Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VERI | |
Entity Registrant Name | Veritone, Inc. | |
Entity Central Index Key | 0001615165 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38093 | |
Entity Tax Identification Number | 47-1161641 | |
Entity Address, Address Line One | 575 Anton Blvd. | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Costa Mesa | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92626 | |
City Area Code | 888 | |
Local Phone Number | 507-1737 | |
Entity Common Stock, Shares Outstanding | 27,084,372 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 49,165 | $ 44,065 |
Accounts receivable, net of allowance for doubtful accounts of $39 and $29, respectively | 21,907 | 21,352 |
Expenditures billable to clients | 4,840 | 10,286 |
Prepaid expenses and other current assets | 4,486 | 5,409 |
Total current assets | 80,398 | 81,112 |
Property, equipment and improvements, net | 2,967 | 3,214 |
Intangible assets, net | 14,778 | 16,126 |
Goodwill | 6,904 | 6,904 |
Long-term restricted cash | 855 | 855 |
Other assets | 315 | 315 |
Total assets | 106,217 | 108,526 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 16,233 | 16,996 |
Accrued media payments | 19,885 | 16,551 |
Client advances | 20,140 | 19,193 |
Accrued compensation | 1,957 | 2,486 |
Other accrued liabilities | 4,393 | 4,510 |
Total current liabilities | 62,608 | 59,736 |
Other liabilities | 1,337 | 1,379 |
Total liabilities | 63,945 | 61,115 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Common stock, par value $0.001 per share; 75,000,000 shares authorized; 27,074,372 and 25,670,737 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 27 | 26 |
Additional paid-in capital | 287,368 | 279,828 |
Accumulated deficit | (245,173) | (232,489) |
Accumulated other comprehensive income | 50 | 46 |
Total stockholders' equity | 42,272 | 47,411 |
Total liabilities and stockholders' equity | $ 106,217 | $ 108,526 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 39 | $ 29 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 27,074,372 | 25,670,737 |
Common stock, shares outstanding | 27,074,372 | 25,670,737 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net revenues | $ 11,904 | $ 12,125 |
Cost of revenues | 3,811 | 3,872 |
Gross profit | 8,093 | 8,253 |
Operating expenses: | ||
Sales and marketing | 5,460 | 6,133 |
Research and development | 3,902 | 6,938 |
General and administrative | 11,543 | 11,690 |
Total operating expenses | 20,905 | 24,761 |
Loss from operations | (12,812) | (16,508) |
Other income, net | 131 | 211 |
Loss before provision for income taxes | (12,681) | (16,297) |
Provision for income taxes | 3 | 9 |
Net loss | $ (12,684) | $ (16,306) |
Net loss per share: | ||
Basic and diluted | $ (0.47) | $ (0.84) |
Weighted average shares outstanding: | ||
Basic and diluted | 26,773,163 | 19,511,220 |
Comprehensive loss: | ||
Net loss | $ (12,684) | $ (16,306) |
Unrealized gain on marketable securities, net of income taxes | 35 | |
Foreign currency translation gain (loss), net of income taxes | 4 | (21) |
Total comprehensive loss | $ (12,680) | $ (16,292) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2018 | $ 60,283 | $ 19 | $ 230,674 | $ (170,411) | $ 1 |
Beginning balance, shares at Dec. 31, 2018 | 19,335,220 | ||||
Common stock offerings, net | 4,160 | $ 1 | 4,159 | ||
Common stock offerings, net, shares | 662,000 | ||||
Common stock issued under employee stock plans, net | 324 | 324 | |||
Common stock issued under employee stock plans, net, shares | 85,017 | ||||
Machine Box holdback consideration | 458 | 458 | |||
Common stock issued for acquisitions | 3,764 | 3,764 | |||
Common stock issued for acquisitions, shares | 114,951 | ||||
Stock-based compensation expense | 4,803 | 4,803 | |||
Net loss | (16,306) | (16,306) | |||
Other comprehensive gain | 13 | 13 | |||
Ending balance at Mar. 31, 2019 | 57,499 | $ 20 | 244,182 | (186,717) | 14 |
Ending balance, shares at Mar. 31, 2019 | 20,197,188 | ||||
Beginning balance at Dec. 31, 2018 | 60,283 | $ 19 | 230,674 | (170,411) | 1 |
Beginning balance, shares at Dec. 31, 2018 | 19,335,220 | ||||
Net loss | (62,078) | ||||
Ending balance at Dec. 31, 2019 | 47,411 | $ 26 | 279,828 | (232,489) | 46 |
Ending balance, shares at Dec. 31, 2019 | 25,670,737 | ||||
Common stock offerings, net | 2,984 | $ 1 | 2,983 | ||
Common stock offerings, net, shares | 1,292,208 | ||||
Common stock issued under employee stock plans, net | 101 | 101 | |||
Common stock issued under employee stock plans, net, shares | 111,427 | ||||
Stock-based compensation expense | 4,456 | 4,456 | |||
Net loss | (12,684) | (12,684) | |||
Other comprehensive gain | 4 | 4 | |||
Ending balance at Mar. 31, 2020 | $ 42,272 | $ 27 | $ 287,368 | $ (245,173) | $ 50 |
Ending balance, shares at Mar. 31, 2020 | 27,074,372 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||||
Net loss | $ (12,684) | $ (16,306) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 1,604 | 1,133 | ||
Change in fair value of warrant liability | (2) | 13 | ||
Provision for doubtful accounts | 25 | |||
Stock-based compensation expense | 4,456 | 5,507 | ||
Other | (19) | |||
Changes in assets and liabilities: | ||||
Accounts receivable | (555) | 2,716 | ||
Expenditures billable to clients | 5,446 | (4,331) | ||
Prepaid expenses and other current assets | 406 | 637 | ||
Accounts payable | (763) | (7,999) | ||
Accrued media payments | 3,334 | 5,927 | ||
Client advances | 947 | 6,582 | ||
Other accrued liabilities | (644) | 1,593 | ||
Other liabilities | (42) | (110) | ||
Net cash provided by (used in) operating activities | 1,503 | (4,632) | $ (30,117) | $ (41,770) |
Cash flows from investing activities: | ||||
Proceeds from sales of marketable securities | 2,473 | |||
Capital expenditures | (9) | (98) | ||
Net cash (used in) provided by investing activities | (9) | 2,375 | ||
Cash flows from financing activities: | ||||
Proceeds from common stock offerings, net | 3,505 | 4,160 | ||
Proceeds from issuances of stock under employee stock plans, net | 101 | 324 | ||
Net cash provided by financing activities | 3,606 | 4,484 | ||
Net increase in cash, cash equivalents and restricted cash | 5,100 | 2,227 | ||
Cash, cash equivalents and restricted cash, beginning of period | 44,920 | 38,776 | 38,776 | |
Cash, cash equivalents and restricted cash, end of period | $ 50,020 | $ 41,003 | $ 44,920 | $ 38,776 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | NOTE 1. DESCRIPTION OF BUSINESS Description of Business Veritone, Inc., a Delaware corporation (“Veritone”) (together with its wholly owned subsidiaries, collectively, the “Company”), is a provider of artificial intelligence (“AI”) computing solutions. The Company has developed aiWARE TM The Company also offers cloud-native digital content management solutions and content licensing services, primarily to customers in the media and entertainment market. These offerings leverage the Company’s aiWARE technologies, providing customers with unique capabilities to enrich and drive expanded revenue opportunities from their content. In addition, the Company operates a full-service advertising agency. The Company’s advertising services include media planning and strategy, advertisement buying and placement, campaign messaging, clearance verification and attribution, and custom analytics, specializing in host-endorsed and influencer advertising across primarily radio, podcasting, streaming audio, social media and other digital media channels. |
Presentation and Summary of Sig
Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Presentation and Summary of Significant Accounting Policies | NOTE 2. PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. The information included in this Form 10-Q should be read in conjunction with the information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 11, 2020. Interim results for the three months ended March 31, 2020 are not necessarily indicative of the results the Company will have for the full year ending December 31, 2020. The accompanying condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state its financial position, results of operations and cash flows. All significant intercompany transactions have been eliminated in consolidation. The financial data and the other information disclosed in these notes to the condensed consolidated financial statements reflected in the three month period presented are unaudited. The December 31, 2019 balance sheet included herein was derived from the audited financial statements but does not include all disclosures or notes required by GAAP for complete financial statements. Reclassifications Certain reclassifications to other assets have been made to prior year amounts for consistency and comparability with the current year’s financial statements presentation. These reclassifications had no effect on the reported total assets. Liquidity and Capital Resources During 2019 and 2018, the Company generated negative cash flows from operations of $30,117 and $41,770, respectively, and incurred net losses of $62,078 and $61,104, respectively. In the