Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016 | |
Document And Entity Information [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Trading Symbol | SMSI |
Entity Registrant Name | SMITH MICRO SOFTWARE INC |
Entity Central Index Key | 948,708 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,229 | $ 8,819 |
Short-term investments | 4,078 | |
Accounts receivable, net of allowances for doubtful accounts and other adjustments of $197 (2016) and $201 (2015) | 4,962 | 8,145 |
Income tax receivable | 1 | 13 |
Inventories, net of reserves for excess and obsolete inventory of $148 (2016) and $158 (2015) | 12 | 39 |
Prepaid expenses and other current assets | 713 | 692 |
Total current assets | 7,917 | 21,786 |
Equipment and improvements, net | 1,811 | 2,492 |
Other assets | 149 | 195 |
Intangible assets, net | 745 | |
Goodwill | 3,686 | |
Total assets | 14,308 | 24,473 |
Current liabilities: | ||
Accounts payable | 1,907 | 1,708 |
Accrued liabilities | 3,503 | 5,064 |
Deferred revenue | 98 | 440 |
Total current liabilities | 5,508 | 7,212 |
Non-current liabilities: | ||
Related-party notes payable, net of discount & issuance costs of $619 and $0, respectively | 1,295 | |
Notes payable, net of discount & issuance costs of $619 and $0, respectively | 1,295 | |
Deferred rent and other long term liabilities | 2,970 | 3,235 |
Deferred tax liability, net | 181 | |
Total non-current liabilities | 5,741 | 3,235 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share; 5,000,000 shares authorized; none issued or outstanding | ||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 12,297,954 and 11,432,318 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 12 | 46 |
Additional paid-in capital | 229,275 | 224,867 |
Accumulated comprehensive deficit | (226,228) | (210,887) |
Total stockholders’ equity | 3,059 | 14,026 |
Total liabilities and stockholders' equity | $ 14,308 | $ 24,473 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowances for doubtful accounts receivable | $ 197 | $ 201 |
Reserves for excess and obsolete inventory | 148 | 158 |
Related-party notes payable, discount & issuance costs | 619 | 0 |
Notes payable, discount & issuance costs | $ 619 | $ 0 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 12,297,954 | 11,432,318 |
Common stock, shares outstanding | 12,297,954 | 11,432,318 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 28,235 | $ 39,507 | $ 36,979 |
Cost of revenues | 7,564 | 8,152 | 9,317 |
Gross profit | 20,671 | 31,355 | 27,662 |
Operating expenses: | |||
Selling and marketing | 9,615 | 8,902 | 9,559 |
Research and development | 15,906 | 13,863 | 14,192 |
General and administrative | 10,341 | 11,128 | 13,218 |
Restructuring expenses | 303 | 2,435 | |
Long-lived asset impairment | 411 | ||
Total operating expenses | 36,576 | 33,893 | 39,404 |
Operating loss | (15,905) | (2,538) | (11,742) |
Non-operating income (expense): | |||
Change in carrying value of contingent liability | 668 | ||
Interest income (expense), net | (313) | 1 | (5) |
Other income (expense), net | (22) | 3 | (3) |
Loss before provision for income taxes | (15,572) | (2,534) | (11,750) |
Provision for income tax expense (benefit) | (229) | 68 | 49 |
Net loss | (15,343) | (2,602) | (11,799) |
Other comprehensive income (loss), before tax: | |||
Unrealized holding gains (losses) on available-for-sale securities | 2 | (1) | |
Other comprehensive income (expense), net of tax | 2 | (1) | |
Comprehensive loss | $ (15,341) | $ (2,603) | $ (11,799) |
Net loss per share: | |||
Basic and diluted | $ (1.28) | $ (0.23) | $ (1.16) |
Weighted average shares outstanding: | |||
Basic and diluted | 11,951 | 11,486 | 10,162 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Comprehensive Deficit [Member] |
BALANCE at Dec. 31, 2013 | $ 18,171 | $ 37 | $ 214,619 | $ (196,485) |
BALANCE, Shares at Dec. 31, 2013 | 36,994,000 | |||
Exercise of common stock options | $ 6 | 6 | ||
Exercise of common stock options, shares | 1,000 | 4,000 | ||
Non-cash compensation recognized on stock options and ESPP | $ 157 | 157 | ||
Restricted stock grants, net of cancellations | 3,495 | $ 1 | 3,494 | |
Restricted stock grants, net of cancellations, shares | 1,421,000 | |||
Cancellation of shares for payment of withholding tax | (391) | (391) | ||
Cancellation of shares for payment of withholding tax, shares | (292,000) | |||
Employee stock purchase plan | 21 | 21 | ||
Employee stock purchase plan, shares | 27,000 | |||
Issuance of common stock in a private placement | 5,242 | $ 7 | 5,235 | |
Issuance of common stock in a private placement, shares | 6,846,000 | |||
Comprehensive loss | (11,799) | (11,799) | ||
BALANCE at Dec. 31, 2014 | 14,902 | $ 45 | 223,141 | (208,284) |
BALANCE, Shares at Dec. 31, 2014 | 45,000,000 | |||
Exercise of common stock options | $ 10 | 10 | ||
Exercise of common stock options, shares | 2,000 | 8,000 | ||
Non-cash compensation recognized on stock options and ESPP | $ 186 | 186 | ||
Restricted stock grants, net of cancellations | 1,967 | $ 1 | 1,966 | |
Restricted stock grants, net of cancellations, shares | 1,091,000 | |||
Cancellation of shares for payment of withholding tax | (458) | (458) | ||
Cancellation of shares for payment of withholding tax, shares | (394,000) | |||
Tax benefit deficiencies related to restricted stock expense | 5 | 5 | ||
Employee stock purchase plan | 17 | 17 | ||
Employee stock purchase plan, shares | 24,000 | |||
Comprehensive loss | (2,603) | (2,603) | ||
BALANCE at Dec. 31, 2015 | $ 14,026 | $ 46 | 224,867 | (210,887) |
BALANCE, Shares at Dec. 31, 2015 | 11,432,318 | 45,729,000 | ||
Non-cash compensation recognized on stock options and ESPP | $ 137 | 137 | ||
Restricted stock grants, net of cancellations | 1,391 | 1,391 | ||
Restricted stock grants, net of cancellations, shares | 366,000 | |||
Cancellation of shares for payment of withholding tax | (304) | (304) | ||
Cancellation of shares for payment of withholding tax, shares | (126,000) | |||
Employee stock purchase plan | 13 | 13 | ||
Employee stock purchase plan, shares | 7,000 | |||
Shares issued for iMobileMagic acquisition | 1,737 | 1,737 | ||
Shares issued for iMobileMagic acquisition, shares | 611,000 | |||
Shares issued for interest on notes payable | 17 | 17 | ||
Shares issued for interest on notes payable, shares | 8,000 | |||
Effects of reverse stock split | (3) | $ (34) | 31 | |
Effects of reverse stock split, shares | (34,297,000) | |||
Issuance of warrants | 1,386 | 1,386 | ||
Comprehensive loss | (15,341) | (15,341) | ||
BALANCE at Dec. 31, 2016 | $ 3,059 | $ 12 | $ 229,275 | $ (226,228) |
BALANCE, Shares at Dec. 31, 2016 | 12,297,954 | 12,298,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net loss | $ (15,343) | $ (2,602) | $ (11,799) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,381 | 1,904 | 2,931 |
Amortization of debt discounts and financing issuance costs | 168 | ||
Long-lived asset impairment | 411 | ||
Change in carrying value of contingent liability | (668) | ||
Provision for adjustments to accounts receivable and doubtful accounts | 70 | 31 | 347 |
Provision for excess and obsolete inventory | 11 | 48 | 124 |
Loss on disposal of fixed assets | 27 | 1 | |
Tax benefits from stock-based compensation | (5) | ||
Non-cash compensation related to stock options and restricted stock | 1,528 | 2,158 | 3,652 |
Deferred income taxes | (137) | (2) | |
Change in operating accounts: | |||
Accounts receivable | 3,368 | 40 | (1,000) |
Income tax receivable | 115 | 688 | (7) |
