0 | $ 0 | 8,821 | 0 |
Net loss | (23,644) | 0 | 0 | 0 | (23,644) |
Balance at Jun. 30, 2021 | 65,242 | $ 50 | $ 17 | 260,071 | (194,896) |
Balance, shares at Jun. 30, 2021 | 10,000 | 16,943,000 | |||
Balance at Mar. 31, 2021 | 76,793 | $ 50 | $ 17 | 256,200 | (179,474) |
Balance, shares at Mar. 31, 2021 | 10,000 | 16,850,000 | |||
Issuance of common stock, net of issuance costs, shares | 0 | ||||
Exercise of stock options | $ 1,075 | $ 0 | $ 0 | 1,075 | 0 |
Exercise of stock options, shares | 70,000 | 0 | 70,000 | ||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 44,000 | |||
Vesting of restricted stock units | 0 | $ 0 | $ 0 | 0 | 0 |
Vesting of restricted stock units,shares | 0 | 112,000 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (16,000) | |||
Purchase and retirement of common stock | (3,979) | $ 0 | $ 0 | (3,979) | 0 |
Purchase and retirement of common stock, shares | 0 | (117,000) | |||
Stock-based compensation | 6,775 | $ 0 | $ 0 | 6,775 | 0 |
Net loss | (15,422) | 0 | 0 | 0 | (15,422) |
Balance at Jun. 30, 2021 | $ 65,242 | $ 50 | $ 17 | $ 260,071 | $ (194,896) |
Balance, shares at Jun. 30, 2021 | 10,000 | 16,943,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (23,644) | $ (16,369) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and write-off of property and equipment | 717 | 745 |
Amortization and write-off of intangibles | 345 | 431 |
Amortization of right of use assets under operating leases | 240 | 233 |
Amortization of net premiums and (discounts) on marketable securities | (498) | 96 |
Stock-based compensation | 8,747 | 4,522 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (950) | 445 |
Other current assets | 392 | 361 |
Other assets | (19) | 85 |
Accounts payable and other accrued liabilities | 1,859 | (155) |
Deferred revenue | (331) | (500) |
Lease liability and other long-term liabilities | 656 | 24 |
Net cash used in operating activities | (12,486) | (10,082) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (569) | (456) |
Capitalized patent costs | (290) | (311) |
Maturity of marketable securities | 49,722 | 26,439 |
Purchase of marketable securities | (30,941) | (19,490) |
Net cash provided by investing activities | 17,922 | 6,182 |
Cash flows from financing activities: | ||
Proceeds from note payable | 0 | 5,032 |
Issuance of common stock, net of issuance costs | 0 | 574 |
Exercise of stock options | 0 | 135 |
Purchase of common stock | (3,774) | (1,120) |
Net cash provided by (used in) financing activities | (3,774) | 4,621 |
Net increase in cash and cash equivalents | 1,662 | 721 |
Cash and cash equivalents at beginning of period | 19,696 | 11,213 |
Cash and cash equivalents at end of period | 21,358 | 11,934 |
Supplemental disclosure of cash flow information: | ||
Cash received (paid) for income taxes, net | (31) | 12 |
Supplemental schedule of non-cash activities: | ||
Property and equipment and patent costs in accounts payable | (67) | (26) |
Stock-based compensation capitalized to software and patent costs | 74 | 85 |
Cashless exercise of stock options | $ 1,075 | $ 0 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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, is a pioneer in the automatic identification of media, including packaging, other commercial print, digital images, audio and video. The Digimarc Platform takes industry beyond the barcode, providing innovative and comprehensive automatic identification software and services to simplify search and transform information discovery. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. The Digimarc Platform features three core capabilities for the identification, discovery and quality management of media. Digimarc Barcode integrates the identification function, which is a novel data carrier encoded into media in ways that are generally imperceptible to people, permitting the carrier to be repeated many times over the surface of the enhanced media. Digimarc Discover represents the discovery function, which is software for computing devices and network interfaces that recognize and decode indicia of the identity of media. These include, but are not limited to, Digimarc Barcodes, Quick Response Codes, Universal Product Codes, certain other Global Standards One (“GS1”) approved one-dimensional codes and relevant contextual data. Digimarc Verify incorporates the quality management function, a suite of software tools used to inspect and verify that the identification and discovery of media are both accurate and effective. Together, these core capabilities enable organizations, application developers, and other solution providers to build new and improve existing automatic identification solutions. 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, 2020. 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, 2020, which was filed with the SEC on February 26, 2021. 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, including the reclassification of revenue by major target market. These reclassifications had no material effect on the results of operations or financial position for any period presented. 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, 2021 and 2020, 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 December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “ Income Taxes (ASC 740) Simplifying the Accounting for Income Taxes principles and also improves consistent application of and simplifies U.S. GAAP. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 . Early adoption is permitted. The Company adopted th is new standard on January 1, 2021. The adoption of th is standard did not have a material impact on the Company’s financial condition, results of operations and disclosures . Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 Level 1 Level 2 Level 3 Total Money market securities $ 18,515 $ — $ — $ 18,515 Commercial paper — 22,287 — 22,287 Pre-refunded municipals — 14,395 — 14,395 Corporate notes — 3,068 — 3,068 Total $ 18,515 $ 39,750 $ — $ 58,265 December 31, 2020 Level 1 Level 2 Level 3 Total Money market securities $ 10,988 $ — $ — $ 10,988 Commercial paper — 36,478 — 36,478 Pre-refunded municipals — 26,697 — 26,697 Corporate notes — 2,437 — 2,437 Total $ 10,988 $ 65,612 $ — $ 76,600 The fair value maturities of the Company’s cash equivalents and marketable securities as of June 30, 2021, were as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 58,265 $ 58,108 $ 157 $ — $ — 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 securities, commercial paper and pre-refunded municipals totaling $18,516 and $18,568 at June 30, 2021, and December 31, 2020, 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, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition The Company derives its revenue primarily from software development services and software subscriptions. Applicable revenue recognition criteria are considered separately for each performance obligation as follows: • Service revenue consists primarily of revenue earned from the performance of software development services. The majority of service contracts are structured as time and materials consulting agreements. Revenue for services is generally recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. • Subscription revenue consists primarily of revenue earned from the sale of software products and to a lesser extent the licensing of intellectual property. The majority of subscription contracts are recurring, paid in advance, and recognized over the term of the subscription, which is typically one to three years. Customer arrangements may contain multiple performance obligations such as software development services, software products, 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. Products and services that are not capable of being distinct are combined with other products or services until a distinct performance obligation is identified. 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 target market 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, 2021 2020 2021 2020 Government Service $ 3,522 $ 3,713 $ 7,107 $ 7,365 Subscription 300 300 600 600 Total Government 3,822 4,013 7,707 7,965 Commercial Service $ 269 $ 179 $ 468 $ 265 Subscription 2,187 2,305 4,803 4,456 Total Commercial 2,456 2,484 5,271 4,721 Total $ 6,278 $ 6,497 $ 12,978 $ 12,686 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 services and subscriptions 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, 2021 2020 Deferred revenue, current $ 2,659 $ 3,002 Deferred revenue, long-term 42 30 Total $ 2,701 $ 3,032 The Company recognized $2,010 of revenue during the six months ended June 30, 2021, that was included in the contract liability balance as of December 31, 2020. The aggregate amount of the transaction prices from contractual obligations that are unsatisfied or partially unsatisfied was $16,645 and $17,921 as of June 30, 2021, and December 31, 2020, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information Geographic Information The Company derives its revenue from a single 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, 2021 2020 2021 2020 Domestic $ 1,640 $ 1,856 $ 3,362 $ 3,615 International (1) 4,638 4,641 9,616 9,071 Total $ 6,278 $ 6,497 $ 12,978 $ 12,686 ( 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, 2021 2020 2021 2020 Central Banks 61 % 62 % 59 % 63 % Walmart Inc. 13 % 12 % 12 % 12 % 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, 2021 | |
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, restricted stock unit, and performance restricted stock unit 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 The Company estimates the fair value of stock options on the date of grant (measurement date) using the Black-Scholes option pricing model. The Company recognizes the fair value of stock option awards on a straight-line basis over the vesting period of the award. The following inputs are used in the Black-Scholes option pricing model to estimate the fair value of stock options: Stock Price. The stock price represents the fair market value of the Company’s common stock on the date of the grant. 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 a service period of three years and have a contractual term 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 dividing the Company’s expected annual dividend rate over the expected term by the fair value of the Company’s common stock at the grant date. There were no stock options granted during the three and six months ended June 30, 2021 and 2020. Restricted Stock The fair value of restricted stock awards is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized on a straight-line basis over the vesting period of the award. Restricted stock awards granted generally vest over a service period of three to four years for employee grants and one to three years for director grants. Restricted Stock Units The fair value of restricted stock unit (“RSU”) awards, which vest upon meeting a service condition, is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized on a straight-line basis over the service period of the award, which is generally three years. There were no RSUs granted during the three and six months ended June 30, 2021 and 2020. Performance Restricted Stock Units The fair value of performance restricted stock unit (“PRSU”) awards, which vest upon meeting a market condition, such as exceeding a target stock price in the future, and a service condition, is determined on the date of grant (measurement date) using the Monte Carlo valuation model. The Company recognizes the fair value of the award on a straight-line basis over the service period of the award, which is generally three years. The following inputs are used in the Monte Carlo valuation model to estimate the fair value of PRSUs: Stock Price. The stock price represents the fair market value of the Company’s common stock on the date of the grant. 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 term 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 term of the award. There were no PRSUs granted during the three and six months ended June 30, 2021 and 2020. On April 12, 2021, Bruce Davis notified the Company of his intention to retire as the Company’s President and Chief Executive Officer and as Chairman and a member of the Board of Directors effective April 12, 2021 (the “Transition Date”). In connection with his retirement, the Company entered into a Separation Agreement and General Release with Mr. Davis (the “Separation Agreement”), dated April 12, 2021. Pursuant to the Separation Agreement, Mr. Davis agreed to release certain claims he may have against the Company and other released parties, and Mr. Davis’s stock options, restricted stock and RSUs that vest solely based on continued service, and PRSUs that were earned and remained subject to time-based vesting, immediately vested with respect to the number of shares that would have vested if Mr. Davis’s employment had continued for an additional twenty-four months from the Transition Date, and his right to exercise vested stock options will expire on the earliest of (i) twenty-eight months from the Transition Date, (ii) the latest date the particular stock option could have expired by its original terms under any circumstances, or (iii) the