Digimarc (DMRC) 10-Q 15 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 08, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
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		16,931,632
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	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 25,155	$ 19,696
Marketable securities	19,037	58,032
Trade accounts receivable, net	4,110	3,907
Other current assets	2,550	2,197
Total current assets	50,852	83,832
Marketable securities	8,298	0
Property and equipment, net	2,962	3,272
Intangibles, net	6,614	6,612
Goodwill	1,114	1,114
Other assets	2,112	2,198
Total assets	71,952	97,028
Current liabilities:
Accounts payable and other accrued liabilities	4,236	2,827
Deferred revenue	2,146	3,002
Note payable, current	0	3,947
Total current liabilities	6,382	9,776
Lease liability and other long-term liabilities	2,685	2,295
Note payable, long-term	0	1,118
Total liabilities	9,067	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 September 30, 2021 and December 31, 2020)	50	50
Common stock (par value $0.001 per share, 50,000 authorized, 16,933 and 16,735 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)	17	17
Additional paid-in capital	260,585	255,024
Accumulated deficit	(197,767)	(171,252)
Total shareholders’ equity	62,885	83,839
Total liabilities and shareholders’ equity	$ 71,952	$ 97,028

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Sep. 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	16,933	16,735
Common stock, shares outstanding	16,933	16,735

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Total revenue	$ 6,417	$ 5,751	$ 19,395	$ 18,437
Cost of revenue:
Total cost of revenue	2,197	1,928	6,607	6,239
Gross profit	4,220	3,823	12,788	12,198
Operating expenses:
Sales and marketing	4,647	4,538	15,865	14,417
Research, development and engineering	4,586	4,662	12,930	13,303
General and administrative	2,943	3,009	15,611	9,457
Total operating expenses	12,176	12,209	44,406	37,177
Operating loss	(7,956)	(8,386)	(31,618)	(24,979)
Other income:
Gain on extinguishment of note payable	5,094	0	5,094	0
Other income (loss)	(2)	36	26	257
Other income, net	5,092	36	5,120	257
Loss before income taxes	(2,864)	(8,350)	(26,498)	(24,722)
Benefit (provision) for income taxes	(7)	(2)	(17)	1
Net loss	$ (2,871)	$ (8,352)	$ (26,515)	$ (24,721)
Earnings (loss) per common share:
Loss per common share — basic	$ (0.17)	$ (0.68)	$ (1.61)	$ (2.04)
Loss per common share — diluted	$ (0.17)	$ (0.68)	$ (1.61)	$ (2.04)
Weighted average common shares outstanding — basic	16,520	12,241	16,428	12,129
Weighted average common shares outstanding — diluted	16,520	12,241	16,428	12,129
Service [Member]
Revenue:
Total revenue	$ 3,932	$ 3,352	$ 11,507	$ 10,982
Cost of revenue:
Total cost of revenue	1,630	1,406	4,715	4,691
Subscription [Member]
Revenue:
Total revenue	2,485	2,399	7,888	7,455
Cost of revenue:
Total cost of revenue	$ 567	$ 522	$ 1,892	$ 1,548

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	38,603	$ 0	$ 3	38,600	0
Issuance of common stock, net of issuance costs, shares		0	2,704,000
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	242,000
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(7,000)
Purchase and retirement of common stock	(1,568)	$ 0	$ 0	(1,568)	0
Purchase and retirement of common stock, shares		0	(77,000)
Stock-based compensation	7,274	$ 0	$ 0	7,274	0
Net loss	(24,721)	0	0	0	(24,721)
Balance at Sep. 30, 2020	69,173	$ 50	$ 15	232,544	(163,436)
Balance, shares at Sep. 30, 2020		10,000	15,316,000
Balance at Jun. 30, 2020	37,277	$ 50	$ 13	192,298	(155,084)
Balance, shares at Jun. 30, 2020		10,000	12,659,000
Issuance of common stock, net of issuance costs	38,029	$ 0	$ 2	38,027	0
Issuance of common stock, net of issuance costs, shares		0	2,676,000
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	13,000
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(3,000)
Purchase and retirement of common stock	(448)	$ 0	$ 0	(448)	0
Purchase and retirement of common stock, shares		0	(29,000)
Stock-based compensation	2,667	$ 0	$ 0	2,667	0
Net loss	(8,352)	0	0	0	(8,352)
Balance at Sep. 30, 2020	69,173	$ 50	$ 15	232,544	(163,436)
Balance, shares at Sep. 30, 2020		10,000	15,316,000
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	$ 4,030	$ 0	$ 0	4,030	0
Exercise of stock options, shares	170,000	0	170,000
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	223,000
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	(51,000)
Purchase and retirement of common stock	(8,928)	$ 0	$ 0	(8,928)	0
Purchase and retirement of common stock, shares		0	(256,000)
Stock-based compensation	10,459	$ 0	$ 0	10,459	0
Net loss	(26,515)	0	0	0	(26,515)
Balance at Sep. 30, 2021	62,885	$ 50	$ 17	260,585	(197,767)
Balance, shares at Sep. 30, 2021		10,000	16,933,000
Balance at Jun. 30, 2021	65,242	$ 50	$ 17	260,071	(194,896)
Balance, shares at Jun. 30, 2021		10,000	16,943,000
Exercise of stock options	$ 2,955	$ 0	$ 0	2,955	0
Exercise of stock options, shares	100,000	0	100,000
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	25,000
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	(4,079)	$ 0	$ 0	(4,079)	0
Purchase and retirement of common stock, shares		0	(119,000)
Stock-based compensation	1,638	$ 0	$ 0	1,638	0
Net loss	(2,871)	0	0	0	(2,871)
Balance at Sep. 30, 2021	$ 62,885	$ 50	$ 17	$ 260,585	$ (197,767)
Balance, shares at Sep. 30, 2021		10,000	16,933,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (26,515)	$ (24,721)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	1,051	1,112
Amortization and write-off of intangibles	525	612
Amortization of right of use assets under operating leases	364	352
Amortization of net premiums and (discounts) on marketable securities	605	(39)
Gain on extinguishment of note payable	(5,032)	0
Stock-based compensation	10,348	7,149
Changes in operating assets and liabilities:
Trade accounts receivable	(427)	999
Other current assets	(353)	60
Other assets	(54)	(45)
Accounts payable and other accrued liabilities	1,630	146
Deferred revenue	(847)	(1,092)
Lease liability and other long-term liabilities	242	236
Net cash used in operating activities	(18,463)	(15,231)
Cash flows from investing activities:
Purchase of property and equipment	(797)	(694)
Capitalized patent costs	(475)	(478)
Maturities of marketable securities	72,141	30,598
Purchases of marketable securities	(42,049)	(22,149)
Net cash provided by investing activities	28,820	7,277
Cash flows from financing activities:
Issuance of common stock, net of issuance costs	0	38,603
Proceeds from note payable	0	5,032
Exercise of stock options	0	135
Purchase of common stock	(4,898)	(1,568)
Net cash provided by (used in) financing activities	(4,898)	42,202
Net increase in cash and cash equivalents	5,459	34,248
Cash and cash equivalents at beginning of period	19,696	11,213
Cash and cash equivalents at end of period	25,155	45,461
Supplemental disclosure of cash flow information:
Cash received (paid) for income taxes, net	(35)	12
Supplemental schedule of non-cash investing and financing activities:
Property and equipment and patent costs in accounts payable	(115)	72
Common stock issuance costs in accounts payable	0	241
Stock-based compensation capitalized to software and patent costs	111	125
Cashless exercise of stock options	4,030	0
Gain on extinguishment of note payable	$ (5,094)	$ 0