Inventories | 16 | 10 | (54) |
Prepaid expenses and other assets | 344 | 92 | 114 |
Accounts payable and accrued liabilities | (1,966) | (1,362) | (2,189) |
Deferred revenue | (828) | (1,058) | 1,034 |
Net cash used in operating activities | (11,503) | (55) | (6,849) |
Investing activities: | |||
Acquisition of Birdstep Technology, net of cash received | (1,927) | ||
Acquisition of iMobileMagic, net of cash received | (558) | ||
Capital expenditures | (500) | (124) | (216) |
Proceeds from the sale of short-term investments | 4,079 | 198 | |
Purchases of short-term investments | (1,199) | ||
Net cash provided by (used in) investing activities | 1,094 | (1,323) | (18) |
Financing activities: | |||
Cash received from issuance of common stock, net of offering costs | 5,242 | ||
Cash received from related-party notes payable, net of issuance costs ($97) | 1,903 | ||
Cash received from notes payable, net of issuance costs ($97) | 1,903 | ||
Cash received from stock sale for employee stock purchase plan | 13 | 17 | 21 |
Cash received from exercise of stock options | 10 | 6 | |
Tax benefits received from stock-based compensation | 5 | ||
Net cash provided by financing activities | 3,819 | 32 | 5,269 |
Net decrease in cash and cash equivalents | (6,590) | (1,346) | (1,598) |
Cash and cash equivalents, beginning of period | 8,819 | 10,165 | 11,763 |
Cash and cash equivalents, end of period | 2,229 | 8,819 | 10,165 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 27 | 17 | $ 75 |
Cash paid for interest expense | 21 | ||
Change in unrealized gain (loss) on short-term investments | $ 2 | $ (1) |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement Of Cash Flows [Abstract] | |
Notes issuance cost | $ (97) |
Notes issuance cost to related party | $ (97) |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies The Company Smith Micro Software, Inc. (“Smith Micro,” “Company,” “we,” “us,” and “or”) develops software to simplify and enhance the mobile experience, providing solutions to leading wireless service providers, device manufacturers, and enterprise businesses around the world. From optimizing wireless networks to uncovering customer experience insights, and from streamlining Wi-Fi access to ensuring family safety, our solutions enrich connected lifestyles while creating new opportunities to engage consumers via smartphones. Our portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual messaging, video streaming, and 2D/3D graphics applications. With this as a focus, it is Smith Micro’s mission to help our customers thrive in a connected world. Over the past three decades, Smith Micro has developed deep expertise in embedded software for mobile devices, policy-based management platforms, and highly-scalable client and server applications. Tier 1 mobile network operators, cable providers, OEMs/device manufacturers, and enterprise businesses across a wide range of industries use our software to capitalize on the growth of connected consumers and the Internet of Things (“IoT”). In general, we help our customers: • Optimize networks, reduce operational costs, and deliver “best-connected” user experiences; • Manage mobile devices over-the-air for maximum performance, efficiency, reliability and cost-effectiveness; • Provide greater insight into the mobile user experience to improve service quality and customer loyalty; • Engage and grow high-value relationships with their customers using smartphones. We continue to innovate and evolve our business to take advantage of industry trends and opportunities in emerging markets, such as “Big Data” analytics, the explosion of Wi-Fi hotspots, and business-to-consumer (“B2C”) mobile marketing and advertising. The key to our longevity, however, is not simply technology innovation, but a never-ending focus on customer value. Basis of Presentation The accompanying consolidated financial statements reflect the operating results and financial position of Smith Micro and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America. All intercompany amounts have been eliminated in consolidation. Foreign Currency Transactions The Company has international operations resulting from current and prior year acquisitions. The countries in which the Company has a subsidiary or branch office in are Serbia, Sweden, Portugal, the United Kingdom and Canada. The functional currency for all of these foreign entities is the U.S. dollar in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 830-30, Foreign Currency Matters-Translation of Financial Statements Business Combinations The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations , in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period that exists up to twelve months from the acquisition date, the Company may record adjustments to the tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the reporting period in which the adjusted amounts are determined. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company’s internal operations are accounted for as a one-time termination and exit cost pursuant to FASB ASC Topic No. 420, Exit or Disposal Cost Obligations , and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the Company’s consolidated statement of operations in the period in which the liability is incurred. Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill if such adjustments occur within the 12-month measurement period. Subsequent to the end of the measurement period or the Company’s final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. • Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash equivalents and short-term investments at fair value. Our cash equivalents and short-term investments are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 825, Financial Instruments Investments-Debt and Equity Securities As required by FASB ASC Topic No. 350, for goodwill and other intangibles impairment analysis, we utilize fair value measurements which are categorized within Level 3 of the fair value hierarchy. Significant Concentrations For the year ended December 31, 2016, two customers, each accounting for over 10% of revenues, made up 76.1% of revenues and 80% of accounts receivable, and one service provider with more than 10% of purchases totaled 24% of accounts payable. For the year ended December 31, 2015, two customers, each accounting for over 10% of revenues, made up 76.7% of revenues and 83% of accounts receivable, and one service provider with more than 10% of purchases totaled 13% of accounts payable. For the year ended December 31, 2014, two customers, each accounting for over 10% of revenues, made up 79.2% of revenues and 87% of accounts receivable, and one service provider with more than 10% of purchases totaled 27% of accounts payable. Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, government securities, mutual funds, and money market funds. These securities are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation coverage, and have original maturity dates of three months or less. As of December 31, 2016 and 2015, bank balances totaling approximately $2.1 million and $8.5 million, respectively, were uninsured. Short-Term Investments Short-term investments have consisted of corporate notes, bonds, and commercial paper and U.S. government agency and government sponsored enterprise obligations. The Company accounts for these short-term investments as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. These debt and equity securities are not classified as either held-to-maturity securities or trading securities. As such, they are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with unrealized gains or losses recorded as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. Accounts Receivable and Allowance for Doubtful Accounts We sell our products worldwide. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history, the customer’s current credit worthiness and various other factors, as determined by our review of their current credit information. We continuously monitor collections and payments from our customers. We estimate credit losses and maintain an allowance for doubtful accounts reserve based upon these estimates. While such credit losses have historically been within our estimated reserves, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. If not, this could have an adverse effect on our consolidated financial statements. Allowances for product returns are included in other adjustments to accounts receivable on the accompanying consolidated balance sheets. Product returns are estimated based on historical experience and have also been within management’s estimates. Inventories Inventories consist principally of compact disks (“CDs”), boxes and manuals and are stated at the lower of cost (determined by the first-in, first-out method) or market. The Company regularly reviews its inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on management’s forecast of product demand and production requirements. At December 31, 2016 and 2015, our net inventory of $12,000 and $39,000 respectively, consisted mostly of components. Equipment and Improvements Equipment and improvements are stated at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets, generally ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. Internal Software Development Costs Development costs incurred in the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility has been established. The Company considers technological feasibility to be established when all planning, designing, coding, and testing has been completed according to design specifications. After technological feasibility is established, any additional costs are capitalized. Through December 31, 2016, software has been substantially completed concurrently with the establishment of technological feasibility; accordingly, no costs have been capitalized to date. Impairment or Disposal of Long Lived Assets Long-lived assets to be held are reviewed for events or changes in circumstances which indicate that their carrying value may not be recoverable. They are tested for recoverability using undiscounted cash flows to determine whether or not impairment to such value has occurred as required by FASB ASC Topic No. 360, Property, Plant, and Equipment Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other Intangible Assets and Amortization Amortization expense related to other intangibles acquired in acquisitions is calculated on a straight line basis over the useful lives. Derivatives The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities From Equity Derivatives and Hedging Deferred Rent and Other Long-Term Liabilities The long-term liabilities are for deferred rent to account for the difference between straight-line and bargain rents, lease incentives included in deferred rent, restructuring expenses, and sublease deposits. Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 31, 2016, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: • Operating losses for seven consecutive quarters. • Negative cash flow from operating activities for three consecutive quarters. • Depressed stock price resulting in being non-compliant with NASDAQ listing rules to maintain a stock price of $1.00/share resulting in the necessity to execute a 1:4 reverse stock split. • Loss of 32% of revenue from our number one customer, Sprint, in fiscal year 2016 versus fiscal year 2015. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: • The Company raised $4.0 million of debt financing during the year ended December 31, 2016. • The Company has been able to raise capital from short-term loans from its Board members. • As a result of the Company’s restructuring that was implemented during the three months ended December 31, 2016, and again during the first quarter of fiscal 2017, the Company’s cost structure is now in line with its current baseline revenue projections. See Footnote 3 for additional details regarding restructuring. Management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months. The Company will take the following actions if it starts to trend unfavorable to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: • Raise additional capital through short-term loans. • Implement additional restructuring and cost reductions. • Raise additional capital through a private placement. • Secure a commercial bank line of credit. • Dispose of one or more product lines. • Sell or license intellectual property. Revenue Recognition We currently report our net revenues under two operating groups: Wireless and Graphics. Within each of these groups, software revenue is recognized based on the customer and contract type. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, and collectability is probable as required by FASB ASC Topic No. 605-985, Revenue Recognition-Software We have a few multiple element agreements for which we have contracted to provide a perpetual license for use of proprietary software, to provide non-recurring engineering, and in some cases, to provide software maintenance (post contract support). For these software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is post contract support, the entire arrangement fee is recognized ratably over the performance period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our post contract support services and non-recurring engineering. On occasion, we enter into fixed fee arrangements, i.e. for trials, in which customer payments are tied to the achievement of specific milestones. Revenue for these contracts is recognized based on customer acceptance of certain milestones as they are achieved. We also enter hosting arrangements that sometimes include up-front, non-refundable set-up fees. Revenue is recognized for these fees over the term of the agreement. For Graphics sales, management reviews available retail channel information and makes a determination of a return provision for sales made to distributors and retailers based on current channel inventory levels and historical return patterns. Certain sales to distributors or retailers are made on a consignment basis. Revenue for consignment sales are not recognized until sell through to the final customer is established. Certain revenues are booked net of revenue sharing payments. Sales directly to end users are recognized upon shipment. End users have a thirty-day right of return, but such returns are reasonably estimable and have historically been immaterial. We also provide technical support to our customers. Such costs have historically been insignificant. Sales Incentives For our Graphics sales, the cost of sales incentives the Company offers without charge to customers that can be used in, or that are exercisable by a customer as a result of, a single exchange transaction is accounted for as a reduction of revenue as required by FASB ASC Topic No. 605-50, Revenue Recognition-Customer Payments and Incentives Advertising Expense Advertising costs are expensed as incurred. Advertising expenses were $0.5 