tenth anniversary of the original date of grant of the particular stock option. The terms of the Separation Agreement resulted in the acceleration of vesting for 137 stock options, 30 RSUs, and 82 PRSUs and the forfeiture of 35 stock options, 15 RSUs, and 42 PRSUs. The terms of the Separation Agreement also resulted in a modification to all outstanding stock options, as the expiration date for exercise of the options were extended beyond the original terms of the options, and 21 PRSUs were modified to provide for accelerated vesting. In accordance with ASC 718 , Compensation – Stock Compensation , the Company calculated the fair value of the modified stock options and PRSUs and calculated the fair value of the original stock options and PRSUs immediately before the modification. The Company recorded additional stock-based compensation expense of $ 1,926 upon modification of these awards. The Company incurred $3,990 of stock-based compensation expense, including the impact of the modified awards, during the three and six months ended June 30, 2021, associated with the Separation Agreement. Stock-Based Compensation Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Stock-based compensation: Cost of revenue $ 178 $ 196 $ 351 $ 386 Sales and marketing 1,550 604 1,990 1,083 Research, development and engineering 405 402 801 801 General and administrative 4,604 1,125 5,605 2,252 Stock-based compensation expense 6,737 2,327 8,747 4,522 Capitalized to software and patent costs 38 50 74 85 Total stock-based compensation $ 6,775 $ 2,377 $ 8,821 $ 4,607 The following table sets forth total unrecognized compensation costs related to non-vested stock-based awards granted under the Company’s equity compensation plan: As of As of June 30, December 31, 2021 2020 Total unrecognized compensation costs $ 13,411 $ 14,416 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, 2021, for stock option, restricted stock, RSU, and PRSU awards over weighted average periods through June 30, 2025, as follows: Stock Restricted Options Stock RSUs PRSUs Weighted average period — 1.37 years — — As of June 30, 2021, under the Company’s stock-based compensation plan, an additional 859 shares remained available for future grants. The Company issues new shares upon exercises of stock options, grants of restricted stock awards and vesting of RSU and PRSU awards. Stock Option Activity The following table reconciles the outstanding balance of stock option awards: Weighted Weighted Average Average Aggregate Number of Exercise Grant Date Intrinsic For the three and six months ended June 30, 2021: Options Price Fair Value Value Outstanding at December 31, 2020 and March 31, 2021 305 $ 27.94 $ 12.65 Granted — — — Exercised (70 ) 15.36 10.42 Forfeited or expired (35 ) 15.36 7.36 Outstanding at June 30, 2021 200 $ 34.55 $ 15.43 $ 395 Exercisable at June 30, 2021 200 $ 34.55 $ 395 Unvested at June 30, 2021 — $ — $ — The aggregate intrinsic value is based on the closing price of $33.50 per share of Digimarc common stock on June 30, 2021, which would have been received by the optionees had all of the options with exercise prices less than $33.50 per share been exercised on that date. Restricted Stock Activity The following tables reconcile the unvested balance of restricted stock awards: Weighted Average Number of Grant Date Three months ended June 30, 2021: Shares Fair Value Unvested balance, March 31, 2021 501 $ 33.25 Granted 44 $ 30.42 Vested (71 ) $ 26.94 Forfeited (16 ) $ 39.63 Unvested balance, June 30, 2021 458 $ 33.76 Weighted Average Number of Grant Date Six months ended June 30, 2021: Shares Fair Value Unvested balance, December 31, 2020 416 $ 28.20 Granted 198 $ 40.95 Vested (121 ) $ 27.42 Forfeited (35 ) $ 30.34 Unvested balance, June 30, 2021 458 $ 33.76 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, 2021 2020 2021 2020 Fair value of restricted stock awards vested $ 2,285 $ 1,260 $ 4,460 $ 3,071 Restricted Stock Units Activity The following table reconciles the unvested balance of RSU awards: Weighted Average Number of Grant Date For the three and six months ended June 30, 2021: Units Fair Value Unvested balance, December 31, 2020 and March 31, 2021 45 $ 15.36 Granted — $ — Vested (30 ) 15.36 Forfeited (15 ) $ 15.36 Unvested balance, June 30, 2021 — $ — The fair value of RSUs vested was $1,050 for the three and six months ended June 30, 2021. Performance Restricted Stock Units Activity The following table reconciles the unvested balance of PRSU awards: Weighted Average Number of Grant Date For the three and six months ended June 30, 2021: Units Fair Value Unvested balance, December 31, 2020 and March 31, 2021 124 $ 11.08 Granted — $ — Vested (1) (82 ) 15.54 Forfeited (42 ) 11.08 Unvested balance, June 30, 2021 — $ — (1) Includes the impact of the modification of 21 PRSUs which were cancelled and reissued at a grant date fair value of $28.93. The fair value of PRSUs vested was $2,886 for the three and six months ended June 30, 2021. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
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. There were no shares sold f or the three and six months ended June 30, 2021. For the six months ended June 30, 2020, the Company sold 28 shares at an average price of $21.92 under the Equity Distribution Agreement totaling $611 of cash proceeds, less $14 of commissions and $23 of stock issuance costs, for net cash proceeds of $574. As of June 30, 2021, there was $6,932 available for future issuance under the Equity Distribution Agreement. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
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, RSUs and PRSUs. The dilutive effect of stock options, RSUs and PRSUs is determined using the treasury stock method. 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, 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Loss to common shares — basic $ (15,422 ) $ (7,461 ) $ (23,644 ) $ (16,369 ) Weighted average common shares outstanding — basic 16,430 12,108 16,382 12,073 Basic earnings (loss) per common share $ (0.94 ) $ (0.62 ) $ (1.44 ) $ (1.36 ) Diluted Earnings (Loss) per Common Share: Net loss attributable to common shares — diluted $ (15,422 ) $ (7,461 ) $ (23,644 ) $ (16,369 ) Weighted average common shares outstanding — diluted 16,430 12,108 16,382 12,073 Diluted earnings (loss) per common share $ (0.94 ) $ (0.62 ) $ (1.44 ) $ (1.36 ) The following table indicates the common stock equivalents related to stock options, RSUs and PRSUs that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Anti-dilutive shares due to: Exercise prices higher than the average market price 100 550 100 550 Net loss — — 61 — |
