PAR Technology (PAR) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 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 Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		16,217,667
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 5,817,000	$ 6,600,000
Accounts receivable-net	27,150,000	30,077,000
Inventories-net	24,345,000	21,746,000
Assets held for sale	901,000	939,000
Other current assets	4,486,000	4,209,000
Total current assets	62,699,000	63,571,000
Property, plant and equipment – net	11,933,000	9,816,000
Deferred income taxes	0	13,809,000
Goodwill	11,051,000	11,051,000
Intangible assets – net	12,567,000	12,070,000
Other assets	4,546,000	4,307,000
Total Assets	102,796,000	114,624,000
Current liabilities:
Current portion of long-term debt	204,000	195,000
Borrowings of line of credit	6,965,000	950,000
Accounts payable	12,879,000	14,332,000
Accrued salaries and benefits	6,022,000	6,275,000
Accrued expenses	3,782,000	3,926,000
Customer deposits and deferred service revenue	10,235,000	10,241,000
Other current liabilities	2,600,000	0
Total current liabilities	42,687,000	35,919,000
Long-term debt	31,000	185,000
Deferred service revenue	4,641,000	2,668,000
Other long-term liabilities	3,392,000	6,866,000
Total liabilities	50,751,000	45,638,000
Shareholders’ Equity:
Preferred stock, $.02 par value, 1,000,000 shares authorized	0	0
Common stock, $.02 par value, 29,000,000 shares authorized; 17,869,430 and 17,677,161 shares issued, 16,161,321 and 15,969,052 outstanding at September 30, 2018 and December 31, 2017, respectively	357,000	354,000
Capital in excess of par value	49,849,000	48,349,000
Retained earnings	11,590,000	29,549,000
Accumulated other comprehensive loss	(3,915,000)	(3,430,000)
Treasury stock, at cost, 1,708,109 shares	(5,836,000)	(5,836,000)
Total shareholders’ equity	52,045,000	68,986,000
Total Liabilities and Shareholders’ Equity	$ 102,796,000	$ 114,624,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 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)	17,869,430	17,677,161
Common stock, outstanding (in shares)	16,161,321	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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net revenues:
Net revenues	$ 46,362	$ 48,938	$ 154,594	$ 177,064
Costs of sales:
Cost of sales	37,824	39,710	122,849	138,199
Gross margin	8,538	9,228	31,745	38,865
Operating expenses:
Selling, general and administrative	7,967	9,054	25,587	27,581
Research and development	2,992	2,529	9,082	8,161
Amortization of identifiable intangible assets	241	241	724	724
Operating expenses	11,200	11,824	35,393	36,466
Operating (loss) income from continuing operations	(2,662)	(2,596)	(3,648)	2,399
Other income (expense), net	455	(70)	120	(264)
Interest expense, net	(142)	(39)	(261)	(84)
(Loss) income from continuing operations before benefit from / (provision for) income taxes	(2,349)	(2,705)	(3,789)	2,051
Benefit from / (provision for) income taxes	(14,355)	1,188	(14,170)	(327)
(Loss) income from continuing operations	(16,704)	(1,517)	(17,959)	1,724
Discontinued operations
Income from discontinued operations (net of tax)	0	0	0	183
Net (loss) income	$ (16,704)	$ (1,517)	$ (17,959)	$ 1,907
Basic (Loss) Earnings per Share:
(Loss) Income from continuing operations (in dollars per share)	$ (1.04)	$ (0.10)	$ (1.12)	$ 0.11
Income from discontinued operations (in dollars per share)	0	0	0	0.01
Net (Loss) income per share (in dollars per share)	(1.04)	(0.10)	(1.12)	0.12
Diluted (Loss) Earnings per Share:
(Loss) Income from continuing operations (in dollars per share)	(1.04)	(0.10)	(1.12)	0.11
Income from discontinued operations (in dollars per share)	0	0	0	0.01
Net (loss) income per share (in dollars per share)	$ (1.04)	$ (0.10)	$ (1.12)	$ 0.12
Weighted average shares outstanding
Basic (in shares)	16,071	15,976	16,033	15,949
Diluted (in shares)	16,071	15,976	16,033	16,260
Product [Member]
Net revenues:
Net revenues	$ 15,451	$ 20,706	$ 62,658	$ 90,594
Costs of sales:
Cost of sales	12,065	15,861	46,844	67,822
Service [Member]
Net revenues:
Net revenues	13,475	13,317	40,615	42,694
Costs of sales:
Cost of sales	10,248	10,241	30,000	31,113
Contract [Member]
Net revenues:
Net revenues	17,436	14,915	51,321	43,776
Costs of sales:
Cost of sales	$ 15,511	$ 13,608	$ 46,005	$ 39,264

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (16,704)	$ (1,517)	$ (17,959)	$ 1,907
Other comprehensive (loss) income, net of applicable tax:
Foreign currency translation adjustments	(283)	75	(485)	(81)
Comprehensive (loss) income	$ (16,987)	$ (1,442)	$ (18,444)	$ 1,826