million, $0.3 million, and $0.3 million for the years ended December 31, 2016, 2015, and 2014, respectively. Stock-Based Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation Net Loss Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earning Per Share Year Ended December 31, 2016 2015 2014 (in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (15,343 ) $ (2,602 ) $ (11,799 ) Denominator: Weighted average shares outstanding - basic 11,951 11,486 10,162 Potential common shares - options (treasury stock method) — — — Weighted average shares outstanding - diluted 11,951 11,486 10,162 Shares excluded (anti-dilutive) — 17 37 Shares excluded due to an exercise price greater than weighted average stock price for the period 2,094 383 377 Net loss per common share: Basic $ (1.28 ) $ (0.23 ) $ (1.16 ) Diluted $ (1.28 ) $ (0.23 ) $ (1.16 ) Recently Adopted Accounting Pronouncements In September 2015, FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments • An acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. • An acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects resulting from the change to the provisional amounts. This effect is required to be calculated as if the accounting had been completed at the acquisition date. • An entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance was effective for financial statements issued for annual periods beginning after December 15, 2015, including interim periods within those fiscal years. The Company has adopted this standard and it did not have a material impact on the Company’s consolidated financial statements. In April 2015, FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Topic 835-30): In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40) Recently Issued Accounting Standards not yet Adopted In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued final guidance in ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Topic 825-10). In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations Costs to exit or restructure certain activities of an acquired company or the Company’s internal operations are accounted for as a one-time termination and exit cost pursuant to FASB ASC Topic No. 420, Exit or Disposal Cost Obligations, Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill if such adjustments occur within the 12-month measurement period. Subsequent to the end of the measurement period or the Company’s final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. iMobileMagic – Mobile Experiences, LDA On July 19, 2016, the Company and iMobileMagic – Mobile Experiences, LDA (“iMM”), a Portuguese limited liability company, entered into a Share Purchase Agreement (the “Share Purchase Agreement”) pursuant to which the Company agreed to acquire 100% of the outstanding share capital (the “Shares”) of iMM. Under the terms of the Share Purchase Agreement, the aggregate purchase price for the Shares, Shareholders Credits and the share held by Seller Marco Leal in the share capital of the Portuguese company “Fammly, Lda.”, consisted of the following consideration (collectively, the “ Purchase Price Cash Consideration Initial Shares Escrowed Shares The total purchase price is summarized as follows (in thousands): Cash paid at closing $ 581 Common stock 1,737 Total purchase price $ 2,318 The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 23 Short term investments 1 Accounts receivable 156 Prepaids and other current assets 8 Intangible assets 683 Goodwill 1,695 Total assets $ 2,566 Liabilities: Accounts payable $ 13 Accrued liabilities 64 Deferred tax liability 171 Total liabilities $ 248 Total purchase price $ 2,318 The results of operations of iMobileMagic have been included in the Company’s consolidated financial statements from the date of acquisition. The pro-forma effect of the acquisition on historical periods is not material and therefore is not included. The purpose of the iMobileMagic acquisition was to enter into the fast growing international family services, location-tracking market. Birdstep Technology AB On April 7, 2016, pursuant to the Share Purchase Agreement, dated as of March 8, 2016, by and between the Company and Birdstep Technology ASA (“Birdstep”), the Company completed its acquisition of 100% of the outstanding capital stock of Birdstep’s wholly owned Swedish subsidiary, Birdstep Technology AB (the “Acquisition”). Pursuant to the terms of the Share Purchase Agreement, the Company paid a net purchase price of $2,000,000 in cash to Birdstep at the closing. As a result of the Acquisition, Birdstep Technology AB became a wholly-owned subsidiary of the Company. Approximately 18 employees continued as employees of Birdstep Technology AB following the Closing. Acquisition-related costs of $0.2 million were recorded as expense in the fiscal year 2016 in the general and administrative section of the consolidated statement of operations. The total purchase price is summarized as follows (in thousands): Cash paid at closing $ 2,883 Less: Reimbursement of cash on hand at closing (883 ) Total purchase price $ 2,000 The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 73 Accounts receivable 99 Income tax receivable 103 Prepaids and other current assets 311 Equipment and improvements 30 Intangible assets 670 Goodwill 1,991 Total assets $ 3,277 Liabilities: Accounts payable $ 223 Accrued liabilities 421 Deferred revenue 486 Deferred tax liability 147 Total liabilities $ 1,277 Total purchase price $ 2,000 The results of operations of Birdstep Technology AB have been included in the Company’s consolidated financial statements from the date of acquisition. The pro-forma effect of the acquisition on historical periods is not material and therefore is not included. The purpose of the Birdstep acquisition was to re-enter the Asia-Pacific and European wireless markets, and to acquire engineering talent that was already in place and developing essentially the same NetWise-type products that we were. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 3. Restructuring 2016 Restructuring In the fourth quarter of fiscal 2016, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 30%, and reduce its overall cost structure by approximately $2.5 million per quarter. The restructuring plan resulted in special charges totaling $0.3 million recorded during the three-month period ended December 31, 2016. These charges were for primarily related to severance costs and were all paid out by December 31, 2016. In the first quarter of fiscal 2017, the Board of Directors approved an additional restructuring plan intended to further streamline and flatten the Company’s organization, reduce overall headcount by approximately 16%, and reduce its overall cost structure by another $0.9 - $1.0 million per quarter. The restructuring plan will result in special charges totaling approximately $0.3 million to be recorded during the three-month period ending March 31, 2017. These charges are primarily related to severance costs and include $0.1 million of non-cash stock-based compensation severance. 2014 Restructuring On May 6, 2014, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 20%, and reduce its overall cost structure by approximately $2.0 million per quarter. The restructuring plan resulted in special charges totaling $1.8 million recorded during the three-month period ended June 30, 2014. These charges were for non-cash stock-based compensation expense of $1.3 million, severance costs for affected employees of $0.4 million, and other related costs of $0.1 million. 