Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 08, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PAR TECHNOLOGY CORP | |
Entity Central Index Key | 708,821 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,185,528 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 8,678 | $ 6,600 |
Accounts receivable-net | 33,418 | 30,077 |
Inventories-net | 26,748 | 21,746 |
Other current assets | 4,179 | 4,209 |
Total current assets | 73,023 | 62,632 |
Property, plant and equipment – net | 11,877 | 10,755 |
Deferred income taxes | 14,170 | 13,809 |
Goodwill | 11,051 | 11,051 |
Intangible assets – net | 12,504 | 12,070 |
Other assets | 4,590 | 4,307 |
Total Assets | 127,215 | 114,624 |
Current liabilities: | ||
Current portion of long-term debt | 183 | 195 |
Borrowings of line of credit | 5,841 | 950 |
Accounts payable | 21,072 | 14,332 |
Accrued salaries and benefits | 6,153 | 6,275 |
Accrued expenses | 2,775 | 3,926 |
Customer deposits and deferred service revenue | 11,236 | 10,241 |
Other current liabilities | 3,000 | 0 |
Total current liabilities | 50,260 | 35,919 |
Long-term debt | 101 | 185 |
Deferred service revenue | 4,783 | 2,668 |
Other long-term liabilities | 3,380 | 6,866 |
Total liabilities | 58,524 | 45,638 |
Commitments and contingencies | ||
Shareholders’ Equity: | ||
Preferred stock, $.02 par value, 1,000,000 shares authorized | 0 | 0 |
Common stock, $.02 par value, 29,000,000 shares authorized; 17,885,159 and 17,677,161 shares issued, 16,177,050 and 15,969,052 outstanding at June 30, 2018 and December 31, 2017, respectively | 357 | 354 |
Capital in excess of par value | 49,508 | 48,349 |
Retained earnings | 28,294 | 29,549 |
Accumulated other comprehensive loss | (3,632) | (3,430) |
Treasury stock, at cost, 1,708,109 shares | (5,836) | (5,836) |
Total shareholders’ equity | 68,691 | 68,986 |
Total Liabilities and Shareholders’ Equity | $ 127,215 | $ 114,624 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Shareholders’ Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Common stock, authorized (in shares) | 29,000,000 | 29,000,000 |
Common stock, issued (in shares) | 17,885,159 | 17,677,161 |
Common stock, outstanding (in shares) | 16,177,050 | 15,969,052 |
Treasury stock, at cost (in shares) | 1,708,109 | 1,708,109 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net revenues: | ||||
Net revenues | $ 52,571 | $ 62,261 | $ 108,232 | $ 128,126 |
Costs of sales: | ||||
Cost of sales | 41,211 | 47,695 | 85,025 | 98,489 |
Gross margin | 11,360 | 14,566 | 23,207 | 29,637 |
Operating expenses: | ||||
Selling, general and administrative | 9,020 | 8,917 | 17,620 | 18,527 |
Research and development | 3,222 | 2,653 | 6,090 | 5,632 |
Amortization of identifiable intangible assets | 242 | 242 | 483 | 483 |
Operating expenses | 12,484 | 11,812 | 24,193 | 24,642 |
Operating (loss) income from continuing operations | (1,124) | 2,754 | (986) | 4,995 |
Other (expense) income , net | (384) | 54 | (335) | (194) |
Interest expense, net | (78) | (13) | (119) | (45) |
(Loss) income from continuing operations before provision for income taxes | (1,586) | 2,795 | (1,440) | 4,756 |
Benefit from / (provision for) income taxes | 263 | (818) | 185 | (1,515) |
(Loss) income from continuing operations | (1,323) | 1,977 | (1,255) | 3,241 |
Discontinued operations | ||||
Income from discontinued operations (net of tax) | 0 | 0 | 0 | 183 |
Net (loss) income | $ (1,323) | $ 1,977 | $ (1,255) | $ 3,424 |
Basic (Loss) Earnings per Share: | ||||
(Loss) Income from continuing operations (in dollars per share) | $ (0.08) | $ 0.12 | $ (0.08) | $ 0.20 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Net (Loss) income (in dollars per share) | (0.08) | 0.12 | (0.08) | 0.21 |
Diluted (Loss) Earnings per Share: | ||||
(Loss) Income from continuing operations (in dollars per share) | (0.08) | 0.12 | (0.08) | 0.20 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Net (loss) income (in dollars per share) | $ (0.08) | $ 0.12 | $ (0.08) | $ 0.21 |
Weighted average shares outstanding | ||||
Basic (in shares) | 16,330 | 15,919 | 15,993 | 15,893 |
Diluted (in shares) | 16,330 | 16,179 | 15,993 | 16,146 |
Product [Member] | ||||
Net revenues: | ||||
Net revenues | $ 20,883 | $ 32,682 | $ 47,207 | $ 69,888 |
Costs of sales: | ||||
Cost of sales | 15,339 | 24,389 | 34,779 | 51,961 |
Service [Member] | ||||
Net revenues: | ||||
Net revenues | 13,944 | 15,034 | 27,140 | 29,377 |
Costs of sales: | ||||
Cost of sales | 10,205 | 10,397 | 19,752 | 20,872 |
Contract [Member] | ||||
Net revenues: | ||||
Net revenues | 17,744 | 14,545 | 33,885 | 28,861 |
Costs of sales: | ||||
Cost of sales | $ 15,667 | $ 12,909 | $ 30,494 | $ 25,656 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (1,323) | $ 1,977 | $ (1,255) | $ 3,424 |
Other comprehensive loss, net of applicable tax: | ||||
Foreign currency translation adjustments | (625) | (197) | (202) | (156) |
Comprehensive (loss) income | $ (1,948) | $ 1,780 | $ (1,457) | $ 3,268 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,255) | $ 3,424 |
Income from discontinued operations | 0 | (183) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion | 2,279 | 1,852 |
Provision for bad debts | 314 | 315 |
Provision for obsolete inventory | 974 | 1,528 |
Equity based compensation | 431 | 238 |
Deferred income tax | (361) | 1,014 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,655) | (3,417) |
Inventories | (5,976) | (4,136) |
Income tax receivable | 0 | 261 |
Other current assets | 30 | (219) |
Other assets | (283) | (48) |
Accounts payable | 6,740 | (2,524) |
Accrued salaries and benefits | (122) | 941 |
Accrued expenses | (1,151) | 70 |
Customer deposits and deferred service revenue | 3,110 | (5,301) |
Other long-term liabilities | (486) | 52 |
Net cash provided by (used in) operating activities-continuing operations | 589 | (6,133) |
Net cash provided by operating activities-discontinued operations | 0 | 462 |
Net cash provided by (used in) operating activities | 589 | (5,671) |
Cash flows from investing activities: | ||
Capital expenditures | (1,737) | (3,497) |
Capitalization of software costs | (2,098) | (2,148) |
Net cash used in investing activities | (3,835) | (5,645) |
Cash flows from financing activities: | ||
Payments of long-term debt | (96) | (92) |
Payments of other borrowings | (10,059) | (14,150) |
Proceeds from other borrowings | 14,950 | 15,150 |
Proceeds from stock options | 731 | 915 |
Proceeds from note receivable | 0 | 3,794 |
Net cash provided by financing activities | 5,526 | 5,617 |
Effect of exchange rate changes on cash and cash equivalents | (202) | (74) |
Net decrease in cash and cash equivalents | 2,078 | (5,773) |
Cash and cash equivalents at beginning of period | 6,600 | 9,055 |
Cash and equivalents at end of period | 8,678 | 3,282 |
Cash paid during the period for: | ||
Interest | 78 | 60 |