three months ended March 31, 2020, the Company generated cash flows from operations of $1,503 and incurred a net loss of $12,684. As described in Note 10, on April 3, 2020, the Company applied for loans under the Paycheck Protection Program (the “PPP”) established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) the Company entered into loan agreements and promissory notes evidencing unsecured loans in the aggregate amount of $6,491 made to the Company under the PPP. The proceeds from these loans will be used for payroll costs and any payments of rent and utilities. loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. No assurance can be given that the Company will seek or obtain forgiveness of the loans in whole or in part, or that the Company will not elect to prepay the loans. The Company expects to continue to generate net losses for the foreseeable future as it makes significant investments in developing and selling its aiWARE SaaS solutions. Management believes that the Company’s existing balances of cash and cash equivalents will be sufficient to meet its anticipated cash requirements for at least twelve months from the date that these financial statements are issued. However, the Company does not expect that its current cash and cash equivalents will be sufficient to support the development of its business to the point at which the Company has continued positive cash flows from operations. The Company plans to meet its future needs for additional capital through equity and/or debt financings. Equity financings may include sales of common stock under the Company’s Equity Distribution Agreement pursuant to which the Company may offer and sell, from time to time, shares of its common stock having an aggregate available offering price of up to $21,737. Such financing may not be available on terms favorable to the Company or at all. If the Company is unable to obtain adequate financing or financing on terms satisfactory to it when required, the Company’s ability to continue to support its business growth, scale its infrastructure, develop product enhancements and to respond to business challenges could be significantly impaired. Impact of the Coronavirus (“COVID-19”) Pandemic The COVID-19 outbreak emerged in late 2019 and was declared a global pandemic by the World Health Organization on March 11, 2020. The COVID-19 pandemic, and the actions being taken by governments worldwide to mitigate the public health consequences of the pandemic, have significantly impacted the global economy. For most of the first quarter of 2020, the Company’s results reflect historical trends and seasonality. However, in March 2020, the Company began to experience a reduction in the demand for certain of its products and services as some customers began to reduce or delay their spending due to the negative impact of the pandemic on their businesses. In particular, net revenues from the Company’s aiWARE content licensing and media services business, which typically has significant revenues driven by major live sporting events, were negatively impacted in the first quarter of 2020 compared with the same period in 2019, due to the cancellation or postponement of substantially all major live sporting events in the United States. As such suspension is expected to continue for the foreseeable future, the associated reduction in demand for the Company’s services is expected to have a material adverse impact on net revenues from the Company’s aiWARE content licensing and media services business in the second quarter of 2020, and such impact could continue in future quarters . The Company expects the pandemic to affect substantially all of its customers, which may reduce the demand and/or delay purchase decisions for the Company’s products and services, and may impact the creditworthiness of customers. However, the Company has assessed the potential credit deterioration of its customers due to changes in the macroeconomic environment and has determined that no additional allowance for doubtful accounts was necessary as of March 31, 2020. The extent to which the COVID-19 pandemic and the related macroeconomic conditions may affect the Company’s financial condition or results of operations is uncertain. While the Company’s advertising and aiWARE SaaS solutions businesses did not experience decreases in net revenues in the first quarter of 2020 compared with the same period in 2019, the severity and duration of the pandemic and the resulting macroeconomic conditions are difficult to predict, and the Company’s revenues and operating results may be negatively impacted in future periods. Item 1A. (Risk Factors) below. Use of Accounting Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The principal estimates relate to revenue recognition, allowance for doubtful accounts, the valuation of stock awards and stock warrants and income taxes. Actual results could differ from those estimates. Significant Customers The Company’s top ten customers accounted for approximately 32% Remaining Performance Obligations As of March 31, 2020, the aggregate amount of the transaction prices under the Company’s contracts allocated to the Company’s remaining performance obligations was $5,767, approximately 64% of which the Company expects to recognize as revenue over the next nine months, and the remainder thereafter. This aggregate amount excludes amounts allocated to remaining performance obligations under contracts that have an original duration of one year or less and variable consideration that is allocated to remaining performance obligations. Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019. Recently Adopted Accounting Pronouncements Effective for the Company’s fiscal year ended December 31, 2019, the Company adopted the provisions and expanded disclosure requirements described in ASU 2014-09, Revenue from Contracts with Customers (Topic 606)(“Topic 606”) • Some multi-year contracts include fixed annual price increases. Historically, the Company recognized revenue based on the price allocated to each year. Now, the Company recognizes the aggregate fixed price as revenue ratably over the full term of the contract. • Historically, certain variable consideration was recognized one month in arrears when the amount became known. These revenues are now recognized in the month in which the service is provided based on an estimate of the amount that the Company expects to be entitled to receive for the services. These revenues do not represent a material portion of the Company’s total net revenues. During the year ended December 31, 2019, the Company’s quarterly financial statements were prepared using the prior revenue recognition standard, Topic 605, Revenue Recognition are presented using Topic 606. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326). which requires measurement and recognition of expected credit losses for financial assets held. This standard will be effective for the Company beginning in the first quarter of fiscal year The Company is currently evaluating the impact that this standard will have on its financial statements and related disclosures as well as the timing of adoption. In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting in ASC 740, Income Taxes |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 3. NET LOSS PER SHARE The following table presents the computation of basic and diluted net loss per share: Three Months Ended March 31, 2020 2019 Numerator Net loss $ (12,684 ) $ (16,306 ) Denominator Weighted-average common shares outstanding 26,794,326 19,579,332 Less: Weighted-average shares subject to repurchase (21,163 ) (68,112 ) Denominator for basic and diluted net loss per share 26,773,163 19,511,220 Basic and diluted net loss per share $ (0.47 ) $ (0.84 ) The Company reported net losses for both periods presented and, as such, all potentially dilutive shares of common stock would have been antidilutive for such periods. The table below presents the weighted-average securities (in common equivalent shares) outstanding during the periods presented that have been excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive: Three Months Ended March 31, 2020 2019 Common stock options and restricted stock units 9,781,808 9,300,783 Warrants to purchase common stock 1,297,151 1,297,151 11,078,959 10,597,934 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | NOTE 4. FINANCIAL INSTRUMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, as follows: • Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2—inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or • Level 3—unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and Cash Equivalents The Company’s money market funds are categorized as Level 1 within the fair value hierarchy. The following table shows the cost, gross unrealized losses and fair value, with a breakdown by significant investment category, of the Company’s cash and cash equivalents as of March 31, 2020: Gross Cash and Unrealized Fair Cash Cost Losses Value Equivalents Cash $ 35,749 $ — $ 35,749 $ 35,749 Level 1: Money market funds 13,416 — 13,416 13,416 Total $ 49,165 $ — $ 49,165 $ 49,165 As of December 31, 2019, the Company’s cash and cash equivalents balances were as follows: Gross Cash and Unrealized Fair Cash Cost Losses Value Equivalents Cash $ 23,710 $ — $ 23,710 $ 23,710 Level 1: Money market funds 20,355 — 20,355 20,355 Total $ 44,065 $ — $ 44,065 $ 44,065 Stock Warrants All of the Company’s outstanding stock warrants are categorized as Level 3 within the fair value hierarchy. Stock warrants have been recorded at their fair value using either a probability weighted expected return model or the Black-Scholes option-pricing model. These models incorporate contractual terms, maturity, risk-free interest rates and volatility. The value of the Company’s stock warrants would increase if a higher risk-free interest rate was used, and would decrease if a lower risk-free interest rate was used. Similarly, a higher volatility assumption would increase the value of the stock warrants, and a lower volatility assumption would decrease the value of the stock warrants. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. In April 2018, in connection with the advisory agreement between the Company and a financial advisory firm, the Company issued such firm a five-year warrant to purchase up to 20,000 shares of the Company’s common stock (“April 2018 Warrant”). The April 2018 Warrant was fully vested and exercisable upon issuance and has an exercise price of $11.73 per share. The Company recorded this stock warrant at its fair value using the Black-Scholes option-pricing model. The holder is able to redeem the warrant for a number of shares having a value equal to the in-the-money value of the warrant. The Company recorded the fair value of the award as a liability upon issuance, and such fair value is remeasured at the end of each reporting period. The April 2018 Warrant was outstanding at March 31, 2020. The following table summarizes quantitative information with respect to the significant unobservable inputs that were used to value the April 2018 Warrant: March 31, 2020 December 31, 2019 Volatility 70 % 70 % Risk-free rate 0.29 % 1.62 % Term 3.0 years 3.25 years The fair value of the April 2018 Warrant, which was recorded within other accrued liabilities in the accompanying condensed consolidated balance sheets at March 31, 2020 and December 31, 2019 was $5 and $7, respectively. Changes in fair value of the April 2018 Warrant are recorded in other income, net in the Company’s consolidated statement of operations and comprehensive loss. During the three months ended March 31, 2020 and 2019, the Company recorded a gain of $2 and loss of $13, respectively, for the change in fair value. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | NOTE 5. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The carrying amount of goodwill was $6,904 as of December 31, 2019 and March 31, 2020. Intangible Assets The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and other purchases, which continue to be amortized: March 31, 2020 December 31, 2019 Weighted Average Remaining Useful Life Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (in years) Amount Amortization Amount Amount Amortization Amount Software and technology 1.2 $ 3,582 $ (2,469 ) $ 1,113 $ 3,582 $ (2,171 ) $ 1,411 Licensed technology 1.5 500 (250 ) 250 500 (208 ) 292 Developed technology 3.4 9,600 (3,040 ) 6,560 9,600 (2,560 ) 7,040 Customer relationships 3.4 9,300 (2,945 ) 6,355 9,300 (2,480 ) 6,820 Trademarks and trade names 0.7 100 (70 ) 30 100 (59 ) 41 Noncompete agreements 2.3 800 (330 ) 470 800 (278 ) 522 Total 3.2 $ 23,882 $ (9,104 ) $ 14,778 $ 23,882 $ (7,756 ) $ 16,126 The following table presents amortization expense associated with the Company’s finite-lived intangible assets, which is included in the consolidated statement of operations and comprehensive loss as follows: Three Months Ended March 31, 2020 2019 Cost of revenues $ 561 $ 370 Sales and marketing 531 213 Research and development 256 256 General and administrative — 2 Total $ 1,348 $ 841 Amortization of finite-lived intangible assets in cost of revenues and research and development in the consolidated statements of operations and comprehensive loss relates primarily to acquired developed technology. The following table presents future amortization of the Company’s finite-lived intangible assets at March 31, 2020: 2020 (nine months) $ 4,034 2021 4,261 2022 3,963 2023 2,520 Total $ 14,778 |
Consolidated Financial Statemen
Consolidated Financial Statements Details | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Financial Statements Details | NOTE 6. CONSOLIDATED FINANCIAL STATEMENTS DETAILS Consolidated Balance Sheets Details Accounts Receivable, Net Accounts receivable consisted of the following: As of March 31, December 31, 2020 2019 Accounts receivable — $ 18,760 $ 19,184 Accounts receivable — 2,154 1,269 Accounts receivable — 1,032 928 21,946 21,381 Less: allowance for doubtful accounts (39 ) (29 ) Accounts receivable, net $ 21,907 $ 21,352 The amount that the Company invoices and collects from advertising clients includes the cost of the advertisement placed for them with broadcasters and the amount of the commission earned by the Company. The average commission earned by the Company is less than 15% of the total amount invoiced and collected from the advertising clients. Property, Equipment and Improvements, Net Property, equipment and improvements, net consisted of the following: As of March 31, December 31, 2020 2019 Property and equipment $ 2,256 $ 2,247 Leasehold improvements 2,876 2,876 5,132 5,123 Less: accumulated depreciation (2,165 ) (1,909 ) Property, equipment and improvements, net $ 2,967 $ 3,214 Depreciation expense was $256 and $292 for the three months ended March 31, 2020 and 2019, respectively. Accounts Payable Accounts payable consisted of the following: As of March 31, December 31, 2020 2019 Accounts payable — $ 14,848 $ 15,697 Accounts payable — 1,385 1,299 Total $ 16,233 $ 16,996 Accounts payable – Advertising reflects the amounts due to broadcasters for advertisements placed on behalf of the Company’s advertising clients. Consolidated Statement of Operations and Comprehensive Loss Details Net Revenues Net revenues for the periods presented were comprised of the following: Three Months Ended March 31, 2020 2019 Advertising $ 6,001 $ 5,714 aiWARE SaaS Solutions 3,108 2,754 aiWARE Content Licensing and Media Services 2,795 3,657 Total net revenues $ 11,904 $ 12,125 During the three months ended March 31, 2020 and 2019, the Company made $54,749 and $52,492, respectively, in gross media placements, of which $50,050 and $48,125 respectively, were billed directly to clients. Of the amounts billed directly to clients, $44,499 and $42,838 represented media-related costs netted against billings during the three months ended March 31, 2020 and 2019, respectively. Disaggregated Revenue Net revenues disaggregated were as follows: Three Months Ended March 31, 2020 2019 Advertising $ 6,001 $ 5,714 aiWARE SaaS Solutions (by market): Media and Entertainment 2,612 2,235 Government, Legal and Compliance 496 519 Sub-total 3,108 2,754 aiWARE Content Licensing and Media Services (by service type): Content Licensing 2,795 3,654 Media Services - 3 Sub-total 2,795 3,657 Total net revenues $ 11,904 $ 12,125 Other Income, Net Other income, net for the periods presented was comprised of the following: Three Months Ended March 31, 2020 2019 Interest income, net $ 77 $ 169 Change in fair value of warrant liability 2 (13 ) Other 52 55 Other income, net $ 131 $ 211 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7. COMMITMENTS AND CONTINGENCIES Leases The Company leases facilities under operating lease arrangements expiring on various dates through fiscal year 2024. Certain of the Company’s leases contain standard rent escalation and renewal clauses. Under certain leases, the Company is required to pay operating expenses in addition to base rent. Rent expense for lease payments is recognized on a straight-line basis over the lease term. As of March 31, 2020, future minimum lease payments were as follows: 2020 (nine months) $ 1,803 2021 2,242 2022 1,884 2023 1,685 2024 1,730 Total minimum payments $ 9,344 The total rent expense for all operating leases was $766 and $745 for the three months ended March 31, 2020 and 2019, respectively. Other Contingencies From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. The Company currently is not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | NOTE 8. STOCKHOLDERS’ EQUITY (DEFICIT) Common Stock Issuances In June 2018, the Company entered into an Equity Distribution Agreement with JMP Securities as sales agent, pursuant to which it may offer and sell, from time to time, through JMP Securities, shares of its common stock having an aggregate offering price of up to $50,000. During the three months ended March 31, 2020 and 2019, the Company issued an aggregate of 1,292,208 and 662,000 of shares of its common stock, respectively, which were sold pursuant to the Equity Distribution Agreement. During the three months ended March 