Trade Accounts Receivable
Trade Accounts Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Trade Accounts Receivable | 8 . Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the contractual or invoiced amount. June 30, December 31, 2021 2020 Trade accounts receivable, current $ 4,615 $ 3,932 Trade accounts receivable, long-term 267 — Allowance for doubtful accounts (25 ) (25 ) Trade accounts receivable, net $ 4,857 $ 3,907 Unpaid deferred revenue included in trade accounts receivable $ 715 $ 1,711 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. Major Customers The following customers accounted for 10% or more of trade accounts receivable, net: June 30, December 31, 2021 2020 Central Banks 47 % 69 % Walmart, Inc 15 % * * Less than 10% |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Office furniture and fixtures $ 1,650 $ 1,650 Software 5,354 5,004 Equipment 5,131 4,967 Leasehold improvements 1,658 1,658 Gross property and equipment 13,793 13,279 Less accumulated depreciation and amortization (10,711 ) (10,007 ) Property and equipment, net $ 3,082 $ 3,272 |
Intangibles
Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and 2020. 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 June 30, December 31, (years) 2021 2020 Capitalized patent costs 17-20 $ 9,967 $ 9,708 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Gross intangible assets 12,067 11,808 Accumulated amortization (5,461 ) (5,196 ) Intangibles, net $ 6,606 $ 6,612 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 11 . Leases T he Company accounts for leases in accordance with ASC 842, “ Leases. ” The Company leases its corporate offices in Beaverton, Oregon. The term of the lease runs through March 2024, with remaining rent payments as of June 30, 2021, totaling $2,305, payable in monthly installments. All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the Consolidated Balance Sheets: June 30, December 31, 2021 2020 Right of use assets $ 1,553 $ 1,793 Lease liabilities, current $ 703 $ 663 Lease liabilities, long-term $ 1,412 $ 1,772 Weighted-average remaining life 2.7 years 3.2 years Weighted-average discount rate 8 % 8 % 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 in the Consolidated Statements of Cash Flows. The operating leases include variable lease payments which are not material and are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Operating lease expense $ 253 $ 253 $ 510 $ 516 Cash paid for operating leases $ 294 $ 296 $ 591 $ 623 The table below reconciles the 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, 2021: Cash Payment Year ending December 31: Obligations Remaining in 2021 $ 423 2022 862 2023 867 2024 218 2025 — Thereafter — Total lease payments 2,370 Imputed interest (255 ) Total minimum lease payments $ 2,115 |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable [Abstract] | |
Note Payable | 12 . Note Payable Promissory Note under the Paycheck Protection Program On April 16, 2020, the Company entered into a Promissory Note with Stearns Bank, N.A. in an aggregate principal amount of $5,032 (the “Note”), pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Note matures two years from the disbursement date and bears interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The Note is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses (collectively, “Qualifying Expenses”), pursuant to the terms and limitations of the PPP. The Company believes that it used all of the proceeds from the Note for Qualifying Expenses. However, no assurance is provided that the Company will obtain forgiveness of the Note in whole or in part. On June 29, 2020, the Company was notified by Stearns Bank, N.A. that the Note was transferred to The Loan Source, Inc., (the “Lender”) who will be responsible for servicing the Note going forward, including administering loan forgiveness. On September 15, 2020, the Company filed its application for 100% forgiveness of the Note. The application was reviewed by the Lender and submitted to the Small Business Administration (“SBA”) for approval on December 17, 2020. The Company has not received any notification from the SBA on the status of the SBA’s review other than receiving a request for additional supporting documentation, which the Company has submitted. Principal and interest payments can be deferred until the forgiveness process is completed. The following table provides information about the Note: June 30, December 31, 2021 2020 Note payable $ 5,032 $ 5,032 Accrued interest 59 33 Total $ 5,091 $ 5,065 Note payable, current $ 5,091 $ 3,947 Note payable, long-term — 1,118 Total $ 5,091 $ 5,065 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13 . Income Taxes The provision for income taxes for the six months ended June 30, 2021 and 2020 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for each of the six months ended June 30, 2021 and 2020 was 0%. The valuation allowance against net deferred tax assets as of June 30, 2021, was $61,152, an increase of $5,513 from $55,639 as of December 31, 2020. Excess tax benefits of $3,101 and $3,897 were recognized in the provision for income taxes for the three and six months ended June 30, 2021, respectively, which were offset by $3,101 and $3,897 of valuation allowance, respectively. Excess tax deficiencies of $1,003 and $748 were recognized in the provision for income taxes for the three and six months ended June 30, 2020, respectively, which were offset by $1,003 and $748, of valuation allowance, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14 . Commitments and Contingencies Certain of the Company’s contracts 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 S_2
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, is a pioneer in the automatic identification of media, including packaging, other commercial print, digital images, audio and video. The Digimarc Platform takes industry beyond the barcode, providing innovative and comprehensive automatic identification software and services to simplify search and transform information discovery. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. The Digimarc Platform features three core capabilities for the identification, discovery and quality management of media. Digimarc Barcode integrates the identification function, which is a novel data carrier encoded into media in ways that are generally imperceptible to people, permitting the carrier to be repeated many times over the surface of the enhanced media. Digimarc Discover represents the discovery function, which is software for computing devices and network interfaces that recognize and decode indicia of the identity of media. These include, but are not limited to, Digimarc Barcodes, Quick Response Codes, Universal Product Codes, certain other Global Standards One (“GS1”) approved one-dimensional codes and relevant contextual data. Digimarc Verify incorporates the quality management function, a suite of software tools used to inspect and verify that the identification and discovery of media are both accurate and effective. Together, these core capabilities enable organizations, application developers, and other solution providers to build new and improve existing automatic identification solutions. |
