Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | BROADVISION INC | ||
Entity Central Index Key | 920,448 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | bvsn | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 14,650,241 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 4,994,888 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,560 | $ 11,730 |
Short-term investments | 1,000 | 7,974 |
Accounts receivable, net of reserves of $293 and $167 as of December 31, 2017 and 2016, respectively | 1,193 | 896 |
Prepaids and other | 983 | 1,186 |
Total current assets | 11,736 | 21,786 |
Property and equipment, net | 35 | 60 |
Other assets | 208 | 147 |
Total assets | 11,979 | 21,993 |
Current liabilities: | ||
Accounts payable | 434 | 377 |
Accrued expenses | 1,658 | 1,866 |
Unearned revenue | 1,187 | 1,260 |
Deferred maintenance | 808 | 893 |
Total current liabilities | 4,087 | 4,396 |
Other non-current liabilities | 583 | 734 |
Total liabilities | 4,670 | 5,130 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity | ||
Convertible preferred stock, $0.0001 par value; 1,000 shares authorized; none issued and outstanding | ||
Common stock, $0.0001 par value; 11,200 shares authorized; 4,995 and 4,958 shares issued and outstanding as of December 31, 2017 and 2016, respectively | ||
Additional paid-in capital | 1,271,585 | 1,270,649 |
Accumulated other comprehensive loss | (1,558) | (967) |
Accumulated deficit | (1,262,718) | (1,252,819) |
Total stockholders' equity | 7,309 | 16,863 |
Total liabilities and stockholders' equity | $ 11,979 | $ 21,993 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 293 | $ 167 |
Convertible preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 11,200,000 | 11,200,000 |
Common stock, shares issued | 4,995,000 | 4,958,000 |
Common stock, shares outstanding | 4,995,000 | 4,958,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||
Software licenses | $ 3,467 | $ 4,227 |
Services | 2,890 | 3,713 |
Total revenues | 6,357 | 7,940 |
Cost of revenues: | ||
Cost of software revenues | 178 | 172 |
Cost of services | 2,970 | 3,152 |
Total cost of revenues | 3,148 | 3,324 |
Gross profit | 3,209 | 4,616 |
Operating expenses: | ||
Research and development | 6,563 | 6,901 |
Sales and marketing | 3,676 | 4,051 |
General and administrative | 3,733 | 3,618 |
Total operating expenses | 13,972 | 14,570 |
Operating loss | (10,763) | (9,954) |
Other income (loss): | ||
Interest income, net | 129 | 86 |
Other income, net | 623 | 431 |
Total other income | 752 | 517 |
Loss before income taxes | (10,011) | (9,437) |
Benefit (provision) for income taxes | 112 | (48) |
Net loss | (9,899) | (9,485) |
Other comprehensive (loss) income , net of tax: | ||
Foreign currency translation adjustment | (591) | 2 |
Foreign currency translation reclassified into earnings for discontinued foreign subsidiaries | (230) | |
Comprehensive loss | $ (10,490) | $ (9,713) |
Earnings per share, basic and diluted: | ||
Basic and diluted net loss per share | $ (1.99) | $ (1.93) |
Shares used in computing: | ||
Weighted average shares-basic and diluted | 4,975 | 4,924 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total |
Balances, value at Dec. 31, 2015 | $ 1,269,582 | $ (739) | $ (1,243,334) | $ 25,509 | |
Balances, shares at Dec. 31, 2015 | 4,895 | ||||
Net loss | (9,485) | (9,485) | |||
Other comprehensive income (loss) | (228) | (228) | |||
Stock-based compensation | 875 | 875 | |||
Issuance of common stock from restricted stock award, shares | 23 | ||||
Issuance of common stock from restricted stock award, value | |||||
Issuance of common stock under employee stock purchase plan, shares | 38 | ||||
Issuance of common stock under employee stock purchase plan, value | 181 | 181 | |||
Issuance of common stock from exercise of options, shares | 2 | ||||
Issuance of common stock from exercise of options, value | 11 | $ 11 | |||
Balances, shares at Dec. 31, 2016 | 4,958 | 4,958 | |||
Balances, value at Dec. 31, 2016 | 1,270,649 | (967) | (1,252,819) | $ 16,863 | |
Net loss | (9,899) | (9,899) | |||
Other comprehensive income (loss) | (591) | (591) | |||
Stock-based compensation | 857 | 857 | |||
Issuance of common stock from restricted stock award, shares | 15 | ||||
Issuance of common stock from restricted stock award, value | |||||
Issuance of common stock under employee stock purchase plan, shares | 22 | ||||
Issuance of common stock under employee stock purchase plan, value | 79 | $ 79 | |||
Balances, shares at Dec. 31, 2017 | 4,995 | 4,995 | |||
Balances, value at Dec. 31, 2017 | $ 1,271,585 | $ (1,558) | $ (1,262,718) | $ 7,309 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (9,899) | $ (9,485) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation and amortization | 32 | 41 |
Stock-based compensation | 857 | 875 |
Provision of receivable reserves | 115 | 37 |
(Gain) loss on deconsolidation of a fully-owned subsidiary | (230) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (412) | 818 |
Prepaids and other | 203 | (88) |
Other non-current assets | (61) | (4) |
Accounts payable and accrued expenses | (151) | (469) |
Unearned revenue and deferred maintenance | (158) | (918) |
Other noncurrent liabilities | (151) | (184) |
Net cash used for operating activities | (9,625) | (9,607) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (7) | (14) |
Purchase of short-term investment | (4,500) | (10,666) |
Maturities of short-term investment | 11,474 | 22,223 |
Net cash provided by investing activities | 6,967 | 11,543 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | 79 | 181 |
Proceeds from exercise of common stock options, net | 11 | |
Net cash provided by financing activities | 79 | 192 |
Effect of exchange rates on cash and cash equivalents | (591) | 2 |
Net (decrease) increase in cash and cash equivalents | (3,170) | 2,130 |
Cash and cash equivalents at beginning of year | 11,730 | 9,600 |
Cash and cash equivalents at end of year | 8,560 | 11,730 |
Supplemental disclosures of cash flows activities: | ||
Cash paid for income taxes | $ 15 | $ 6 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1---Organization and Summary of Significant Accounting Policies Nature of Business BroadVision, Inc. (collectively with its subsidiaries, "BroadVision" or "we") was incorporated in the state of Delaware on May 13, 1993, and has been a publicly traded corporation since 1996. We develop, market, and support enterprise portal applications that enable companies to unify their e-business infrastructure and conduct both interactions and transactions with employees, partners, and customers through a personalized self-service model that increases revenues, reduces costs, and improves productivity. Principles of Consolidation The accompanying Consolidated Financial Statements include our and our subsidiaries’ accounts. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make certain assumptions and estimates that affect reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate the reasonableness of our estimates, including those related to receivable reserves, stock-based compensation, investments and income taxes, as well as contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates using different assumptions or conditions. We believe the following significant accounting policies reflect the more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. Liquidity The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. During the year ended December 31, 2017, the Company had a net loss of $9.9 million and negative cash flow from operations of $9.6 million, and at December 31, 2017 the company had working capital of $7.6 million. At December 31, 2017, the Company has cash and cash equivalents of $8.6 million and $1.0 million in short-term investments. The Company has implemented cost reduction plans since the second half of 2017 and expects to reduce its costs of operation by approximately $2 million in 2018 to cover its cash needs through the next twelve months. Management may implement further cost reductions in 2018 and seek financing from third parties as needed to ensure that the Company’s cash, cash equivalents and short-term investments are sufficient to fund its operations for the next twelve months. However, further cost reduction may voluntary departures of highly skilled technical and managerial personnel, which would have a material adverse effect on our business, internal controls, financial condition and results of operations. We expect to opportunistically seek to raise additional funds through private or public sales of securities, strategic relationships, bank debt, financing under leasing arrangements or otherwise. If additional funds are raised through the issuance of equity securities, the percentage ownership of our current stockholders will be reduced, stockholders may experience additional dilution or any equity securities we sell may have rights, preferences or privileges senior to those of the holders of our common stock. We expect that obtaining additional financing on acceptable terms would be difficult, at best. If adequate funds are not available or are not available on acceptable terms, we may be unable to pay our debts as they become due, develop our products, take advantage of future opportunities or respond to competitive pressures or unanticipated requirements, which could have a material adverse effect on our business, financial condition and future operating results. The outcome of these matters cannot be predicted at this time. Our ability to continue as a going concern is dependent upon our ability to successfully accomplish these plans and secure sources of financing and/or reduce costs and ultimately attain profitable operations. Revenue Recognition Overview Our revenue consists of fees for licenses of our software products, maintenance, consulting services and training. Our revenue recognition policies for the periods presented comply with Accounting Standards Codification ASC 985-605, Software: Revenue Recognition , and Staff Accounting Bulletin SAB 104, Revenue Recognition . In October 2009, the FASB amended the accounting standards in Accounting Standards Update ("ASU") 2009-13 (an update to ASC 605-25) ("ASU 2009-13") for certain multiple deliverable revenue arrangements to: 1) provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; 2) require an entity to allocate revenue in an arrangement using best estimated selling price ("BESP") of deliverables if a vendor does not have VSOE of selling price or third-party evidence ("TPE") of selling price; and 3) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method. We recognize revenue when all four of the following revenue recognition criteria have been met: • Persuasive evidence of an arrangement exists; • We have delivered the product or performed the service; • The fee is fixed or determinable; and • Collection is probable. We qualify the second of the above listed criteria differently for different types of revenues, as follows. Software License Revenue, Non-Subscription and Non-Hosted Products Delivery of non-subscription and non-hosted software products is considered to have occurred when title to the physical media and risk of loss have been transferred to the customer, which generally occurs when media containing the licensed programs is provided to a common carrier. In case of electronic delivery, delivery occurs when the customer is given access to the licensed programs. For products that cannot be used without a licensing key, the delivery requirement is met when the licensing key is made available to the customer. We do not grant a right of return for non-subscription or non-hosted software products. We recognize revenue upon delivery of our software. Software License Revenue, Subscription Products or Hosted Products Although we made the software available to the customer at a particular point in time, the delivery of subscription software products (such as QuickSilver ) and hosted software products (such as Vmoso, Clearvale and Clear ) is considered to have occurred ratably over the duration of the contract. We recognize revenue ratably over the contract periods. Services Revenues Consulting services revenues and training revenues are recognized as such services are performed. These services are not essential to the functionality of the software. We record reimbursements from our customers for out-of-pocket expenses as an increase to services revenues. Maintenance revenue, which includes revenue that is derived from software license agreements that entitle the customers to technical support and future unspecified enhancements to our products, is recognized ratably over the related agreement period, which time period is generally twelve months. Cash and Cash Equivalents, and Short-term Investments We consider all debt with remaining maturities of three months or less at the date of purchase to be cash equivalents. Short-term