Description of Business and Sig

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 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. 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 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 current recognition thresholds and introduces the new current expected credit loss (“CECL”) model which will require entities to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that an entity expects to collect over the instrument’s contractual life. The new CECL model is based upon expected losses rather than incurred losses. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 . Early adoption is permitted. The Company does not expect the impact of the adoption of this standard to have a material impact on its financial condition, results of operations and disclosures .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 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: September 30, 2021 Level 1 Level 2 Level 3 Total Money market securities $ 22,472 $ — $ — $ 22,472 Commercial paper — 12,188 — 12,188 Corporate notes — 7,542 — 7,542 Pre-refunded municipals — 4,808 — 4,808 Federal agency notes — 3,798 — 3,798 Total $ 22,472 $ 28,336 $ — $ 50,808 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 September 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 $ 50,808 $ 42,510 $ 8,298 $ — $ — 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 $23,473 and $18,568 at September 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	9 Months Ended
	Sep. 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Government Service $ 3,279 $ 3,170 $ 10,386 $ 10,535 Subscription 300 300 900 900 Total Government 3,579 3,470 11,286 11,435 Commercial Service $ 653 $ 182 $ 1,121 $ 447 Subscription 2,185 2,099 6,988 6,555 Total Commercial 2,838 2,281 8,109 7,002 Total $ 6,417 $ 5,751 $ 19,395 $ 18,437 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: September 30, December 31, 2021 2020 Deferred revenue, current $ 2,146 $ 3,002 Deferred revenue, long-term 39 30 Total $ 2,185 $ 3,032 The Company recognized $2,471 of revenue during the nine months ended September 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 $16,383 and $17,921 as of September 30, 2021, and December 31, 2020, respectively.