2013 Restructuring On July 25, 2013, the Board of Directors approved a plan of restructuring intended to bring the Company’s operating expenses better in line with revenues. The restructuring plan involved a realignment of organizational structures, facility consolidations/closures, and headcount reductions of approximately 26% of the Company’s worldwide workforce. The restructuring plan was implemented primarily during the three-month period ended September 30, 2013 and resulted in annualized savings of approximately $16.0 million. The restructuring plan resulted in special charges totaling $5.6 million recorded in the year ended December 31, 2013. These charges were for lease/rental terminations of $3.3 million, severance costs for affected employees of $1.1 million, equipment, and improvements write-offs as a result of our lease/rental terminations of $1.0 million and other related costs of $0.2 million. In the year ended December 31, 2014, we increased the reserve by $0.6 million due to changes in our assumptions on future sublease income on our lease terminations of $0.8 million, partially offset by adjustments to our one-time employee termination benefits. Following is the activity in our restructuring liability for the year ended December 31, 2016 (in thousands): December 31, 2015 December 31, 2016 Balance Provision-net Usage Balance Lease/rental terminations $ 2,123 $ 17 $ (354 ) $ 1,786 One-time employee termination benefits — 239 (174 ) 65 Datacenter consolidation, other 86 47 (24 ) 109 Total $ 2,209 $ 303 $ (552 ) $ 1,960 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities From Equity Derivatives and Hedging At December 31, 2016, the aggregate fair value and the carrying value of the Company’s long-term debt was as follows (in thousands): As of December 31, 2016 As of December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt - related party $ 1,295 $ 1,295 $ — $ — Long-term debt 1,295 1,295 — — Total long-term debt $ 2,590 $ 2,590 $ — $ — The carrying value $2.6 million is net of debt discount of $1.2 million and debt issuance costs of $0.2 million as of December 31, 2016. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Details | 5. Balance Sheet Details Short-Term Investments Short-term investments consist of U.S. government agency and government sponsored enterprise obligations. The Company accounts for these short-term investments as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities December 31, 2016 December 31, 2015 Amortized Gross Fair Amortized Gross Fair cost basis unrealized value cost basis unrealized loss value Corporate bonds and notes $ — $ — $ — $ — $ — $ — Government securities/money market — — — 4,080 (2 ) 4,078 Total $ — $ — $ — $ 4,080 $ (2 ) $ 4,078 There were no realized gains (losses) recognized in interest and other income for the years ended December 31, 2016, 2015, and 2014. Equipment and Improvements Equipment and improvements consist of the following (in thousands): December 31, 2016 2015 Computer hardware, software, and equipment $ 14,617 $ 16,288 Leasehold improvements 5,315 5,170 Office furniture and fixtures 1,073 1,214 21,005 22,672 Less accumulated depreciation and amortization (19,194 ) (20,180 ) Equipment and improvements, net $ 1,811 $ 2,492 Depreciation and amortization expense on equipment and improvements was $1.3 million, $1.9 million and $2.9 million for the years ended December 31, 2016, 2015, and 2014 respectively. Other Assets These are office rent and other deposits. Intangible Assets The following table sets forth our acquired intangible assets by major asset class as of December 31, 2016 and December 31, 2015 (in thousands except for useful life data): December 31, 2016 December 31, 2015 Useful life Accumulated Net book value Impairment Net Accumulated Net (years) Gross amortization before impairment charge book value Gross amortization book value Purchased technology 5 -6 $ 265 $ (32 ) $ 233 $ — $ 233 $ — $ — $ — Customer relationships 3-6 999 (147 ) 852 (411 ) 441 — — — Trademarks/trade names 2 38 (9 ) 29 — 29 — — — Non-compete 3 51 (9 ) 42 — 42 — — — Total $ 1,353 $ (197 ) $ 1,156 $ (411 ) $ 745 $ — $ — $ — Intangible assets amortization expense was $0.1 million for the three and twelve months ended December 31, 2016. Future amortization expense related to intangible assets as of December 31, 2016 are as follows (in thousands): Year Ending December 31, 2017 259 2018 249 2019 143 2020 46 2021 40 Beyond 8 Total $ 745 Valuation of Goodwill and Intangible Assets The Company accounts for goodwill and intangible assets as required by FASB ASC Topic No. 350, Intangibles-Goodwill and Other • a determination that the carrying value of such assets cannot be recovered through undiscounted cash flows; • loss of legal ownership or title to the assets; • significant changes in our strategic business objectives and utilization of the assets; or • the impact of significant negative industry or economic trends. If the intangible assets are considered to be impaired, the impairment we recognize is the amount by which the carrying value of the intangible assets exceeds the fair value of the intangible assets. In addition, we base the useful lives and the related amortization expense on our estimate of the useful life of the intangible assets. Due to the numerous variables associated with our judgments and assumptions relating to the carrying value of our intangible assets and the effects of changes in circumstances affecting these valuations, both the precision and reliability of the resulting estimates are subject to uncertainty, and as additional information becomes known, we may change our estimate, in which case, the likelihood of a material change in our reported results would increase. The Company recognized an impairment loss of $0.4 million in the three and twelve months ended December 31, 2016 related to an intangible asset acquired from our Birdstep acquisition. We review the recoverability of the carrying value of goodwill at least annually or whenever events or circumstances indicate a potential impairment. Our annual impairment testing date is December 31. Recoverability of goodwill is determined by comparing the estimated fair value of our reporting units to the carrying value of the underlying net assets in the reporting units. If the estimated fair value of a reporting unit is determined to be less than the fair value of its net assets, goodwill is deemed impaired and an impairment loss is recognized to the extent that the carrying value of goodwill exceeds the difference between the estimated fair value of the reporting unit and the fair value of its other assets and liabilities. We determined that we did not have any impairment of goodwill at December 31, 2016. Accrued Liabilities Accrued short-term liabilities consist of the following (in thousands): December 31, 2016 2015 Salaries and benefits $ 2,545 $ 2,723 Restructuring liabilities 485 442 Pennsylvania grant liability 65 1,000 Royalties and revenue sharing 146 643 Income & other taxes payable 56 205 Interest payable 97 — Marketing expenses, rebates, and other 109 51 Total accrued short-term liabilities $ 3,503 $ 5,064 Deferred Rent and Other Long-Term Liabilities Deferred rent and other long-term liabilities consist of the following (in thousands): December 31, 2016 2015 Deferred rent $ 1,162 $ 1,402 Restructuring liabilities 1,475 1,767 Pennsylvania grant liability 267 — Sublease deposits 66 66 Total deferred