31, 2020 and 2019, the Company received net proceeds from such sales of $2,984 and $4,160 after deducting expenses of $92 and $178, respectively. On September 6, 2018, the Company acquired all of the outstanding capital stock of Machine Box, Inc. (“Machine Box”). The purchase consideration for the acquisition was comprised of the initial consideration paid at closing and additional contingent amounts that were payable if Machine Box achieved certain technical development and integration milestones within 12 months after the closing of the acquisition, and 80% of such consideration was payable by issuance of shares of the Company’s common stock to the former stockholders of Machine Box. On August 21, 2018, the Company acquired all of the outstanding capital stock of S Media Limited (d/b/a Performance Bridge Media) (“Performance Bridge”). The purchase consideration for the acquisition was comprised of the initial consideration paid at closing and additional earnout consideration that was payable if Performance Bridge achieved certain revenue milestones for its 2018 fiscal year, and 80% of such consideration was payable by issuance of shares of the Company’s common stock to the former stockholder of Performance Bridge. During the three months ended March 31, 2020 and 2019, the Company issued an aggregate of 111,427 shares of its common stock and 85,017 shares of its common stock, respectively in connection with the exercise of stock options and vesting of restricted stock units under its stock incentive plans and purchases under its Employee Stock Purchase Plan (the “ESPP”). |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Plans | NOTE 9. STOCK PLANS Stock-Based Compensation During the three months ended March 31, 2020, the Company granted options to purchase an aggregate of 487,500 shares of its common stock that are subject to time-based vesting conditions. The Company valued these stock options using the Black-Scholes Merton option pricing model. The following assumptions were used to compute the grant date fair values of the stock options granted during the three months ended March 31, 2020: Expected term (in years) 6.0 - 6.1 Expected volatility 68 % Risk-free interest rate 0.9% - 1.2% Expected dividend yield — The assumptions used in calculating the fair values of purchase rights granted under the ESPP during the three months ended March 31, 2020 are set forth in the table below: Expected term (in years) 0.5 - 2.0 Expected volatility 65% - 81% Risk-free interest rate 1.3% - 1.5% Expected dividend yield — The Company’s stock-based compensation expense recognized for the periods presented was as follows: Three Months Ended March 31, 2020 2019 Stock-based compensation expense by type of award: Restricted stock units $ 142 $ 198 Restricted stock awards 62 160 Machine Box contingent common stock issuances — 704 Performance-based stock options 1,968 1,935 Stock options 2,149 2,358 Employee stock purchase plan 135 152 Total $ 4,456 $ 5,507 Three Months Ended March 31, 2020 2019 Stock-based compensation expense by operating expense grouping: Sales and marketing $ 178 $ 243 Research and development 237 1,084 General and administrative 4,041 4,180 $ 4,456 $ 5,507 Equity Award Activity Restricted Stock Awards The Company’s restricted stock award activity for the three months ended March 31, 2020 was as follows: Weighted Average Grant Shares Date Fair Value Unvested at December 31, 2019 22,813 $ 7.50 Granted 5,310 $ 2.98 Vested (8,797 ) $ 4.77 Unvested at March 31, 2020 19,326 $ 7.50 At March 31, 2020, total unrecognized compensation cost related to restricted stock was $104, Restricted Stock Units The Company’s restricted stock unit activity for the three months ended March 31, 2020 was as follows: Weighted Average Grant Shares Date Fair Value Unvested at December 31, 2019 142,145 $ 6.71 Forfeited (1,500 ) $ 8.81 Vested (50,535 ) $ 5.65 Unvested at March 31, 2020 90,110 $ 7.27 At March 31, 2020, total unrecognized compensation cost related to restricted stock units was $217, which is expected to be recognized over a weighted average period of 0.7 year. Performance-Based Stock Options The activity during the three months ended March 31, 2020 related to stock options that are subject to performance-based vesting conditions tied to the future achievement of stock price goals by the Company was as follows: Weighted-Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at December 31, 2019 4,484,739 $ 16.68 Forfeited (94,224 ) $ 5.64 Outstanding at March 31, 2020 4,390,515 $ 16.92 8.3 years $ — Exercisable at March 31, 2020 — $ — — $ — The weighted average grant date fair values of the performance-based stock options granted during the three months ended March 31, 2019 was $2.54 Stock Options The activity during the three months ended March 31, 2020 related to all other stock options was as follows: Weighted-Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at December 31, 2019 5,196,778 $ 13.09 Granted 487,500 $ 2.69 Forfeited (86,287 ) $ 10.09 Expired (85,979 ) $ 14.26 Outstanding at March 31, 2020 5,512,012 $ 12.20 7.5 years $ 212 Exercisable at March 31, 2020 4,016,843 $ 13.82 7.0 years $ 212 The weighted average grant date fair value of stock options granted during the three months ended March 31, 2020 and 2019 was $1.64 and $3.55 per share, respectively. The aggregate intrinsic value of the options exercised during the three months ended March 31, 2019 was $74. No options were exercised during the three months ended March 31, 2020. The total grant date fair value of stock options vested during the three months ended March 31, 2020 and 2019 was $2,371 and $2,718, respectively. At March 31, 2020, total unrecognized compensation expense related to stock options was $6,283 and is expected to be recognized over a weighted average period of 2.2 years. The aggregate intrinsic values in the tables above represent the difference between the fair market value of the Company’s common stock and the average option exercise price of in-the-money options, multiplied by the number of such options. Employee Stock Purchase Plan During the three months ended March 31, 2020, a total of 62,469 shares of common stock were purchased under the Company’s ESPP. As of March 31, 2020, accrued employee contributions for future purchases under the ESPP totaled $52. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10. SUBSEQUENT EVENTS Paycheck Protection Program On April 3, 2020, the Company applied for PPP loans under the CARES Act, April 14 and April 15, 2020, the Company entered into loan agreements and promissory notes evidencing unsecured loans in the aggregate amount of $6,491 made to the Company under the PPP (the “Loans”). The PPP is administered by the U.S. Small Business Administration. The Loans were made through Sunwest Bank (the “Lender”). The interest rate on the Loans is 1.00%. Commencing seven months after the effective date of each Loan, the Company is required to pay the Lender equal monthly payments of principal and interest as required to fully amortize by the second anniversary of the effective date of the Loan the principal amount outstanding on the Loan as of the end of the six-month period following the effective date of the Loan. The promissory notes evidencing the Loans contain customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or the Lender, or breaching the terms of the Loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company. 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. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. No assurance can be given that the Company will seek or obtain forgiveness of the Loans in whole or in part, or that the Company will not elect to prepay the Loans. |
Presentation and Summary of S_2
Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. The information included in this Form 10-Q should be read in conjunction with the information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 11, 2020. Interim results for the three months ended March 31, 2020 are not necessarily indicative of the results the Company will have for the full year ending December 31, 2020. The accompanying condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state its financial position, results of operations and cash flows. All significant intercompany transactions have been eliminated in consolidation. The financial data and the other information disclosed in these notes to the condensed consolidated financial statements reflected in the three month period presented are unaudited. The December 31, 2019 balance sheet included herein was derived from the audited financial statements but does not include all disclosures or notes required by GAAP for complete financial statements. |
Reclassification | Reclassifications Certain reclassifications to other assets have been made to prior year amounts for consistency and comparability with the current year’s financial statements presentation. These reclassifications had no effect on the reported total assets. |