Segment Information

Segment Information	9 Months Ended
	Sep. 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Domestic $ 1,678 $ 1,836 $ 5,040 $ 5,451 International (1) 4,739 3,915 14,355 12,986 Total $ 6,417 $ 5,751 $ 19,395 $ 18,437 ( 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Central Banks 55 % 60 % 58 % 62 % Walmart Inc. 13 % 14 % 12 % 13 % 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	9 Months Ended
	Sep. 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. Black Scholes option valuation inputs: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Stock price $ — $ 15.36 $ — $ 15.36 Expected life (years) — 3.25 — 3.25 Expected volatility — 70.91 % — 70.91 % Risk-free interest rate — 0.25 % — 0.25 % Expected dividend yield — 0 % — 0 % There were no stock options granted during the three and nine months ended September 30, 2021. 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 nine months ended September 30, 2021. 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. Monte Carlo valuation inputs: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Stock price $ — $ 16.49 $ — $ 16.49 Expected volatility — 72.50 % — 72.50 % Risk-free interest rate — 0.14 % — 0.14 % There were no PRSUs granted during the three and nine months ended September 30, 2021. 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 during the second quarter ended June 30, 2021. The Company incurred $3,990 of stock-based compensation expense, including the impact of the modified awards, during the second quarter ended June 30, 2021, associated with the Separation Agreement. Stock-Based Compensation Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Stock-based compensation: Cost of revenue $ 164 $ 216 $ 515 $ 602 Sales and marketing 369 591 2,359 1,674 Research, development and engineering 401 694 1,202 1,495 General and administrative 667 1,126 6,272 3,378 Stock-based compensation expense 1,601 2,627 10,348 7,149 Capitalized to software and patent costs 37 40 111 125 Total stock-based compensation $ 1,638 $ 2,667 $ 10,459 $ 7,274 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 September 30, December 31, 2021 2020 Total unrecognized compensation costs $ 11,797 $ 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 September 30, 2021, for stock option, restricted stock, RSU, and PRSU awards over weighted average periods through September 30, 2025, as follows: Stock Restricted Options Stock RSUs PRSUs Weighted average period — 1.38 years — — As of September 30, 2021, under the Company’s stock-based compensation plan, an additional 964 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 tables present the outstanding stock option activity: Weighted Weighted Average Average Aggregate Number of Exercise Grant Date Intrinsic Three months ended September 30, 2021: Options Price Fair Value Value Outstanding at June 30, 2021 200 $ 34.55 $ 15.43 Granted — $ — $ — Exercised (100 ) $ 29.55 $ 19.79 Forfeited or expired — $ — $ — Outstanding at September 30, 2021 100 $ 39.54 $ 22.23 $ — Weighted Weighted Average Average Aggregate Number of Exercise Grant Date Intrinsic Nine months ended September 30, 2021: Options Price Fair Value Value Outstanding at December 31, 2020 305 $ 27.94 $ 12.65 Granted — $ — $ — Exercised (170 ) $ 23.71 $ 15.93 Forfeited or expired (35 ) $ 15.36 $ 7.36 Outstanding at September 30, 2021 100 $ 39.54 $ 22.23 $ — Exercisable at September 30, 2021 100 $ 39.54 $ — The aggregate intrinsic value is based on the closing price of $34.44 per share of Digimarc common stock on September 30, 2021, which would have been received by the optionees had all of the options with exercise prices less than $34.44 per share been exercised on that date. Restricted Stock Activity The following tables present the unvested restricted stock activity: Weighted Average Number of Grant Date Three months ended September 30, 2021: Shares Fair Value Unvested balance, June 30, 2021 458 $ 33.76 Granted 25 $ 25.83 Vested (78 ) $ 32.58 Forfeited (16 ) $ 39.21 Unvested balance, September 30, 2021 389 $ 33.26 Weighted Average Number of Grant Date Nine months ended September 30, 2021: Shares Fair Value Unvested balance, December 31, 2020 416 $ 28.20 Granted 223 $ 39.26 Vested (199 ) $ 29.43 Forfeited (51 ) $ 33.13 Unvested balance, September 30, 2021 389 $ 33.26 The fair value of vested restricted stock awards is as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Fair value of restricted stock awards vested $ 2,188 $ 1,168 $ 6,648 $ 4,239 Restricted Stock Units Activity The following table presents the unvested RSU activity: Weighted Average Number of Grant Date Nine months ended September 30, 2021: Units Fair Value Unvested balance, December 31, 2020 45 $ 15.36 Granted — $ — Vested (30 ) $ 15.36 Forfeited (15 ) $ 15.36 Unvested balance, September 30, 2021 — $ — There was no RSU activity for the three months ended September 30, 2021. The fair value of RSUs vested was $1,050 for the nine months ended September 30, 2021. Performance Restricted Stock Units Activity The following table presents the unvested PRSU activity: Weighted Average Number of Grant Date Nine months ended September 30, 2021: Units Fair Value Unvested balance, December 31, 2020 124 $ 11.08 Granted — $ — Vested (1) (82 ) $ 15.54 Forfeited (42 ) $ 11.08 Unvested balance, September 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. There was no PRSU activity for the three months ended September 30, 2021. The fair value of PRSUs vested was $2,886 for the nine months ended September 30, 2021.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Shareholders' Equity	6. Shareholders’ Equity On September 29, 2020, the Company entered into a Subscription Agreement with TCM Strategic Partners L.P. to issue and sell 2,542 shares of its common stock in a private placement at a price of $14.37 per share. The closing of the sale of common stock occurred the same day. The offering was made without an underwriter or placement agent. The Company received $36,530 of cash proceeds and paid $190 in stock issuance costs. On October 1, 2020, the Company also issued and sold 17 shares of its Series B Convertible Preferred Stock, par value $0.001 per share, for $16,970 of cash proceeds under the same Subscription Agreement and paid $84 in stock issuance costs. On December 10, 2020, the Company held a Special Meeting of Shareholders that approved the issuance of 1,198 shares of the Company’s common stock upon the conversion of the Series B Convertible Preferred Stock, fully paid and non-assessable shares of common stock at a conversion price equal to $14.37 per share. 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 nine months ended September 30, 2021. For the nine months ended September 30, 2020, the Company sold 162 shares at an average price of $16.80 under the Equity Distribution Agreement totaling $2,718 of cash proceeds, less $61 of commissions and $394 of stock issuance costs, for net cash proceeds of $2,263. As of September 30, 2021, $6,932 remained available for future issuance under the Equity Distribution Agreement.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Net loss attributable to common shares — basic $ (2,871 ) $ (8,352 ) $ (26,515 ) $ (24,721 ) Weighted average common shares outstanding — basic 16,520 12,241 16,428 12,129 Basic earnings (loss) per common share $ (0.17 ) $ (0.68 ) $ (1.61 ) $ (2.04 ) Diluted Earnings (Loss) per Common Share: Net loss attributable to common shares — diluted $ (2,871 ) $ (8,352 ) $ (26,515 ) $ (24,721 ) Weighted average common shares outstanding — diluted 16,520 12,241 16,428 12,129 Diluted earnings (loss) per common share $ (0.17 ) $ (0.68 ) $ (1.61 ) $ (2.04 ) 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Anti-dilutive shares due to: Exercise prices higher than the average market price 100 550 100 550 Net loss — — 41 —

Trade Accounts Receivable

Trade Accounts Receivable	9 Months Ended
	Sep. 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. September 30, December 31, 2021 2020 Trade accounts receivable, current $ 4,135 $ 3,932 Trade accounts receivable, long-term 224 — Allowance for doubtful accounts (25 ) (25 ) Trade accounts receivable, net $ 4,334 $ 3,907 Unpaid deferred revenue included in trade accounts receivable $ 590 $ 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: September 30, December 31, 2021 2020 Central Banks 51 % 69 % Practical Methods 11 % 0 %

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 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. September 30, December 31, 2021 2020 Office furniture and fixtures $ 1,648 $ 1,650 Software 5,525 5,004 Equipment 5,167 4,967 Leasehold improvements 1,658 1,658 Gross property and equipment 13,998 13,279 Less accumulated depreciation and amortization (11,036 ) (10,007 ) Property and equipment, net $ 2,962 $ 3,272

Intangibles

Intangibles	9 Months Ended
	Sep. 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 nine months ended September 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 September 30, December 31, (years) 2021 2020 Capitalized patent costs 17-20 $ 10,082 $ 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 12,182 11,808 Accumulated amortization (5,568 ) (5,196 ) Intangibles, net $ 6,614 $ 6,612

Leases

Leases	9 Months Ended
	Sep. 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 September 30, 2021, totaling $2,104, 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: September 30, December 31, 2021 2020 Right of use assets $ 1,429 $ 1,793 Lease liabilities, current $ 723 $ 663 Lease liabilities, long-term $ 1,224 $ 1,772 Weighted-average remaining life 2.5 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Operating lease expense $ 247 $ 270 $ 757 $ 786 Cash paid for operating leases $ 289 $ 296 $ 880 $ 919 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 September 30, 2021: Cash Payment Year ending December 31: Obligations Remaining in 2021 $ 214 2022 862 2023 867 2024 218 2025 — Thereafter — Total lease payments 2,161 Imputed interest (214 ) Total minimum lease payments $ 1,947

Note Payable

Note Payable	9 Months Ended
	Sep. 30, 2021
Notes Payable [Abstract]
Note Payable	12. Note Payable 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. 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. On September 29, 2021, the Company received confirmation from the Lender that the Note had been 100% forgiven with respect to both the principal of $5,032 and accrued interest of $62, and that the funds had been received from the SBA to pay off the Note. The SBA reserves the right to audit any PPP loan. The Company recognized a $5,094 gain on extinguishment of the Note within other income in the Consolidated Statements of Operations for the three and nine month periods ended September 30, 2021