rent and other long-term liabilities $ 2,970 $ 3,235 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Income (loss) before provision for income taxes was generated from the following sources (in thousands): Year Ended December 31, 2016 2015 2014 Domestic $ (15,145 ) $ (2,651 ) $ (11,867 ) Foreign (427 ) 117 117 Total loss before provision for income taxes $ (15,572 ) $ (2,534 ) $ (11,750 ) A summary of the income tax expense is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ — $ — $ — State (153 ) 5 5 Foreign 61 63 44 Total current (92 ) 68 49 Deferred: Federal — — — State — — — Foreign (137 ) — — Total deferred (137 ) — — Total provision $ (229 ) $ 68 $ 49 A reconciliation of the provision for income taxes to the amount of income tax expense that would result from applying the federal statutory rate to the profit before income taxes is as follows: Year Ended December 31, 2016 2015 2014 Federal statutory rate 35.0 % 35.0 % 35.0 State tax, net of federal benefit 4.6 (20.4 ) 1.2 Equity compensation (0.3 ) (13.7 ) (6.6 ) International tax items (1.0 ) (4.6 ) 0.1 Foreign taxes 0.5 (2.5 ) (0.4 ) Uncertain tax positions 1.1 0.0 0.0 Other (0.2 ) (10.6 ) (2.5 ) Miscellaneous (0.5 ) (1.1 ) 0.0 Change in valuation allowance (37.7 ) 15.2 (27.5 ) 1.5 % (2.7 ) % (0.7 ) The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2016 2015 Deferred income tax assets Net operating loss carry forwards $ 53,986 $ 48,003 Credit carry forwards 3,464 3,708 Fixed assets 985 1,181 Intangibles 15,894 19,588 Equity based compensation 688 311 Nondeductible accruals 1,346 1,977 Various reserves 132 142 Other 29 56 Valuation allowance (76,648 ) (74,907 ) Total deferred income taxes - net (124 ) 59 Deferred income tax liabilities Prepaid expenses (57 ) (59 ) Total deferred income liabilities (57 ) (59 ) Net deferred income tax assets (liabilities) $ (181 ) $ — The Company has federal and state net operating loss (“NOL”) carryforwards of approximately $134.5 million and $147.4 million, respectively, at December 31, 2016, to reduce future cash payments for income taxes. Of the $134.5 million of NOL carryforwards at December 31, 2016, $0.8 million relates to the excess tax benefits from employee restricted stock. Equity will be increased by $0.8 million, if and when such excess tax benefits are ultimately realized. These federal NOL carryforwards will expire from 2024 through 2036 and state NOL carryforwards will expire 2016 through 2036. The Company also had $0.5 million of Alternative minimum tax credit carryforwards with an indefinite life, available to offset regular federal income tax requirements. The Company has federal and state tax credit carryforwards of approximately $2.5 million and $0.7 million, respectively, at December 31, 2016. These tax credits will begin to expire in 2027. To the extent that an ownership change has occurred under Internal Revenue Code Sections 382 and 383, the Company’s use of its loss carryforwards and credit carryforwards to offset future taxable income may be limited. At December 31, 2016 and 2015, the Company had unrecognized tax benefits, including interest and penalties of approximately $0.4 million and $0.6 million for as of December 31, 2016 and 2015, respectively. The Company’s gross unrecognized tax benefits as of December 31, 2016 and 2015 and the changes in those balances are as follows (in thousands): Year Ended December 31, 2016 2015 Beginning balance $ 592 $ 592 Increases/(decreases) in tax positions for the current year (164 ) — Increases/(decreases) in tax positions for the prior year — — Gross unrecognized tax benefits, ending balance $ 428 $ 592 We account for income taxes as required by FASB ASC Topic No. 740, Income Taxes The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax liabilities against gross deferred tax assets); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards. After a review of the four sources of taxable income as of December 31, 2016 (as described above), and after consideration of the Company’s continuing cumulative loss position as of December 31, 2016, the Company recorded a valuation allowance related to its U.S.-based deferred tax assets of $76.6 million at December 31, 2016. During fiscal year 2016, the valuation allowance on deferred tax assets increased by $1.7 million, decreased $0.8 million during fiscal year 2015, and increased $3.2 million during fiscal year 2014. We recognized interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the fiscal years 2016 and 2015, we recognized approximately $0 and $3,000 of interest and penalties in each year. The cumulative interest and penalties at December 31, 2016 and 2015 were $0 and $47,000, respectively. Unrecognized tax benefits of $164 million were released in October of 2016, which impacted the effective tax rate due to the expiration of the statute of limitations. We do not anticipate any material changes to unrecognized tax benefits within the next twelve months that will affect the effective tax rate. The Company is subject to U.S. federal income tax, as well as to income tax of multiple state jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2012 – 2015 tax years. State income tax returns are subject to examination for a period of three to four years after filing. As of December 31, 2016, the Company had no outstanding tax audits. The outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases The Company leases its buildings under operating leases that expire on various dates through 2022. Future minimum annual lease payments under such leases as of December 31, 2016 are as follows (in thousands): Year Ending December 31, Operating 2017 $ 2,364 2018 2,387 2019 1,998 2020 1,702 2021 1,705 Beyond 33 Total $ 10,189 As of December 31, 2016, $4.0 million of the remaining lease commitments expense has been accrued as part of the 2013 Restructuring Plan, partially offset by future estimated sublease income of $2.1 million. Total rent expense was $1.6 million, $1.3 million and $1.2 million for the years ended December 31, 2016, 2015, and 2014, respectively. As a condition of our lease in Pittsburgh, the landlord agreed to incentives of $40.00 per square foot, or a total of $2.2 million, for improvements to the space. These costs have been included in deferred rent in our long-term liabilities and are being amortized over the remaining lease term. Pennsylvania Opportunity Grant Program On September 26, 2011, we received $1.0 million from the State of Pennsylvania to help fund our agreement to start-up a new facility. The grant carried with it an obligation, or commitment, to employ at least 232 people within a three-year time period that ended on December 31, 2013. We received an extension of time to meet this employment commitment by April 30, 2016. The grant contained conditions that would require us to return a pro-rata amount of the monies received if we failed to meet these conditions. As such, the monies had been recorded as a liability in the accrued liabilities line item on the balance sheet until we are irrevocably entitled to retain the monies, or until it is determined that we need to return a portion or all of the monies received. On June 27, 2016, we received a letter from the State of Pennsylvania requesting reimbursement of $0.3 million and said we earned the remaining $0.7 million of the original $1.0 million grant. On September 19, 2016, we entered into a Settlement and Release Agreement with the Commonwealth of Pennsylvania, acting by and through the Department