investments consist of debt that has a remaining maturity of less than one year as of the date of the balance sheet. Management determines the appropriate classification of short-term investments at the time of purchase and evaluates such designation as of each balance sheet date. All short-term investments to date have been classified as held-to-maturity and carried at amortized cost, which approximates fair market value, on our Consolidated Balance Sheets. Our held-to-maturity securities did not have any gross unrealized gains and losses as of December 31, 2017 and 2016, respectively. Our short-term investments’ contractual maturities occur before April 2018 . Total interest income during fiscal years 2017 and 2016 was $129,000 and $86,000 , respectively. Research and Development and Software Development Costs ASC 985-20, Cost of Software to be Sold, Leased, or Marketed ("ASC 985-20"), requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on our product development process, technological feasibility is established upon the completion of a working model. To date, costs incurred by us from the completion of the working model to the point at which the product is ready for general release have been insignificant. Accordingly, we have charged all such costs to research and development expenses in the period incurred. Advertising Costs Advertising costs are expensed as incurred. Advertising expense, which is included in sales and marketing expense in the accompanying Consolidated Statements of Comprehensive Loss, amounted to $44,000 and $46,000 in 2017 and 2016, respectively. Receivable Reserves Occasionally, our customers experience financial difficulty after we recognize the revenue but before payment has been received. We maintain receivable reserves for estimated losses resulting from the inability of our customers to make required payments. Our normal payment terms are generally 30 to 90 days from the invoice date. If the financial condition of our customers were to deteriorate, resulting in their inability to make the contractual payments, additional reserves may be required. Losses from customer receivables in the two-year period ended December 31, 2017, have not been significant. If all efforts to collect a receivable fail, and the receivable is considered uncollectible, such receivable would be written off against the receivable reserve. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. We maintain our cash and cash equivalents and short-term investments with high-quality institutions. Our management performs ongoing credit evaluations of our customers and requires certain of these customers to provide security deposits or letters of credit. Cash deposits and cash equivalents in foreign countries of approximately $1.6 million and $1.8 million on December 31, 2017 and 2016, respectively, are subject to local banking laws and may bear higher or lower risk than cash deposited in the United States. As part of our cash and investment management processes, we perform periodic evaluations of the credit standing of the financial institutions and we have not sustained any credit losses from instruments held at these financial institutions. From time to time, our financial instruments maintained in our foreign subsidiaries may be subject to political risks or instability that may arise in foreign countries where we operate. For the year ended December 31, 2017, Indian Railways Catering and Tourism Corporation Limited (“IRCTC”) accounted for 13% and NTT Communications Corporation (NTTCC) accounted for 11% of our revenues. For the year ended December 31, 2016, IRCTC accounted for 12% of our total revenues. Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over their estimated useful lives (generally two years for software, three years for computer equipment and four years for furniture and fixtures). Leasehold improvements are amortized over the lesser of the remaining life of the lease term or their estimated useful lives. Maintenance and repairs are charged to operations as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. Fair Value of Financial Instruments We adopted the provisions of ASC 820-10, Fair Value Measurement ("ASC 820-10 "). ASC 820-10 establishes a framework for measuring fair value and requires disclosures about fair value measurements by establishing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure the following financial assets at fair value on a recurring basis. The fair value of these financial assets as of December 31, 2017 and 2016 (in thousands) were as follows Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 4,266 $ 4,266 $ - $ - Money market funds 4,294 4,294 - - Total cash and cash equivalents $ 8,560 $ 8,560 $ - $ - Fixed income securities Corporate bonds - financial $ - $ - $ - $ - Corporate bonds - industrial 1,000 - 1,000 - U.S. Treasury Securities - - - - Total fixed income securities $ 1,000 - 1,000 $ - Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2016 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 3,664 $ 3,664 $ - $ - Money market funds 8,066 8,066 - - Total cash and cash equivalents $ 11,730 $ 11,730 $ - $ - Fixed income securities Corporate bonds - financial $ 2,201 $ - $ 2,201 $ - Corporate bonds - industrial 2,275 - 2,275 - U.S. Treasury Securities 3,498 - 3,498 - Total fixed income securities $ 7,974 $ - $ 7,974 $ - Level 2 securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques. The fair value of cash and cash equivalents, short-term investments, accounts receivable and accounts payable for all periods presented approximates their respective carrying amounts due to the short-term nature of these balances. Employee Benefit Plans Amended and Restated 2006 Equity Incentive Plan: At our 2006 annual meeting held on August 8, 2006, our stockholders approved the adoption of our 2006 Equity Incentive Plan (the "Equity Plan"). At that time, our 1996 Equity Incentive Plan (the "Prior Equity Plan") was terminated and replaced by the Equity Plan. On January 21, 2009, our Board of Directors adopted the Amended and Restated BroadVision, Inc. 2006 Equity Incentive Plan (the "Amended and Restated Plan"), which was subsequently approved by our stockholders on April 30, 2009. The Amended and Restated Plan includes an "evergreen" provision that provides for automatic annual increases in the number of shares authorized for issuance. As of December 31, 2017, we had 1,053,474 shares of our Common Stock reserved for issuance under the plan. In addition, the number of shares of our Common Stock available for issuance under the Plan will automatically increase on January 1st of each year for a period of ten years, commencing on January 1, 2010 and ending on (and including) January 1, 2019. Further, our Board of Directors may grant incentive or nonqualified stock options at prices not less than 100% of the fair market value of our common stock, as determined by the Board of Directors, at the date of grant. The vesting of individual options may vary but in each case at least 20% of the total number of shares subject to vesting will become exercisable per year. These options generally expire ten years after the grant date. 2000 Non-Officer Plan: In February 2000, we adopted our 2000 Non-Officer Plan under which 106,666 shares of common stock were reserved for issuance to selected employees, consultants, and our affiliates who are not Officers or Directors. As of December 31, 2017, we had 72,625 shares available for issuance under the 2000 Non-Officer Plan. Under the 2000 Non-Officer Plan, we may grant non-statutory stock options at prices not less than 85% of the fair market value of our common stock at the date of grant. Options granted under the 2000 Non-Officer Plan generally vest over two years and are exercisable for not more than ten years. Employee Stock Purchase Plan: We also have a compensatory Employee Stock Purchase Plan (the "Purchase Plan") that enables employees to purchase, through payroll deductions, shares of our common stock at a discount from the market price of the stock at the time of purchase. As of December 31, 2017, we had 70,135 shares available for issuance under the Purchase Plan. The Purchase Plan permits eligible employees to purchase common stock with a value equivalent to a percentage of the employee's earnings, not to exceed the lesser of 15% of the employee's earnings or $25,000 under Section 423(b)(8) of the Internal Revenue Code of 1986, at a price equal to the lesser of 85% of the fair market value of the common stock on the date of the offering or the date of purchase. In accordance with ASC 718-10, Compensation – Stock Compensation ("ASC 718-10"), we record stock-based compensation expense related to the fair value of the employee purchase rights in our Consolidated Statements of Comprehensive Loss. During 2017 and 2016, we received a total of $79,000 and $ 181,000 , respectively, primarily from the purchase of shares under the Purchase Plan. Stock-Based Compensation Under the fair value recognition provisions of ASC 718-10, share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense, net of estimated pre-vesting forfeitures, ratably over the vesting period of the award. In addition, the adoption of ASC 718-10 requires additional accounting related to the income tax effects and disclosure regarding the cash flow effects resulting from share-based payment arrangements. Calculating share-based compensation expense requires the input of highly subjective assumptions, including the expected term of the share-based awards, stock price volatility, dividend yield, risk free interest rates, and pre-vesting forfeitures. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our share-based compensation expense could be materially different in the future. In addition, we are required to estimate the expected pre-vesting forfeiture rate and only recognize expense for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, our share-based compensation expense could be significantly different from what we have recorded in the current period. The total amount of stock-based compensation expense recognized during the years ended December 31, 2017 and 2016, is as follows (in thousands): Years Ended December 31, 2017 2016 Cost of services $ 116 $ 127 Research and development 281 272 Sales and marketing 237 297 General and administrative 223 179 $ 857 $ 875 We adopted the alternative transition method for calculating the tax effects of stock-based compensation pursuant to ASC 718-10. The alternative transition method includes simplified methods to establish the beginning balance of the additional paid-in capital pool ("APIC pool") related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that are outstanding upon adoption of ASC 718-10. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model based on assumptions noted in the following table below. The expected term of our options represents the period that our stock-based awards are expected to be outstanding based on the simplified method provided for in SAB 107, as amended by SAB No. 110, Share-Based Payment . Because we do not have sufficient historical exercise data, we used the simplified method for estimating the stock option expected term. The risk-free interest rate for periods related to the expected life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on historical volatilities of our stock over the expected life of the option. The expected dividend yield is zero , as we do not anticipate paying dividends in the near future. The following assumptions were used to determine stock-based compensation during the years ended December 31, 2017 and 2016: Years Ended December 31, 2017 2016 Expected volatility - 67 % Expected dividends - 0 % Expected term (in years) - 6.25 year Risk free interest rate - 1.5 % The following assumptions were used to determine the expense related to the Employee Stock Purchase Plan: Years Ended December 31, 2017 2016 Expected volatility 48 % 45 % Weighted average volatility 48 % 42 % Risk-free interest rate 1 % 0.2 % Expected term (in years) 1 year 1 year Expected dividend yield - - The weighted-average fair value of the purchase rights granted in the years ended December 31, 2017 and 2016, were $1.20 and $1.50 , respectively. Earnings Per Share Information Basic loss per share is computed using the weighted-average number of shares of common stock outstanding. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding and, when dilutive, common equivalent shares from outstanding stock options using the treasury stock method. The following table sets forth the basic and diluted net loss per share computational data for the periods presented (in thousands, except per share amounts): Years Ended December 31, 2017 2016 Net loss $ (9,899) $ (9,485) Weighted-average common shares outstanding used to compute basic and diluted net loss per share 4,975 4,924 Basic and diluted net loss per share $ (1.99) $ (1.93) Foreign Currency Transactions The functional currencies of all foreign subsidiaries are the local currencies of the respective countries. Assets and liabilities of these subsidiaries are translated into U.S. dollars at the balance sheet date. Income and expense items are translated at average exchange rates for the period. Foreign exchange gains and losses resulting from the remeasurement of foreign currency assets and liabilities are included as other income, net in the Consolidated Statements of Comprehensive Loss. For the years ended December 31, 2017 and 2016, translation loss was $591,000 and $228,000 , respectively, and is included in other comprehensive loss account in the Consolidated Statements of Stockholder's Equity. Discontinued Foreign Subsidiary In September 2016, we completed the sale of BroadVision Scandinavia AB. The total sale price was $10,000 , of which the Company received cash payment of $2,500 and $7,500 in 2017 and 2016 respectively, as stipulated in the underlying agreement. Based on the assets and liabilities attributed to BroadVision Scandinavia AB on the date of the sale, and the estimated costs and expenses incurred in connection with the sale, the Company recorded a gain of $230,000 in the consolidated statement of comprehensive loss for the year ended December 31, 2016. Comprehensive Loss Comprehensive loss includes net loss and other comprehensive loss, which consist of cumulative translation adjustments. Total accumulated other comprehensive loss is displayed as a separate component of Consolidated Statement of Stockholder's Equity in the accompanying Consolidated Balance Sheets. The accumulated balance of other comprehensive loss, consisting of foreign currency translation adjustment, net of taxes is as follows (in thousands): Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (967) Foreign currency translation adjustment (591) Balance, December 31, 2017 $ (1,558) Income Taxes and Deferred Tax Assets Income taxes are computed using an asset and liability approach in accordance with ASC 740-10, Income Taxes ("ASC 740-10"), which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of the enacted tax law; the effects of future changes in tax laws or rates are not anticipated. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, is not expected to be realized. We analyze our deferred tax assets with regard to potential realization. We have established a valuation allowance on our deferred tax assets to the extent that management has determined that it is more likely than not that some portion or all of the deferred tax asset will not be realized based upon the uncertainty of their realization. We consider the effects of estimated future taxable income, current economic conditions and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. Because we have a full valuation allowance against our U.S. net deferred tax assets, the Tax Cuts and Jobs Act of 2017, or Tax Act, will not materially impact our balance sheet or statement of operations. See Note 5. Segment and Geographic Information We operate in one segment, electronic commerce business solutions. Our CEO is our chief operating decision maker. The CEO reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by geographic region and by product for purposes of making operating decisions and assessing financial performance. Comparative Figures Certain comparative figures have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income, total assets or cash flow. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09, and has subsequently issued various amendments in 2015 and 2016 (ASU No.’s 2015-14, 2016-08,2016-10, 2016-11, 2016-12, and 2016-20). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. ASU 2014-09 establishes principles to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective using either of two methods: (i) full retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) modified retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We adopted the new revenue standard effective January 1, 2018 using the modified retrospective method through a cumulative adjustment to equity. While we are still in the process of finalizing the impact of adoption of the new revenue standard on our financial statements, we currently believe the most significant change relates to our accounting for our sales of subscription licences for our Quicksilver product, which are arrangements that include term-based QuickSilver software licenses bundled with maintenance and support. Currently, we recognize revenue attributable to these software subscription licenses ratably over the term of the arrangement. The requirement to have vendor-specific-objective-evidence (“VSOE”) for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. Accordingly, under the new standard we will be required to recognize as revenue a portion of the arrangement fees allocated to QuickSilver software license upon delivery. As a result, we anticipate that revenue for these arrangements be recorded in an earlier period than under the existing guidance, resulting in an increase to our opening balance of retained earnings as of January 1, 2018. In contrast, we expect revenue related to our professional services and cloud offerings for business enterprises, individuals and teams to remain substantially unchanged. However, there may be select contracts with complexities, which may cause variance in the actual revenue recognized based on the treatment required under the new standard for these arrangements. Adopting ASU No. 2014-09, Revenue from Contracts with Customers, or the new revenue standard, will involve significant new estimates and judgments related to the estimates of stand-alone selling prices and the allocation of discounts and variable consideration in allocating the transaction price. We expect that revenue be recognized earlier under the new standard and may have more variability due to new criteria applied in the new accounting methods. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires recognition of an asset and liability for lease arrangements longer than twelve months. ASU 2016-02 will be effective for the Company beginning in the first quarter of fiscal 2019. Early application is permitted, and it is required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the potential impact of adopting this new guidance on its Consolidated Financial Statements. In March 2016, FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2016. We adopted ASU 2016-09 during the first quarter of fiscal 2017. ASU 2016-09 requires entities to record all tax effects r |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 2---Property and Equipment Property and equipment consisted of the following (in thousands): December 31, 2017 2016 Furniture and fixtures $ 169 $ 159 Computer and software 2,169 2,174 Leasehold improvements 179 179 Total property and equipment 2,517 2,512 Less accumulated depreciation and amortization (2,482) (2,452) Property and equipment, net $ 35 $ 60 Depreciation and amortization expense for the years ended December 31, 2017 and 2016 was $32,000 and $41,000 , respectively. We retired $6,000 in fully depreciated property and equipment in 2017. There was no retirement in fully depreciated property and equipment in 2016. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Note 3---Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2017 2016 Employee benefits $ 518 $ 568 Income tax 25 297 Sales and other taxes 319 158 Commissions and bonuses 224 243 Deferred rent 57 111 Other 515 489 Total accrued expenses $ 1,658 $ 1,866 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Non-Current Liabilities [Abstract] | |
Other Non-Current Liabilities | Note 4---Other Non-Current Liabilities Other non-current liabilities consist of the following (in thousands): December 31, 2017 2016 Deferred maintenance and unearned revenue $ 61 $ 223 Other 522 511 Total other non-current liabilities $ 583 $ 734 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 5---Income Taxes Losses before income taxes as follows (in thousands): Years Ended December 31, 2017 2016 Domestic $ (8,670) $ (7,812) Foreign (1,341) (1,625) Loss before income taxes $ (10,011) $ (9,437) The components of benefit/(expense) for income taxes are as follows (in thousands): Years Ended December 31, 2017 2016 Current: Federal $ 123 $ - State (3) (4) Foreign (8) (44) Total current 112 (48) Deferred: Federal (78,619) (2,583) State 731 (518) Foreign 119 58 Total deferred (77,769) (3,043) Valuation allowance 77,769 3,043 Benefit (provision) for income taxes $ 112 $ (48) The differences between the benefit/(expense) for income taxes computed at the federal statutory rate of 35% and our actual income tax expense for the periods presented are as follows (in thousands): Years Ended December 31, 2017 2016 Expected income tax benefit $ 3,504 $ 3,303 Expected state income taxes expense, net of federal tax benefit 470 216 Research and development credit 166 169 Foreign taxes and foreign loss not benefited (347) (925) Change in valuation allowance 77,769 (1,440) Stock-based compensation (252) (78) True-ups 821 (51) Unrealized tax benefits (15) (7) Unrealized loss from foreign investments - (1,226) Federal tax rate change (81,939) - Others (65) (9) Benefit (provision) for income taxes $ 112 $ (48) On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law resulting in significant changes to the Internal Revenue Code. The Act reduces the federal corporate income tax rate from 35% to 21% effective for tax periods beginning after December 31, 2017. The Act also includes provisions for the elimination of the Alternative Minimum Tax (“AMT”), among other changes. The provision for income tax benefit was $112,000 for the year ended December 31, 2017, compared to income tax expense $48,000 for the year ended December 31, 2016. The tax benefit for the year ended December 31, 2017 was primarily due to refundable AMT credits that resulted from the repeal of AMT by the Act. The Company has remeasured its deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future which resulted in a decrease of deferred tax assets of $81,939,000 . Because we have a full valuation allowance against our U.S. net deferred tax assets, the Act will not materially impact our balance sheet or statement of operations. The effects of other provisions of the Act are not expected to have a material impact on the Company’s financial statements. The individual components of our deferred tax assets are as follows (in thousands): Years Ended December 31, 2017 2016 Deferred tax assets: Depreciation and amortization $ 45 $ 72 Accrued, allowance and others 1,866 3,166 Net operating losses 130,003 207,270 Tax credits 9,556 8,731 Total deferred tax assets 141,470 219,239 Less: valuation allowance (141,470) (219,239) Net deferred tax assets $ - $ - We have provided a full valuation allowance for all of our deferred tax assets as of December 31, 2017 and 2016, due to the uncertainty regarding their future realization. The total valuation allowance decreased $77,769,000 from December 31, 2016 to December 31, 2017. As of December 31, 2017, we had federal and state net operating loss ("NOL") carryforwards of approximately $586,978,000 and $ 36,122,000 available to offset future regular and alternative minimum taxable income. Our federal net operating loss carryforwards expire in various years from 2019 through 2037 , if not used. The state net operating loss carryforwards expire in various years from 2029 to 2037 , if not used. Due to the projected loss for the year with a full valuation allowance against its deferred tax assets, there is no tax impact for 2017 and 2016. As of December 31, 2017, we had federal and state research and development credit carryforwards of approximately $7,046,000 and $6,196,000 , respectively, available to offset future tax liabilities. The federal tax credit carryforwards expire in the tax years from 2019 through 2037, if not utilized. The state research and development credits can be carried forward indefinitely. Federal and state tax laws impose substantial restrictions on the utilization of net operating loss (“NOL”) and credit carryforwards in the event of an "ownership change" for tax purposes, as defined in IRC Section 382. Based on a high-level ownership change analysis performed each year, management concluded that there were no ownership changes through December 31, 2017. We follow the provision of ASC 740-10-25, Income Taxes: Recognition ("ASC 740-10-25"). Our total amount of unrecognized tax benefits as of December 31, 2017 and 2016 were $3,022,000 and $2,880,000 , respectively. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate were $ 160,000 and $160,000 as of December 31, 2017 and 2016, respectively. We recognize interest and penalties accrued related to unrecognized tax benefits in our provision for income taxes. During the years ended December 31, 2017 and 2016, respectively, we did not recognize any interest and penalties. A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for the year ended December 31, 2017 is as follows (in thousands): Balance at January 1, 2017 $ 2,880 Additions based on tax provisions related to the current year 150 Additions for tax provisions of prior year - Lapse of the statute of limitation (8) Balance at December 31, 2017 $ 3,022 We are subject to taxation in the United States and various foreign jurisdictions. Our tax years 1999 and forward remain open in several jurisdictions due to the NOL carryforward from those tax years. It is possible that the amount of our liability for unrecognized tax benefits may change within the next 12 months. However, an estimate of the range of possible changes cannot be made at this time. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 6---Commitments and Contingencies Warranties and Indemnification We provide a warranty to our perpetual license customers that our software will perform substantially in accordance with the documentation we provide with the software, typically for a period of 90 days following receipt of the software. Historically, costs related to these warranties have been immaterial. Accordingly, we have not recorded any warranty liabilities as of December 31, 2017 and 2016, respectively. Our perpetual software license agreements typically provide for indemnification of customers for intellectual property infringement claims caused by use of a current release of our software consistent with the terms of the license agreement. The term of these indemnification clauses is generally perpetual. The potential future payments we could be required to make under these indemnification clauses is generally limited to the amount the customer paid for the software. Historically, costs related to these indemnification provisions have been immaterial. We also maintain liability insurance that limits our exposure. As a result, we believe the potential liability of these indemnification clauses is minimal. We rarely have litigation initiated against us by customers. We entered into agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer is, or was, serving in such capacity. The term of the indemnification period is for so long as such officer or director is subject to an indemnifiable event by reason of the fact that such person was serving in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements may be unlimited; however, we have a director and officer insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is insignificant. Accordingly, we have no liabilities recorded for these agreements as of December 31, 2017 and 2016. We assess the need for an indemnification reserve on a quarterly basis and there can be no guarantee that an indemnification reserve will not become necessary in the future. Leases We lease our headquarters facility and our other facilities under noncancelable operating lease agreements expiring through the year 2019. Under the terms of the agreements, we are required to pay property taxes, insurance and normal maintenance costs. A summary of total future minimum lease payments under noncancelable operating lease agreements is as follows (in thousands): Operating Leases Years ending December 31, 2018 563 2019 154 2020 and thereafter - Total minimum lease payments $ 717 Rent expense for the year ended December 31, 2017, was $1,300,000 , same as for the year ended December 31 , 2016 . Legal Proceedings We are subject from time to time to various legal actions and other claims arising in the ordinary course of business. We are not presently a party to any material legal proceedings. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 7---Stockholders' Equity Convertible Preferred Stock As of December 31, 2017, there were no outstanding shares of convertible preferred stock. Our Board of Directors and our stockholders have authorized 1,000,000 shares of convertible preferred stock that are available for issuance. Common Stock As of December 31, 2017, we had reserved 459,268 common shares for future issuance upon the exercise of stock options. Year Ended December 31, 2017 Weighted- Weighted- Average Average Exercise Remaining Aggregate Options Price Contractual Intrinsic (000's) Per Share Term (Years) Value Outstanding at beginning of year 667 $ 9.12 Granted - $ - Exercised - $ - $ - Forfeited (10) $ 6.48 Expired (63) $ 15.52 Outstanding at end of year 594 $ 8.49 5.83 $ - Options exercisable at end of year 529 $ 8.75 5.67 $ - Options vested and expected to vest at end of year 587 $ 8.52 0.05 $ - There were no options granted under our stock plans during the year ended December31, 2017. The weighted-average fair market value per share of options granted under our stock option plans during the year ended December 31, 2016 was $2.90 . We granted 15,292 shares of restricted stock to the non-employee members of our Board of Directors during the year ended December 31, 2017 and recorded a stock-based compensation expense of $ 79,000 . We granted 16,965 shares of restricted stock to the non-employee members of our Board of Directors and Board of Directors’ advisor during the year ended December 31, 2016, and recorded a stock-based compensation expense of $92,000 . The restricted stock of our Board of Directors will vest over a one -year period measured from the date of the annual meeting of stockholders with one quarter of the shares included in such Director Grant vesting on each of the dates that are three months, six months, nine months and twelve months from the annual meeting, so long as each board member continues to serve as a member of our board of directors on such vesting date. As of December 31, 2017, total unrecognized compensation cost related to unvested stock options was $769,000 , which is expected to be recognized over the remaining weighted-average vesting period of 1 year. During the years ended December 31, 2017 and 2016, we received cash of $79,000 and $192,000 , respectively, from employee stock purchases and exercises of stock options. |
Geographic, Segment and Signifi
Geographic, Segment and Significant Customer Information | 12 Months Ended |
Dec. 31, 2017 | |
Geographic, Segment and Significant Customer Information [Abstract] | |
Geographic, Segment and Significant Customer Information | Note 8---Geographic, Segment and Significant Customer Information We operate in one segment: electronic business solutions. Our reportable segment includes our facilities in North and South America (Americas), Europe and Asia Pacific and the Middle East (Asia/Pacific). Our chief operating decision maker is considered to be the CEO. The CEO reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by geographic region and by product for purposes of making operating decisions and assessing financial performance. The disaggregated revenue information reviewed by the CEO is as follows (in thousands): Years Ended December 31, 2017 2016 Software licenses $ 3,467 $ 4,227 Consulting services 1,230 1,521 Maintenance 1,660 2,192 Total revenues $ 6,357 $ 7,940 We sell our products and provide global services through a direct sales force and through a channel of independent distributors, value-added resellers ("VARs") and Application Service Providers ("ASPs"). In addition, the sales of our products are promoted through independent professional consulting organizations known as systems integrators ("SIs"). We provide global services through our BroadVision Global Services organization and indirectly through distributors, VARs, ASPs, and SIs. We currently operate in three primary geographical territories. Disaggregated financial information regarding our product and service revenues by geographic region is as follows (in thousands): Years Ended December 31, 2017 2016 Americas $ 3,019 $ 3,665 Europe 1,132 1,320 Asia/Pacific 2,206 2,955 Total revenues $ 6,357 $ 7,940 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9---Related Party Transactions On November 14, 2008, BroadVision (Delaware) LLC, a Delaware limited liability company (“BVD”), which was then our wholly owned subsidiary, entered into a Share Purchase Agreement with CHRM LLC, a Delaware limited liability company, that is controlled by Dr. Pehong Chen, our CEO and largest stockholder. We and CHRM LLC then entered into an Amended and Restated Operating Agreement of BroadVision (Delaware) LLC dated as of November 14, 2008 (the “BVD Operating Agreement”). Under these agreements, CHRM LLC received, in exchange for the assignment of certain intellectual property rights, 20 Class B Shares of BVD, representing the right to receive a portion of any distribution of Funds from “Capital Transactions” (as such term is defined in the BVD Operating Agreement), with the exact amount to be determined based on our and CHRM LLC’s capital account balances at the time of such distribution. A “capital transaction” under that agreement is any merger or sale of substantially all of the assets of BVD as a result of which the members of BVD will no longer have an interest in BVD or the assets of BVD will be distributed to its members. Class B Shares do not participate in any profits of BVD except for net profits related to a “capital transaction,” in which case the net profits are allocated to the owners of Class A and Class B Shares in proportion to their respective number of shares. To the extent BVD’s losses do not exceed undistributed net profits accumulated since the date of issuance of Class B Shares, such losses are allocated to Class A Shares. To the extent net losses exceed the undistributed net profits accumulated since the date of issuance of Class B Shares, such excess is allocated to the owners of Class A and Class B Shares in proportion to their respective cumulative capital contributions less any return of capital, until allocation of such losses results in having the capital account balances equal to zero . Then, net losses are allocated to the owners of Class A and Class B Shares in proportion to their respective number of shares. Upon liquidation the net assets of BVD are distributed to the owners of Class A and Class B in proportion to their capital account balances. BVD is the sole owner of BroadVision (Barbados) Limited (“BVB”) and BVB is the sole owner of BroadVision On Demand, a Chinese entity (“BVOD”). We have invested approximately $9.0 million in BVOD (directly and through BVD and BVB). In 2014, we began making payments directly to BVOD for certain labor outsourcing services and expect to continue to pay BVOD for such services at the rate of approximately $550,000 per quarter for the foreseeable future. We made aggregate payments to BVOD of $2.3 million and $2.0 million (based on the RMB to USD exchange rates on the applicable dates of payment) for such services in the years ended December 31, 2017 and 2016, respectively. These payments in part covered services rendered outside of the applicable twelve month periods. We have a controlling voting interest in BVD. Pursuant to the terms of the BVD Operating Agreement, the Class B Shares held by CHRM LLC have no voting rights. The 20 Class B Shares of BVD represent a non-controlling interest. We allocate profits and losses of BVD to the non-controlling interest under the Hypothetical Liquidation Book Value (“HLBV”) method. Under this method the profits and losses are allocated by reference to the profit sharing provisions in the BVD Operating Agreement assuming liquidation of BVD at its book value at the end of each reporting period. Profits and losses allocated to the balance of such interest under the HLBV method have not been material. In April 2015, we executed a renewal contract with SINA Corporation of which Dr. Pehong Chen, our CEO and largest stockholder, is a board member through December 2015, pursuant to which we provided HR information management hosting service, including software subscription, system upgrade and technical support, to SINA Corporation . The total license revenue that we were entitled to receive under that contract through its expiration in March 2016 was $184,000 . We recognized $0 and $46,000 of license revenue related to that contract for the fiscal years 2017 and 2016, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plan [Abstract] | |