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net (loss) income	$ (17,959)	$ 1,907
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	3,491	2,805
Provision for bad debts	493	302
Provision for obsolete inventory	965	1,543
Equity based compensation	754	301
Deferred income tax	13,809	415
Changes in operating assets and liabilities:
Accounts receivable	2,434	1,549
Inventories	(3,564)	(2,022)
Income tax receivable	0	117
Other current assets	(277)	441
Other assets	(239)	(57)
Accounts payable	(1,453)	(7,239)
Accrued salaries and benefits	(253)	441
Accrued expenses	(1,270)	(862)
Customer deposits and deferred service revenue	1,967	(7,318)
Other long-term liabilities	(874)	85
Net cash used in operating activities-continuing operations	(1,976)	(7,775)
Net cash provided by operating activities-discontinued operations	0	462
Net cash used in operating activities	(1,976)	(7,313)
Cash flows from investing activities:
Capital expenditures	(3,001)	(3,947)
Capitalization of software costs	(3,066)	(3,276)
Proceeds from real estate	1,126	0
Net cash used in investing activities	(4,941)	(7,223)
Cash flows from financing activities:
Payments of long-term debt	(145)	(138)
Payments of other borrowings	(28,921)	(16,700)
Proceeds from other borrowings	34,936	18,150
Proceeds from stock options	749	1,675
Proceeds from note receivable	0	3,794
Net cash provided by financing activities	6,619	6,781
Effect of exchange rate changes on cash and cash equivalents	(485)	(127)
Net decrease in cash and cash equivalents	(783)	(7,882)
Cash and cash equivalents at beginning of period	6,600	9,055
Cash and equivalents at end of period	5,817	1,173
Cash paid during the period for:
Interest	206	102
Income taxes, net of refunds	$ 142	$ 432

Basis of presentation

Basis of presentation	9 Months Ended
	Sep. 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 nine months ended September 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. Going Concern Assessment The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Management has evaluated whether relevant conditions or events, considered in the aggregate, indicate that there is substantial doubt about the Company's ability to continue as a going concern. Substantial doubt exists when conditions and events, considered in the aggregate, indicate it is probable that the Company will be unable to meet its obligations as they become due during the one-year period following the date of the Company's financial statements for the quarter ended September 30, 2018 . The assessment is based on the relevant conditions that are known or reasonably knowable as of November 9, 2018 . As of September 30, 2018 , the Company had a working capital surplus of $20.0 million . The Credit Agreement entered into on June 5, 2018 by the Company and certain of its U.S. subsidiaries with Citizens Bank, N.A., as lender thereunder, provides for revolving loans in an aggregate principal amount of up to $25 million , subject to affirmative and negative covenants, including certain financial maintenance covenants consisting of maximum leverage ratios and minimum consolidated EBITDA. Based on the Company’s current estimates, the Company anticipates that it will not meet the financial maintenance covenants for the quarter ending December 31, 2018. In the event of noncompliance and if the Company is unable to secure waivers or modifications to the Credit Agreement or alternative sources of capital to allow the Company to come into compliance with the covenants or allow the Company to repay or refinance the Credit Agreement, an event of default may occur under the Credit Agreement. If an event of default were to occur under the Credit Agreement, the lender may accelerate the payment of amounts outstanding and otherwise exercise any remedies to which it may be entitled. In addition, in such a case, the Company may no longer have access to the liquidity provided by the Credit Agreement and, as a result, the Company may not have sufficient liquidity to make the anticipated investments in the Brink business and satisfy operating expenses, capital expenditures and other cash needs. These conditions raise substantial doubt about our ability to continue as a going concern. However, the Company believes alternative sources of capital are available including from other sources of debt financings and/or future sales of its equity securities, and the equity value of the Company’s real estate holdings. Further, the Company can make reductions and reallocate its expenditures and investments to reduce near term cash requirements. One or more of these mitigating responses, together with anticipated revenues, are expected to provide the Company with sufficient liquidity to continue as a going concern. No assurances, however, can be given, in the event the Company is not successful in obtaining the necessary waivers or modifications to the Credit Agreement, that other sources of capital will be available, or, if available, the Company will be able to secure such capital on favorable terms. The Company’s failure to secure the necessary waivers or modifications, to generate enough revenue, control or further reduce expenditures and/or to secure capital from other sources may result in an inability of the Company to continue as a going concern. Our financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 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 is 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 providing 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 general & administrative 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 analyze whether our performance obligations in our contracts are satisfied over a period of time or at a point in time. In general, our performance obligations are satisfied over a period of time. However, there may be circumstances where the latter or both scenarios could apply to a contract. 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 September 30, 2018 contained a significant financing component. There was no impact on retained earnings for the nine months ended September 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 September 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 September 30, 2018 Current - under one year Non-current - over one year Restaurant $ 10,188 $ 4,641 Government 47 — TOTAL $ 10,235 $ 4,641 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 nine months ended September 30, 2018 , we recognized revenue of $4.8 million and $7.7 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 nine months ended September 30, 2018 is as follows (in thousands): Three months ended September 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 21,761 5,727 — Grocery 691 747 — Mission Systems — — 8,283 ISR Solutions — — 9,153 TOTAL 22,452 6,474 17,436 Nine months ended September 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 81,422 17,258 — Grocery 2,251 2,342 — Mission Systems — — 25,324 ISR Solutions — — 25,997 TOTAL 83,673 19,600 51,321 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 selling, general and administrative expenses (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	9 Months Ended
	Sep. 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 September 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 September 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 Nine 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 nine months ended September 30, 2017 , the Company recognized income on discontinued operations of $0 (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 nine months ended September 30, 2018 .