Liquidity and Capital Resources | Liquidity and Capital Resources During 2019 and 2018, the Company generated negative cash flows from operations of $30,117 and $41,770, respectively, and incurred net losses of $62,078 and $61,104, respectively. In the three months ended March 31, 2020, the Company generated cash flows from operations of $1,503 and incurred a net loss of $12,684. As described in Note 10, on April 3, 2020, the Company applied for loans under the Paycheck Protection Program (the “PPP”) established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) the Company entered into loan agreements and promissory notes evidencing unsecured loans in the aggregate amount of $6,491 made to the Company under the PPP. The proceeds from these loans will be used for payroll costs and any payments of rent and utilities. loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. No assurance can be given that the Company will seek or obtain forgiveness of the loans in whole or in part, or that the Company will not elect to prepay the loans. The Company expects to continue to generate net losses for the foreseeable future as it makes significant investments in developing and selling its aiWARE SaaS solutions. Management believes that the Company’s existing balances of cash and cash equivalents will be sufficient to meet its anticipated cash requirements for at least twelve months from the date that these financial statements are issued. However, the Company does not expect that its current cash and cash equivalents will be sufficient to support the development of its business to the point at which the Company has continued positive cash flows from operations. The Company plans to meet its future needs for additional capital through equity and/or debt financings. Equity financings may include sales of common stock under the Company’s Equity Distribution Agreement pursuant to which the Company may offer and sell, from time to time, shares of its common stock having an aggregate available offering price of up to $21,737. Such financing may not be available on terms favorable to the Company or at all. If the Company is unable to obtain adequate financing or financing on terms satisfactory to it when required, the Company’s ability to continue to support its business growth, scale its infrastructure, develop product enhancements and to respond to business challenges could be significantly impaired. |
Impact of Coronavirus ("COVID-19") Pandemic | Impact of the Coronavirus (“COVID-19”) Pandemic The COVID-19 outbreak emerged in late 2019 and was declared a global pandemic by the World Health Organization on March 11, 2020. The COVID-19 pandemic, and the actions being taken by governments worldwide to mitigate the public health consequences of the pandemic, have significantly impacted the global economy. For most of the first quarter of 2020, the Company’s results reflect historical trends and seasonality. However, in March 2020, the Company began to experience a reduction in the demand for certain of its products and services as some customers began to reduce or delay their spending due to the negative impact of the pandemic on their businesses. In particular, net revenues from the Company’s aiWARE content licensing and media services business, which typically has significant revenues driven by major live sporting events, were negatively impacted in the first quarter of 2020 compared with the same period in 2019, due to the cancellation or postponement of substantially all major live sporting events in the United States. As such suspension is expected to continue for the foreseeable future, the associated reduction in demand for the Company’s services is expected to have a material adverse impact on net revenues from the Company’s aiWARE content licensing and media services business in the second quarter of 2020, and such impact could continue in future quarters . The Company expects the pandemic to affect substantially all of its customers, which may reduce the demand and/or delay purchase decisions for the Company’s products and services, and may impact the creditworthiness of customers. However, the Company has assessed the potential credit deterioration of its customers due to changes in the macroeconomic environment and has determined that no additional allowance for doubtful accounts was necessary as of March 31, 2020. The extent to which the COVID-19 pandemic and the related macroeconomic conditions may affect the Company’s financial condition or results of operations is uncertain. While the Company’s advertising and aiWARE SaaS solutions businesses did not experience decreases in net revenues in the first quarter of 2020 compared with the same period in 2019, the severity and duration of the pandemic and the resulting macroeconomic conditions are difficult to predict, and the Company’s revenues and operating results may be negatively impacted in future periods. Item 1A. (Risk Factors) below. |
Use of Accounting Estimates | Use of Accounting Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The principal estimates relate to revenue recognition, allowance for doubtful accounts, the valuation of stock awards and stock warrants and income taxes. Actual results could differ from those estimates. |
Significant Customers | Significant Customers The Company’s top ten customers accounted for approximately 32% |
Remaining Performance Obligations | Remaining Performance Obligations As of March 31, 2020, the aggregate amount of the transaction prices under the Company’s contracts allocated to the Company’s remaining performance obligations was $5,767, approximately 64% of which the Company expects to recognize as revenue over the next nine months, and the remainder thereafter. This aggregate amount excludes amounts allocated to remaining performance obligations under contracts that have an original duration of one year or less and variable consideration that is allocated to remaining performance obligations. |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective for the Company’s fiscal year ended December 31, 2019, the Company adopted the provisions and expanded disclosure requirements described in ASU 2014-09, Revenue from Contracts with Customers (Topic 606)(“Topic 606”) • Some multi-year contracts include fixed annual price increases. Historically, the Company recognized revenue based on the price allocated to each year. Now, the Company recognizes the aggregate fixed price as revenue ratably over the full term of the contract. • Historically, certain variable consideration was recognized one month in arrears when the amount became known. These revenues are now recognized in the month in which the service is provided based on an estimate of the amount that the Company expects to be entitled to receive for the services. These revenues do not represent a material portion of the Company’s total net revenues. During the year ended December 31, 2019, the Company’s quarterly financial statements were prepared using the prior revenue recognition standard, Topic 605, Revenue Recognition are presented using Topic 606. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326). which requires measurement and recognition of expected credit losses for financial assets held. This standard will be effective for the Company beginning in the first quarter of fiscal year The Company is currently evaluating the impact that this standard will have on its financial statements and related disclosures as well as the timing of adoption. In December 2019, the FASB issued ASU No. 2019-12 to simplify the accounting in ASC 740, Income Taxes |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Common Share | The following table presents the computation of basic and diluted net loss per share: Three Months Ended March 31, 2020 2019 Numerator Net loss $ (12,684 ) $ (16,306 ) Denominator Weighted-average common shares outstanding 26,794,326 19,579,332 Less: Weighted-average shares subject to repurchase (21,163 ) (68,112 ) Denominator for basic and diluted net loss per share 26,773,163 19,511,220 Basic and diluted net loss per share $ (0.47 ) $ (0.84 ) |
Effect of Anti-dilutive Securities | The Company reported net losses for both periods presented and, as such, all potentially dilutive shares of common stock would have been antidilutive for such periods. The table below presents the weighted-average securities (in common equivalent shares) outstanding during the periods presented that have been excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive: Three Months Ended March 31, 2020 2019 Common stock options and restricted stock units 9,781,808 9,300,783 Warrants to purchase common stock 1,297,151 1,297,151 11,078,959 10,597,934 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of Cash and Available-For-Sale Securities' Cost, Gross Unrealized Losses and Fair Value by Significant Investment Category | The following table shows the cost, gross unrealized losses and fair value, with a breakdown by significant investment category, of the Company’s cash and cash equivalents as of March 31, 2020: Gross Cash and Unrealized Fair Cash Cost Losses Value Equivalents Cash $ 35,749 $ — $ 35,749 $ 35,749 Level 1: Money market funds 13,416 — 13,416 13,416 Total $ 49,165 $ — $ 49,165 $ 49,165 As of December 31, 2019, the Company’s cash and cash equivalents balances were as follows: Gross Cash and Unrealized Fair Cash Cost Losses Value Equivalents Cash $ 23,710 $ — $ 23,710 $ 23,710 Level 1: Money market funds 20,355 — 20,355 20,355 Total $ 44,065 $ — $ 44,065 $ 44,065 |