Income taxes, net of refunds | $ 83 | $ 56 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited interim consolidated financial statements of PAR Technology Corporation (the “Company” or “PAR”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X pertaining to interim financial statements. Accordingly, they do not include all information and footnotes required by GAAP for annual financial statements. In the opinion of management, such unaudited interim consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the results for the interim periods included in this Quarterly Report on Form 10-Q (“Quarterly Report”). Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results of operations that may be expected for any future period. Certain amounts for prior periods have been reclassified to conform to the current period classification. The preparation of unaudited interim consolidated financial statements requires management of the Company to make a number of estimates, judgments and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amount of revenues and expenses during the period. Primary areas where financial information is subject to the use of estimates, assumptions and the application of judgment include revenue recognition, accounts receivable, inventories, accounting for business combinations, contingent consideration, equity compensation, goodwill and intangible assets, and taxes. Actual results could differ from those estimates. The unaudited interim consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission (“SEC”) on March 16, 2018. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers, codified as ASC Topic 606 (“ASC 606”). The FASB issued amendments to ASC 606 during 2016. ASC 606 requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. ASC 606 is effective for annual and interim reporting periods beginning after December 15, 2017. Two adoption methods are permitted under ASU 2014-09. The new standard may be adopted through either retrospective application to all periods presented in our consolidated financial statements (full retrospective) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective). The Company adopted the new standard effective January 1, 2018 using the modified retrospective method. We reviewed significant open contracts with customers for each revenue source. Our revenue is derived from Software as a Service (SaaS), hardware and software sales, software activation, hardware support, installations, maintenance, professional services, contracts and programs. ASC 606 requires us to distinguish and measure performance obligations under customer contracts. Transaction prices are allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Performance obligations are satisfied over time as work progresses or at a point in time. We evaluated the potential performance obligations within our Restaurant/Retail reporting segment (Brink/POS, SureCheck, and PixelPoint) and evaluated whether each deliverable or promise met the ASC 606 criteria to be considered distinct performance obligations. Revenue in the Restaurant/Retail reporting segment is recognized at a point in time for software, manufactured or “purchased for re-sale” hardware (such as terminals, peripherals printers, card readers and other accessories), installations and “pass through licenses”. Revenue on these items are recognized when the customer obtains control of the asset. This generally occurs upon delivery and acceptance by the customer or upon installation or delivery to a third party carrier for onward delivery to customer. Additionally, revenue in the Restaurant/Retail reporting segment relating to subscription services for software, SaaS, Advanced Exchange, on-site support and other services are recognized over time as the customer simultaneously receives and consumes the benefits of the Company’s performance obligations. Our support services are stand-ready obligations that are provided over the life of the contract, which typically ranges from 12 months to 60 months. We offer installation services to our customers for hardware and software for which we primarily hire third-party contractors to install the equipment on our behalf. We pay the third-party contractors an installation service fee based on an hourly rate as agreed upon between us and contractor. When third party installers are used, we determine whether the nature of our promises are performance obligations to provide the specified goods or services ourselves (principal) or to arrange for the third party to provide the goods or services (agent). In our customer arrangements, we are primarily responsible for fulfilling the promise to provide a good or service, we have inventory risk before the good or service is transferred to the customer, and we have discretion in establishing prices. We are the principal in the arrangement and record installation revenue on a gross basis. At times we will offer maintenance services at different prices for customers based on the life of the service, which typically ranges from 12 to 60 months. The support services are a ‘stand-ready obligation’ satisfied over time on the basis that customer consumes and receives a benefit from having access to our support resources, when and as needed, throughout the contract term. For this reason, the support services are recognized ratably over the term since we satisfy our obligation to stand ready by performing these services each day. Our contracts typically require payment within 30 to 90 days from the shipping date or installation date, depending on our terms with the customer. For all sales not bundled with other performance obligations, the Company determines selling price based on the following table. Restaurant and Retail Performance Obligation Stand-alone Selling Price Cost Plus Margin Hardware X Pass Thru Hardware (Terminals, Printers, Card Readers, etc.) X Hardware Support (i.e., Advanced Exchange) X Installation X Maintenance X Software X Software Updates X Professional Services / Project Management X Software Activation X Our revenue in the Government reporting segment is recognized over time as control is generally transferred continuously to our customers. Revenue generated by the Government reporting segment is predominantly related to services provided, however, revenue is also generated through the sale of materials, software, hardware, and maintenance. For the Government reporting segment cost plus fixed fee contract portfolio, revenue is recognized over time using costs incurred to date to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, overhead and G&A expenses. Profit is recognized on the fixed fee portion of the contract as costs are incurred and invoiced. Long-term fixed price contracts and programs involve the use of various techniques to estimate total contract revenue and costs. For long-term fixed price contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include: labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; and the performance of subcontractors. Revenue and profit in future periods of contract performance are recognized using the aforesaid assumptions and adjusting the estimate. Allocating the transaction price varies based on the performance obligations within a specific contract as the stand-alone selling price of the software and maintenance/support is not always discernable. Once the services provided are determined to be distinct or not distinct, we evaluate how to allocate the transaction price. Generally, the Government reporting segment does not sell the same good or service to similar customers and the contract performance obligations are unique to each government solicitation. The performance obligations are typically not distinct. In cases where there are distinct performance obligations, the transaction price would be allocated to each performance obligation on a standalone basis. Cost plus margin is used for the cost plus fixed fee contract portfolios, and residual is used for the fixed price and time & materials contracts portfolios. In determining when to recognize revenue, we have evaluated the goods/services provided in all contracts and considered two scenarios: Scenario One - The performance obligation is satisfied over time and Scenario Two - the performance obligation is satisfied at a point in time. We evaluated factors suggesting the aforementioned conclusions and generally, Scenario One applies to our portfolio of contracts. However, there may be circumstances where Scenario Two, or Scenario One and Two could apply. We usually expect payment within 30 to 90 days from the date of service, depending on our terms with the customer. None of our contracts as of June 30, 2018 contained a significant financing component. There was no impact on retained earnings for the six months ended June 30, 2018 based on the adoption of ASC 606. Performance Obligations Outstanding Our performance obligations outstanding represent the transaction price of firm, non-cancellable orders, with expected delivery dates to customers subsequent to June 30, 2018 , for which work has not yet been performed. The