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Accounts Receivable	Accounts Receivable The Company’s accounts receivable, net consists of (in thousands): September 30, 2018 December 31, 2017 Government segment: Billed $ 8,712 $ 9,028 Advanced billings (729 ) (1,977 ) 7,983 7,051 Restaurant/Retail segment: 19,167 23,026 Accounts receivable - net $ 27,150 $ 30,077 At September 30, 2018 and December 31, 2017 , the Company had recorded allowances for doubtful accounts of $1.4 million and $0.9 million , respectively, against Restaurant/Retail reporting segment accounts receivable.

Inventories

Inventories	9 Months Ended
	Sep. 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): September 30, 2018 December 31, 2017 Finished goods $ 12,952 $ 9,535 Work in process 418 766 Component parts 5,425 5,480 Service parts 5,550 5,965 $ 24,345 $ 21,746 At September 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2018 were $1.0 million and $3.1 million , respectively. Software development costs capitalized within continuing operations during the three and nine months ended September 30, 2017 were $1.1 million and $3.3 million , respectively. Annual amortization, charged to cost of sales is computed using the straight-line method over the remaining estimated economic life of the product, generally three to seven years. Amortization of capitalized software development costs from continuing operations for the three and nine months ended September 30, 2018 were $0.9 million and $2.6 million , respectively. Amortization of capitalized software development costs from continuing operations for the three and nine months ended September 30, 2017 were $0.4 million and $1.1 million , respectively. Amortization of intangible assets acquired in the Brink Acquisition amounted to $0.2 million and $0.7 million for the three and nine months ended September 30, 2018 , respectively. Amortization of intangible assets acquired in the Brink Acquisition amounted to $0.2 million and $0.7 million for the three and nine months ended September 30, 2017 , respectively. The components of identifiable intangible assets, excluding discontinued operations, are (in thousands): September 30, 2018 December 31, 2017 Estimated Useful Life Acquired and internally developed software costs $ 22,736 $ 19,670 3 - 7 years Customer relationships 160 160 7 years Non-competition agreements 30 30 1 year 22,926 19,860 Less accumulated amortization (10,759 ) (8,190 ) $ 12,167 $ 11,670 Trademarks, trade names (non-amortizable) 400 400 N/A $ 12,567 $ 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 $ 1,107 2019 3,082 2020 2,640 2021 1,685 2022 692 Thereafter 2,961 Total $ 12,167 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 Company conducted a goodwill impairment test as of September 30, 2018 and concluded there was no impairment as of that date. The amount of goodwill carried by the Restaurant/Retail and Government reporting units is $10.3 million and $0.8 million , respectively, at September 30, 2018 and December 31, 2017 .

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 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 $0.4 million and $0.8 million for the three and nine month periods ended September 30, 2018 , respectively. The Company recorded stock based compensation of $0.1 million and $0.3 million for the three and nine month periods ended September 30, 2017 , respectively. The amount recorded for both the three and nine month periods ended September 30, 2018 were net of benefits of $18,000 as a result of forfeitures of unvested stock awards prior to completion of the requisite service period and/or failure to achieve performance criteria. The amount recorded for both the three and nine month periods ended September 30, 2017 were net of benefits of $1,000 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 September 30, 2018 , the aggregate unrecognized compensation expense related to unvested equity awards was $2.2 million (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2018 through 2020 . For the three and nine month periods ended September 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.

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt On June 5, 2018, we entered into a Credit Agreement (the “Credit Agreement”) with certain of our U.S. subsidiaries and Citizens Bank, N.A. The Credit Agreement provides for revolving loans in an aggregate principal amount of up to $25.0 million (the “Credit Facility”). The Credit Facility includes a $15.0 million accordion option, which we can request in $5.0 million increments. The accordion increase is uncommitted and is not available if an event of default exists. In connection with entering into the Credit Agreement, we repaid in full all outstanding obligations owed under the credit agreement dated November 29, 2016 (as subsequently amended, modified, and supplemented) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), and terminated the JPMorgan Chase credit agreement and all commitments (other than an undrawn letter of credit) by JPMorgan Chase to extend further credit thereunder. The Credit Facility matures three (3) years from the date of the Credit Agreement and is guaranteed by our U.S. subsidiaries that are parties thereto. The Credit Facility is secured by substantially all of our assets and the subsidiary guarantors. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including certain financial maintenance covenants consisting of maximum consolidated leverage ratios and minimum consolidated EBITDA, and covenants that restrict our ability and our subsidiaries to incur additional indebtedness, incur or permit to exist liens on assets, make investments and acquisitions, consolidate or merge, engage in asset sales, pay dividends, and make distributions. The revolving loans bear interest at the LIBOR rate plus 1.5% . Obligations under the Credit Agreement may be accelerated upon certain customary events of default (subject to grace or cure periods, as appropriate). On September 30, 2018 , the applicable rate under the Credit Facility was 1.5% plus LIBOR. There was a $7.0 million outstanding balance and up to $18.0 million available under the Credit Facility as of September 30, 2018 compared to $1.0 million outstanding under the JPMorgan Chase credit agreement as of December 31, 2017 . In addition to the Credit Facility, the Company had a loan, collateralized by a mortgage on certain real estate, with a balance of $0.2 million and $0.4 million as of September 30, 2018 and 2017 , respectively. This loan matures on November 1, 2019. The interest rate is fixed at 4.00% through the maturity date of the loan. The annual loan payment including interest through November 1, 2019 totals $0.2 million . On October 1, 2018, the Company finalized a sale of the real estate held as collateral and the remaining balance on the loan was paid in full.