April 2018 Warrant [Member] | |
Summary of Quantitative Information with Respect to Significant Unobservable Inputs | The following table summarizes quantitative information with respect to the significant unobservable inputs that were used to value the April 2018 Warrant: March 31, 2020 December 31, 2019 Volatility 70 % 70 % Risk-free rate 0.29 % 1.62 % Term 3.0 years 3.25 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Finite-Lived Intangible Assets Resulting from Business Acquisitions and Other Purchases | The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and other purchases, which continue to be amortized: March 31, 2020 December 31, 2019 Weighted Average Remaining Useful Life Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (in years) Amount Amortization Amount Amount Amortization Amount Software and technology 1.2 $ 3,582 $ (2,469 ) $ 1,113 $ 3,582 $ (2,171 ) $ 1,411 Licensed technology 1.5 500 (250 ) 250 500 (208 ) 292 Developed technology 3.4 9,600 (3,040 ) 6,560 9,600 (2,560 ) 7,040 Customer relationships 3.4 9,300 (2,945 ) 6,355 9,300 (2,480 ) 6,820 Trademarks and trade names 0.7 100 (70 ) 30 100 (59 ) 41 Noncompete agreements 2.3 800 (330 ) 470 800 (278 ) 522 Total 3.2 $ 23,882 $ (9,104 ) $ 14,778 $ 23,882 $ (7,756 ) $ 16,126 |
Summary of Amortization Expense Associated with Finite-Lived Intangible Assets | The following table presents amortization expense associated with the Company’s finite-lived intangible assets, which is included in the consolidated statement of operations and comprehensive loss as follows: Three Months Ended March 31, 2020 2019 Cost of revenues $ 561 $ 370 Sales and marketing 531 213 Research and development 256 256 General and administrative — 2 Total $ 1,348 $ 841 |
Summary of Future Amortization of Finite-Lived Intangible Assets | The following table presents future amortization of the Company’s finite-lived intangible assets at March 31, 2020: 2020 (nine months) $ 4,034 2021 4,261 2022 3,963 2023 2,520 Total $ 14,778 |
Consolidated Financial Statem_2
Consolidated Financial Statements Details (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Accounts Receivable, Net | Accounts receivable consisted of the following: As of March 31, December 31, 2020 2019 Accounts receivable — $ 18,760 $ 19,184 Accounts receivable — 2,154 1,269 Accounts receivable — 1,032 928 21,946 21,381 Less: allowance for doubtful accounts (39 ) (29 ) Accounts receivable, net $ 21,907 $ 21,352 |
Summary of Property Equipment and Improvements, Net | Property, equipment and improvements, net consisted of the following: As of March 31, December 31, 2020 2019 Property and equipment $ 2,256 $ 2,247 Leasehold improvements 2,876 2,876 5,132 5,123 Less: accumulated depreciation (2,165 ) (1,909 ) Property, equipment and improvements, net $ 2,967 $ 3,214 |
Summary of Accounts Payable | Accounts payable consisted of the following: As of March 31, December 31, 2020 2019 Accounts payable — $ 14,848 $ 15,697 Accounts payable — 1,385 1,299 Total $ 16,233 $ 16,996 |
Summary of Net Revenues | Net revenues for the periods presented were comprised of the following: Three Months Ended March 31, 2020 2019 Advertising $ 6,001 $ 5,714 aiWARE SaaS Solutions 3,108 2,754 aiWARE Content Licensing and Media Services 2,795 3,657 Total net revenues $ 11,904 $ 12,125 |
Summary of Disaggregation of Net Revenues | Net revenues disaggregated were as follows: Three Months Ended March 31, 2020 2019 Advertising $ 6,001 $ 5,714 aiWARE SaaS Solutions (by market): Media and Entertainment 2,612 2,235 Government, Legal and Compliance 496 519 Sub-total 3,108 2,754 aiWARE Content Licensing and Media Services (by service type): Content Licensing 2,795 3,654 Media Services - 3 Sub-total 2,795 3,657 Total net revenues $ 11,904 $ 12,125 |
Schedule of Other Income, Net | Other income, net for the periods presented was comprised of the following: Three Months Ended March 31, 2020 2019 Interest income, net $ 77 $ 169 Change in fair value of warrant liability 2 (13 ) Other 52 55 Other income, net $ 131 $ 211 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Rentals Under Leases | As of March 31, 2020, future minimum lease payments were as follows: 2020 (nine months) $ 1,803 2021 2,242 2022 1,884 2023 1,685 2024 1,730 Total minimum payments $ 9,344 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of Stock-based Compensation Expense | The Company’s stock-based compensation expense recognized for the periods presented was as follows: Three Months Ended March 31, 2020 2019 Stock-based compensation expense by type of award: Restricted stock units $ 142 $ 198 Restricted stock awards 62 160 Machine Box contingent common stock issuances — 704 Performance-based stock options 1,968 1,935 Stock options 2,149 2,358 Employee stock purchase plan 135 152 Total $ 4,456 $ 5,507 Three Months Ended March 31, 2020 2019 Stock-based compensation expense by operating expense grouping: Sales and marketing $ 178 $ 243 Research and development 237 1,084 General and administrative 4,041 4,180 $ 4,456 $ 5,507 |
Schedule of Restricted Stock Award Activity | The Company’s restricted stock award activity for the three months ended March 31, 2020 was as follows: Weighted Average Grant Shares Date Fair Value Unvested at December 31, 2019 22,813 $ 7.50 Granted 5,310 $ 2.98 Vested (8,797 ) $ 4.77 Unvested at March 31, 2020 19,326 $ 7.50 |
Schedule of Restricted Stock Unit Activity | The Company’s restricted stock unit activity for the three months ended March 31, 2020 was as follows: Weighted Average Grant Shares Date Fair Value Unvested at December 31, 2019 142,145 $ 6.71 Forfeited (1,500 ) $ 8.81 Vested (50,535 ) $ 5.65 Unvested at March 31, 2020 90,110 $ 7.27 |
Schedule of Stock Option Activity | The activity during the three months ended March 31, 2020 related to all other stock options was as follows: Weighted-Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at December 31, 2019 5,196,778 $ 13.09 Granted 487,500 $ 2.69 Forfeited (86,287 ) $ 10.09 Expired (85,979 ) $ 14.26 Outstanding at March 31, 2020 5,512,012 $ 12.20 7.5 years $ 212 Exercisable at March 31, 2020 4,016,843 $ 13.82 7.0 years $ 212 |
Employee Stock Purchase Plan [Member] | |
Summary of Fair Value Assumptions of Stock Purchase Plan | The assumptions used in calculating the fair values of purchase rights granted under the ESPP during the three months ended March 31, 2020 are set forth in the table below: Expected term (in years) 0.5 - 2.0 Expected volatility 65% - 81% Risk-free interest rate 1.3% - 1.5% Expected dividend yield — |
Stock Options [Member] | |
Schedule of Fair Value Assumptions | The following assumptions were used to compute the grant date fair values of the stock options granted during the three months ended March 31, 2020: Expected term (in years) 6.0 - 6.1 Expected volatility 68 % Risk-free interest rate 0.9% - 1.2% Expected dividend yield — |
Performance-based Stock Options [Member] | |
Schedule of Stock Option Activity | The activity during the three months ended March 31, 2020 related to stock options that are subject to performance-based vesting conditions tied to the future achievement of stock price goals by the Company was as follows: Weighted-Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at December 31, 2019 4,484,739 $ 16.68 Forfeited (94,224 ) $ 5.64 Outstanding at March 31, 2020 4,390,515 $ 16.92 8.3 years $ — Exercisable at March 31, 2020 — $ — — $ — |
Presentation and Summary of S_3
Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($)Customer | Mar. 31, 2019USD ($)Customer | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 15, 2020USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Positive (negative) cash flows from operations | $ 1,503 | $ (4,632) | $ (30,117) | $ (41,770) | |
Net loss | 12,684 | 16,306 | 62,078 | $ 61,104 | |
Accumulated deficit | 245,173 | 232,489 | |||
Proceeds from common stock offerings, net | 3,505 | $ 4,160 | |||
Cash and cash equivalents | 49,165 | $ 44,065 | |||
Transaction price remaining performance obligations | $ 5,767 | ||||
Transaction price remaining performance obligations percentage | 64.00% | ||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of major customers | Customer | 10 | 10 | |||
Concentration risk percentage | 32.00% | 28.00% | |||
Paycheck Protection Program [Member] | Subsequent Event [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Unsecured loans aggregate amount | $ 6,491 | ||||
Equity Distribution Agreement [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Proceeds from common stock offerings, net | $ 2,984 | ||||
Equity Distribution Agreement [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Aggregate available offering price, common stock | $ 21,737 |