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The provision for income taxes for the three and nine month periods ended September 30, 2021 and 2020 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for each of the three and nine month periods ended September 30, 2021 and 2020 was 0%. The valuation allowance against net deferred tax assets as of September 30, 2021, was $61,993, an increase of $6,354 from $55,639 as of December 31, 2020. Excess tax deficiency of $1,659 and excess tax benefit $2,238 were recognized in the provision for income taxes for the three and nine months ended September 30, 2021, respectively, which were offset by $1,659 and $2,238 of valuation allowance, respectively. Excess tax deficiencies of $1,011 and $1,759 were recognized in the provision for income taxes for the three and nine months ended September 30, 2020, respectively, which were offset by $1,011 and $1,759, of valuation allowance, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Event	15. Subsequent Event On November 15, 2021 (the “Agreement Date”), the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) by and among the Company, Evrythng Limited, a company registered in England (“Evrythng”), the sellers party thereto (such sellers, together with any other shareholders of Evrythng that become party to the Purchase Agreement after the Agreement Date, the “Sellers”), and Fortis Advisors LLC, as the Representative of the Sellers. Upon the closing of the Purchase Agreement (the “Closing”), the Company will acquire all of Evrythng’s outstanding share capital for the consideration described below and Evrythng will become a wholly owned subsidiary of the Company (the “Acquisition”). Upon the Closing, the Company will acquire all outstanding shares of Evrythng’s share capital held by the Sellers for (i) aggregate initial consideration of $50,000, subject to adjustments set forth in the Purchase Agreement, in the form of shares of Common Stock of the Company, par value $0.001 per share (“Company Common Stock”), and warrants to purchase shares of Company Common Stock (the “Company Warrants”) (collectively, the “Closing Consideration”), and (ii) subject to certain conditions, an additional number of shares of Company Common Stock (the “Second Payment Consideration”) as described below. The number of shares to be issued as Closing Consideration will be calculated based on a fixed value of $47.4823 per share (the “First Payment Stock Price”), which is the intraday volume-weighted average price of Company Common Stock as reported on the Nasdaq Global Market for the 20 consecutive trading days ending on (and including) the last trading day before the Agreement Date, as such daily volume-weighted average sales price per share is reported by Bloomberg L.P. The Purchase Agreement provides that Sellers that are U.S. persons and not accredited investors may, at the Company’s option, receive cash as consideration in lieu of shares of Company Common Stock. The Closing Consideration is subject to customary adjustments for cash, indebtedness, working capital and transaction expenses. The Company estimates that it will fund approximately $7,900 at Closing for the repayment of Evrythng’s outstanding indebtedness, transaction expenses and certain other liabilities, and the payment of cash consideration in lieu of shares as described above, net of Evrythng’s cash on hand (“Closing Costs”). The Company Warrants issuable at Closing will be exercisable for a number of shares of Company Common Stock (the “Warrant Shares”) equal to approximately the quotient of (i) 1.3 times (1.3x) the Closing Costs, divided by divided by At the Closing, the Company will assume all vested options to purchase Evrythng capital shares that are held by U.S. persons that are not accredited investors. U.S. employees of Evrythng that are accredited investors and that hold vested options to purchase Evrythng capital shares will be given the opportunity to elect to have their options cancelled and exchanged for Company Common Stock. No other vested options of Evrythng will be assumed or exchanged. At the Closing, each unvested option to purchase Evrythng capital shares will be cancelled. Pursuant to the Purchase Agreement, the Company has agreed to grant replacement equity awards having substantially equivalent economic value and vesting terms as the cancelled unvested options, within 45 days following the closing date, to the holders of unvested Evrythng options that remain employed by Evrythng at the time of grant. The Second Payment Consideration (if any) will be calculated in part based on whether Evrythng achieves annual recurring revenue, as defined in the Purchase Agreement, of $10,000 as of February 28, 2022 (the “Product ARR Milestone” and any amount by which Evrythng’s annual recurring revenue as of such date is less than $10,000 is referred to as the “Product ARR Shortfall”). The Second Payment Consideration (if any) will be issuable to the Sellers as follows: (a) divided by (b) if the Second Payment Stock Price is equal to or less than the First Payment Stock Price and the Product ARR Milestone is not achieved, a number of shares of Company Common Stock equal to ( i ) (A) $ 50,000 , minus (B) ten times (10x) the Product ARR Shortfall, divided by (ii) the First Payment Stock Price; (c) (d) (e) if the Second Payment Stock Price is greater than the First Payment Stock Price by two times (2.0x) or more, no consideration (i.e., there would be no Second Payment Consideration in this scenario, regardless of With respect to Evrythng’s potential achievement of the Product ARR Milestone, the Company has agreed, among other things, to operate the Evrythng business in good faith in order to support the achievement of the Product ARR Milestone, and not to take any action with the purpose of preventing the achievement of the Product ARR Milestone. In addition, in connection with the Purchase Agreement, the Company is entering into a loan agreement with Evrythng (the “Bridge Loan Agreement”). Under the terms of the Bridge Loan Agreement, the Company has agreed to lend to Evrythng up to $2,000. Loans under the Bridge Loan Agreement may be requested by Evrythng, in minimum draw amounts of at least $250, until the earlier of (i) January 3, 2022, or (ii) the termination of the Purchase Agreement. Interest under the Bridge Loan Agreement will accrue at a rate of 1.00% per annum, provided that if the Purchase Agreement is terminated the interest rate will increase to 8.00% per annum, retroactive to the date of the Bridge Loan Agreement. The maturity date of the loans made under the Bridge Loan Agreement is November 14, 2022. The Purchase Agreement contains customary representations, warranties and covenants by the Company, the Sellers and Evrythng. A portion of the aggregate consideration will be held back by the Company to secure any post-closing adjustments to the Closing Consideration and the indemnification obligations of the Sellers. The Company will obtain a representation and warranty insurance policy that covers certain representations and warranties made by the Sellers in the Purchase Agreement, subject to certain limitations and exclusions. The Closing is subject to various closing conditions, including, but not limited to, (a) the execution and delivery of the Purchase Agreement or a joinder thereto by each shareholder of Evrythng (or the valid transfer of any such shareholder’s shares effected through exercise of the drag-along provisions in Evrythng’s articles of association), (b) the execution and delivery of the Purchase Agreement or a joinder thereto by Evrythng’s convertible noteholders, pursuant to which the convertible noteholders would agree to accept shares of Company Common Stock in lieu of cash repayment, (c) the absence of any law, order or other legal restraint that is in effect and has the effect of making the Acquisition illegal or otherwise prohibits or prevents consummation of the Acquisition, (d) the shares of Company Common Stock to be issued in the Acquisition being approved for listing on the Nasdaq Global Market, (e) certain key employees of Evrythng remaining employed by Evrythng as of immediately prior to the Closing and no more than 20% of the total number of employees of Evrythng as of the Agreement Date having terminated their employment prior to the Closing, (f) the restrictive covenant agreements entered into by certain key employees of Evrythng on the Agreement Date not having been revoked or repudiated prior to the Closing, (g) Closing Costs not exceeding $8,000, (h) the accuracy of certain representations and warranties (subject to certain materiality exceptions) of certain of the Sellers and the Company contained in the Purchase Agreement and the compliance in all material respects by each party with the covenants contained in the Purchase Agreement, and (i) the absence of a material adverse effect with respect to each of Evrythng and the Company. The Closing is expected to occur in January 2022. Under the terms of the Purchase Agreement, the Company has agreed to file a Registration Statement on Form S-3 covering the resale of the shares of Company Common Stock to be issued as consideration to the Sellers (the “Resale Registration Statement”). The Company intends to issue the shares of Company Common Stock and the Company Warrants described herein in reliance upon the exemptions from registration afforded by (i) Section 4(a)(2) and Rule 506 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and (ii) Regulation S promulgated under the Securities Act. The foregoing summary of the Purchase Agreement and the transactions contemplated thereby do not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Purchase Agreement, which will be filed as an exhibit on the earlier to be filed following the Closing of (i) the Company’s Annual Report on Form 10-K for the year ending December 31, 2021 and (ii) the Resale Registration Statement.