Net (loss) income per share

Net (loss) income per share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net (loss) income per share	Net (loss) income per share (Loss) earnings 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 nine months ended September 30, 2018 and September 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 from continuing operations $ (16,704 ) $ (1,517 ) Basic: Shares outstanding at beginning of period 15,993 15,907 Weighted average shares issued during the period, net 78 69 Weighted average common shares, basic 16,071 15,976 Net loss from continuing operations per common share, basic $ (1.04 ) $ (0.10 ) Diluted: Weighted average common shares, basic 16,071 15,976 Dilutive impact of stock options and restricted stock awards — — Weighted average common shares, diluted 16,071 15,976 Net loss from continuing operations per common share, diluted $ (1.04 ) $ (0.10 ) Nine Months 2018 2017 Net (loss) income from continuing operations $ (17,959 ) $ 1,724 Basic: Shares outstanding at beginning of period 15,949 15,771 Weighted average shares issued during the period, net 84 178 Weighted average common shares, basic 16,033 15,949 Net (loss) income from continuing operations per common share, basic $ (1.12 ) $ 0.11 Diluted: Weighted average common shares, basic 16,033 15,949 Dilutive impact of stock options and restricted stock awards — 311 Weighted average common shares, diluted 16,033 16,260 Net (loss) income from continuing operations per common share, diluted $ (1.12 ) $ 0.11

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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. Because of the complexity of the new Global Intangible Low-Taxed Income (GILTI) tax rules, the Company continues to evaluate this provision of the Tax Reform Act and the application of ASC 740, Income Taxes. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company’s selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing its global income to determine whether it expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company’s current structure and estimated future results of global operations, but also its intent and ability to modify its structure. The Company’s currently in the process of analyzing its structure and, as a result, is not yet able to reasonably estimate the effect of this provision of the Tax Reform Act. Therefore, the Company has not made any adjustments related to potential GILTI tax in its financial statements and has not made a policy decision regarding whether to record deferred tax on GILTI. Deferred Tax Assets and Valuation Allowance Management assesses available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. The Company had deferred income tax assets of $14.9 million as of September 30, 2018 compared to $13.9 million as of December 31, 2017. Previously, based on information at the prior measurement dates, we did not have a valuation allowance for deferred tax assets arising from US federal income tax net operating loss carryforwards. FASB ASC 740-10-30 indicates that experiencing cumulative losses in recent years is a type of objectively verifiable negative evidence for entities to consider in evaluating the need for a valuation allowance on deferred tax assets. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. The Company has incurred losses in recent years and is in a loss position for the nine months ended September 30, 2018. Because of the impact of cumulative losses have on the determination of the recoverability of deferred tax assets through future earnings, the Company evaluated its ability to realize its deferred tax assets as it would require a substantial amount of objectively verifiable positive evidence of future income to support the realizability of the deferred tax assets. On the basis of this evaluation, the Company established a full valuation allowance as of September 30, 2018 for the full carrying value of deferred tax assets as it was concluded that the negative evidence now outweighs the positive evidence and thus it is more likely than not that the deferred tax assets will not be realized. Losses in the third quarter were greater than previously anticipated. The Company will continue to evaluate its position and the valuation allowance could be reversed in a future period if sufficient objectively verifiable positive evidence outweighs such negative evidence.