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, 2020. 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, 2020, which was filed with the SEC on February 26, 2021. 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, including the reclassification of revenue by major target market. These reclassifications had no material effect on the results of operations or financial position for any period presented. |
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, 2021 and 2020, 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 December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “ Income Taxes (ASC 740) Simplifying the Accounting for Income Taxes principles and also improves consistent application of and simplifies U.S. GAAP. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 . Early adoption is permitted. The Company adopted th is new standard on January 1, 2021. The adoption of th is standard did not have a material impact on the Company’s financial condition, results of operations and disclosures . Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 Level 1 Level 2 Level 3 Total Money market securities $ 18,515 $ — $ — $ 18,515 Commercial paper — 22,287 — 22,287 Pre-refunded municipals — 14,395 — 14,395 Corporate notes — 3,068 — 3,068 Total $ 18,515 $ 39,750 $ — $ 58,265 December 31, 2020 Level 1 Level 2 Level 3 Total Money market securities $ 10,988 $ — $ — $ 10,988 Commercial paper — 36,478 — 36,478 Pre-refunded municipals — 26,697 — 26,697 Corporate notes — 2,437 — 2,437 Total $ 10,988 $ 65,612 $ — $ 76,600 |
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, 2021, were as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 58,265 $ 58,108 $ 157 $ — $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 target market 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, 2021 2020 2021 2020 Government Service $ 3,522 $ 3,713 $ 7,107 $ 7,365 Subscription 300 300 600 600 Total Government 3,822 4,013 7,707 7,965 Commercial Service $ 269 $ 179 $ 468 $ 265 Subscription 2,187 2,305 4,803 4,456 Total Commercial 2,456 2,484 5,271 4,721 Total $ 6,278 $ 6,497 $ 12,978 $ 12,686 |
Schedule of Contract Liabilities from Contracts with Customers | The following table provides information about contract liabilities from contracts with customers: June 30, December 31, 2021 2020 Deferred revenue, current $ 2,659 $ 3,002 Deferred revenue, long-term 42 30 Total $ 2,701 $ 3,032 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 2021 2020 Domestic $ 1,640 $ 1,856 $ 3,362 $ 3,615 International (1) 4,638 4,641 9,616 9,071 Total $ 6,278 $ 6,497 $ 12,978 $ 12,686 ( 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, 2021 2020 2021 2020 Central Banks 61 % 62 % 59 % 63 % Walmart Inc. 13 % 12 % 12 % 12 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
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, 2021 2020 2021 2020 Stock-based compensation: Cost of revenue $ 178 $ 196 $ 351 $ 386 Sales and marketing 1,550 604 1,990 1,083 Research, development and engineering 405 402 801 801 General and administrative 4,604 1,125 5,605 2,252 Stock-based compensation expense 6,737 2,327 8,747 4,522 Capitalized to software and patent costs 38 50 74 85 Total stock-based compensation $ 6,775 $ 2,377 $ 8,821 $ 4,607 |
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted | The following table sets forth total unrecognized compensation costs related to non-vested stock-based awards granted under the Company’s equity compensation plan: As of As of June 30, December 31, 2021 2020 Total unrecognized compensation costs $ 13,411 $ 14,416 |
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, 2021, for stock option, restricted stock, RSU, and PRSU awards over weighted average periods through June 30, 2025, as follows: Stock Restricted Options Stock RSUs PRSUs Weighted average period — 1.37 years — — |
Reconciliation of Outstanding Balance of Stock Options | The following table reconciles the outstanding balance of stock option awards: Weighted Weighted Average Average Aggregate Number of Exercise Grant Date Intrinsic For the three and six months ended June 30, 2021: Options Price Fair Value Value Outstanding at December 31, 2020 and March 31, 2021 305 $ 27.94 $ 12.65 Granted — — — Exercised (70 ) 15.36 10.42 Forfeited or expired (35 ) 15.36 7.36 Outstanding at June 30, 2021 200 $ 34.55 $ 15.43 $ 395 Exercisable at June 30, 2021 200 $ 34.55 $ 395 Unvested at June 30, 2021 — $ — $ — |
Reconciliation of Unvested Balance of Restricted Stock | The following tables reconcile the unvested balance of restricted stock awards: Weighted Average Number of Grant Date Three months ended June 30, 2021: Shares Fair Value Unvested balance, March 31, 2021 501 $ 33.25 Granted 44 $ 30.42 Vested (71 ) $ 26.94 Forfeited (16 ) $ 39.63 Unvested balance, June 30, 2021 458 $ 33.76 Weighted Average Number of Grant Date Six months ended June 30, 2021: Shares Fair Value Unvested balance, December 31, 2020 416 $ 28.20 Granted 198 $ 40.95 Vested (121 ) $ 27.42 Forfeited (35 ) $ 30.34 Unvested balance, June 30, 2021 458 $ 33.76 |
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, 2021 2020 2021 2020 Fair value of restricted stock awards vested $ 2,285 $ 1,260 $ 4,460 $ 3,071 |
Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Reconciliation of Unvested Balance of Restricted Stock Unit | The following table reconciles the unvested balance of RSU awards: Weighted Average Number of Grant Date For the three and six months ended June 30, 2021: Units Fair Value Unvested balance, December 31, 2020 and March 31, 2021 45 $ 15.36 Granted — $ — Vested (30 ) 15.36 Forfeited (15 ) $ 15.36 Unvested balance, June 30, 2021 — $ — |