Employee Benefit Plan | Note 10---Employee Benefit Plan We provide for a defined contribution employee retirement plan in accordance with section 401(k) of the Internal Revenue Code. Eligible employees are entitled to contribute up to the lower of 100% of their compensation or the IRS annual maximum. The Plan allows for discretionary contributions by us. As of July 1, 2011, we started a discretionary matching contribution. The amount is equal to a percentage determined annually by our management for the contribution period. Employees will be eligible for the match after 12 months of service and after completing 1,000 hours of work during the plan year. Employees must be employed on the last business day of the plan year to be eligible for the match. We have funded $57,000 and $61,000 for the year ended December 31, 2017 and 2016, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11---Subsequent Event Effective as of March 7, 2018, Peter Chu resigned as our Chief Financial Officer and Vice President of Strategy and Product Management. In connection with Mr. Chu’s resignation, our founder, Chief Executive Officer and President, Dr. Pehong Chen was appointed as our Interim Chief Financial Officer. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Charged Balance at (Credited) to Balance at Beginning of Costs and End of Period Expenses Deductions(1) Period Receivable reserves: Year Ended December 31, 2017 $ 167 $ 126 $ - $ 293 Year Ended December 31, 2016 $ 135 $ 32 $ - $ 167 |
Orgnaization and Summary of Sig
Orgnaization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Nature of Business | Nature of Business BroadVision, Inc. (collectively with its subsidiaries, "BroadVision" or "we") was incorporated in the state of Delaware on May 13, 1993, and has been a publicly traded corporation since 1996. We develop, market, and support enterprise portal applications that enable companies to unify their e-business infrastructure and conduct both interactions and transactions with employees, partners, and customers through a personalized self-service model that increases revenues, reduces costs, and improves productivity. |
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include our and our subsidiaries’ accounts. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Liquidity | Liquidity The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. During the year ended December 31, 2017, the Company had a net loss of $9.9 million and negative cash flow from operations of $9.6 million, and at December 31, 2017 the company had working capital of $7.6 million. At December 31, 2017, the Company has cash and cash equivalents of $8.6 million and $1.0 million in short-term investments. The Company has implemented cost reduction plans since the second half of 2017 and expects to reduce its costs of operation by approximately $2 million in 2018 to cover its cash needs through the next twelve months. Management may implement further cost reductions in 2018 and seek financing from third parties as needed to ensure that the Company’s cash, cash equivalents and short-term investments are sufficient to fund its operations for the next twelve months. However, further cost reduction may voluntary departures of highly skilled technical and managerial personnel, which would have a material adverse effect on our business, internal controls, financial condition and results of operations. We expect to opportunistically seek to raise additional funds through private or public sales of securities, strategic relationships, bank debt, financing under leasing arrangements or otherwise. If additional funds are raised through the issuance of equity securities, the percentage ownership of our current stockholders will be reduced, stockholders may experience additional dilution or any equity securities we sell may have rights, preferences or privileges senior to those of the holders of our common stock. We expect that obtaining additional financing on acceptable terms would be difficult, at best. If adequate funds are not available or are not available on acceptable terms, we may be unable to pay our debts as they become due, develop our products, take advantage of future opportunities or respond to competitive pressures or unanticipated requirements, which could have a material adverse effect on our business, financial condition and future operating results. The outcome of these matters cannot be predicted at this time. Our ability to continue as a going concern is dependent upon our ability to successfully accomplish these plans and secure sources of financing and/or reduce costs and ultimately attain profitable operations. |
Use of Estimates | Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make certain assumptions and estimates that affect reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate the reasonableness of our estimates, including those related to receivable reserves, stock-based compensation, investments and income taxes, as well as contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates using different assumptions or conditions. We believe the following significant accounting policies reflect the more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. |
Revenue Recognition | Revenue Recognition Overview Our revenue consists of fees for licenses of our software products, maintenance, consulting services and training. Our revenue recognition policies for the periods presented comply with Accounting Standards Codification ASC 985-605, Software: Revenue Recognition , and Staff Accounting Bulletin SAB 104, Revenue Recognition . In October 2009, the FASB amended the accounting standards in Accounting Standards Update ("ASU") 2009-13 (an update to ASC 605-25) ("ASU 2009-13") for certain multiple deliverable revenue arrangements to: 1) provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; 2) require an entity to allocate revenue in an arrangement using best estimated selling price ("BESP") of deliverables if a vendor does not have VSOE of selling price or third-party evidence ("TPE") of selling price; and 3) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method. We recognize revenue when all four of the following revenue recognition criteria have been met: • Persuasive evidence of an arrangement exists; • We have delivered the product or performed the service; • The fee is fixed or determinable; and • Collection is probable. We qualify the second of the above listed criteria differently for different types of revenues, as follows. Software License Revenue, Non-Subscription and Non-Hosted Products Delivery of non-subscription and non-hosted software products is considered to have occurred when title to the physical media and risk of loss have been transferred to the customer, which generally occurs when media containing the licensed programs is provided to a common carrier. In case of electronic delivery, delivery occurs when the customer is given access to the licensed programs. For products that cannot be used without a licensing key, the delivery requirement is met when the licensing key is made available to the customer. We do not grant a right of return for non-subscription or non-hosted software products. We recognize revenue upon delivery of our software. Software License Revenue, Subscription Products or Hosted Products Although we made the software available to the customer at a particular point in time, the delivery of subscription software products (such as QuickSilver ) and hosted software products (such as Vmoso, Clearvale and Clear ) is considered to have occurred ratably over the duration of the contract. We recognize revenue ratably over the contract periods. Services Revenues Consulting services revenues and training revenues are recognized as such services are performed. These services are not essential to the functionality of the software. We record reimbursements from our customers for out-of-pocket expenses as an increase to services revenues. Maintenance revenue, which includes revenue that is derived from software license agreements that entitle the customers to technical support and future unspecified enhancements to our products, is recognized ratably over the related agreement period, which time period is generally twelve months. |
Cash and Cash Equivalents, and Short-term Investments | Cash and Cash Equivalents, and Short-term Investments We consider all debt with remaining maturities of three months or less at the date of purchase to be cash equivalents. Short-term investments consist of debt that has a remaining maturity of less than one year as of the date of the balance sheet. Management determines the appropriate classification of short-term investments at the time of purchase and evaluates such designation as of each balance sheet date. All short-term investments to date have been classified as held-to-maturity and carried at amortized cost, which approximates fair market value, on our Consolidated Balance Sheets. Our held-to-maturity securities did not have any gross unrealized gains and losses as of December 31, 2017 and 2016, respectively. Our short-term investments’ contractual maturities occur before April 2018 . Total interest income during fiscal years 2017 and 2016 was $129,000 and $86,000 , respectively. |
Research and Development and Software Development Costs | Research and Development and Software Development Costs ASC 985-20, Cost of Software to be Sold, Leased, or Marketed ("ASC 985-20"), requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on our product development process, technological feasibility is established upon the completion of a working model. To date, costs incurred by us from the completion of the working model to the point at which the product is ready for general release have been insignificant. Accordingly, we have charged all such costs to research and development expenses in the period incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense, which is included in sales and marketing expense in the accompanying Consolidated Statements of Comprehensive Loss, amounted to $44,000 and $46,000 in 2017 and 2016, respectively. |
Receivable Reserves | Receivable Reserves Occasionally, our customers experience financial difficulty after we recognize the revenue but before payment has been received. We maintain receivable reserves for estimated losses resulting from the inability of our customers to make required payments. Our normal payment terms are generally 30 to 90 days from the invoice date. If the financial condition of our customers were to deteriorate, resulting in their inability to make the contractual payments, additional reserves may be required. Losses from customer receivables in the two-year period ended December 31, 2017, have not been significant. If all efforts to collect a receivable fail, and the receivable is considered uncollectible, such receivable would be written off against the receivable reserve. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. We maintain our cash and cash equivalents and short-term investments with high-quality institutions. Our management performs ongoing credit evaluations of our customers and requires certain of these customers to provide security deposits or letters of credit. Cash deposits and cash equivalents in foreign countries of approximately $1.6 million and $1.8 million on December 31, 2017 and 2016, respectively, are subject to local banking laws and may bear higher or lower risk than cash deposited in the United States. As part of our cash and investment management processes, we perform periodic evaluations of the credit standing of the financial institutions and we have not sustained any credit losses from instruments held at these financial institutions. From time to time, our financial instruments maintained in our foreign subsidiaries may be subject to political risks or instability that may arise in foreign countries where we operate. For the year ended December 31, 2017, Indian Railways Catering and Tourism Corporation Limited (“IRCTC”) accounted for 13% and NTT Communications Corporation (NTTCC) accounted for 11% of our revenues. For the year ended December 31, 2016, IRCTC accounted for 12% of our total revenues. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over their estimated useful lives (generally two years for software, three years for computer equipment and four years for furniture and fixtures). Leasehold improvements are amortized over the lesser of the remaining life of the lease term or their estimated useful lives. Maintenance and repairs are charged to operations as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We adopted the provisions of ASC 820-10, Fair Value Measurement ("ASC 820-10 "). ASC 820-10 establishes a framework for measuring fair value and requires disclosures about fair value measurements by establishing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure the following financial assets at fair value on a recurring basis. The fair value of these financial assets as of December 31, 2017 and 2016 (in thousands) were as follows Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 4,266 $ 4,266 $ - $ - Money market funds 4,294 4,294 - - Total cash and cash equivalents $ 8,560 $ 8,560 $ - $ - Fixed income securities Corporate bonds - financial $ - $ - $ - $ - Corporate bonds - industrial 1,000 - 1,000 - U.S. Treasury Securities - - - - Total fixed income securities $ 1,000 - 1,000 $ - Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2016 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 3,664 $ 3,664 $ - $ - Money market funds 8,066 8,066 - - Total cash and cash equivalents $ 11,730 $ 11,730 $ - $ - Fixed income securities Corporate bonds - financial $ 2,201 $ - $ 2,201 $ - Corporate bonds - industrial 2,275 - 2,275 - U.S. Treasury Securities 3,498 - 3,498 - Total fixed income securities $ 7,974 $ - $ 7,974 $ - Level 2 securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques. The fair value of cash and cash equivalents, short-term investments, accounts receivable and accounts payable for all periods presented approximates their respective carrying amounts due to the short-term nature of these balances. |