Description of Business and S_2

Description of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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.
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 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 current recognition thresholds and introduces the new current expected credit loss (“CECL”) model which will require entities to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that an entity expects to collect over the instrument’s contractual life. The new CECL model is based upon expected losses rather than incurred losses. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 . Early adoption is permitted. The Company does not expect the impact of the adoption of this standard to have a material impact on its financial condition, results of operations and disclosures .

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 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: September 30, 2021 Level 1 Level 2 Level 3 Total Money market securities $ 22,472 $ — $ — $ 22,472 Commercial paper — 12,188 — 12,188 Corporate notes — 7,542 — 7,542 Pre-refunded municipals — 4,808 — 4,808 Federal agency notes — 3,798 — 3,798 Total $ 22,472 $ 28,336 $ — $ 50,808 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 September 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 $ 50,808 $ 42,510 $ 8,298 $ — $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Government Service $ 3,279 $ 3,170 $ 10,386 $ 10,535 Subscription 300 300 900 900 Total Government 3,579 3,470 11,286 11,435 Commercial Service $ 653 $ 182 $ 1,121 $ 447 Subscription 2,185 2,099 6,988 6,555 Total Commercial 2,838 2,281 8,109 7,002 Total $ 6,417 $ 5,751 $ 19,395 $ 18,437
Schedule of Contract Liabilities from Contracts with Customers	The following table provides information about contract liabilities from contracts with customers: September 30, December 31, 2021 2020 Deferred revenue, current $ 2,146 $ 3,002 Deferred revenue, long-term 39 30 Total $ 2,185 $ 3,032

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Domestic $ 1,678 $ 1,836 $ 5,040 $ 5,451 International (1) 4,739 3,915 14,355 12,986 Total $ 6,417 $ 5,751 $ 19,395 $ 18,437 ( 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Central Banks 55 % 60 % 58 % 62 % Walmart Inc. 13 % 14 % 12 % 13 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocation of Stock-Based Compensation	Stock-Based Compensation Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Stock-based compensation: Cost of revenue $ 164 $ 216 $ 515 $ 602 Sales and marketing 369 591 2,359 1,674 Research, development and engineering 401 694 1,202 1,495 General and administrative 667 1,126 6,272 3,378 Stock-based compensation expense 1,601 2,627 10,348 7,149 Capitalized to software and patent costs 37 40 111 125 Total stock-based compensation $ 1,638 $ 2,667 $ 10,459 $ 7,274
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 September 30, December 31, 2021 2020 Total unrecognized compensation costs $ 11,797 $ 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 September 30, 2021, for stock option, restricted stock, RSU, and PRSU awards over weighted average periods through September 30, 2025, as follows: Stock Restricted Options Stock RSUs PRSUs Weighted average period — 1.38 years — —
Schedule of Outstanding Stock Option Activity	The following tables present the outstanding stock option activity: Weighted Weighted Average Average Aggregate Number of Exercise Grant Date Intrinsic Three months ended September 30, 2021: Options Price Fair Value Value Outstanding at June 30, 2021 200 $ 34.55 $ 15.43 Granted — $ — $ — Exercised (100 ) $ 29.55 $ 19.79 Forfeited or expired — $ — $ — Outstanding at September 30, 2021 100 $ 39.54 $ 22.23 $ — Weighted Weighted Average Average Aggregate Number of Exercise Grant Date Intrinsic Nine months ended September 30, 2021: Options Price Fair Value Value Outstanding at December 31, 2020 305 $ 27.94 $ 12.65 Granted — $ — $ — Exercised (170 ) $ 23.71 $ 15.93 Forfeited or expired (35 ) $ 15.36 $ 7.36 Outstanding at September 30, 2021 100 $ 39.54 $ 22.23 $ — Exercisable at September 30, 2021 100 $ 39.54 $ —
Schedule of Unvested Restricted Stock Activity	The following tables present the unvested restricted stock activity: Weighted Average Number of Grant Date Three months ended September 30, 2021: Shares Fair Value Unvested balance, June 30, 2021 458 $ 33.76 Granted 25 $ 25.83 Vested (78 ) $ 32.58 Forfeited (16 ) $ 39.21 Unvested balance, September 30, 2021 389 $ 33.26 Weighted Average Number of Grant Date Nine months ended September 30, 2021: Shares Fair Value Unvested balance, December 31, 2020 416 $ 28.20 Granted 223 $ 39.26 Vested (199 ) $ 29.43 Forfeited (51 ) $ 33.13 Unvested balance, September 30, 2021 389 $ 33.26
Fair Value of Vested Restricted Stock Awards	The fair value of vested restricted stock awards is as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Fair value of restricted stock awards vested $ 2,188 $ 1,168 $ 6,648 $ 4,239
Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Schedule of Unvested Restricted Stock Unit	The following table presents the unvested RSU activity: Weighted Average Number of Grant Date Nine months ended September 30, 2021: Units Fair Value Unvested balance, December 31, 2020 45 $ 15.36 Granted — $ — Vested (30 ) $ 15.36 Forfeited (15 ) $ 15.36 Unvested balance, September 30, 2021 — $ —
Performance Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Schedule of Unvested Performance Restricted Stock Unit	The following table presents the unvested PRSU activity: Weighted Average Number of Grant Date Nine months ended September 30, 2021: Units Fair Value Unvested balance, December 31, 2020 124 $ 11.08 Granted — $ — Vested (1) (82 ) $ 15.54 Forfeited (42 ) $ 11.08 Unvested balance, September 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.
Black Scholes Option Valuation [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Option Valuation Assumptions	Black Scholes option valuation inputs: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Stock price $ — $ 15.36 $ — $ 15.36 Expected life (years) — 3.25 — 3.25 Expected volatility — 70.91 % — 70.91 % Risk-free interest rate — 0.25 % — 0.25 % Expected dividend yield — 0 % — 0 %
Monte Carlo Valuation [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Option Valuation Assumptions	Monte Carlo valuation inputs: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Stock price $ — $ 16.49 $ — $ 16.49 Expected volatility — 72.50 % — 72.50 % Risk-free interest rate — 0.14 % — 0.14 %