Performance Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Reconciliation of Unvested Balance of Performance Restricted Stock Unit | The following table reconciles the unvested balance of PRSU awards: Weighted Average Number of Grant Date For the three and six months ended June 30, 2021: Units Fair Value Unvested balance, December 31, 2020 and March 31, 2021 124 $ 11.08 Granted — $ — Vested (1) (82 ) 15.54 Forfeited (42 ) 11.08 Unvested balance, June 30, 2021 — $ — (1) Includes the impact of the modification of 21 PRSUs which were cancelled and reissued at a grant date fair value of $28.93. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Loss to common shares — basic $ (15,422 ) $ (7,461 ) $ (23,644 ) $ (16,369 ) Weighted average common shares outstanding — basic 16,430 12,108 16,382 12,073 Basic earnings (loss) per common share $ (0.94 ) $ (0.62 ) $ (1.44 ) $ (1.36 ) Diluted Earnings (Loss) per Common Share: Net loss attributable to common shares — diluted $ (15,422 ) $ (7,461 ) $ (23,644 ) $ (16,369 ) Weighted average common shares outstanding — diluted 16,430 12,108 16,382 12,073 Diluted earnings (loss) per common share $ (0.94 ) $ (0.62 ) $ (1.44 ) $ (1.36 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the common stock equivalents related to stock options, RSUs and PRSUs that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Anti-dilutive shares due to: Exercise prices higher than the average market price 100 550 100 550 Net loss — — 61 — |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Trade Accounts Receivable | Trade accounts receivable are recorded at the contractual or invoiced amount. June 30, December 31, 2021 2020 Trade accounts receivable, current $ 4,615 $ 3,932 Trade accounts receivable, long-term 267 — Allowance for doubtful accounts (25 ) (25 ) Trade accounts receivable, net $ 4,857 $ 3,907 Unpaid deferred revenue included in trade accounts receivable $ 715 $ 1,711 |
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, 2021 2020 Central Banks 47 % 69 % Walmart, Inc 15 % * * Less than 10% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Office furniture and fixtures $ 1,650 $ 1,650 Software 5,354 5,004 Equipment 5,131 4,967 Leasehold improvements 1,658 1,658 Gross property and equipment 13,793 13,279 Less accumulated depreciation and amortization (10,711 ) (10,007 ) Property and equipment, net $ 3,082 $ 3,272 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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) 2021 2020 Capitalized patent costs 17-20 $ 9,967 $ 9,708 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Gross intangible assets 12,067 11,808 Accumulated amortization (5,461 ) (5,196 ) Intangibles, net $ 6,606 $ 6,612 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Consolidated Balance Sheets: June 30, December 31, 2021 2020 Right of use assets $ 1,553 $ 1,793 Lease liabilities, current $ 703 $ 663 Lease liabilities, long-term $ 1,412 $ 1,772 Weighted-average remaining life 2.7 years 3.2 years Weighted-average discount rate 8 % 8 % |
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 in the Consolidated Statements of Cash Flows. The operating leases include variable lease payments which are not material and are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Operating lease expense $ 253 $ 253 $ 510 $ 516 Cash paid for operating leases $ 294 $ 296 $ 591 $ 623 |
Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability | The table below reconciles the 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, 2021: Cash Payment Year ending December 31: Obligations Remaining in 2021 $ 423 2022 862 2023 867 2024 218 2025 — Thereafter — Total lease payments 2,370 Imputed interest (255 ) Total minimum lease payments $ 2,115 |
Note Payable (Tables)
Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable [Abstract] | |
Schedule of Note Payable | The following table provides information about the Note: June 30, December 31, 2021 2020 Note payable $ 5,032 $ 5,032 Accrued interest 59 33 Total $ 5,091 $ 5,065 Note payable, current $ 5,091 $ 3,947 Note payable, long-term — 1,118 Total $ 5,091 $ 5,065 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Goodwill, Impairment Loss | $ 0 | $ 0 |
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, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 58,265 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 58,265 | $ 76,600 |
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 18,515 | 10,988 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 22,287 | 36,478 |
Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 14,395 | 26,697 |
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3,068 | 2,437 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 18,515 | 10,988 |
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 | 18,515 | 10,988 |
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] | Pre-refunded Municipals [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 | 39,750 | 65,612 |
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 | 22,287 | 36,478 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 14,395 | 26,697 |
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 | 3,068 | 2,437 |
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] | Pre-refunded Municipals [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 Instr_4
Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Cash equivalents and marketable securities, Maturities by Period, Total | $ 58,265 |
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year | 58,108 |
Cash equivalents and marketable securities, Maturities by Period, 1-5 years | 157 |
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, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Highly liquid marketable securities with original maturities | 90 days or less | |
Cash equivalents include commercial paper and money market funds | $ 18,516 | $ 18,568 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue Recognition [Abstract] | ||
Period of revenue from services | 1 month | |
Subscription revenue term, minimum | 1 year | |
Subscription revenue term, maximum | 3 years | |
Deferred revenue, revenue recognized | $ 2,010 | |
Aggregate amount of transaction price from contractual obligations | $ 16,645 | $ 17,921 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total | $ 6,278 | $ 6,497 | $ 12,978 | $ 12,686 |
Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 3,791 | 3,892 | 7,575 | 7,630 |
Subscription [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 2,487 | 2,605 | 5,403 | 5,056 |
Government [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 3,822 | 4,013 | 7,707 | 7,965 |
Government [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 3,522 | 3,713 | 7,107 | 7,365 |
Government [Member] | Subscription [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 300 | 300 | 600 | 600 |
Commercial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 2,456 | 2,484 | 5,271 | 4,721 |