Employee Benefit Plans | Employee Benefit Plans Amended and Restated 2006 Equity Incentive Plan: At our 2006 annual meeting held on August 8, 2006, our stockholders approved the adoption of our 2006 Equity Incentive Plan (the "Equity Plan"). At that time, our 1996 Equity Incentive Plan (the "Prior Equity Plan") was terminated and replaced by the Equity Plan. On January 21, 2009, our Board of Directors adopted the Amended and Restated BroadVision, Inc. 2006 Equity Incentive Plan (the "Amended and Restated Plan"), which was subsequently approved by our stockholders on April 30, 2009. The Amended and Restated Plan includes an "evergreen" provision that provides for automatic annual increases in the number of shares authorized for issuance. As of December 31, 2017, we had 1,053,474 shares of our Common Stock reserved for issuance under the plan. In addition, the number of shares of our Common Stock available for issuance under the Plan will automatically increase on January 1st of each year for a period of ten years, commencing on January 1, 2010 and ending on (and including) January 1, 2019. Further, our Board of Directors may grant incentive or nonqualified stock options at prices not less than 100% of the fair market value of our common stock, as determined by the Board of Directors, at the date of grant. The vesting of individual options may vary but in each case at least 20% of the total number of shares subject to vesting will become exercisable per year. These options generally expire ten years after the grant date. 2000 Non-Officer Plan: In February 2000, we adopted our 2000 Non-Officer Plan under which 106,666 shares of common stock were reserved for issuance to selected employees, consultants, and our affiliates who are not Officers or Directors. As of December 31, 2017, we had 72,625 shares available for issuance under the 2000 Non-Officer Plan. Under the 2000 Non-Officer Plan, we may grant non-statutory stock options at prices not less than 85% of the fair market value of our common stock at the date of grant. Options granted under the 2000 Non-Officer Plan generally vest over two years and are exercisable for not more than ten years. Employee Stock Purchase Plan: We also have a compensatory Employee Stock Purchase Plan (the "Purchase Plan") that enables employees to purchase, through payroll deductions, shares of our common stock at a discount from the market price of the stock at the time of purchase. As of December 31, 2017, we had 70,135 shares available for issuance under the Purchase Plan. The Purchase Plan permits eligible employees to purchase common stock with a value equivalent to a percentage of the employee's earnings, not to exceed the lesser of 15% of the employee's earnings or $25,000 under Section 423(b)(8) of the Internal Revenue Code of 1986, at a price equal to the lesser of 85% of the fair market value of the common stock on the date of the offering or the date of purchase. In accordance with ASC 718-10, Compensation – Stock Compensation ("ASC 718-10"), we record stock-based compensation expense related to the fair value of the employee purchase rights in our Consolidated Statements of Comprehensive Loss. During 2017 and 2016, we received a total of $79,000 and $ 181,000 , respectively, primarily from the purchase of shares under the Purchase Plan. |
Stock-based Compensation | Stock-Based Compensation Under the fair value recognition provisions of ASC 718-10, share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense, net of estimated pre-vesting forfeitures, ratably over the vesting period of the award. In addition, the adoption of ASC 718-10 requires additional accounting related to the income tax effects and disclosure regarding the cash flow effects resulting from share-based payment arrangements. Calculating share-based compensation expense requires the input of highly subjective assumptions, including the expected term of the share-based awards, stock price volatility, dividend yield, risk free interest rates, and pre-vesting forfeitures. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our share-based compensation expense could be materially different in the future. In addition, we are required to estimate the expected pre-vesting forfeiture rate and only recognize expense for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, our share-based compensation expense could be significantly different from what we have recorded in the current period. The total amount of stock-based compensation expense recognized during the years ended December 31, 2017 and 2016, is as follows (in thousands): Years Ended December 31, 2017 2016 Cost of services $ 116 $ 127 Research and development 281 272 Sales and marketing 237 297 General and administrative 223 179 $ 857 $ 875 We adopted the alternative transition method for calculating the tax effects of stock-based compensation pursuant to ASC 718-10. The alternative transition method includes simplified methods to establish the beginning balance of the additional paid-in capital pool ("APIC pool") related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that are outstanding upon adoption of ASC 718-10. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model based on assumptions noted in the following table below. The expected term of our options represents the period that our stock-based awards are expected to be outstanding based on the simplified method provided for in SAB 107, as amended by SAB No. 110, Share-Based Payment . Because we do not have sufficient historical exercise data, we used the simplified method for estimating the stock option expected term. The risk-free interest rate for periods related to the expected life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on historical volatilities of our stock over the expected life of the option. The expected dividend yield is zero , as we do not anticipate paying dividends in the near future. The following assumptions were used to determine stock-based compensation during the years ended December 31, 2017 and 2016: Years Ended December 31, 2017 2016 Expected volatility - 67 % Expected dividends - 0 % Expected term (in years) - 6.25 year Risk free interest rate - 1.5 % The following assumptions were used to determine the expense related to the Employee Stock Purchase Plan: Years Ended December 31, 2017 2016 Expected volatility 48 % 45 % Weighted average volatility 48 % 42 % Risk-free interest rate 1 % 0.2 % Expected term (in years) 1 year 1 year Expected dividend yield - - The weighted-average fair value of the purchase rights granted in the years ended December 31, 2017 and 2016, were $1.20 and $1.50 , respectively. |
Earning Per Share Information | Earnings Per Share Information Basic loss per share is computed using the weighted-average number of shares of common stock outstanding. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding and, when dilutive, common equivalent shares from outstanding stock options using the treasury stock method. The following table sets forth the basic and diluted net loss per share computational data for the periods presented (in thousands, except per share amounts): Years Ended December 31, 2017 2016 Net loss $ (9,899) $ (9,485) Weighted-average common shares outstanding used to compute basic and diluted net loss per share 4,975 4,924 Basic and diluted net loss per share $ (1.99) $ (1.93) |
Foreign Currency Transactions | Foreign Currency Transactions The functional currencies of all foreign subsidiaries are the local currencies of the respective countries. Assets and liabilities of these subsidiaries are translated into U.S. dollars at the balance sheet date. Income and expense items are translated at average exchange rates for the period. Foreign exchange gains and losses resulting from the remeasurement of foreign currency assets and liabilities are included as other income, net in the Consolidated Statements of Comprehensive Loss. For the years ended December 31, 2017 and 2016, translation loss was $591,000 and $228,000 , respectively, and is included in other comprehensive loss account in the Consolidated Statements of Stockholder's Equity. |
Discontinued Foreign Subsidiary | Discontinued Foreign Subsidiary In September 2016, we completed the sale of BroadVision Scandinavia AB. The total sale price was $10,000 , of which the Company received cash payment of $2,500 and $7,500 in 2017 and 2016 respectively, as stipulated in the underlying agreement. Based on the assets and liabilities attributed to BroadVision Scandinavia AB on the date of the sale, and the estimated costs and expenses incurred in connection with the sale, the Company recorded a gain of $230,000 in the consolidated statement of comprehensive loss for the year ended December 31, 2016. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss and other comprehensive loss, which consist of cumulative translation adjustments. Total accumulated other comprehensive loss is displayed as a separate component of Consolidated Statement of Stockholder's Equity in the accompanying Consolidated Balance Sheets. The accumulated balance of other comprehensive loss, consisting of foreign currency translation adjustment, net of taxes is as follows (in thousands): Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (967) Foreign currency translation adjustment (591) Balance, December 31, 2017 $ (1,558) |
Income Taxes and Deferred Tax Assets | Income Taxes and Deferred Tax Assets Income taxes are computed using an asset and liability approach in accordance with ASC 740-10, Income Taxes ("ASC 740-10"), which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of the enacted tax law; the effects of future changes in tax laws or rates are not anticipated. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, is not expected to be realized. We analyze our deferred tax assets with regard to potential realization. We have established a valuation allowance on our deferred tax assets to the extent that management has determined that it is more likely than not that some portion or all of the deferred tax asset will not be realized based upon the uncertainty of their realization. We consider the effects of estimated future taxable income, current economic conditions and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. Because we have a full valuation allowance against our U.S. net deferred tax assets, the Tax Cuts and Jobs Act of 2017, or Tax Act, will not materially impact our balance sheet or statement of operations. See Note 5. |
Segment and Geographic Information | Segment and Geographic Information We operate in one segment, electronic commerce business solutions. Our CEO is our chief operating decision maker. The CEO reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by geographic region and by product for purposes of making operating decisions and assessing financial performance. |