aggregate performance obligations attributable to each of our reporting segments is as follows (in thousands): As of June 30, 2018 Current - under one year Non-current - over one year Restaurant $ 10,752 $ 4,783 Government 484 — TOTAL $ 11,236 $ 4,783 As of December 31, 2017 Current - under one year Non-current - over one year Restaurant $ 6,199 $ 2,668 Government 585 — TOTAL $ 6,784 $ 2,668 Most performance obligations over one year are related to service and support contracts, of which we expect to fulfill within 60 months. During the three and six months ended June 30, 2018 , we recognized revenue of $6.5 million and $12.2 million that was included in contract liabilities at the beginning of the period, respectively. Disaggregated Revenue We disaggregate revenue from contracts with customers by major product group for each of the reporting segments because we believe it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregated revenue for the three and six months ended June 30, 2018 is as follows (in thousands): Three months ended June 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 27,430 5,742 — Grocery 873 782 — Mission Systems — — 8,707 ISR Solutions — — 9,037 TOTAL 28,303 6,524 17,744 Six months ended June 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 59,594 11,599 — Grocery 1,626 1,528 — Mission Systems — — 17,041 ISR Solutions — — 16,844 TOTAL 61,220 13,127 33,885 Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would be less than one year or the total amount of commissions would be immaterial. Commissions are recorded in SG&A. We elected to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (for example, sales, use, value added, and some excise taxes). |
Divestiture and Discontinued Op
Divestiture and Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture and Discontinued Operations | Divestiture and Discontinued Operations On November 4, 2015, the Company sold substantially all of the assets of its hotel/spa technology business operated by PAR Springer-Miller Systems, Inc., Springer-Miller International, LLC, and Springer-Miller Canada, ULC (collectively, “PSMS”) pursuant to an asset purchase agreement (the “PSMS APA”) dated on even date therewith among PSMS and Gary Jonas Computing Ltd., SMS Software Holdings LLC, and Jonas Computing (UK) Ltd. (the “Purchasers”). Accordingly, the results of operations of PSMS have been classified as discontinued operations in the Consolidated Statements of Operations (unaudited) and Consolidated Statements of Cash Flows (unaudited) in accordance with Accounting Standards Codification (“ASC”) ASC 205-20 (Presentation of Financial Statements – Discontinued Operations). Additionally, the assets and associated liabilities have been classified as discontinued operations in the consolidated balance sheets (unaudited). Total consideration to be received from the sale is $16.6 million in cash (the “Base Purchase Price”), with $12.1 million paid at the closing of the asset sale and up to $4.5 million payable 18 months following the closing (the “Holdback Amount”). On May 5, 2017, the Company received payment of $4.2 million of the Holdback Amount, the unpaid balance is reflective of a negative purchase price adjustment based on the net tangible asset calculation provided under the PSMS APA. In addition to the Base Purchase Price, contingent consideration of up to $1.5 million (the “Earn-Out”) could be received by the Company based on the achievement of certain agreed-upon revenue and earnings targets for calendar years 2017 , 2018 and 2019 (up to $500,000 per calendar year), subject to setoff for PSMS and ParTech, Inc. indemnification obligations thereunder and unresolved claims. The Company received no Earn-Out payment for calendar year 2017 and, as of June 30, 2018 , the Company did not record any amount associated with calendar years 2018 and 2019 , as the Company does not believe achievement of the related revenue and earnings targets is probable. As of June 30, 2018 and December 31, 2017 , the Company did not have any assets or liabilities from discontinued operations. Summarized financial operating results for the Company’s discontinued operations is as follows (in thousands): Three Months Six Months 2018 2017 2018 2017 Operations Total revenues $ — $ — $ — $ — Income from discontinued operations before income taxes $ — $ — $ — $ 284 Provision for income taxes — — — (101 ) Income from discontinued operations, net of taxes $ — $ — $ — $ 183 During the three and six months ended June 30, 2017 , the Company recognized income on discontinued operations of $0.0 million (net of tax) and $0.2 million (net of tax), respectively, mainly due to an increase of the note receivable. The increase of the note receivable is reflected in the Company’s earnings for 2017 and was received by the Company on May 5, 2017 . No amount was recorded for the three and six months ended June 30, 2018 . |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable, net consists of (in thousands): June 30, 2018 December 31, 2017 Government segment: Billed $ 10,539 $ 9,028 Advanced billings (1,212 ) (1,977 ) 9,327 7,051 Restaurant/Retail segment: 24,091 23,026 Accounts receivable - net $ 33,418 $ 30,077 At June 30, 2018 and December 31, 2017 , the Company had recorded allowances for doubtful accounts of $1.2 million and $0.9 million , respectively, against Restaurant/Retail reporting segment accounts receivable. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are primarily used in the manufacture, maintenance and service for Restaurant/Retail reporting segment products. The components of inventories, net, consist of the following (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 13,457 $ 9,535 Work in process 850 766 Component parts 6,266 5,480 Service parts 6,175 5,965 $ 26,748 $ 21,746 At June 30, 2018 and December 31, 2017 , the Company had recorded inventory reserves of $11.0 million and $10.0 million , respectively, against Restaurant/Retail reporting segment inventories, which relates primarily to service parts. |
Identifiable Intangible Assets
Identifiable Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets and Goodwill | Identifiable Intangible Assets and Goodwill Identifiable intangible assets represent intangible assets acquired by the Company in connection with its acquisition of Brink Software Inc. in 2014 ("Brink Acquisition") and software development costs. The Company capitalizes certain software development costs for software used in its Restaurant/Retail reporting segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, as defined within ASC 985-20 (Software – Costs of Software to be sold, Leased, or Marketed) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software development is also capitalized in accordance with ASC 350-40, “Intangibles - Goodwill and Other - Internal - Use Software,” and is amortized over the expected benefit period, which generally ranges from three to seven years. Software development costs capitalized within continuing operations during the three and six months ended June 30, 2018 were $1.1 million and $2.1 million , respectively. Software development costs capitalized within continuing operations during the three and six months ended June 30, 2017 were $1.1 million and $2.1 million , respectively. Annual amortization, charged to cost of sales is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for the product bear to the total of current and anticipated future gross revenues for the product. Amortization of capitalized software development costs from continuing operations for the three and six months ended June 30, 2018 were $0.9 million and $1.7 million , respectively. Amortization of capitalized software development costs from continuing operations for the three and six months ended June 30, 2017 were $0.4 million and $0.7 million , respectively. Amortization of intangible assets acquired in the Brink Acquisition amounted to $0.2 million and $0.5 million for the three and six months ended June 30, 2018 , respectively. Amortization of intangible assets acquired in the Brink Acquisition amounted to $0.2 million and $0.5 million for each of the three and six months ended June 30, 2017 , respectively. The components of identifiable intangible assets, excluding discontinued operations, are (in thousands): June 30, 2018 December 31, 2017 Estimated Useful Life Acquired and internally developed software costs $ 21,768 $ 19,670 3 - 7 years Customer relationships 160 160 7 years Non-competition agreements 30 30 1 year 21,958 19,860 Less accumulated amortization (9,854 ) (8,190 ) $ 12,104 $ 11,670 Trademarks, trade names (non-amortizable) 400 400 N/A $ 12,504 $ 12,070 The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, is as follows (in thousands): 2018 $ 1,769 2019 3,140 2020 2,640 2021 1,927 2022 534 Thereafter 2,094 Total $ 12,104 The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate that there may be impairment. The Company operates in two reportable business segments, Restaurant/Retail and Government. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to a specific reporting unit at the date the goodwill is initially recorded. Once goodwill has been assigned to a specific reporting unit, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The amount of goodwill carried by the Restaurant/Retail and Government reporting units is $10.3 million and $0.8 million , respectively, at June 30, 2018 and December 31, 2017 . |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Company applies the fair value recognition provisions of ASC Topic 718. The Company recorded stock based compensation of $0.3 million and $0.4 million for the three and six month periods ended June 30, 2018 , respectively. The Company recorded stock based compensation of $0.1 million and $0.2 million for the three and six month periods ended June 30, 2017 , respectively. The amount recorded for both the three and six month periods ended June 30, 2018 were not netted from any benefits as a result of forfeitures of unvested stock awards prior to completion of the requisite service period and/or failure to achieve performance criteria. The amount recorded for both the three and six month periods ended June 30, 2017 were net of benefits of $10,000 as a result of forfeitures of unvested stock awards prior to completion of the requisite service period and/or failure to achieve performance criteria. At June 30, 2018 , the aggregate unrecognized compensation expense related to unvested equity awards was $1.4 million (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2018 through 2020 . For the three and six month periods ended June 30, 2018 and 2017 , the Company recognized compensation expense related to performance awards based on its estimate of the probability of achievement in accordance with ASC Topic 718. |
Net (loss) income per share
Net (loss) income per share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net (loss) income per share | Net (loss) income per share Earnings (loss) per share are calculated in accordance with ASC Topic 260, which specifies the computation, presentation and disclosure requirements for earnings per share (EPS). It requires the presentation of basic and diluted EPS. Basic EPS excludes all dilution and is based upon the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that would occur if convertible securities or other contracts to issue common stock were exercised. For the six months ended June 30, 2018 and June 30, 2017 , there were no anti-dilutive stock options outstanding. The following is a reconciliation of the weighted average of shares of common stock outstanding for the basic and diluted EPS computations (in thousands, except per share data): Three Months 2018 2017 Net (loss) income from continuing operations $ (1,323 ) $ 1,977 Basic: Shares outstanding at beginning of period 16,286 15,811 Weighted average shares (repurchased)/issued during the period, net 44 108 Weighted average common shares, basic 16,330 15,919 Net (loss) income from continuing operations per common share, basic $ (0.08 ) $ 0.12 Diluted: Weighted average common shares, basic 16,330 15,919 Dilutive impact of stock options and restricted stock awards — 260 Weighted average common shares, diluted 16,330 16,179 Net (loss) income from continuing operations per common share, diluted $ (0.08 ) $ 0.12 Six Months 2018 2017 Net (loss) income from continuing operations $ (1,255 ) $ 3,241 Basic: Shares outstanding at beginning of period 15,969 15,771 Weighted average shares (repurchased)/issued during the period, net 24 122 Weighted average common shares, basic 15,993 15,893 Net (loss) income from continuing operations per common share, basic $ (0.08 ) $ 0.20 Diluted: Weighted average common shares, basic 15,993 15,893 Dilutive impact of stock options and restricted stock awards — 253 Weighted average common shares, diluted 15,993 16,146 Net (loss) income from continuing operations per common share, diluted $ (0.08 ) $ 0.20 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act ("Tax Act"). SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which accounting under Accounting Standards Codification 740, Income Taxes ("ASC 740") is complete. To the extent a company’s accounting for certain income tax effects of the Tax Act is incomplete, but the company is able to determine a reasonable estimate, the company must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Act. While we are able to make reasonable estimates of the impact of the reduction in the corporate tax rate and the deemed repatriation transition tax, the final impact of the Tax Act may differ from our estimates due to, among other things, changes in our interpretations and assumptions, additional guidance that may be issued by the I.R.S., and actions we may take. We are continuing to gather additional information to determine the final impact. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is subject to legal proceedings, which arise in the ordinary course of business. Additionally, U.S. Government contract costs are subject to periodic audit and adjustment. In the third quarter of 2016, the Company's Audit Committee commenced an internal investigation into certain activities at our China and Singapore offices to determine whether certain import/export and sales documentation activities were improper and in violation of the U.S. Foreign Corrupt Practices Act ("FCPA") and other applicable laws and certain Company policies. We voluntarily notified the SEC and the U.S. Department of Justice ("DOJ") of the internal investigation. On May 1, 2017, the Company received a subpoena from the SEC for documents relating to the internal investigation. Following the conclusion of the Audit Committee's internal investigation, the Company voluntarily reported the relevant findings of the investigaton to the China and Singapore authorities. During the three and six months ended June 30, 2018 , we recorded $0.3 million and $0.6 million , respectively, of expenses relating to the internal investigation and the SEC subpoena, including expenses of outside legal counsel and forensic accountants, compared to $0.6 million and $1.6 million , respectively, for the three and six months ended June 30, 2017 . We are currently unable to predict what actions the SEC, DOJ, or other governmental agencies (including China and Singapore authorities) might take, or what the likely outcome of any such actions might be, or estimate the range of reasonably possible fines or penalties, which may be material. The SEC, DOJ, and other governmental authorities have a broad range of civil and criminal sanctions, and the imposition of sanctions, fines or remedial measures could have a material adverse effect on the Company’s business, prospects, reputation, financial condition, liquidity, results of operations or cash flows. |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company operates in two distinct reportable segments, Restaurant/Retail and Government. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. The Restaurant/Retail reporting segment offers point-of-sale ("POS"), food safety and management technology solutions to restaurants and retail, including in the fast casual, quick serve and table service restaurant categories, and specialty retail outlets. This segment also offers customer support including field service, installation, Advanced Exchange, and twenty-four-hour telephone support and depot repair. The Government reporting segment performs complex technical studies, analysis, and experiments, develops innovative solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. This segment also provides expert on-site services for operating and maintaining U.S. Government-owned communication assets. Information noted as “Other” primarily relates to the Company’s corporate, home office operations. Information as to the Company’s reporting segments is set forth below, excluding discontinued operations (in thousands). Three Months Six Months 2018 2017 2018 2017 Revenues: Restaurant/Retail $ 34,827 $ 47,716 $ 74,347 $ 99,265 Government 17,744 14,545 33,885 28,861 Total $ 52,571 $ 62,261 $ 108,232 $ 128,126 Operating (loss) income: Restaurant/Retail $ (2,800 ) $ 1,795 $ (3,408 ) $ 4,161 Government 2,012 1,587 3,278 3,098 Other (336 ) (628 ) (856 ) (2,264 ) (1,124 ) 2,754 (986 ) 4,995 Other (expense) income, net (384 ) 54 (335 ) (194 ) Interest expense, net (78 ) (13 ) (119 ) (45 ) (Loss) income before provision for income taxes $ (1,586 ) $ 2,795 $ (1,440 ) $ 4,756 Depreciation, amortization and accretion: Restaurant/Retail $ 1,057 $ 821 $ 1,965 $ 1,595 Government 6 4 11 11 Other 154 129 303 246 Total $ 1,217 $ 954 $ 2,279 $ 1,852 Capital expenditures including software costs: Restaurant/Retail $ 1,126 $ 1,256 $ 2,265 $ 2,331 Government 37 7 37 7 Other 1,002 1,033 1,533 3,307 Total $ 2,165 $ 2,296 $ 3,835 $ 5,645 Revenues by country: United States $ 48,845 $ 57,621 $ 101,523 $ 119,188 Other Countries 3,726 4,640 6,709 8,938 Total $ 52,571 $ 62,261 $ 108,232 $ 128,126 The following table represents identifiable assets by reporting segment, excluding discontinued operations (in thousands). June 30, 2018 December 31, 2017 Restaurant/Retail $ 82,813 $ 74,257 Government 11,067 8,714 Other 33,335 31,653 Total $ 127,215 $ 114,624 The following table represents assets by country based on the location of the assets, excluding discontinued operations (in thousands). June 30, 2018 December 31, 2017 United States $ 113,612 $ 99,284 Other Countries 13,603 15,340 Total $ 127,215 $ 114,624 The following table represents goodwill by reporting unit, excluding discontinued operations (in thousands). June 30, 2018 December 31, 2017 Restaurant/Retail $ 10,315 $ 10,315 Government 736 736 Total $ 11,051 $ 11,051 Customers comprising 10% or more of the Company’s total revenues, excluding discontinued operations, are summarized as follows: Three Months Six Months 2018 2017 2018 2017 Restaurant/Retail segment : McDonald’s Corporation 22 % 36 % 25 % 40 % Yum! Brands, Inc. 12 % 14 % 12 % 13 % Government segment : U.S. Department of Defense 34 % 23 % 31 % 23 % All Others 32 % 27 % 32 % 24 % 100 % 100 % 100 % 100 % No other customer within All Others represented more than 10% of the Company’s total revenue for the three and six months ended June 30, 2018 and 2017 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments have been recorded at fair value using available market information and valuation techniques. The fair value hierarchy is based upon three levels of input, which are: Level 1 − quoted prices in active markets for identical assets or liabilities (observable) 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 inactive markets, or other inputs that are observable market data for essentially the full term of the asset or liability (observable) Level 3 − unobservable inputs that are supported by little or no market activity, but are significant to determining the fair value of the asset or liability (unobservable) The Company’s financial instruments primarily consist of cash and cash equivalents, trade receivables, trade payables, debt instruments and deferred compensation assets and liabilities. The carrying amounts of cash and cash equivalents, trade receivables and trade payables as of June 30, 2018 and December 31, 2017 were considered representative of their fair values. The estimated fair value of the Company’s long-term debt and line of credit on June 30, 2018 and December 31, 2017 was based on variable and fixed interest rates on such respective dates and approximates their respective carrying values at June 30, 2018 and December 31, 2017 . The deferred compensation assets and liabilities primarily relate to the Company’s deferred compensation plan, which allows for pre-tax salary deferrals for certain key employees. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, the fair value classification as defined under FASB ASC 820, "Fair Value Measurements" , because their inputs are derived principally from observable market data by correlation to the hypothetical investments. The Company holds insurance investments to partially offset the Company’s liabilities under its deferred compensation plan, which are recorded at fair value each period using the cash surrender value of the insurance investments. The amounts owed to employees participating in the Deferred Compensation Plan at June 30, 2018 was $3.4 million compared to $3.9 million at December 31, 2017 and is included in other long-term liabilities on the consolidated balance sheets. Under the stock purchase agreement governing the Brink Acquisition, in the event certain defined revenues are determined to have been achieved in 2015, 2016, 2017 and 2018 ("contingent consideration period"), the Company is obligated to pay additional purchase price consideration ("Brink Earn Out"). The fair value of the Brink Earn Out was estimated using a discounted cash flow method, with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included the Company’s probability assessments of expected future cash flows related to the Company’s acquisition of Brink Software Inc. during the contingent consideration period, appropriately discounted considering the uncertainties associated with the obligation. Any change in the fair value adjustment is recorded in the earnings of that contingent consideration period. Changes in the fair value of the Brink Earn Out may result from changes in probability assumptions with respect to the likelihood of achieving the various contingent payment obligations. Significant increases or decreases in the inputs noted above in isolation would result in a significantly lower or higher fair value measurements. The following table presents a summary of changes in fair value of the Company’s Level 3 assets and liabilities that are measured at fair value on a recurring basis, and are recorded as a component of other current liabilities as of June 30, 2018 and other long-term liabilities as of December 31, 2017 on the consolidated balance sheet (in thousands): Level 3 Inputs Liabilities Balance at January 1, 2017 $ 4,000 New level 3 liability — Total (gains) losses reported in earnings (1,000 ) Transfers into or out of Level 3 $ — Balance at December 31, 2017 $ 3,000 New level 3 liability — Total (gains) losses reported in earnings — Transfers into or out of Level 3 — Balance at June 30, 2018 $ 3,000 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company leased its corporate wellness facility to related parties at a rate of $9,775 per month. The Company received complimentary memberships to this facility which were provided to its local employees. Expenses incurred by the Company relating to the facility amounted to $19,000 and $74,000 during the three and six months ended June 30, 2018 , respectively. Expenses incurred by the Company relating to the facility amounted to $60,000 and $123,000 during the three and six months ended June 30, 2017 , respectively. The Company recognized rental income of $9,775 and $39,100 , respectively, for the three and six month periods ended June 30, 2018 . The Company recognized rental income of $29,325 and $58,650 , respectively, for the three and six month periods ended June 30, 2017 . The rent receivable at June 30, 2018 and December 31, 2017 was zero and $59,000 , respectively. This arrangement between the Company and the related party terminated on April 30, 2018. In October 2016, the Company entered into a statement of work (“SOW”) with Xpanxion LLC for software development services. For the six months ended June 30, 2017 , we incurred approximately $742,000 of expenses to Xpanxion, LLC under the SOW. The Company did not incur any expenses to Xpanxion during the six months ended June 30, 2018 . Until his retirement on June 30, 2017, Paul Eurek, a former director of the Company, was President of Xpanxion LLC. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Performance Obligations and Determination of Selling Price | For all sales not bundled with other performance obligations, the Company determines selling price based on the following table. Restaurant and Retail Performance Obligation Stand-alone Selling Price Cost Plus Margin Hardware X Pass Thru Hardware (Terminals, Printers, Card Readers, etc.) X Hardware Support (i.e., Advanced Exchange) X Installation X Maintenance X Software X Software Updates X Professional Services / Project Management X Software Activation X |
Schedule of Performance Obligations | The aggregate performance obligations attributable to each of our reporting segments is as follows (in thousands): As of June 30, 2018 Current - under one year Non-current - over one year Restaurant $ 10,752 $ 4,783 Government 484 — TOTAL $ 11,236 $ 4,783 As of December 31, 2017 Current - under one year Non-current - over one year Restaurant $ 6,199 $ 2,668 Government 585 — TOTAL $ 6,784 $ 2,668 |
Schedule of Disaggregated Revenue | Disaggregated revenue for the three and six months ended June 30, 2018 is as follows (in thousands): Three months ended June 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 27,430 5,742 — Grocery 873 782 — Mission Systems — — 8,707 ISR Solutions — — 9,037 TOTAL 28,303 6,524 17,744 Six months ended June 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 59,594 11,599 — Grocery 1,626 1,528 — Mission Systems — — 17,041 ISR Solutions — — 16,844 TOTAL 61,220 13,127 33,885 |
Divestiture and Discontinued 21
Divestiture and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized financial information of discontinued operations | Summarized financial operating results for the Company’s discontinued operations is as follows (in thousands): Three Months Six Months 2018 2017 2018 2017 Operations Total revenues $ — $ — $ — $ — Income from discontinued operations before income taxes $ — $ — $ — $ 284 Provision for income taxes — — — (101 ) Income from discontinued operations, net of taxes $ — $ — $ — $ 183 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | The Company’s accounts receivable, net consists of (in thousands): June 30, 2018 December 31, 2017 Government segment: Billed $ 10,539 $ 9,028 Advanced billings (1,212 ) (1,977 ) 9,327 7,051 Restaurant/Retail segment: 24,091 23,026 Accounts receivable - net $ 33,418 $ 30,077 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are primarily used in the manufacture, maintenance and service for Restaurant/Retail reporting segment products. The components of inventories, net, consist of the following (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 13,457 $ 9,535 Work in process 850 766 Component parts 6,266 5,480 Service parts 6,175 5,965 $ 26,748 $ 21,746 |
Identifiable Intangible Asset24
Identifiable Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of identifiable intangible assets, excluding discontinued operations | The components of identifiable intangible assets, excluding discontinued operations, are (in thousands): June 30, 2018 December 31, 2017 Estimated Useful Life Acquired and internally developed software costs $ 21,768 $ 19,670 3 - 7 years Customer relationships 160 160 7 years Non-competition agreements 30 30 1 year 21,958 19,860 Less accumulated amortization (9,854 ) (8,190 ) $ 12,104 $ 11,670 Trademarks, trade names (non-amortizable) 400 400 N/A $ 12,504 $ 12,070 |
Schedule of future amortization of intangible assets | The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, is as follows (in thousands): 2018 $ 1,769 2019 3,140 2020 2,640 2021 1,927 2022 534 Thereafter 2,094 Total $ 12,104 |
Net (loss) income per share (Ta
Net (loss) income per share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations | The following is a reconciliation of the weighted average of shares of common stock outstanding for the basic and diluted EPS computations (in thousands, except per share data): Three Months 2018 2017 Net (loss) income from continuing operations $ (1,323 ) $ 1,977 Basic: Shares outstanding at beginning of period 16,286 15,811 Weighted average shares (repurchased)/issued during the period, net 44 108 Weighted average common shares, basic 16,330 15,919 Net (loss) income from continuing operations per common share, basic $ (0.08 ) $ 0.12 Diluted: Weighted average common shares, basic 16,330 15,919 Dilutive impact of stock options and restricted stock awards — 260 Weighted average common shares, diluted 16,330 16,179 Net (loss) income from continuing operations per common share, diluted $ (0.08 ) $ 0.12 Six Months 2018 2017 Net (loss) income from continuing operations $ (1,255 ) $ 3,241 Basic: Shares outstanding at beginning of period 15,969 15,771 Weighted average shares (repurchased)/issued during the period, net 24 122 Weighted average common shares, basic 15,993 15,893 Net (loss) income from continuing operations per common share, basic $ (0.08 ) $ 0.20 Diluted: Weighted average common shares, basic 15,993 15,893 Dilutive impact of stock options and restricted stock awards — 253 Weighted average common shares, diluted 15,993 16,146 Net (loss) income from continuing operations per common share, diluted $ (0.08 ) $ 0.20 |
Segment and Related Informati26
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of information of the company's segments | Information as to the Company’s reporting segments is set forth below, excluding discontinued operations (in thousands). Three Months Six Months 2018 2017 2018 2017 Revenues: Restaurant/Retail $ 34,827 $ 47,716 $ 74,347 $ 99,265 Government 17,744 14,545 33,885 28,861 Total $ 52,571 $ 62,261 $ 108,232 $ 128,126 Operating (loss) income: Restaurant/Retail $ (2,800 ) $ 1,795 $ (3,408 ) $ 4,161 Government 2,012 1,587 3,278 3,098 Other (336 ) (628 ) (856 ) (2,264 ) (1,124 ) 2,754 (986 ) 4,995 Other (expense) income, net (384 ) 54 (335 ) (194 ) Interest expense, net (78 ) (13 ) (119 ) (45 ) (Loss) income before provision for income taxes $ (1,586 ) $ 2,795 $ (1,440 ) $ 4,756 Depreciation, amortization and accretion: Restaurant/Retail $ 1,057 $ 821 $ 1,965 $ 1,595 Government 6 4 11 11 Other 154 129 303 246 Total $ 1,217 $ 954 $ 2,279 $ 1,852 Capital expenditures including software costs: Restaurant/Retail $ 1,126 $ 1,256 $ 2,265 $ 2,331 Government 37 7 37 7 Other 1,002 1,033 1,533 3,307 Total $ 2,165 $ 2,296 $ 3,835 $ 5,645 Revenues by country: United States $ 48,845 $ 57,621 $ 101,523 $ 119,188 Other Countries 3,726 4,640 6,709 8,938 Total $ 52,571 $ 62,261 $ 108,232 $ 128,126 |
Schedule of identifiable assets by reporting segment | The following table represents identifiable assets by reporting segment, excluding discontinued operations (in thousands). June 30, 2018 December 31, 2017 Restaurant/Retail $ 82,813 $ 74,257 Government 11,067 8,714 Other 33,335 31,653 Total $ 127,215 $ 114,624 |
Schedule of revenue by geographic area | The following table represents assets by country based on the location of the assets, excluding discontinued operations (in thousands). June 30, 2018 December 31, 2017 United States $ 113,612 $ 99,284 Other Countries 13,603 15,340 Total $ 127,215 $ 114,624 |