Commercial [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 269 | 179 | 468 | 265 |
Commercial [Member] | Subscription [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | $ 2,187 | $ 2,305 | $ 4,803 | $ 4,456 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue Recognition [Abstract] | ||
Deferred revenue, current | $ 2,659 | $ 3,002 |
Deferred revenue, long-term | 42 | 30 |
Total | $ 2,701 | $ 3,032 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021Segment | |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 6,278 | $ 6,497 | $ 12,978 | $ 12,686 | |
Domestic [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 1,640 | 1,856 | 3,362 | 3,615 | |
International [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | [1] | $ 4,638 | $ 4,641 | $ 9,616 | $ 9,071 |
[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. |
Segment Information - Customers
Segment Information - Customers Accounted for 10% or More of Revenue (Detail) - Customer Concentration Risk [Member] - Sales [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Central Banks [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 61.00% | 62.00% | 59.00% | 63.00% |
Walmart Inc. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 13.00% | 12.00% | 12.00% | 12.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options granted | 0 | 0 | ||
Additional share-based compensation | $ 1,926 | |||
Share based compensation expense | $ 6,737 | $ 2,327 | $ 8,747 | $ 4,522 |
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 options granted | 0 | 0 | 0 | 0 |
Number of options vested. | 137 | |||
Number of non-vested options forfeited. | 35 | |||
Stock-based compensation plans, number of additional shares authorized for future grants | 859 | |||
Stock price | $ 33.50 | $ 33.50 | ||
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 | |||
Restricted Stock Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 3 years | |||
Stock options granted | 0 | 0 | 0 | 0 |
Number of options vested. | 30 | |||
Number of non-vested options forfeited. | 15 | |||
Fair value | $ 1,050 | $ 1,050 | ||
Performance Restricted Stock Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 3 years | |||
Stock options granted | 0 | 0 | 0 | 0 |
Number of options vested. | 82 | |||
Number of non-vested options forfeited. | 42 | |||
Stock cancelled and reissued | 21 | |||
Fair value | $ 2,886 | $ 2,886 | ||
Separation Agreement [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation expense | $ 3,990 | $ 3,990 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 6,737 | $ 2,327 | $ 8,747 | $ 4,522 |
Capitalized to software and patent costs | 38 | 50 | 74 | 85 |
Total stock-based compensation | 6,775 | 2,377 | 8,821 | 4,607 |
Cost of Revenue [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 178 | 196 | 351 | 386 |
Sales and Marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1,550 | 604 | 1,990 | 1,083 |
Research, Development and Engineering [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 405 | 402 | 801 | 801 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 4,604 | $ 1,125 | $ 5,605 | $ 2,252 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Total unrecognized compensation costs | $ 13,411 | $ 14,416 |
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, 2021 | |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period | 1 year 4 months 13 days |
Stock-Based Compensation - Reco
Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options, Outstanding at beginning | shares | 305 | 305 |
Options, Granted | shares | 0 | 0 |
Options, Exercised | shares | (70) | (70) |
Options, Forfeited or expired | shares | (35) | (35) |
Options, Outstanding at ending | shares | 200 | 200 |
Options, Exercisable at ending | shares | 200 | 200 |
Options, Unvested at ending | shares | 0 | 0 |
Weighted Average Exercise Price, Outstanding at beginning | $ 27.94 | $ 27.94 |
Weighted Average Exercise Price, Granted | 0 | 0 |
Weighted Average Exercise Price, Exercised | 15.36 | 15.36 |
Weighted Average Exercise Price, Forfeited or expired | 15.36 | 15.36 |
Weighted Average Exercise Price, Outstanding at ending | 34.55 | 34.55 |
Weighted Average Exercise Price, Exercisable at ending | 34.55 | 34.55 |
Weighted Average Exercise Price, Unvested at ending | 0 | 0 |
Weighted Average Grant Date Fair Value, Outstanding at beginning | 12.65 | 12.65 |
Weighted Average Grant Date Fair Value, Granted | 0 | 0 |
Weighted Average Grant Date Fair Value, Exercised | 10.42 | 10.42 |
Weighted Average Grant Date Fair Value, Forfeited or expired | 7.36 | 7.36 |
Weighted Average Grant Date Fair Value, Outstanding at ending | $ 15.43 | $ 15.43 |
Aggregate Intrinsic Value, Outstanding | $ | $ 395 | $ 395 |
Aggregate Intrinsic Value, Exercisable | $ | 395 | 395 |
Aggregate Intrinsic Value, Unvested | $ | $ 0 | $ 0 |
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, 2021 | Jun. 30, 2021 | |
Number of Shares | ||
Unvested, beginning balance | 501 | 416 |
Granted | 44 | 198 |
Vested | (71) | (121) |
Forfeited | (16) | (35) |
Unvested, ending balance | 458 | 458 |
Weighted Average Grant Date Fair Value | ||
Unvested, beginning balance | $ 33.25 | $ 28.20 |
Granted | 30.42 | 40.95 |
Vested | 26.94 | 27.42 |
Forfeited | 39.63 | 30.34 |
Unvested, ending balance | $ 33.76 | $ 33.76 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value of restricted stock awards vested | $ 2,285 | $ 1,260 | $ 4,460 | $ 3,071 |
Stock-Based Compensation - Re_3
Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock Unit (Detail) - Restricted Stock Units [Member] - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested, beginning balance | 45 | 45 |
Granted | 0 | 0 |
Vested | (30) | (30) |
Forfeited | (15) | (15) |
Unvested, ending balance | 0 | 0 |
Unvested, beginning balance | $ 15.36 | $ 15.36 |
Granted | 0 | 0 |
Vested | 15.36 | 15.36 |
Forfeited | 15.36 | 15.36 |
Unvested, ending balance | $ 0 | $ 0 |
Stock-Based Compensation - Re_4
Stock-Based Compensation - Reconciliation of Unvested Balance of Performance Restricted Stock Unit (Detail) - Performance Restricted Stock Units [Member] - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | ||
Number of Shares | |||
Unvested, beginning balance | 124 | 124 | |
Granted | 0 | 0 | |
Vested | [1] | (82) | (82) |
Forfeited | (42) | (42) | |
Unvested, ending balance | 0 | 0 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 11.08 | $ 11.08 | |
Granted | 0 | 0 | |
Vested | [1] | 15.54 | 15.54 |
Forfeited | 11.08 | 11.08 | |
Unvested, ending balance | $ 0 | $ 0 | |
[1] | Includes the impact of the modification of 21 PRSUs which were cancelled and reissued at a grant date fair value of $28.93 |
Stock-Based Compensation - Re_5