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Net loss attributable to common shares — basic $ (2,871 ) $ (8,352 ) $ (26,515 ) $ (24,721 ) Weighted average common shares outstanding — basic 16,520 12,241 16,428 12,129 Basic earnings (loss) per common share $ (0.17 ) $ (0.68 ) $ (1.61 ) $ (2.04 ) Diluted Earnings (Loss) per Common Share: Net loss attributable to common shares — diluted $ (2,871 ) $ (8,352 ) $ (26,515 ) $ (24,721 ) Weighted average common shares outstanding — diluted 16,520 12,241 16,428 12,129 Diluted earnings (loss) per common share $ (0.17 ) $ (0.68 ) $ (1.61 ) $ (2.04 )
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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Anti-dilutive shares due to: Exercise prices higher than the average market price 100 550 100 550 Net loss — — 41 —

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the contractual or invoiced amount. September 30, December 31, 2021 2020 Trade accounts receivable, current $ 4,135 $ 3,932 Trade accounts receivable, long-term 224 — Allowance for doubtful accounts (25 ) (25 ) Trade accounts receivable, net $ 4,334 $ 3,907 Unpaid deferred revenue included in trade accounts receivable $ 590 $ 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: September 30, December 31, 2021 2020 Central Banks 51 % 69 % Practical Methods 11 % 0 %

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 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. September 30, December 31, 2021 2020 Office furniture and fixtures $ 1,648 $ 1,650 Software 5,525 5,004 Equipment 5,167 4,967 Leasehold improvements 1,658 1,658 Gross property and equipment 13,998 13,279 Less accumulated depreciation and amortization (11,036 ) (10,007 ) Property and equipment, net $ 2,962 $ 3,272

Intangibles (Tables)

Intangibles (Tables)	9 Months Ended
	Sep. 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 September 30, December 31, (years) 2021 2020 Capitalized patent costs 17-20 $ 10,082 $ 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 12,182 11,808 Accumulated amortization (5,568 ) (5,196 ) Intangibles, net $ 6,614 $ 6,612

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 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: September 30, December 31, 2021 2020 Right of use assets $ 1,429 $ 1,793 Lease liabilities, current $ 723 $ 663 Lease liabilities, long-term $ 1,224 $ 1,772 Weighted-average remaining life 2.5 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 Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Operating lease expense $ 247 $ 270 $ 757 $ 786 Cash paid for operating leases $ 289 $ 296 $ 880 $ 919
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 September 30, 2021: Cash Payment Year ending December 31: Obligations Remaining in 2021 $ 214 2022 862 2023 867 2024 218 2025 — Thereafter — Total lease payments 2,161 Imputed interest (214 ) Total minimum lease payments $ 1,947

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 50,808
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	50,808	$ 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	22,472	10,988
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	12,188	36,478
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	7,542	2,437
Fair Value, Measurements, Recurring [Member] | Pre-refunded Municipals [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	4,808	26,697
Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,798
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	22,472	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	22,472	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] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | 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] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	28,336	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	12,188	36,478
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	7,542	2,437
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	4,808	26,697
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,798
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] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | 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] | Federal Agency Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Sep. 30, 2021USD ($)
Fair Value Disclosures [Abstract]
Cash equivalents and marketable securities, Maturities by Period, Total	$ 50,808
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year	42,510
Cash equivalents and marketable securities, Maturities by Period, 1-5 years	8,298
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	9 Months Ended
	Sep. 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	$ 23,473	$ 18,568

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 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	$ 2,471
Aggregate amount of transaction price from contractual obligations	$ 16,383	$ 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation Of Revenue [Line Items]
Total	$ 6,417	$ 5,751	$ 19,395	$ 18,437
Service [Member]
Disaggregation Of Revenue [Line Items]
Total	3,932	3,352	11,507	10,982
Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	2,485	2,399	7,888	7,455
Government [Member]
Disaggregation Of Revenue [Line Items]
Total	3,579	3,470	11,286	11,435
Government [Member] | Service [Member]
Disaggregation Of Revenue [Line Items]
Total	3,279	3,170	10,386	10,535
Government [Member] | Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	300	300	900	900
Commercial [Member]
Disaggregation Of Revenue [Line Items]
Total	2,838	2,281	8,109	7,002
Commercial [Member] | Service [Member]
Disaggregation Of Revenue [Line Items]
Total	653	182	1,121	447
Commercial [Member] | Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	$ 2,185	$ 2,099	$ 6,988	$ 6,555

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Revenue Recognition [Abstract]
Deferred revenue, current	$ 2,146	$ 3,002
Deferred revenue, long-term	39	30
Total	$ 2,185	$ 3,032