Presentation and Summary of S_4
Presentation and Summary of Significant Accounting Policies - Additional Information (Details 1) | Mar. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Significant Accounting Policies [Line Items] | |
Expected Recognition of revenue over remaining contract terms | 9 months |
Net Income Loss Per Share - Com
Net Income Loss Per Share - Computation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator | ||||
Net loss | $ (12,684) | $ (16,306) | $ (62,078) | $ (61,104) |
Denominator | ||||
Weighted-average common shares outstanding | 26,794,326 | 19,579,332 | ||
Less: Weighted-average shares subject to repurchase | (21,163) | (68,112) | ||
Denominator for basic and diluted net loss per share | 26,773,163 | 19,511,220 | ||
Basic and diluted net loss per share | $ (0.47) | $ (0.84) |
Net Income Loss Per Share - Eff
Net Income Loss Per Share - Effect of Anti-dilutive Securities (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of Anti-dilutive Securities | 11,078,959 | 10,597,934 |
Employee Stock Option and Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of Anti-dilutive Securities | 9,781,808 | 9,300,783 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of Anti-dilutive Securities | 1,297,151 | 1,297,151 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash and Available-For-Sale Securities' Cost, Gross Unrealized Losses and Fair Value by Significant Investment Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and cash equivalents | $ 49,165 | $ 44,065 |
Total Cash and Debt Securities | 49,165 | 44,065 |
Total Fair Value, Cash and Debt Securities | 49,165 | 44,065 |
Cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and cash equivalents | 35,749 | 23,710 |
Fair Value, Cash | 35,749 | 23,710 |
Level 1 [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and cash equivalents | 13,416 | 20,355 |
Cash and cash equivalents gross before unrealized losses | 13,416 | 20,355 |
Fair Value, Cash | $ 13,416 | $ 20,355 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - April 2018 Warrant [Member] - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Warrants maturity period | 5 years | |||
Warrants to purchase common stock | 20,000 | |||
Warrant exercise price | $ 11.73 | |||
Fair value, balance | $ 5 | $ 7 | ||
Change in fair value | $ 2 | $ (13) |
Financial Instruments - Summary
Financial Instruments - Summary of Quantitative Information with Respect to Significant Unobservable Inputs (Detail) - April 2018 Warrant [Member] | Mar. 31, 2020 | Dec. 31, 2019 |
Volatility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants, measurement input | 70 | 70 |
Risk-free Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.29 | 1.62 |
Term [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants term | 3 years | 3 years 3 months |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Carrying amount of goodwill | $ 6,904 | $ 6,904 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Finite-Lived Intangible Assets Resulting from Business Acquisitions and Other Purchases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 3 years 2 months 12 days | |
Gross Carrying Amount | $ 23,882 | $ 23,882 |
Accumulated Amortization | (9,104) | (7,756) |
Net Carrying Amount | $ 14,778 | 16,126 |
Software and Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 1 year 2 months 12 days | |
Gross Carrying Amount | $ 3,582 | 3,582 |
Accumulated Amortization | (2,469) | (2,171) |
Net Carrying Amount | $ 1,113 | 1,411 |
Licensed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 1 year 6 months | |
Gross Carrying Amount | $ 500 | 500 |
Accumulated Amortization | (250) | (208) |
Net Carrying Amount | $ 250 | 292 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 3 years 4 months 24 days | |
Gross Carrying Amount | $ 9,600 | 9,600 |
Accumulated Amortization | (3,040) | (2,560) |
Net Carrying Amount | $ 6,560 | 7,040 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 3 years 4 months 24 days | |
Gross Carrying Amount | $ 9,300 | 9,300 |
Accumulated Amortization | (2,945) | (2,480) |
Net Carrying Amount | $ 6,355 | 6,820 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 8 months 12 days | |
Gross Carrying Amount | $ 100 | 100 |
Accumulated Amortization | (70) | (59) |
Net Carrying Amount | $ 30 | 41 |
Noncompete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 2 years 3 months 18 days | |
Gross Carrying Amount | $ 800 | 800 |
Accumulated Amortization | (330) | (278) |
Net Carrying Amount | $ 470 | $ 522 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Summary of Amortization Expense Associated with Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Total amortization of expenses | $ 1,348 | $ 841 |
Cost of Revenue [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total amortization of expenses | 561 | 370 |
Selling and Marketing [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total amortization of expenses | 531 | 213 |
Research and Development [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total amortization of expenses | $ 256 | 256 |
General and Administrative [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total amortization of expenses | $ 2 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Summary of Future Amortization of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2020 (nine months) | $ 4,034 | |
2021 | 4,261 | |
2022 | 3,963 | |
2023 | 2,520 | |
Net Carrying Amount | $ 14,778 | $ 16,126 |
Consolidated Financial Statem_3
Consolidated Financial Statements Details - Summary of Accounts Receivable,Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, gross | $ 21,946 | $ 21,381 |
Less: allowance for doubtful accounts | (39) | (29) |
Accounts receivable, net | 21,907 | 21,352 |
Advertising [Member] | ||
Accounts receivable, gross | 18,760 | 19,184 |
aiWARE SaaS Solutions [Member] | ||
Accounts receivable, gross | 2,154 | 1,269 |
aiWARE Content Licensing and Media Services [Member] | ||
Accounts receivable, gross | $ 1,032 | $ 928 |
Consolidated Financial Statem_4
Consolidated Financial Statements Details - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Depreciation Expense | $ 256 | $ 292 |
Cost of revenues | $ 3,811 | 3,872 |
Advertising [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Percentage of average commission earned on amount invoiced and collected | 15.00% | |
Gross media placements | $ 54,749 | 52,492 |
Advertising [Member] | Billed Revenues [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Gross media placements | 50,050 | 48,125 |
Advertising [Member] | Netted Against Billings [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cost of revenues | $ 44,499 | $ 42,838 |
Consolidated Financial Statem_5
Consolidated Financial Statements Details - Summary of Property Equipment and Improvements, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Property and equipment | $ 2,256 | $ 2,247 |
Leasehold improvements | 2,876 | 2,876 |
Property, equipment and improvements, gross | 5,132 | 5,123 |
Less: accumulated depreciation | (2,165) | (1,909) |
Property, equipment and improvements, net | $ 2,967 | $ 3,214 |
Consolidated Financial Statem_6
Consolidated Financial Statements Details - Accounts Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts payable — Advertising | $ 14,848 | $ 15,697 |
Accounts payable — Other | 1,385 | 1,299 |
Total | $ 16,233 | $ 16,996 |
Consolidated Financial Statem_7
Consolidated Financial Statements Details - Summary of Net Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Total net revenues | $ 11,904 | $ 12,125 |
Advertising [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Total net revenues | 6,001 | 5,714 |
aiWARE SaaS Solutions [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Total net revenues | 3,108 | 2,754 |
aiWARE Content Licensing and Media Services [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Total net revenues | $ 2,795 | $ 3,657 |
Consolidated Financial Statem_8
Consolidated Financial Statements Details - Summary of Disaggregation of Net Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 11,904 | $ 12,125 |
Advertising [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | 6,001 | 5,714 |
aiWARE Media and Entertainment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | 2,612 | 2,235 |
aiWARE Government Legal and Compliance [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | 496 | 519 |
aiWARE SaaS Solutions [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | 3,108 | 2,754 |
aiWARE Content Licensing [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | 2,795 | 3,654 |
aiWARE Media Services [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | 3 | |
aiWARE Content Licensing and Media Services [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 2,795 | $ 3,657 |
Consolidated Financial Statem_9
Consolidated Financial Statements Details - Schedule of Other Income, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | ||
Interest income, net | $ 77 | $ 169 |
Change in fair value of warrant liability | 2 | (13) |
Other | 52 | 55 |