of Community and Economic Development (“DCED”) to repay $0.3 million of the original $1.0 million grant. Per the agreement, the total amount due of $0.3 million is at 0% interest and is payable in twenty equal quarterly installments commencing on January 31, 2017 and ending on October 31, 2021. Litigation The Company may become involved in various legal proceedings arising from its business activities. While management does not believe the ultimate disposition of these matters will have a material adverse impact on the Company’s consolidated results of operations, cash flows, or financial position, litigation is inherently unpredictable, and depending on the nature and timing of these proceedings, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows, or financial position in a particular period. Other Contingent Contractual Obligations During its normal course of business, the Company has made certain indemnities, commitments, and guarantees under which it may be required to make payments in relation to certain transactions. These include: intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of Company products; indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease; indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company; indemnities involving the accuracy of representations and warranties in certain contracts; and indemnities to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. In addition, the Company has made contractual commitments to employees providing for severance payments upon the occurrence of certain prescribed events. The Company may also issue a guarantee in the form of a standby letter of credit as security for contingent liabilities under certain customer contracts. The duration of these indemnities, commitments, and guarantees varies, and in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees may not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments, and guarantees in the accompanying consolidated balance sheets. |
Segment, Customer Concentration
Segment, Customer Concentration and Geographical Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment, Customer Concentration and Geographical Information | 8. Segment, Customer Concentration and Geographical Information Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting The Company does not separately allocate operating expenses to these business units, nor does it allocate specific assets. Therefore, business unit information reported includes only revenues. The following table shows the revenues generated by each business unit (in thousands): Year Ended December 31, 2016 2015 2014 Wireless $ 23,086 $ 33,553 $ 31,276 Graphics 5,149 5,954 5,703 Total revenues 28,235 39,507 36,979 Cost of revenues 7,564 8,152 9,317 Gross profit $ 20,671 $ 31,355 $ 27,662 Customer Concentration Information A summary of the Company’s customers that represent 10% or more of the Company’s revenues is as follows: Year Ended December 31, 2016 2015 2014 Wireless: Sprint (& affiliates) 62.6 % 65.4 % 68.0 % Graphics: FastSpring 13.5 % 11.3 % 11.2 % The customers listed above comprised 80%, 83% and 87% of our accounts receivable as of December 31, 2016, 2015, and 2014, respectively. Our major customers could reduce their orders of our products in favor of a competitor's product or for any other reason. The loss of any of our major customers or decisions by a significant customer to substantially reduce purchases could have a material adverse effect on our business. Geographical Information During the years ended December 31, 2016, 2015, and 2014, the Company operated in three geographic locations: the Americas, EMEA (Europe, the Middle East, and Africa), and Asia Pacific. Revenues attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Year ended December 31, 2016 2015 2014 Americas $ 27,618 $ 39,008 $ 35,689 EMEA 424 239 964 Asia Pacific 193 260 326 Total revenues $ 28,235 $ 39,507 $ 36,979 |
Profit Sharing
Profit Sharing | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Profit Sharing | 9. Profit Sharing The Company offers its employees a 401(k) plan, in which the Company matches the employee contributions at a rate of 20%, subject to a vesting schedule. Total employer contributions amounted to $0.2 million in each of the years ended December 31, 2016, 2015, and 2014. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Plans On June 18, 2015, our Shareholders approved the 2015 Omnibus Equity Incentive Plan (“2015 OEIP”). The 2015 OEIP, which became effective the same date, replaced the 2005 Stock Option / Stock Issuance Plan (“2005 Plan”) which was due to expire on July 28, 2015. All outstanding options under the 2005 Plan remain outstanding, but no new grants will be made under that Plan. The maximum number of shares of the Company’s common stock available for issuance over the term of the 2015 OEIP may not exceed 2,125,000 shares. The 2015 Plan provides for the issuance of full value awards (restricted stock, performance stock, dividend equivalent right or restricted stock units) and not full value awards (stock options or stock appreciation rights) to employees, non-employee members of the board and consultants. Any full value award settled in shares will be debited as 1.2 shares and not full value awards settled in shares will be debited as 1.0 shares against the share reserve. The exercise price per share for option grants is not to be less than the fair market value per share of the Company’s common stock on the date of grant. The Board of Directors has the discretion to determine the vesting schedule. Options may be exercisable immediately or in installments, but generally vest over a four-year period from the date of grant. In the event the holder ceases to be employed by the Company, all unvested options terminate and all vested options may be exercised within a period following termination. In general, options expire ten years from the date of grant. Restricted stock is valued using the closing stock price on the date of the grant. The total value is expensed over the vesting period of 12 to 48 months. Employee Stock Purchase Plan The Company has a shareholder approved employee stock purchase plan (“ESPP”), under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning and end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s compensation and employees may not purchase more than the lesser of $25,000 of stock, or 250 shares, for any purchase period. Additionally, no more than 250,000 shares may be purchased under the plan. Stock Compensation Expense The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation Valuation of Stock Option and Restricted Stock Awards The assumptions used to compute the share-based compensation costs for the stock options granted during the years ended December 31, 2016, 2015, and 2014, respectively, using the Black-Scholes option pricing model, were as follows: Year Ended December 31, 2016 2015 2014 Weighted average grant-date fair value of stock options $ 1.40 $ 3.08 $ 2.28 Assumptions Risk-free interest rate (weighted average) 1.1 % 1.1 % 1.2 % Expected dividend yield — — — Weighted average expected life (years) 4.8 4.0 3.5 Volatility (weighted average) 74.3 % 83.5 % 82.9 % Forfeiture rate 23.0 % 23.3 % 25.5 % The risk-free interest rate assumption was based on the United States Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The Company assumed no dividend yield because it does not expect to pay dividends for the foreseeable future. The weighted average