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 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		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue		$ 6,417	$ 5,751	$ 19,395	$ 18,437
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue		1,678	1,836	5,040	5,451
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	[1]	$ 4,739	$ 3,915	$ 14,355	$ 12,986
[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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	55.00%	60.00%	58.00%	62.00%
Walmart Inc. [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	13.00%	14.00%	12.00%	13.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 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	$ 1,601		$ 2,627	$ 10,348	$ 7,149
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
Number of options vested.		137,000
Number of non-vested options forfeited.		35,000
Stock-based compensation plans, number of additional shares authorized for future grants				964,000
Stock price	$ 34.44			$ 34.44
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
Number of options vested.		30,000
Number of non-vested options forfeited.		15,000
Fair value				$ 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
Number of options vested.		82,000
Number of non-vested options forfeited.		42,000
Stock cancelled and reissued		21,000		21,000
Stock price	$ 0		$ 16.49	$ 0	$ 16.49
Fair value				$ 2,886
Separation Agreement [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense		$ 3,990

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Valuation Assumptions (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 0		$ 0
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price		$ 15.36		$ 15.36
Expected life (years)		3 years 3 months		3 years 3 months
Expected volatility		70.91%		70.91%
Risk-free interest rate		0.25%		0.25%
Expected dividend yield		0.00%		0.00%

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance Restricted Stock Unit Valuation Assumptions (Detail) - Performance Restricted Stock Units [Member] - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 0	$ 16.49	$ 0	$ 16.49
Expected volatility	0.00%	72.50%	0.00%	72.50%
Risk-free interest rate	0.00%	0.14%	0.00%	0.14%

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,601	$ 2,627	$ 10,348	$ 7,149
Capitalized to software and patent costs	37	40	111	125
Total stock-based compensation	1,638	2,667	10,459	7,274
Cost of Revenue [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	164	216	515	602
Sales and Marketing [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	369	591	2,359	1,674
Research, Development and Engineering [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	401	694	1,202	1,495
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 667	$ 1,126	$ 6,272	$ 3,378

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total unrecognized compensation costs	$ 11,797	$ 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)	9 Months Ended
	Sep. 30, 2021
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period	1 year 4 months 17 days

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Outstanding Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares	Sep. 30, 2021USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at beginning | shares	200,000	305,000
Options, Granted | shares	0	0
Options, Exercised | shares	(100,000)	(170,000)
Options, Forfeited or expired | shares	0	(35,000)
Options, Outstanding at ending | shares	100,000	100,000
Weighted Average Exercise Price, Outstanding at beginning	$ 34.55	$ 27.94
Weighted Average Exercise Price, Granted	0	0
Weighted Average Exercise Price, Exercised	29.55	23.71
Weighted Average Exercise Price, Forfeited or expired	0	15.36
Weighted Average Exercise Price, Outstanding at ending	39.54	39.54
Weighted Average Grant Date Fair Value, Outstanding at beginning	15.43	12.65
Weighted Average Grant Date Fair Value, Granted	0	0
Weighted Average Grant Date Fair Value, Exercised	19.79	15.93
Weighted Average Grant Date Fair Value, Forfeited or expired	0	7.36
Weighted Average Grant Date Fair Value, Outstanding at ending	$ 22.23	$ 22.23
Aggregate Intrinsic Value, Outstanding | $	$ 0	$ 0
Options, Exercisable at ending | shares	100,000	100,000
Weighted Average Exercise Price, Exercisable at ending	$ 39.54	$ 39.54
Aggregate Intrinsic Value, Exercisable | $	$ 0	$ 0

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Unvested Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Number of Shares
Unvested, beginning balance	458	416
Granted	25	223
Vested	(78)	(199)
Forfeited	(16)	(51)
Unvested, ending balance	389	389
Weighted Average Grant Date Fair Value
Unvested, beginning balance	$ 33.76	$ 28.20
Granted	25.83	39.26
Vested	32.58	29.43
Forfeited	39.21	33.13
Unvested, ending balance	$ 33.26	$ 33.26

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Vested Restricted Stock Awards (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 2,188	$ 1,168	$ 6,648	$ 4,239

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Unvested Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested, beginning balance | shares	45
Granted | shares	0
Vested | shares	(30)
Forfeited | shares	(15)
Unvested, ending balance | shares	0
Unvested, beginning balance | $ / shares	$ 15.36
Granted | $ / shares	0
Vested | $ / shares	15.36
Forfeited | $ / shares	15.36
Unvested, ending balance | $ / shares	$ 0

Stock-Based Compensation - Sc_4

Stock-Based Compensation - Schedule of Unvested Performance Restricted Stock Unit (Detail) - Performance Restricted Stock Units [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of Shares
Unvested, beginning balance | shares	124
Granted | shares	0
Vested | shares	(82)	[1]
Forfeited | shares	(42)
Unvested, ending balance | shares	0
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 11.08
Granted | $ / shares	0
Vested | $ / shares	15.54	[1]
Forfeited | $ / shares	11.08
Unvested, ending balance | $ / shares	$ 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 - Sc_5

Stock-Based Compensation - Schedule of Unvested Performance Restricted Stock Unit (Detail))(Parenthetical) - Performance Restricted Stock Units [Member] - $ / shares shares in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock cancelled and reissued	21	21
Grant date fair value		$ 28.93

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	Dec. 10, 2020	Sep. 30, 2020	Sep. 29, 2020	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	May 31, 2019
Common stock, shares issued					16,933,000		16,735,000
Preferred stock, shares issued					10,000		10,000
Preferred stock, par value					$ 0.001		$ 0.001
Equity Distribution Agreement
Common Stock Capital Value Reserved For Future Issuance					$ 6,932,000
Series B convertible Preferred Stock [Member]
Stock issuance costs		$ 84,000
Preferred stock, shares issued		17,000		17,000		17,000
Preferred stock, par value		$ 0.001		$ 0.001		$ 0.001
Proceeds from issuance of preferred stock		$ 16,970,000
Common stock issued upon conversion of preferred stock	1,198,000
Preferred stock conversion price	$ 14.37
Common Stock [Member]
Cash proceeds from sale of common stock			$ 36,530,000			$ 2,263,000
Stock issuance costs			$ 190,000			$ 394,000
Issuance of common stock				2,676,000	0	2,704,000
Sale of common stock, sales agent commissions						$ 61,000
Common Stock [Member] | Equity Distribution Agreement With Average Price Of 16.80 [Member]
Common stock price per share		$ 16.80		$ 16.80		$ 16.80
Cash proceeds from sale of common stock						$ 2,718,000
Issuance of common stock						162,000
Common Stock [Member] | Maximum [Member]
Aggregate offering price of common stock								$ 30,000,000
Common Stock [Member] | Private Placement [Member]
Common stock, shares issued			2,542,000
Common stock price per share			$ 14.37