Comparative Figures | Comparative Figures Certain comparative figures have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income, total assets or cash flow. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09, and has subsequently issued various amendments in 2015 and 2016 (ASU No.’s 2015-14, 2016-08,2016-10, 2016-11, 2016-12, and 2016-20). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. ASU 2014-09 establishes principles to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective using either of two methods: (i) full retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) modified retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We adopted the new revenue standard effective January 1, 2018 using the modified retrospective method through a cumulative adjustment to equity. While we are still in the process of finalizing the impact of adoption of the new revenue standard on our financial statements, we currently believe the most significant change relates to our accounting for our sales of subscription licences for our Quicksilver product, which are arrangements that include term-based QuickSilver software licenses bundled with maintenance and support. Currently, we recognize revenue attributable to these software subscription licenses ratably over the term of the arrangement. The requirement to have vendor-specific-objective-evidence (“VSOE”) for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. Accordingly, under the new standard we will be required to recognize as revenue a portion of the arrangement fees allocated to QuickSilver software license upon delivery. As a result, we anticipate that revenue for these arrangements be recorded in an earlier period than under the existing guidance, resulting in an increase to our opening balance of retained earnings as of January 1, 2018. In contrast, we expect revenue related to our professional services and cloud offerings for business enterprises, individuals and teams to remain substantially unchanged. However, there may be select contracts with complexities, which may cause variance in the actual revenue recognized based on the treatment required under the new standard for these arrangements. Adopting ASU No. 2014-09, Revenue from Contracts with Customers, or the new revenue standard, will involve significant new estimates and judgments related to the estimates of stand-alone selling prices and the allocation of discounts and variable consideration in allocating the transaction price. We expect that revenue be recognized earlier under the new standard and may have more variability due to new criteria applied in the new accounting methods. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires recognition of an asset and liability for lease arrangements longer than twelve months. ASU 2016-02 will be effective for the Company beginning in the first quarter of fiscal 2019. Early application is permitted, and it is required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the potential impact of adopting this new guidance on its Consolidated Financial Statements. In March 2016, FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2016. We adopted ASU 2016-09 during the first quarter of fiscal 2017. ASU 2016-09 requires entities to record all tax effects related to share-based payments at settlement or expiration through the statements of comprehensive income and the windfall tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. Our excess tax benefits for the twelve months ended December 31, 2017 and the cumulative effect to retained earnings from previously unrecognized excess tax benefits for Federal and state were $2,652,000 and $1,908,000 , respectively. However, the net effect was not significant to our Condensed Consolidated Balance Sheets after offset by the related valuation allowance. We analyze our deferred tax assets with regard to potential realization. We have established a valuation allowance on our deferred tax assets to the extent that management has determined , based upon the uncertainty of realizing such deferred tax assets, that it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the effects of estimated future taxable income, current economic conditions and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. Presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to all periods presented as such cash flows have historically been presented as financing activities. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. |
Orgnaization and Summary of S20
Orgnaization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 4,266 $ 4,266 $ - $ - Money market funds 4,294 4,294 - - Total cash and cash equivalents $ 8,560 $ 8,560 $ - $ - Fixed income securities Corporate bonds - financial $ - $ - $ - $ - Corporate bonds - industrial 1,000 - 1,000 - U.S. Treasury Securities - - - - Total fixed income securities $ 1,000 - 1,000 $ - Fair Value at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs 2016 (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ 3,664 $ 3,664 $ - $ - Money market funds 8,066 8,066 - - Total cash and cash equivalents $ 11,730 $ 11,730 $ - $ - Fixed income securities Corporate bonds - financial $ 2,201 $ - $ 2,201 $ - Corporate bonds - industrial 2,275 - 2,275 - U.S. Treasury Securities 3,498 - 3,498 - Total fixed income securities $ 7,974 $ - $ 7,974 $ - |
Schedule of Components of the Total Stock-Based Compmensation Expense | Years Ended December 31, 2017 2016 Cost of services $ 116 $ 127 Research and development 281 272 Sales and marketing 237 297 General and administrative 223 179 $ 857 $ 875 |
Schedule of Basic and Diluted Net Loss per Share | Years Ended December 31, 2017 2016 Net loss $ (9,899) $ (9,485) Weighted-average common shares outstanding used to compute basic and diluted net loss per share 4,975 4,924 Basic and diluted net loss per share $ (1.99) $ (1.93) |
Schedule of Accumulated Balances of Other Comprehensive Loss | Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (967) Foreign currency translation adjustment (591) Balance, December 31, 2017 $ (1,558) |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Assumptions | Years Ended December 31, 2017 2016 Expected volatility 48 % 45 % Weighted average volatility 48 % 42 % Risk-free interest rate 1 % 0.2 % Expected term (in years) 1 year 1 year Expected dividend yield - - |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Assumptions | Years Ended December 31, 2017 2016 Expected volatility - 67 % Expected dividends - 0 % Expected term (in years) - 6.25 year Risk free interest rate - 1.5 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2017 2016 Furniture and fixtures $ 169 $ 159 Computer and software 2,169 2,174 Leasehold improvements 179 179 Total property and equipment 2,517 2,512 Less accumulated depreciation and amortization (2,482) (2,452) Property and equipment, net $ 35 $ 60 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | December 31, 2017 2016 Employee benefits $ 518 $ 568 Income tax 25 297 Sales and other taxes 319 158 Commissions and bonuses 224 243 Deferred rent 57 111 Other 515 489 Total accrued expenses $ 1,658 $ 1,866 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Non-Current Liabilities [Abstract] | |
Schedule of Other Non-Current Liabilities | December 31, 2017 2016 Deferred maintenance and unearned revenue $ 61 $ 223 Other 522 511 Total other non-current liabilities $ 583 $ 734 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Years Ended December 31, 2017 2016 Domestic $ (8,670) $ (7,812) Foreign (1,341) (1,625) Loss before income taxes $ (10,011) $ (9,437) |
Schedule of Components of Income Tax Expense | Years Ended December 31, 2017 2016 Current: Federal $ 123 $ - State (3) (4) Foreign (8) (44) Total current 112 (48) Deferred: Federal (78,619) (2,583) State 731 (518) Foreign 119 58 Total deferred (77,769) (3,043) Valuation allowance 77,769 3,043 Benefit (provision) for income taxes $ 112 $ (48) |
Schedule of Effective Income Tax Rate Reconciliation | Years Ended December 31, 2017 2016 Expected income tax benefit $ 3,504 $ 3,303 Expected state income taxes expense, net of federal tax benefit 470 216 Research and development credit 166 169 Foreign taxes and foreign loss not benefited (347) (925) Change in valuation allowance 77,769 (1,440) Stock-based compensation (252) (78) True-ups 821 (51) Unrealized tax benefits (15) (7) Unrealized loss from foreign investments - (1,226) Federal tax rate change (81,939) - Others (65) (9) Benefit (provision) for income taxes $ 112 $ (48) |
Schedule of Deferred Tax Assets and Liabilities | Years Ended December 31, 2017 2016 Deferred tax assets: Depreciation and amortization $ 45 $ 72 Accrued, allowance and others 1,866 3,166 Net operating losses 130,003 207,270 Tax credits 9,556 8,731 Total deferred tax assets 141,470 219,239 Less: valuation allowance (141,470) (219,239) Net deferred tax assets $ - $ - |
Summary of Income Tax Contingencies | Balance at January 1, 2017 $ 2,880 Additions based on tax provisions related to the current year 150 Additions for tax provisions of prior year - Lapse of the statute of limitation (8) Balance at December 31, 2017 $ 3,022 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Lease Payments | Operating Leases Years ending December 31, 2018 563 2019 154 2020 and thereafter - Total minimum lease payments $ 717 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Schedule of Summary of Activity Under Stock Option Plans | Year Ended December 31, 2017 Weighted- Weighted- Average Average Exercise Remaining Aggregate Options Price Contractual Intrinsic (000's) Per Share Term (Years) Value Outstanding at beginning of year 667 $ 9.12 Granted - $ - Exercised - $ - $ - Forfeited (10) $ 6.48 Expired (63) $ 15.52 Outstanding at end of year 594 $ 8.49 5.83 $ - Options exercisable at end of year 529 $ 8.75 5.67 $ - Options vested and expected to vest at end of year 587 $ 8.52 0.05 $ - |
Geographical, Segment and Signi
Geographical, Segment and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Geographic, Segment and Significant Customer Information [Abstract] | |
Schedule of Revenue Regarding Types of Revenue | Years Ended December 31, 2017 2016 Software licenses $ 3,467 $ 4,227 Consulting services 1,230 1,521 Maintenance 1,660 2,192 Total revenues $ 6,357 $ 7,940 |
Schedule of Revenue by Geographic Area | Years Ended December 31, 2017 2016 Americas $ 3,019 $ 3,665 Europe 1,132 1,320 Asia/Pacific 2,206 2,955 Total revenues $ 6,357 $ 7,940 |
Organization and Summary of S28
Organization and Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)segment$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Net (loss) income | $ (9,899,000) | $ (9,485,000) | ||
Net cash used for operating activities | (9,625,000) | (9,607,000) | ||
Working capital | 7,600,000 | |||
Short-term investments | 1,000,000 | 7,974,000 | ||
Cash and cash equivalents | 8,560,000 | 11,730,000 | $ 9,600,000 | |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | 0 | ||
Held-to-maturity Securities, Unrecognized Holding Loss | $ 0 | 0 | ||
Short-term investment, maturity date | Apr. 30, 2018 | |||
Interest income, net | $ 129,000 | 86,000 | ||
Advertising costs | 44,000 | 46,000 | ||
Cash and cash equivalents | 8,560,000 | 11,730,000 | ||
Proceeds from issuance of common stock, net | 79,000 | 181,000 | ||
Other comprehensive income (loss) | $ (591,000) | (228,000) | ||
Operating segments | segment | 1 | |||
Scenario, Forecast [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Decrease in opearting costs | $ 2,000,000 | |||
Accounting Standards Update 2016-09 [Member] | Federal [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative effect to retained earnings | $ 2,652,000 | |||
Accounting Standards Update 2016-09 [Member] | State [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative effect to retained earnings | 1,908,000 | |||
Disposal Group, Not Discontinued Operations [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Total sale price | 10,000 | |||
Cash payment | 2,500 | 7,500 | ||
Gain on foreign subsidiary | $ 230,000 | |||
Software Licenses [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 2 years | |||
Computer Equipment [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Furniture and Fixtures [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 4 years | |||
Foreign [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 1,600,000 | $ 1,800,000 | ||
Indian Railways Catering And Tourism Corporation Limited [Member] | Sales Revenue, Net [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
A single customer accounts for 10% of revenue | 13.00% | 12.00% | ||
NTT Communications Corporation [Member] | Sales Revenue, Net [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
A single customer accounts for 10% of revenue | 11.00% | |||
Employee Stock Purchase Plan [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Weighted-average fair value of the employee purchase right | $ / shares | $ 1.20 | $ 1.50 | ||
Expected dividend | ||||
Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Employee Stock Purchase Plan Purchase Price Percent Of Fair Value During Offerring Period | 85.00% | |||
Maximum employee subscription rate | 15.00% | |||
Maximum employee subscription amount | $ 25,000 | |||
Amended And Restated 2006 Equity Incentive Plan [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of shares authorized for future issuance | shares | 1,053,474 | |||
Amended And Restated 2006 Equity Incentive Plan [Member] | Minimum [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Minmum stock option exercise price | 100.00% | |||
Number of shares subject to vesting that will become exercisable per year | 20.00% | |||
Amended And Restated 2006 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Stock-based compensation contractual term | 10 years | |||
2000 Non-Officer Plan [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of shares authorized for future issuance | shares | 106,666 | |||
Vesting period | 2 years | |||
Number of shares available for Future Issuance | shares | 72,625 | |||
2000 Non-Officer Plan [Member] | Minimum [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Minmum stock option exercise price | 85.00% | |||