Stock-Based Compensation - Reconciliation of Unvested Balance of Performance Restricted Stock Unit (Detail)(Parenthetical) - Performance Restricted Stock Units [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock cancelled and reissued | shares | 21 |
Grant date fair value | $ / shares | $ 28.93 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | May 31, 2019 | |
Equity Distribution Agreement | ||||
Common Stock Capital Value Reserved For Future Issuance | $ 6,932,000 | $ 6,932,000 | ||
Common Stock [Member] | ||||
Issuance of common stock | 0 | 0 | 28,000 | |
Cash proceeds from sale of common stock | $ 574,000 | |||
Sale of common stock, sales agent commissions | 14,000 | |||
Stock issuance costs | $ 23,000 | |||
Common Stock [Member] | Equity Distribution Agreement With Average Price Of Twenty One Point Nine Two | ||||
Issuance of common stock | 28,000 | |||
Common stock price per share | $ 21.92 | $ 21.92 | ||
Cash proceeds from sale of common stock | $ 611,000 | |||
Common Stock [Member] | 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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic Earnings (Loss) per Common Share: | ||||
Loss to common shares — basic | $ (15,422) | $ (7,461) | $ (23,644) | $ (16,369) |
Weighted average common shares outstanding — basic | 16,430 | 12,108 | 16,382 | 12,073 |
Basic earnings (loss) per common share | $ (0.94) | $ (0.62) | $ (1.44) | $ (1.36) |
Diluted Earnings (Loss) per Common Share: | ||||
Net loss attributable to common shares — diluted | $ (15,422) | $ (7,461) | $ (23,644) | $ (16,369) |
Weighted average common shares outstanding — diluted | 16,430 | 12,108 | 16,382 | 12,073 |
Diluted earnings (loss) per common share | $ (0.94) | $ (0.62) | $ (1.44) | $ (1.36) |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 0 | 0 | 61 | 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 | 100 | 550 | 100 | 550 |
Trade Accounts Receivable - Sum
Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Receivable Net Current [Abstract] | ||
Trade accounts receivable, current | $ 4,615 | $ 3,932 |
Trade accounts receivable, long-term | 267 | 0 |
Allowance for doubtful accounts | (25) | (25) |
Trade accounts receivable, net | 4,857 | 3,907 |
Unpaid deferred revenue included in trade accounts receivable | $ 715 | $ 1,711 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
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) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Central Banks [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 47.00% | 69.00% |
Walmart Inc. [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 15.00% |
Trade Accounts Receivable - C_2
Trade Accounts Receivable - Customers Accounted for 10% or More of Trade Accounts Receivable, Net (Parenthetical) (Detail) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 6 Months Ended |
Jun. 30, 2021 | |
Minimum [Member] | |
Concentration Risk [Line Items] | |
Percentage of trade accounts receivable of major customers | 10.00% |
Walmart Inc. [Member] | |
Concentration Risk [Line Items] | |
Percentage of trade accounts receivable of major customers | 15.00% |
Walmart Inc. [Member] | Maximum [Member] | |
Concentration Risk [Line Items] | |
Percentage of trade accounts receivable of major customers | 100.00% |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Abstract] | ||
Office furniture and fixtures | $ 1,650 | $ 1,650 |
Software | 5,354 | 5,004 |
Equipment | 5,131 | 4,967 |
Leasehold improvements | 1,658 | 1,658 |
Gross property and equipment | 13,793 | 13,279 |
Less accumulated depreciation and amortization | (10,711) | (10,007) |
Property and equipment, net | $ 3,082 | $ 3,272 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
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, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized patent costs | $ 9,967 | $ 9,708 |
Intangible assets acquired: | ||
Gross intangible assets | 12,067 | 11,808 |
Accumulated amortization | (5,461) | (5,196) |
Intangibles, net | $ 6,606 | 6,612 |
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 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Jul. 31, 2015 | Jun. 30, 2021 | |
Lessee Operating Lease [Line Items] | ||
Remaining rent payments | $ 2,370 | |
Beaverton, Oregon [Member] | ||
Lessee Operating Lease [Line Items] | ||
Existence of option to extend | 0 | |
Option to extend operating lease | 0 | |
Option to extend operating lease, month and year | 2024-03 | |
Remaining rent payments | $ 2,305 |
Leases - Additional Details of
Leases - Additional Details of Leases Presented in Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right of use assets | $ 1,553 | $ 1,793 |
Lease liabilities, current | 703 | 663 |
Lease liabilities, long-term | $ 1,412 | $ 1,772 |
Weighted-average remaining life | 2 years 8 months 12 days | 3 years 2 months 12 days |
Weighted-average discount rate | 8.00% | 8.00% |
Leases - Additional Details o_2
Leases - Additional Details of Operating Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 253 | $ 253 | $ 510 | $ 516 |
Cash paid for operating leases | $ 294 | $ 296 | $ 591 | $ 623 |
Leases - Reconciliation of Undi
Leases - Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Remaining in 2021 | $ 423 |
2022 | 862 |
2023 | 867 |
2024 | 218 |
2025 | 0 |
Thereafter | 0 |
Total lease payments | 2,370 |
Imputed interest | (255) |
Total minimum lease payments | $ 2,115 |
Note Payables - Additional Info
Note Payables - Additional Information (Details) - USD ($) $ in Thousands | Sep. 15, 2020 | Apr. 16, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Aggregate principal loan amount | $ 5,032 | $ 5,032 | ||
Application of loan percentage to be applied to forgiveness of the note | 100.00% | |||
PPP [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal loan amount | $ 5,032 | |||
Term of loan | 2 years | |||
Interest rate on loan per annum | 1.00% | |||
Loan, payment terms | Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. |
Note Payables - Schedule of Not
Note Payables - Schedule of Note Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Notes Payable [Abstract] | ||
Note payable | $ 5,032 | $ 5,032 |
Accrued interest | 59 | 33 |
Total | 5,091 | 5,065 |
Note payable, current | 5,091 | 3,947 |
Note payable, long-term | 0 | 1,118 |
Total | $ 5,091 | $ 5,065 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | |||||
Deferred tax assets, valuation allowance | $ 61,152 | $ 61,152 | $ 55,639 | ||
Effective tax rate | 0.00% | 0.00% | |||
Change in valuation allowance | $ 5,513 | ||||
ASU No. 2016-09 [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance | $ 3,101 | $ 1,003 | $ 3,897 | $ 748 |