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Basic Earnings (Loss) per Common Share:
Net loss attributable to common shares — basic	$ (2,871)	$ (8,352)	$ (26,515)	$ (24,721)
Weighted average common shares outstanding — basic	16,520	12,241	16,428	12,129
Basic earnings (loss) per common share	$ (0.17)	$ (0.68)	$ (1.61)	$ (2.04)
Diluted Earnings (Loss) per Common Share:
Net loss attributable to common shares — diluted	$ (2,871)	$ (8,352)	$ (26,515)	$ (24,721)
Weighted average common shares outstanding — diluted	16,520	12,241	16,428	12,129
Diluted earnings (loss) per common share	$ (0.17)	$ (0.68)	$ (1.61)	$ (2.04)

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 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	41	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	Sep. 30, 2021	Dec. 31, 2020
Accounts Receivable Net Current [Abstract]
Trade accounts receivable, current	$ 4,135	$ 3,932
Trade accounts receivable, long-term	224	0
Allowance for doubtful accounts	(25)	(25)
Trade accounts receivable, net	4,334	3,907
Unpaid deferred revenue included in trade accounts receivable	$ 590	$ 1,711

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	9 Months Ended
	Sep. 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]	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	51.00%	69.00%
Practical Methods [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	11.00%	0.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	9 Months Ended
	Sep. 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	Sep. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Abstract]
Office furniture and fixtures	$ 1,648	$ 1,650
Software	5,525	5,004
Equipment	5,167	4,967
Leasehold improvements	1,658	1,658
Gross property and equipment	13,998	13,279
Less accumulated depreciation and amortization	(11,036)	(10,007)
Property and equipment, net	$ 2,962	$ 3,272

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 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	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 10,082	$ 9,708
Intangible assets acquired:
Gross intangible assets	12,182	11,808
Accumulated amortization	(5,568)	(5,196)
Intangibles, net	$ 6,614	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	9 Months Ended
	Jul. 31, 2015	Sep. 30, 2021
Lessee Operating Lease [Line Items]
Remaining rent payments		$ 2,161
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		$ 2,104

Leases - Additional Details of

Leases - Additional Details of Leases Presented in Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Right of use assets	$ 1,429	$ 1,793
Lease liabilities, current	723	663
Lease liabilities, long-term	$ 1,224	$ 1,772
Weighted-average remaining life	2 years 6 months	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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating lease expense	$ 247	$ 270	$ 757	$ 786
Cash paid for operating leases	$ 289	$ 296	$ 880	$ 919

Leases - Reconciliation of Undi

Leases - Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability (Detail) $ in Thousands	Sep. 30, 2021USD ($)
Leases [Abstract]
Remaining in 2021	$ 214
2022	862
2023	867
2024	218
2025	0
Thereafter	0
Total lease payments	2,161
Imputed interest	(214)
Total minimum lease payments	$ 1,947

Note Payables - Additional Info

Note Payables - Additional Information (Details) - USD ($) $ in Thousands	Sep. 29, 2021	Sep. 15, 2020	Apr. 16, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Application of loan percentage to be applied to forgiveness of the note		100.00%
Confirmation received from the lender that the note had been forgiven	100.00%
Gain on extinguishment of note payable				$ 5,094	$ 0	$ 5,094	$ 0
PPP [Member]
Debt Instrument [Line Items]
Aggregate principal loan amount	$ 5,032		$ 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.
Accrued interest	$ 62

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Line Items]
Deferred tax assets, valuation allowance	$ 61,993		$ 61,993		$ 55,639
Effective tax rate	0.00%	0.00%	0.00%	0.00%
Change in valuation allowance			$ 6,354
ASU No. 2016-09 [Member]
Income Tax Disclosure [Line Items]
Excess tax deficiency and benefits recognized offset by valuation allowance	$ 1,659	$ 1,011	$ 2,238	$ 1,759

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Nov. 15, 2021	Sep. 30, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Common stock, par value		$ 0.001	$ 0.001
Subsequent Event [Member] | Evrythng Limited [Member]
Subsequent Event [Line Items]
Warrants and rights outstanding, maturity date	Mar. 27, 2022
Subsequent Event [Member] | Evrythng Limited [Member] | Second Payment Stock Price Not More Than First Payment Stock Price [Member] | Product ARR Milestone [Member]
Subsequent Event [Line Items]
Business acquisition, common stock, value	$ 50,000
Subsequent Event [Member] | Evrythng Limited [Member] | Second Payment Stock Price Not More Than First Payment Stock Price [Member] | Product ARR Shortfall [Member]
Subsequent Event [Line Items]
Business acquisition, common stock, value	50,000
Subsequent Event [Member] | Evrythng Limited [Member] | Second Payment Stock Price More Than First Payment Stock Price [Member] | Product ARR Milestone [Member]
Subsequent Event [Line Items]
Business acquisition, common stock, value	100,000
Subsequent Event [Member] | Evrythng Limited [Member] | Second Payment Stock Price More Than First Payment Stock Price [Member] | Product ARR Shortfall [Member]
Subsequent Event [Line Items]
Business acquisition, common stock, value	100,000
Subsequent Event [Member] | Share Purchase Agreement [Member] | Evrythng Limited [Member]
Subsequent Event [Line Items]
Noncash acquisition, shares acquired, value	$ 50,000
Common stock, par value	$ 0.001
Business acquisition, share price	$ 47.4823
Business combination, liabilities assumed	$ 7,900
Product annual recurring revenue milestone	$ 10,000
Percentage of employees terminated prior to closing date	20.00%
Closing costs	$ 8,000
Subsequent Event [Member] | Bridge Loan Agreement [Member] | Evrythng Limited [Member]
Subsequent Event [Line Items]
Bridge loan, maximum amount	2,000
Bridge loan, minimum draw amount	$ 250
Bridge loan, fixed interest rate	1.00%
Bridge loan, early termination interest rate	8.00%