Schedule of goodwill by reporting segment | The following table represents goodwill by reporting unit, excluding discontinued operations (in thousands). June 30, 2018 December 31, 2017 Restaurant/Retail $ 10,315 $ 10,315 Government 736 736 Total $ 11,051 $ 11,051 |
Schedule of revenue by major customers | Customers comprising 10% or more of the Company’s total revenues, excluding discontinued operations, are summarized as follows: Three Months Six Months 2018 2017 2018 2017 Restaurant/Retail segment : McDonald’s Corporation 22 % 36 % 25 % 40 % Yum! Brands, Inc. 12 % 14 % 12 % 13 % Government segment : U.S. Department of Defense 34 % 23 % 31 % 23 % All Others 32 % 27 % 32 % 24 % 100 % 100 % 100 % 100 % |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of changes in fair value of the company's Level 3 assets and liabilities that are measured at fair value on a recurring basis | The following table presents a summary of changes in fair value of the Company’s Level 3 assets and liabilities that are measured at fair value on a recurring basis, and are recorded as a component of other current liabilities as of June 30, 2018 and other long-term liabilities as of December 31, 2017 on the consolidated balance sheet (in thousands): Level 3 Inputs Liabilities Balance at January 1, 2017 $ 4,000 New level 3 liability — Total (gains) losses reported in earnings (1,000 ) Transfers into or out of Level 3 $ — Balance at December 31, 2017 $ 3,000 New level 3 liability — Total (gains) losses reported in earnings — Transfers into or out of Level 3 — Balance at June 30, 2018 $ 3,000 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Retained earnings | $ 28,294,000 | $ 29,549,000 |
Impact after Topic 606 | Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Retained earnings | $ 0 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations, period | 12 months | |
Payment period | 30 days | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations, period | 60 months | |
Payment period | 90 days |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Performance Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue recognized included in contract liabilities at beginning of period | $ 6,500 | $ 12,200 | |
Current - under one year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations | 11,236 | 11,236 | $ 6,784 |
Non-current - over one year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations | 4,783 | 4,783 | 2,668 |
Restaurant | Current - under one year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations | 10,752 | 10,752 | 6,199 |
Restaurant | Non-current - over one year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations | 4,783 | 4,783 | 2,668 |
Government | Current - under one year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations | 484 | 484 | 585 |
Government | Non-current - over one year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligations | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) | Jun. 30, 2018 |
Non-current - over one year | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations, period | 60 months |
Revenue Recognition - Schedul31
Revenue Recognition - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 52,571 | $ 62,261 | $ 108,232 | $ 128,126 |
Point in Time | Restaurant/Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,303 | 61,220 | ||
Point in Time | Restaurant/Retail | Restaurant | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,430 | 59,594 | ||
Point in Time | Restaurant/Retail | Grocery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 873 | 1,626 | ||
Point in Time | Restaurant/Retail | Mission Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Point in Time | Restaurant/Retail | ISR Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Over Time | Restaurant/Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,524 | 13,127 | ||
Over Time | Restaurant/Retail | Restaurant | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,742 | 11,599 | ||
Over Time | Restaurant/Retail | Grocery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 782 | 1,528 | ||
Over Time | Restaurant/Retail | Mission Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Over Time | Restaurant/Retail | ISR Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Over Time | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17,744 | 33,885 | ||
Over Time | Government | Restaurant | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Over Time | Government | Grocery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Over Time | Government | Mission Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,707 | 17,041 | ||
Over Time | Government | ISR Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9,037 | $ 16,844 |
Divestiture and Discontinued 32
Divestiture and Discontinued Operations (Details) - USD ($) | May 05, 2017 | Nov. 04, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Operations | ||||||
Income from discontinued operations, net of taxes | $ 0 | $ 0 | $ 0 | $ 183,000 | ||
PAR Springer-Miller Systems, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total consideration | $ 16,600,000 | |||||
Consideration received | $ 4,200,000 | $ 12,100,000 | ||||
Consideration payable period from closing date | 18 months | |||||
Consideration could be received upon achievement of targets | $ 1,500,000 | |||||
Consideration could be received upon achievement of targets per year | 500,000 | |||||
Operations | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Income from discontinued operations before income taxes | 0 | 0 | 0 | 284,000 | ||
Provision for income taxes | 0 | 0 | 0 | (101,000) | ||
Income from discontinued operations, net of taxes | $ 0 | $ 0 | $ 0 | $ 183,000 | ||
PAR Springer-Miller Systems, Inc. | Maximum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Consideration receivable | $ 4,500,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Receivable [Abstract] | ||
Accounts receivable - net | $ 33,418 | $ 30,077 |
Government | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 9,327 | 7,051 |
Government | Billed | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 10,539 | 9,028 |
Government | Advanced billings | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | (1,212) | (1,977) |
Restaurant/Retail | ||
Accounts Receivable [Abstract] | ||
Accounts receivable - net | 24,091 | 23,026 |
Allowance for doubtful accounts | $ 1,200 | $ 900 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Finished goods | $ 13,457 | $ 9,535 |
Work in process | 850 | 766 |
Component parts | 6,266 | 5,480 |
Service parts | 6,175 | 5,965 |
Inventories-net | 26,748 | 21,746 |
Inventory reserves | $ 11,000 | $ 10,000 |
Identifiable Intangible Asset35
Identifiable Intangible Assets and Goodwill (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Capitalized software development costs | $ 1,100 | $ 1,100 | $ 2,100 | $ 2,100 | |
Amortization of capitalized software development costs | 900 | 400 | 1,700 | 700 | |
Amortization of intangible assets | 242 | 242 | 483 | 483 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Finite-lived intangible assets, gross | 21,958 | 21,958 | $ 19,860 | ||
Less accumulated amortization | (9,854) | (9,854) | (8,190) | ||
Total | 12,104 | 12,104 | 11,670 | ||
Total intangible assets, net | 12,504 | $ 12,504 | 12,070 | ||
Number of operating segments | segment | 2 | ||||
Goodwill | 11,051 | $ 11,051 | 11,051 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2,018 | 1,769 | 1,769 | |||
2,019 | 3,140 | 3,140 | |||
2,020 | 2,640 | 2,640 | |||
2,021 | 1,927 | 1,927 | |||
2,022 | 534 | 534 | |||
Thereafter | 2,094 | 2,094 | |||
Total | 12,104 | $ 12,104 | 11,670 | ||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 3 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 7 years | ||||
Brink Acquisition | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | 200 | $ 200 | $ 500 | $ 500 | |