2000 Non-Officer Plan [Member] | Maximum [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Stock-based compensation contractual term | 10 years | |||
Employee Stock Option [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of shares available for Future Issuance | shares | 459,268 | |||
Expected dividend | 0.00% |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 8,560 | $ 11,730 |
Fixed income securities | 1,000 | 7,974 |
Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,266 | 3,664 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,294 | 8,066 |
Corporate Bonds - Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 2,201 | |
Corporate Bonds - Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 1,000 | 2,275 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 3,498 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,560 | 11,730 |
Fixed income securities | ||
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,266 | 3,664 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,294 | 8,066 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds - Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds - Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | ||
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fixed income securities | 1,000 | 7,974 |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds - Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 2,201 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds - Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 1,000 | 2,275 |
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 3,498 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fixed income securities | ||
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds - Financial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds - Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | ||
Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies (Schedule of Components of the Total Stock-Based Compmensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 857 | $ 875 |
Cost of Services [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 116 | 127 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 281 | 272 |
Sales and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 237 | 297 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 223 | $ 179 |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies (Summary of Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 67.00% | |
Expected dividend | 0.00% | |
Expected term (in years) | 6 years 3 months | |
Risk free interest rate | 1.50% | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 48.00% | 45.00% |
Weighted average volatility | 48.00% | 42.00% |
Expected dividend | ||
Expected term (in years) | 1 year | 1 year |
Risk free interest rate | 1.00% | 0.20% |
Organization and Summary of S32
Organization and Summary of Significant Accounting Policies (Schedule of Basic and Diluted Net Loss per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Organization and Summary of Significant Accounting Policies [Abstract] | ||
Net loss | $ (9,899) | $ (9,485) |
Weighted average shares-basic and diluted | 4,975 | 4,924 |
Basic and diluted net loss per share | $ (1.99) | $ (1.93) |
Organization and Summary of S33
Organization and Summary of Significant Accounting Policies (Schedule of Accumulated Balances of Other Comprehensive Loss)(Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Balance, December 31, 2016 | $ (967) |
Foreign currency translation adjustment | (591) |
Balance, December 31, 2017 | $ (1,558) |
Property and Equipment (Narrati
Property and Equipment (Narratives) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment [Abstract] | ||
Depreciation and amortization | $ 32,000 | $ 41,000 |
Property, Plant and Equipment, Disposals | $ 6,000 | $ 0 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property and Equipment [Abstract] | ||
Furniture and fixtures | $ 169 | $ 159 |
Computer and software | 2,169 | 2,174 |
Leasehold improvements | 179 | 179 |
Total property and equipment | 2,517 | 2,512 |
Less accumulated depreciation and amortization | (2,482) | (2,452) |
Property and equipment, net | $ 35 | $ 60 |
Accrued Expenses (Schedule of A
Accrued Expenses (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Expenses [Abstract] | ||
Employee benefits | $ 518 | $ 568 |
Income tax | 25 | 297 |
Sales and other taxes | 319 | 158 |
Commissions and bonuses | 224 | 243 |
Deferred rent | 57 | 111 |
Other | 515 | 489 |
Total accrued expenses | $ 1,658 | $ 1,866 |
Other Non-Current Liabilities37
Other Non-Current Liabilities (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Non-Current Liabilities [Abstract] | ||
Deferred maintenance and unearned revenue | $ 61 | $ 223 |
Other | 522 | 511 |
Total other non-current liabilities | $ 583 | $ 734 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
(Provision) benefit for income taxes | $ (112,000) | $ 48,000 | |
Decrease of deferred tax asset | $ 81,939,000 | ||
U.S. federal statutory income tax rate | 35.00% | 35.00% | |
Change in valuation allowance during the year | $ 77,769,000 | $ 3,043,000 | |
Unrecognized tax benefits | 3,022,000 | 2,880,000 | |
Unrecognized tax benefits that would impact effective tax rate | $ 160,000 | $ 160,000 | |
Open Tax Year | 1,999 | ||
Scenario, Plan [Member] | |||
Income Taxes [Line Items] | |||
U.S. federal statutory income tax rate | 21.00% | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 586,978,000 | ||
Federal [Member] | Research Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward | $ 7,046,000 | ||
Federal [Member] | Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2019 | ||
Federal [Member] | Latest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $ 36,122,000 | ||
State [Member] | Research Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward | $ 6,196,000 | ||
State [Member] | Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | ||
State [Member] | Latest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Domestic | $ (8,670) | $ (7,812) |
Foreign | (1,341) | (1,625) |
Loss before income taxes | $ (10,011) | $ (9,437) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | $ 123 | |
State | (3) | (4) |
Foreign | (8) | (44) |
Total current | 112 | (48) |
Deferred: | ||
Federal | (78,619) | (2,583) |
State | 731 | (518) |
Foreign | 119 | 58 |
Total deferred | (77,769) | (3,043) |
Valuation allowance | 77,769 | 3,043 |
Benefit (provision) for income taxes | $ 112 | $ (48) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Expected income tax benefit | $ 3,504 | $ 3,303 |
Expected state income taxes expense, net of federal tax benefit | 470 | 216 |
Research and development credit | 166 | 169 |
Foreign taxes and foreign loss not benefited | (347) | (925) |
Change in valuation allowance | 77,769 | (1,440) |
Stock-based compensation | (252) | (78) |
True-ups | 821 | (51) |
Unrealized tax benefits | (15) | (7) |
Unrealized loss from foreign investments | (1,226) | |
Federal tax rate change | (81,939) | |
Others | (65) | (9) |
Benefit (provision) for income taxes | $ 112 | $ (48) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Depreciation and amortization | $ 45 | $ 72 |
Accrued, allowance and others | 1,866 | 3,166 |
Net operating losses | 130,003 | 207,270 |
Tax credits | 9,556 | 8,731 |
Total deferred tax assets | 141,470 | 219,239 |
Less: valuation allowance | (141,470) | (219,239) |
Net deferred tax assets |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Contingencies) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Taxes [Abstract] | |
Balance at January 1, 2017 | $ 2,880,000 |
Additions based on tax provisions related to the current year | 150,000 |
Additions for tax provisions of prior year | |
Lapse of the statute of limitation | (8,000) |
Balance at December 31, 2017 | $ 3,022,000 |
Commitments and Contingencies44
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | ||
Rent Expense | $ 1,300,000 | $ 1,300,000 |
Warranty liability | $ 0 | $ 0 |
Commitments and Contingencies45
Commitments and Contingencies (Schedule of Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies [Abstract] | |
2,018 | $ 563 |
2,019 | 154 |
2020 and thereafter | |
Total minimum lease payments | $ 717 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred Stock Shares Outstanding | 0 | 0 |
Preferred Stock Shares Authorized | 1,000,000 | 1,000,000 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock award vesting period | 1 year | |
Restricted stock granted | 15,292 | 16,965 |
Restricted Stock [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock or Unit Expense | $ 79 | $ 92 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for Future Issuance | 459,268 | |
Options granted | 0 | |
Weighted-Average Garnt Date Fair Value, Options Grants Per Share | $ 2.90 | |
Unrecognized Compensation Costs, Related to Unvested Stock Options | $ 769 | |
Unrecognized Compensation Costs, Weighted-Average Period of Recognition | 1 year | |
Proceeds from Stock Plans | $ 79 | $ 192 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Summary of Activity Under Stock Options Plans) (Details) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding, Beginning of Year | shares | 667,000 |
Shares, Granted | shares | 0 |
Shares, Exercised | shares | |
Shares, Forfeited | shares | (10,000) |
Shares, Expired | shares | (63,000) |
Shares, Outstanding, End of Year | shares | 594,000 |
Shares, Exercisable, End of Year | shares | 529,000 |
Shares, Vested and Expected to Vest, End of Year | shares | 587,000 |
Weighted-Average Exercise Price, Outstanding, Beginning of Year | $ / shares | $ 9.12 |
Weighted-Average Exercise Price, Granted | $ / shares | |
Weighted-Average Exercise Price, Exercised | $ / shares | |
Weighted-Average Exercise Price, Forfeited | $ / shares | 6.48 |
Weighted-Average Exercise Price, Expired | $ / shares | 15.52 |
Weighted-Average Exercise Price, Outstanding, End of Year | $ / shares | 8.49 |
Weighted-Average Exercise Price, Exercisable, End of Year | $ / shares | 8.75 |
Weighted-Average Exercise Price, Vested and Expected to Vest, End of Year | $ / shares | $ 8.52 |
Weighted-Average Remaining Contractual Term, Outstanding, End of Year | 5 years 9 months 29 days |
Weighted-Average Remaining Contractual Term, Exercisable, End of Year | 5 years 8 months 1 day |
Weighted-Average Remaining Contractual Term, Vested and Expected to Vest, End of Year | 18 days |
Total Intrinsic Value, exercised | $ | |
Aggregate Intrinsic Value, Outstanding, End of Year | $ | |
Aggregate Intrinsic Value, Exercisable, End of Year | $ | |
Aggregate Intrinsic Value, Vested and Expected to Vest, End of Year | $ |
Geographic, Segment and Signi48
Geographic, Segment and Significant Customer Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Geographic, Segment and Significant Customer Information [Abstract] | |
Operating segments | 1 |
Geographic, Segment and Signi49
Geographic, Segment and Significant Customer Information (Schedule of Revenue Regarding Types of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Geographic, Segment and Significant Customer Information [Abstract] | ||
Software licenses | $ 3,467 | $ 4,227 |
Consulting services | 1,230 | 1,521 |
Maintenance | 1,660 | 2,192 |
Total revenues | $ 6,357 | $ 7,940 |
Geographic, Segment and Signi50
Geographic, Segment and Significant Customer Information (Schedule of Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Geographical Revenue [Line Items] | ||
Revenues | $ 6,357 | $ 7,940 |
Americas [Member] | ||
Geographical Revenue [Line Items] | ||
Revenues | 3,019 | 3,665 |
Europe [Member] | ||
Geographical Revenue [Line Items] | ||
Revenues | 1,132 | 1,320 |
Asia/Pacific [Member] | ||
Geographical Revenue [Line Items] | ||
Revenues | $ 2,206 | $ 2,955 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Nov. 14, 2008 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||
Current equity investment | $ 9,000,000 | ||
Future equity quarterly investments | 550,000 | ||
Capital account balance | 0 | ||
Aggregate payments | 2,300,000 | $ 2,000,000 | |
Total license revenue that we were entitled to receive | 184,000 | ||
License revenue | $ 0 | $ 46,000 | |
Common Class B [Member] | |||
Related Party Transaction [Line Items] | |||
Number Of Shares Issued By The Subsidiary For The Related Party Transaction | 20 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Plan [Abstract] | ||
Maximum contribution | 100.00% | |
Eligibility term | 12 months | |
Hours worked | 1000 hours | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 57 | $ 61 |
Schedule II - Valuation and Q53
Schedule II - Valuation and Qualifying Accounts (Schedule II - Valuation and Qualifying Accounts) (Details) - Allowance for Notes Receivable [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 167 | $ 135 | |
Charged (Credited) to Costs and Expenses | 126 | 32 | |
Deductions | [1] | ||
Balance at End of Period | $ 293 | $ 167 | |
[1] | Represents net charge-offs of specific receivables. |