Contingencies

Contingencies	9 Months Ended
	Sep. 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 and are fully cooperating with 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 investigation to the China and Singapore authorities and is fully cooperating. During the three and nine months ended September 30, 2018 , we recorded $0.3 million and $0.9 million , respectively, of expenses relating to the internal investigation and the SEC subpoena, including expenses of outside legal counsel and forensic accountants, compared to $0.7 million and $2.3 million , respectively, for the three and nine months ended September 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	9 Months Ended
	Sep. 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 Nine Months 2018 2017 2018 2017 Revenues: Restaurant/Retail $ 28,926 $ 34,023 $ 103,273 $ 133,288 Government 17,436 14,915 51,321 43,776 Total $ 46,362 $ 48,938 $ 154,594 $ 177,064 Operating (loss) income: Restaurant/Retail $ (3,836 ) $ (3,559 ) $ (7,244 ) $ 603 Government 1,854 1,267 5,132 4,364 Other (680 ) (304 ) (1,536 ) (2,568 ) (2,662 ) (2,596 ) (3,648 ) 2,399 Other income (expense), net 455 (70 ) 120 (264 ) Interest expense, net (142 ) (39 ) (261 ) (84 ) (Loss) income before benefit from / (provision for) income taxes $ (2,349 ) $ (2,705 ) $ (3,789 ) $ 2,051 Depreciation, amortization and accretion: Restaurant/Retail $ 1,215 $ 886 $ 3,014 $ 2,481 Government 6 5 17 16 Other 157 62 460 308 Total $ 1,378 $ 953 $ 3,491 $ 2,805 Capital expenditures including software costs: Restaurant/Retail $ 1,098 $ 1,121 $ 3,363 $ 3,452 Government 67 — 104 7 Other 1,067 457 2,600 3,764 Total $ 2,232 $ 1,578 $ 6,067 $ 7,223 Revenues by country: United States $ 43,183 $ 44,418 $ 144,706 $ 163,606 Other Countries 3,179 4,520 9,888 13,458 Total $ 46,362 $ 48,938 $ 154,594 $ 177,064 The following table represents identifiable assets by reporting segment, excluding discontinued operations (in thousands). September 30, 2018 December 31, 2017 Restaurant/Retail $ 75,132 $ 74,257 Government 9,518 8,714 Other 18,146 31,653 Total $ 102,796 $ 114,624 The following table represents assets by country based on the location of the assets, excluding discontinued operations (in thousands). September 30, 2018 December 31, 2017 United States $ 90,970 $ 99,284 Other Countries 11,826 15,340 Total $ 102,796 $ 114,624 The following table represents goodwill by reporting unit, excluding discontinued operations (in thousands). September 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 Nine Months 2018 2017 2018 2017 Restaurant/Retail segment : McDonald’s Corporation 15 % 23 % 20 % 35 % Yum! Brands, Inc. 13 % 17 % 11 % 14 % Government segment : U.S. Department of Defense 38 % 31 % 33 % 25 % All Others 34 % 29 % 36 % 26 % 100 % 100 % 100 % 100 % No other customer within All Others represented more than 10% of the Company’s total revenue for the three and nine months ended September 30, 2018 and 2017 .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 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 September 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 at September 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 September 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 amount owed to employees participating in the Deferred Compensation Plan at September 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 September 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 (400 ) Transfers into or out of Level 3 — Balance at September 30, 2018 $ 2,600

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 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 $0 and $74,000 during the three and nine months ended September 30, 2018 , respectively. Expenses incurred by the Company relating to the facility amounted to $51,000 and $174,000 during the three and nine months ended September 30, 2017 , respectively. The Company recognized rental income from related parties of $0 and $39,100 , respectively, for the three and nine month periods ended September 30, 2018 . The Company recognized rental income from related parties of $29,325 and $87,975 , respectively, for the three and nine month periods ended September 30, 2017 . The rent receivable at September 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 nine months ended September 30, 2017 , we incurred approximately $1,000,000 of expenses to Xpanxion, LLC under the SOW. The Company did not incur any expenses to Xpanxion during the nine months ended September 30, 2018 . Until his retirement on June 30, 2017, Paul Eurek, a former director of the Company, was President of Xpanxion LLC.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On October 1, 2018, the Company finalized a sale of real estate and other assets. The net book value of the assets as of September 30, 2018 was $901,000 and $939,000 as of September 30, 2017 and are classified as assets held for sale on the Company’s consolidated balance sheets. Proceeds from the sale of the real estate and other assets were $1.1 million as presented in the Company’s consolidated statement of cash flows as cash flow from investing activities.

Basis of presentation (Policies

Basis of presentation (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
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 nine months ended September 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.
Use of Estimates	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.
Revenue Recognition	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 selling, general and administrative expenses (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). 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 is 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 providing 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 general & administrative 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 analyze whether our performance obligations in our contracts are satisfied over a period of time or at a point in time. In general, our performance obligations are satisfied over a period of time. However, there may be circumstances where the latter or both scenarios could apply to a contract. We usually expect payment within 30 to 90 days from the date of service, depending on our terms with the customer.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 September 30, 2018 Current - under one year Non-current - over one year Restaurant $ 10,188 $ 4,641 Government 47 — TOTAL $ 10,235 $ 4,641 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 nine months ended September 30, 2018 is as follows (in thousands): Three months ended September 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 21,761 5,727 — Grocery 691 747 — Mission Systems — — 8,283 ISR Solutions — — 9,153 TOTAL 22,452 6,474 17,436 Nine months ended September 30, 2018 Restaurant/Retail - Point in Time Restaurant/Retail - Over Time Government - Over Time Restaurant 81,422 17,258 — Grocery 2,251 2,342 — Mission Systems — — 25,324 ISR Solutions — — 25,997 TOTAL 83,673 19,600 51,321

Divestiture and Discontinued _2

Divestiture and Discontinued Operations (Tables)	9 Months Ended
	Sep. 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 Nine 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)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of Accounts Receivable, Net	The Company’s accounts receivable, net consists of (in thousands): September 30, 2018 December 31, 2017 Government segment: Billed $ 8,712 $ 9,028 Advanced billings (729 ) (1,977 ) 7,983 7,051 Restaurant/Retail segment: 19,167 23,026 Accounts receivable - net $ 27,150 $ 30,077

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories, net, consist of the following (in thousands): September 30, 2018 December 31, 2017 Finished goods $ 12,952 $ 9,535 Work in process 418 766 Component parts 5,425 5,480 Service parts 5,550 5,965 $ 24,345 $ 21,746