Internal use software | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 3 years | ||||
Internal use software | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 7 years | ||||
Acquired and internally developed software costs | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Finite-lived intangible assets, gross | 21,768 | $ 21,768 | 19,670 | ||
Acquired and internally developed software costs | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 3 years | ||||
Acquired and internally developed software costs | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 7 years | ||||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 7 years | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Finite-lived intangible assets, gross | 160 | $ 160 | 160 | ||
Non-competition agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 1 year | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Finite-lived intangible assets, gross | 30 | $ 30 | 30 | ||
Restaurant/Retail | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Goodwill | 10,300 | 10,300 | 10,300 | ||
Government | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Goodwill | 800 | 800 | 800 | ||
Trademarks, trade names (non-amortizable) | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 400 | $ 400 | $ 400 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation [Abstract] | ||||
Equity based compensation | $ 300 | $ 100 | $ 431 | $ 238 |
Stock-based compensation expense, tax benefit | 0 | $ 10 | 0 | $ 10 |
Unrecognized compensation expense | $ 1,400 | $ 1,400 |
Net (loss) income per share (De
Net (loss) income per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share Reconciliation [Abstract] | ||||||||
Net (loss) income from continuing operations | $ (1,323) | $ 1,977 | $ (1,255) | $ 3,241 | ||||
Basic: | ||||||||
Shares outstanding at beginning of period (in shares) | 16,286,000 | 15,969,000 | 15,811,000 | 15,771,000 | ||||
Weighted average shares issued during the period, net (in shares) | 44,000 | 108,000 | 24,000 | 122,000 | ||||
Weighted average common shares, basic (in shares) | 16,330,000 | 15,919,000 | 15,993,000 | 15,893,000 | ||||
Net (loss) income from continuing operations per common share, basic (in dollars per shares) | $ (0.08) | $ 0.12 | $ (0.08) | $ 0.20 | ||||
Diluted: | ||||||||
Weighted average common shares, basic (in shares) | 16,330,000 | 15,919,000 | 15,993,000 | 15,893,000 | ||||
Dilutive impact of stock options and restricted stock awards (in shares) | 0 | 260,000 | 0 | 253,000 | ||||
Weighted average common shares, diluted (in shares) | 16,330,000 | 16,179,000 | 15,993,000 | 16,146,000 | ||||
Net (loss) income from continuing operations per common share, diluted (in dollars per share) | $ (0.08) | $ 0.12 | $ (0.08) | $ 0.20 | ||||
Stock options | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Anti-dilutive stock options outstanding (in shares) | 0 | 0 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Expenses relating to investigation | $ 0.3 | $ 0.6 | $ 0.6 | $ 1.6 |
Segment and Related Informati39
Segment and Related Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)hsegment | Jun. 30, 2017USD ($) | |
Segment and Related Information [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Number of hours of telephone support for restaurant and retail segment | h | 24 | |||
Information as to the Company's segments [Abstract] | ||||
Revenues | $ 52,571 | $ 62,261 | $ 108,232 | $ 128,126 |
Operating (loss) income | (1,124) | 2,754 | (986) | 4,995 |
Other (expense) income, net | (384) | 54 | (335) | (194) |
Interest expense, net | (78) | (13) | (119) | (45) |
(Loss) income from continuing operations before provision for income taxes | (1,586) | 2,795 | (1,440) | 4,756 |
Depreciation, amortization and accretion | 1,217 | 954 | 2,279 | 1,852 |
Capital expenditures including software costs | 2,165 | 2,296 | 3,835 | 5,645 |
Operating segments | Restaurant/Retail | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | 34,827 | 47,716 | 74,347 | 99,265 |
Operating (loss) income | (2,800) | 1,795 | (3,408) | 4,161 |
Depreciation, amortization and accretion | 1,057 | 821 | 1,965 | 1,595 |
Capital expenditures including software costs | 1,126 | 1,256 | 2,265 | 2,331 |
Operating segments | Government | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | 17,744 | 14,545 | 33,885 | 28,861 |
Operating (loss) income | 2,012 | 1,587 | 3,278 | 3,098 |
Depreciation, amortization and accretion | 6 | 4 | 11 | 11 |
Capital expenditures including software costs | 37 | 7 | 37 | 7 |
Other | ||||
Information as to the Company's segments [Abstract] | ||||
Operating (loss) income | (336) | (628) | (856) | (2,264) |
Depreciation, amortization and accretion | 154 | 129 | 303 | 246 |
Capital expenditures including software costs | 1,002 | 1,033 | 1,533 | 3,307 |
Reportable geographical components | United States | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | 48,845 | 57,621 | 101,523 | 119,188 |
Reportable geographical components | Other Countries | ||||
Information as to the Company's segments [Abstract] | ||||
Revenues | $ 3,726 | $ 4,640 | $ 6,709 | $ 8,938 |
Segment and Related Informati40
Segment and Related Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | $ 127,215 | $ 114,624 |
Goodwill by business segment [Abstract] | ||
Goodwill | 11,051 | 11,051 |
Restaurant/Retail | ||
Goodwill by business segment [Abstract] | ||
Goodwill | 10,300 | 10,300 |
Government | ||
Goodwill by business segment [Abstract] | ||
Goodwill | 800 | 800 |
Operating segments | Restaurant/Retail | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 82,813 | 74,257 |
Goodwill by business segment [Abstract] | ||
Goodwill | 10,315 | 10,315 |
Operating segments | Government | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 11,067 | 8,714 |
Goodwill by business segment [Abstract] | ||
Goodwill | 736 | 736 |
Reportable geographical components | United States | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 113,612 | 99,284 |
Reportable geographical components | Other Countries | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | 13,603 | 15,340 |
Other | ||
Identifiable assets by geographic area [Abstract] | ||
Identifiable assets | $ 33,335 | $ 31,653 |
Segment and Related Informati41
Segment and Related Information - Revenue by Major Customers (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Operating segments | Restaurant/Retail | McDonald’s Corporation | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 22.00% | 36.00% | 25.00% | 40.00% |
Operating segments | Restaurant/Retail | Yum! Brands, Inc. | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 12.00% | 14.00% | 12.00% | 13.00% |
Operating segments | Government | U.S. Department of Defense | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 34.00% | 23.00% | 31.00% | 23.00% |
Other | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 32.00% | 27.00% | 32.00% | 24.00% |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amounts owed to employees participating in the Deferred Compensation Plan | $ 3,400 | $ 3,900 |
Obligations | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 3,000 | 4,000 |
New level 3 liability | 0 | 0 |
Total (gains) losses reported in earnings | 0 | (1,000) |
Transfers into or out of Level 3 | 0 | 0 |
Balance at end of period | $ 3,000 | $ 3,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Software development costs | $ 41,211,000 | $ 47,695,000 | $ 85,025,000 | $ 98,489,000 | |
Corporate Wellness Facility | |||||
Related Party Transaction [Line Items] | |||||
Monthly rental income from related parties | 9,775 | ||||
Expenses incurred | 19,000 | 60,000 | 74,000 | 123,000 | |
Corporate Wellness Facility | Rental income | |||||
Related Party Transaction [Line Items] | |||||
Rental income received | 9,775 | $ 29,325 | 39,100 | 58,650 | |
Rent receivable | $ 0 | 0 | $ 59,000 | ||
Xpanxion LLC | Technology Service | |||||
Related Party Transaction [Line Items] | |||||
Software development costs | $ 0 | $ 742,000 |