Other income, net | $ 131 | $ 211 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Rentals Under Leases (Detail) - Building Lease Agreement [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Other Commitments [Line Items] | |
2020 (nine months) | $ 1,803 |
2021 | 2,242 |
2022 | 1,884 |
2023 | 1,685 |
2024 | 1,730 |
Total minimum payments | $ 9,344 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Rent expense | $ 766 | $ 745 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 28, 2019 | Sep. 06, 2018 | Aug. 21, 2018 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 25, 2019 |
Class of Stock [Line Items] | |||||||
Net proceeds from stock issuance | $ 3,505 | $ 4,160 | |||||
Common Stock and Employee Stock Purchase Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued in connection with stock option exercise | 111,427 | 85,017 | |||||
Machine Box, Inc. [Member] | |||||||
Class of Stock [Line Items] | |||||||
Business acquisition, effective date | Sep. 6, 2018 | ||||||
Escrow deposit closing, date | Sep. 6, 2020 | ||||||
Performance Bridge [Member] | |||||||
Class of Stock [Line Items] | |||||||
Business acquisition, effective date | Aug. 21, 2018 | ||||||
JMP Securities [Member] | |||||||
Class of Stock [Line Items] | |||||||
Maximum aggregate sales price of shares to be issued under sale agreement. | $ 50,000 | ||||||
Net proceeds from stock issuance | $ 2,984 | $ 4,160 | |||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares issued | 1,292,208 | 662,000 | |||||
Common Stock [Member] | Machine Box, Inc. [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of consideration payable for issuance of shares | 80.00% | ||||||
Business acquisition, shares issued or issuable | 135,583 | 108,469 | |||||
Business acquisition, shares issued or issuable, value | $ 880 | ||||||
Common Stock [Member] | Machine Box, Inc. [Member] | Escrow Deposit | |||||||
Class of Stock [Line Items] | |||||||
Business acquisition, indemnification and other obligations, shares issued or issuable | 27,114 | ||||||
Common Stock [Member] | Performance Bridge [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of consideration payable for issuance of shares | 80.00% | ||||||
Business acquisition initial consideration, additional shares issued | 6,482 | ||||||
Business acquisition, closing price of common stock | $ 34 | ||||||
Business combination, common stock issued for contingent earn-out payments | $ 3,026 | ||||||
Business combination, common stock shares issued for contingent earn-out payments | 574,231 | ||||||
Common Stock [Member] | JMP Securities [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares issued | 1,292,208 | 662,000 | |||||
Stock issuance costs | $ 92 | $ 178 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Accrued employee contributions | $ 1,957,000 | $ 2,486,000 | |
Employee Stock Purchase Plan [Member] | |||
Class of Stock [Line Items] | |||
Common stock were purchased under ESPP | 62,469 | ||
Accrued employee contributions | $ 52,000 | ||
Timebased Stock Option [Member] | |||
Class of Stock [Line Items] | |||
Options granted | 487,500 | ||
Restricted Stock [Member] | |||
Class of Stock [Line Items] | |||
Unrecognized cost of share-based compensation awards | $ 104,000 | ||
Cost of share-based compensation awards, recognition period | 7 months 6 days | ||
Restricted Stock Units [Member] | |||
Class of Stock [Line Items] | |||
Unrecognized cost of share-based compensation awards | $ 217,000 | ||
Cost of share-based compensation awards, recognition period | 8 months 12 days | ||
Performance-based Stock Options [Member] | |||
Class of Stock [Line Items] | |||
Cost of share-based compensation awards, recognition period | 3 years 1 month 6 days | ||
Weighted Average Grant Date Fair Value, Granted | $ 2.54 | ||
Total grant date fair value of stock options granted | $ 0 | ||
Total grant date fair value of stock options vested | 0 | $ 0 | |
Unrecognized compensation expense related to stock options | $ 19,319,000 | ||
Stock Options [Member] | |||
Class of Stock [Line Items] | |||
Options granted | 487,500 | ||
Cost of share-based compensation awards, recognition period | 2 years 2 months 12 days | ||
Weighted Average Grant Date Fair Value, Granted | $ 1.64 | $ 3.55 | |
Total grant date fair value of stock options vested | $ 2,371,000 | $ 2,718,000 | |
Unrecognized compensation expense related to stock options | 6,283,000 | ||
Aggregate intrinsic value of the options exercised | $ 0 | $ 74,000 |
Stock Plans - Schedule of Fair
Stock Plans - Schedule of Fair Value Assumptions (Detail) - Stock Options [Member] | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 68.00% |
Risk-free interest rate, minimum | 0.90% |
Risk-free interest rate, maximum | 1.20% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 1 month 6 days |
Stock Plans - Summary of Fair V
Stock Plans - Summary of Fair Value Assumptions of Stock Purchase Plan (Detail) - Employee Stock Purchase Plan [Member] | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 65.00% |
Expected volatility, maximum | 81.00% |
Risk-free interest rate, minimum | 1.30% |
Risk-free interest rate, maximum | 1.50% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 months |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 2 years |
Stock Plans - Schedule of Stock
Stock Plans - Schedule of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 4,456 | $ 5,507 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 142 | 198 |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 62 | 160 |
Machine Box Contingent Common Stock Issuances [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 704 | |
Performance-based Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,968 | 1,935 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 2,149 | 2,358 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 135 | 152 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 178 | 243 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 237 | 1,084 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 4,041 | $ 4,180 |
Stock Plans - Schedule of Restr
Stock Plans - Schedule of Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Unvested, Beginning Balance | shares | 22,813 |
Shares, Granted | shares | 5,310 |
Shares, Vested | shares | (8,797) |
Shares, Unvested, Ending Balance | shares | 19,326 |
Weighted Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 7.50 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2.98 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 4.77 |
Weighted Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 7.50 |
Stock Plans - Schedule of Res_2
Stock Plans - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Unvested, Beginning Balance | shares | 142,145 |
Shares, Forfeited | shares | (1,500) |
Shares, Vested | shares | (50,535) |
Shares, Unvested, Ending Balance | shares | 90,110 |
Weighted Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 6.71 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 8.81 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 5.65 |
Weighted Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 7.27 |
Stock Plans - Schedule of Perfo
Stock Plans - Schedule of Performance-Based Stock Options Activity (Detail) - Performance-based Stock Options [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding, Beginning Balance | shares | 4,484,739 |
Options Forfeited | shares | (94,224) |
Options, Outstanding, Ending Balance | shares | 4,390,515 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 16.68 |
Weighted-Average Exercise Price, Options Forfeited | $ / shares | 5.64 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 16.92 |
Weighted-Average Remaining Contractual Term, Outstanding | 8 years 3 months 18 days |
Stock Plans - Schedule of Sto_2
Stock Plans - Schedule of Stock Option Activity (Detail) - Stock Options [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding, Beginning Balance | shares | 5,196,778 |
Options Granted | shares | 487,500 |
Options Forfeited | shares | (86,287) |
Options Expired | shares | (85,979) |
Options, Outstanding, Ending Balance | shares | 5,512,012 |
Options Exercisable at March 31, 2020 | shares | 4,016,843 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 13.09 |
Weighted-Average Exercise Price, Options Granted | $ / shares | 2.69 |
Weighted-Average Exercise Price, Options Forfeited | $ / shares | 10.09 |
Weighted-Average Exercise Price, Options Expired | $ / shares | 14.26 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 12.20 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 13.82 |
Weighted-Average Remaining Contractual Term, Outstanding | 7 years 6 months |
Weighted-Average Remaining Exercisable | 7 years |
Weighted-Average Aggregate Intrinsic Value | $ | $ 212 |
Weighted-Average Aggregate Intrinsic Value, Exercisable | $ | $ 212 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - Unsecured Loans [Member] - Paycheck Protection Program [Member] $ in Thousands | Apr. 15, 2020USD ($) |
Subsequent Event [Line Items] | |
Aggregate loan amount | $ 6,491 |
Aggregate loan amount | 1.00% |
Debt instrument interest rate payment commencing period effective of loan | 7 months |