Identifiable Intangible Asset_2

Identifiable Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 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): September 30, 2018 December 31, 2017 Estimated Useful Life Acquired and internally developed software costs $ 22,736 $ 19,670 3 - 7 years Customer relationships 160 160 7 years Non-competition agreements 30 30 1 year 22,926 19,860 Less accumulated amortization (10,759 ) (8,190 ) $ 12,167 $ 11,670 Trademarks, trade names (non-amortizable) 400 400 N/A $ 12,567 $ 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 $ 1,107 2019 3,082 2020 2,640 2021 1,685 2022 692 Thereafter 2,961 Total $ 12,167

Net (loss) income per share (Ta

Net (loss) income per share (Tables)	9 Months Ended
	Sep. 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 from continuing operations $ (16,704 ) $ (1,517 ) Basic: Shares outstanding at beginning of period 15,993 15,907 Weighted average shares issued during the period, net 78 69 Weighted average common shares, basic 16,071 15,976 Net loss from continuing operations per common share, basic $ (1.04 ) $ (0.10 ) Diluted: Weighted average common shares, basic 16,071 15,976 Dilutive impact of stock options and restricted stock awards — — Weighted average common shares, diluted 16,071 15,976 Net loss from continuing operations per common share, diluted $ (1.04 ) $ (0.10 ) Nine Months 2018 2017 Net (loss) income from continuing operations $ (17,959 ) $ 1,724 Basic: Shares outstanding at beginning of period 15,949 15,771 Weighted average shares issued during the period, net 84 178 Weighted average common shares, basic 16,033 15,949 Net (loss) income from continuing operations per common share, basic $ (1.12 ) $ 0.11 Diluted: Weighted average common shares, basic 16,033 15,949 Dilutive impact of stock options and restricted stock awards — 311 Weighted average common shares, diluted 16,033 16,260 Net (loss) income from continuing operations per common share, diluted $ (1.12 ) $ 0.11

Segment and Related Informati_2

Segment and Related Information (Tables)	9 Months Ended
	Sep. 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 Nine Months 2018 2017 2018 2017 Revenues: Restaurant/Retail $ 28,926 $ 34,023 $ 103,273 $ 133,288 Government 17,436 14,915 51,321 43,776 Total $ 46,362 $ 48,938 $ 154,594 $ 177,064 Operating (loss) income: Restaurant/Retail $ (3,836 ) $ (3,559 ) $ (7,244 ) $ 603 Government 1,854 1,267 5,132 4,364 Other (680 ) (304 ) (1,536 ) (2,568 ) (2,662 ) (2,596 ) (3,648 ) 2,399 Other income (expense), net 455 (70 ) 120 (264 ) Interest expense, net (142 ) (39 ) (261 ) (84 ) (Loss) income before benefit from / (provision for) income taxes $ (2,349 ) $ (2,705 ) $ (3,789 ) $ 2,051 Depreciation, amortization and accretion: Restaurant/Retail $ 1,215 $ 886 $ 3,014 $ 2,481 Government 6 5 17 16 Other 157 62 460 308 Total $ 1,378 $ 953 $ 3,491 $ 2,805 Capital expenditures including software costs: Restaurant/Retail $ 1,098 $ 1,121 $ 3,363 $ 3,452 Government 67 — 104 7 Other 1,067 457 2,600 3,764 Total $ 2,232 $ 1,578 $ 6,067 $ 7,223 Revenues by country: United States $ 43,183 $ 44,418 $ 144,706 $ 163,606 Other Countries 3,179 4,520 9,888 13,458 Total $ 46,362 $ 48,938 $ 154,594 $ 177,064
Schedule of identifiable assets by reporting segment	The following table represents identifiable assets by reporting segment, excluding discontinued operations (in thousands). September 30, 2018 December 31, 2017 Restaurant/Retail $ 75,132 $ 74,257 Government 9,518 8,714 Other 18,146 31,653 Total $ 102,796 $ 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). September 30, 2018 December 31, 2017 United States $ 90,970 $ 99,284 Other Countries 11,826 15,340 Total $ 102,796 $ 114,624
Schedule of goodwill by reporting segment	The following table represents goodwill by reporting unit, excluding discontinued operations (in thousands). September 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 Nine Months 2018 2017 2018 2017 Restaurant/Retail segment : McDonald’s Corporation 15 % 23 % 20 % 35 % Yum! Brands, Inc. 13 % 17 % 11 % 14 % Government segment : U.S. Department of Defense 38 % 31 % 33 % 25 % All Others 34 % 29 % 36 % 26 % 100 % 100 % 100 % 100 %

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 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 (400 ) Transfers into or out of Level 3 — Balance at September 30, 2018 $ 2,600

Basis of presentation (Details)

Basis of presentation (Details) - USD ($)	Sep. 30, 2018	Jun. 05, 2018
Accounting Policies [Abstract]
Working capital surplus	$ 20,000,000
Revolving Loans | Citizens Bank, N.A.
Line of Credit Facility [Line Items]
Revolving loans, aggregate principal amount	$ 25,000,000	$ 25,000,000

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Retained earnings	$ 11,590,000	$ 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 obligation, contract term	P12M
Payment period	30 days
Maximum
Disaggregation of Revenue [Line Items]
Performance obligation, contract term	P60M
Payment period	90 days

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Performance Obligations (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 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	$ 4,800	$ 7,700
Current - under one year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations	10,235	10,235	$ 6,784
Non-current - over one year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations	4,641	4,641	2,668
Restaurant | Current - under one year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations	10,188	10,188	6,199
Restaurant | Non-current - over one year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations	4,641	4,641	2,668
Government | Current - under one year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations	47	47	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)	Sep. 30, 2018
Non-current - over one year | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations, period	60 months

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 46,362	$ 48,938	$ 154,594	$ 177,064
Point in Time | Restaurant/Retail
Disaggregation of Revenue [Line Items]
Revenue	22,452		83,673
Point in Time | Restaurant/Retail | Restaurant
Disaggregation of Revenue [Line Items]
Revenue	21,761		81,422
Point in Time | Restaurant/Retail | Grocery
Disaggregation of Revenue [Line Items]
Revenue	691		2,251
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	6,474		19,600
Over Time | Restaurant/Retail | Restaurant
Disaggregation of Revenue [Line Items]
Revenue	5,727		17,258
Over Time | Restaurant/Retail | Grocery
Disaggregation of Revenue [Line Items]
Revenue	747		2,342
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	17,436		51,321
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	8,283		25,324
Over Time | Government | ISR Solutions
Disaggregation of Revenue [Line Items]
Revenue	$ 9,153		$ 25,997

Divestiture and Discontinued _3

Divestiture and Discontinued Operations (Details) - USD ($)	May 05, 2017	Nov. 04, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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	Sep. 30, 2018	Dec. 31, 2017
Accounts Receivable [Abstract]
Accounts receivable - net	$ 27,150	$ 30,077
Government
Accounts Receivable [Abstract]
Accounts receivable - net	7,983	7,051
Government | Billed
Accounts Receivable [Abstract]
Accounts receivable - net	8,712	9,028
Government | Advanced billings
Accounts Receivable [Abstract]
Accounts receivable - net	(729)	(1,977)
Restaurant/Retail
Accounts Receivable [Abstract]
Accounts receivable - net	19,167	23,026
Allowance for doubtful accounts	$ 1,400	$ 900

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory, Net, Items Net of Reserve Alternative [Abstract]
Finished goods	$ 12,952	$ 9,535
Work in process	418	766
Component parts	5,425	5,480
Service parts	5,550	5,965
Inventories-net	24,345	21,746
Inventory reserves	$ 11,000	$ 10,000

Identifiable Intangible Asset_3

Identifiable Intangible Assets and Goodwill (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
Capitalized software development costs	$ 1,000,000	$ 1,100,000	$ 3,100,000	$ 3,300,000
Amortization of capitalized software development costs	900,000	400,000	2,600,000	1,100,000
Amortization of intangible assets	241,000	241,000	724,000	724,000
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	22,926,000		22,926,000		$ 19,860,000
Less accumulated amortization	(10,759,000)		(10,759,000)		(8,190,000)
Total	12,167,000		12,167,000		11,670,000
Total intangible assets, net	12,567,000		$ 12,567,000		12,070,000
Number of operating segments | segment			2
Goodwill impairment			$ 0
Goodwill	11,051,000		11,051,000		11,051,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,018	1,107,000		1,107,000
2,019	3,082,000		3,082,000
2,020	2,640,000		2,640,000
2,021	1,685,000		1,685,000
2,022	692,000		692,000
Thereafter	2,961,000		2,961,000
Total	12,167,000		$ 12,167,000		11,670,000
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	200,000	$ 200,000	$ 700,000	$ 700,000
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	22,736,000		$ 22,736,000		19,670,000
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	160,000		$ 160,000		160,000
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Useful life			1 year
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	30,000		$ 30,000		30,000
Restaurant/Retail
Finite-Lived Intangible Assets, Net [Abstract]
Goodwill	10,300,000		10,300,000		10,300,000
Government
Finite-Lived Intangible Assets, Net [Abstract]
Goodwill	800,000		800,000		800,000
Trademarks, trade names (non-amortizable)
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 400,000		$ 400,000		$ 400,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation [Abstract]
Equity based compensation	$ 400	$ 100	$ 754	$ 301
Stock-based compensation expense, tax benefit	18	$ 1	18	$ 1
Unrecognized compensation expense	$ 2,200		$ 2,200

Debt (Details)

Debt (Details) - USD ($)	Jun. 05, 2018	Sep. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Borrowings of line of credit		$ 6,965,000	$ 950,000
Collateralized Mortgage Backed Loan | Secured Debt
Line of Credit Facility [Line Items]
Long-term debt		$ 200,000	$ 400,000
Fixed interest rate		4.00%
Revolving Loans | Citizens Bank, N.A.
Line of Credit Facility [Line Items]
Revolving loans, aggregate principal amount	$ 25,000,000	$ 25,000,000
Revolving loans, accordion option	15,000,000
Revolving loans, accordion option, borrowing increments	$ 5,000,000
Credit Facility maturity term	3 years
Amount available under Credit Facility		$ 18,000,000
Revolving Loans | Citizens Bank, N.A. | LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%

Net (loss) income per share (De

Net (loss) income per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Earnings Per Share Reconciliation [Abstract]
Net (loss) income from continuing operations	$ (16,704)	$ (1,517)	$ (17,959)	$ 1,724
Basic:
Shares outstanding at beginning of period (in shares)					15,993,000	15,949,000	15,907,000	15,771,000
Weighted average shares issued during the period, net (in shares)	78,000	69,000	84,000	178,000
Weighted average common shares, basic (in shares)	16,071,000	15,976,000	16,033,000	15,949,000
Net (loss) income from continuing operations per common share, basic (in dollars per shares)	$ (1.04)	$ (0.10)	$ (1.12)	$ 0.11
Diluted:
Weighted average common shares, basic (in shares)	16,071,000	15,976,000	16,033,000	15,949,000
Dilutive impact of stock options and restricted stock awards (in shares)	0	0	0	311,000
Weighted average common shares, diluted (in shares)	16,071,000	15,976,000	16,033,000	16,260,000
Net (loss) income from continuing operations per common share, diluted (in dollars per share)	$ (1.04)	$ (0.10)	$ (1.12)	$ 0.11
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock options outstanding (in shares)			0	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance	$ 14.9	$ 13.9

Contingencies (Details)

Contingencies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Expenses relating to investigation	$ 0.3	$ 0.7	$ 0.9	$ 2.3

Segment and Related Informati_3

Segment and Related Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)hsegment	Sep. 30, 2017USD ($)
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	$ 46,362	$ 48,938	$ 154,594	$ 177,064
Operating (loss) income	(2,662)	(2,596)	(3,648)	2,399
Other income (expense), net	455	(70)	120	(264)
Interest expense, net	(142)	(39)	(261)	(84)
(Loss) income from continuing operations before benefit from / (provision for) income taxes	(2,349)	(2,705)	(3,789)	2,051
Depreciation, amortization and accretion	1,378	953	3,491	2,805
Capital expenditures including software costs	2,232	1,578	6,067	7,223
Operating segments | Restaurant/Retail
Information as to the Company's segments [Abstract]
Revenues	28,926	34,023	103,273	133,288
Operating (loss) income	(3,836)	(3,559)	(7,244)	603
Depreciation, amortization and accretion	1,215	886	3,014	2,481
Capital expenditures including software costs	1,098	1,121	3,363	3,452
Operating segments | Government
Information as to the Company's segments [Abstract]
Revenues	17,436	14,915	51,321	43,776
Operating (loss) income	1,854	1,267	5,132	4,364
Depreciation, amortization and accretion	6	5	17	16
Capital expenditures including software costs	67	0	104	7
Other
Information as to the Company's segments [Abstract]
Operating (loss) income	(680)	(304)	(1,536)	(2,568)
Depreciation, amortization and accretion	157	62	460	308
Capital expenditures including software costs	1,067	457	2,600	3,764
Reportable geographical components | United States
Information as to the Company's segments [Abstract]
Revenues	43,183	44,418	144,706	163,606
Reportable geographical components | Other Countries
Information as to the Company's segments [Abstract]
Revenues	$ 3,179	$ 4,520	$ 9,888	$ 13,458

Segment and Related Informati_4

Segment and Related Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Identifiable assets by geographic area [Abstract]
Identifiable assets	$ 102,796	$ 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	75,132	74,257
Goodwill by business segment [Abstract]
Goodwill	10,315	10,315
Operating segments | Government
Identifiable assets by geographic area [Abstract]
Identifiable assets	9,518	8,714
Goodwill by business segment [Abstract]
Goodwill	736	736
Reportable geographical components | United States
Identifiable assets by geographic area [Abstract]
Identifiable assets	90,970	99,284
Reportable geographical components | Other Countries
Identifiable assets by geographic area [Abstract]
Identifiable assets	11,826	15,340
Other
Identifiable assets by geographic area [Abstract]
Identifiable assets	$ 18,146	$ 31,653

Segment and Related Informati_5

Segment and Related Information - Revenue by Major Customers (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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	15.00%	23.00%	20.00%	35.00%
Operating segments | Restaurant/Retail | Yum! Brands, Inc.
Revenue, Major Customer [Line Items]
Concentration risk, percentage	13.00%	17.00%	11.00%	14.00%
Operating segments | Government | U.S. Department of Defense
Revenue, Major Customer [Line Items]
Concentration risk, percentage	38.00%	31.00%	33.00%	25.00%
Other
Revenue, Major Customer [Line Items]
Concentration risk, percentage	34.00%	29.00%	36.00%	26.00%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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	(400)	(1,000)
Transfers into or out of Level 3	0	0
Balance at end of period	$ 2,600	$ 3,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Software development costs	$ 37,824,000	$ 39,710,000	$ 122,849,000	$ 138,199,000
Corporate Wellness Facility
Related Party Transaction [Line Items]
Monthly rental income from related parties			9,775
Expenses incurred	0	51,000	74,000	174,000
Corporate Wellness Facility | Rental income
Related Party Transaction [Line Items]
Rental income received	0	$ 29,325	39,100	87,975
Rent receivable	$ 0		0		$ 59,000
Xpanxion LLC | Technology Service
Related Party Transaction [Line Items]
Software development costs			$ 0	$ 1,000,000

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Subsequent Events [Abstract]
Assets held for sale	$ 901,000		$ 939,000
Proceeds from real estate	$ 1,126,000	$ 0