expected life is the vesting period for those options granted during that period. The average volatility is based on the actual historical volatility of our common stock. The forfeiture rate was based on modified employee turnover. Grants of restricted stock are valued using the closing stock price on the date of grant. In the year ended December 31, 2016, a total of 75,000 shares of restricted stock, with a total value of $51,000, were granted to non-employee members of the Board of Directors. This cost will be amortized over a period of 12 months. In addition, 300,000 shares of restricted stock, with a total value of $0.9 million, were granted to key officers and employees of the Company. This cost will be amortized over a period of 48 months. Valuation of ESPP The fair values are estimated at the beginning of each offering period using a Black-Scholes valuation model that uses the assumptions noted in the following table. The risk-free rate is based on the U.S. treasury yield curve in effect at the time of grant. Expected volatility was based on the historical volatility on the day of grant. Following is a schedule of the shares purchased, the fair value per share, and the Black-Scholes model assumptions for each offering period: (Ending) September March 31, September 30, March 31, September 30, Offering Period Ended 2016 2016 2015 2015 2014 Shares purchased for offering period 3,536 3,498 3,113 2,804 3,405 Fair value per share $ 0.77 $ 1.24 $ 2.39 $ 1.72 $ 3.32 Assumptions Risk-free interest rate (average) 0.47 % 0.18 % 0.11 % 0.40 % 0.80 % Expected dividend yield — — — — — Weighted average expected life (years) 0.5 0.5 0.5 0.5 0.5 Volatility (average) 40.4 % 66.1 % 103.8 % 109.1 % 74.0 % Compensation Costs Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP were recorded in the financial statements as follows (in thousands): Year Ended December 31, 2016 2015 2014 Cost of revenues $ 3 $ 12 $ 13 Selling and marketing 277 335 270 Research and development 495 644 659 General and administrative 753 1,167 1,437 Restructuring expense — — 1,273 Total non-cash stock compensation expense $ 1,528 $ 2,158 $ 3,652 Total share-based compensation for each year includes cash payment of income taxes related to grants of restricted stock in the amounts of $0, $0.1 million and $0.2 million for the years ended December 31, 2016, 2015, and 2014, respectively. Stock Options A summary of the Company’s stock options outstanding under the 2015 and 2005 Plans as of December 31, 2016 and the activity during the years ended herein are as follows (in thousands except per share amounts): Weighted Ave. Aggregate Shares Exercise Price Intrinsic Value Outstanding as of December 31, 2013 543 $ 27.04 $ — (393 options exercisable at a weighted average exercise price of $35.24) Granted (weighted average fair value of $2.28) 158 $ 3.80 Exercised (1 ) $ 5.52 Cancelled (166 ) $ 23.92 Outstanding as of December 31, 2014 534 $ 21.16 $ — (322 options exercisable at a weighted average exercise price of $32.16) Granted (weighted average fair value of $3.08) 18 $ 5.08 Exercised (2 ) $ 4.76 Cancelled (139 ) $ 16.20 Outstanding as of December 31, 2015 411 $ 21.56 $ — (1,291 options exercisable at a weighted average exercise price of $8.04) Granted (weighted average fair value of $1.40) 33 $ 2.36 Exercised — $ — Cancelled (71 ) $ 8.04 Outstanding as of December 31, 2016 373 $ 22.44 $ — Exercisable as of December 31, 2016 307 $ 26.48 $ — Vested and expected to vest at December 31, 2016 366 $ 22.79 $ — During the year ended December 31, 2016, no options were exercised. The weighted-average grant-date fair value of options granted during the year ended December 31, 2016 was $2.36. As of December 31, 2016, there is $2.1 million of unrecognized compensation costs related to non-vested stock options and restricted stock granted under the Plans. At December 31, 2016, there were 1.7 million and 0 shares available for future grants under the 2015 Omnibus Equity Incentive Plan and 2005 Stock Issuance / Stock Option Plan, respectively. Restricted Stock Awards There were 375,000 restricted stock awards were granted under the 2015 Omnibus Equity Incentive Plan and 2005 Stock Issuance / Stock Option Plan as of December 31, 2016. A summary of the Company’s restricted stock awards outstanding under the 2015 and 2005 Plans as of December 31, 2016, and the activity during years ended therein, are as follows (in thousands): Weighted Number grant date of shares fair value Unvested at December 31, 2013 436 $ 9.92 Granted 406 $ 7.16 Vested (360 ) $ 9.92 Cancelled and forfeited (51 ) $ 7.16 Unvested at December 31, 2014 431 $ 7.64 Granted 343 $ 6.00 Vested (252 ) $ 7.80 Cancelled and forfeited (71 ) $ 6.68 Unvested at December 31, 2015 451 $ 6.44 Granted 375 $ 2.70 Vested (253 ) $ 5.83 Cancelled and forfeited (139 ) $ 4.16 Unvested at December 31, 2016 434 $ 4.30 |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity Transactions | 11. Equity Transactions On August 15, 2014, the Company entered into a common stock purchase agreement with a number of accredited investors (“Investors”) in a private placement pursuant to which the Company issued and sold to the Investors 6,845,830 shares of its common stock at a price per share of $0.816. The transaction closed on August 20, 2014 and the Company realized gross proceeds of $5.6 million before deducting commissions and other expenses. Offering costs related to the transaction totaled $0.4 million, comprised of $0.2 million of commissions and $0.2 million of legal and other expenses, resulting in net proceeds of $5.2 million. The Company filed a registration statement with the SEC providing for the resale of the shares of Common Stock issued pursuant to the Purchase Agreement. The registration statement became effective on September 25, 2014. Warrant Liability On September 2, 2016, we entered into a Note and Warrant Purchase Agreement with Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith, pursuant to which the Company issued and sold to the Investors in a private placement senior subordinated promissory notes in the aggregate principal amount of $ |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | 12. Preferred Stock On October 16, 2015, the Company entered into a Preferred Shares Rights Agreement (“Rights Agreement”) with Computershare Trust Company, N.A., as rights agent, in connection with a dividend distribution declared by the Company’s Board of Directors of one right (“Right”) for each outstanding share of common stock, par value $0.001 (“Common Shares”), per common share of the Company to stockholders of record as of the close of business on October 26, 2015 (“Record Date”). Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.001 per share (“Preferred Shares”), of the Company at an exercise price of $6.69 per one one-thousandth of a Preferred Share, subject to adjustment. The Board adopted the Rights Agreement to protect stockholders from coercive or otherwise unfair takeover tactics. In general terms, it works by imposing a significant penalty upon any person or group that acquires 20% or more of the Common Shares without the approval of the Board. As a result, the overall effect of the Rights Agreement and the issuance of the Rights may be to render more difficult or discourage a merger, tender or exchange offer or other business combination involving the Company that is not approved by the Board. However, neither the Rights Agreement nor the Rights should interfere with any merger, tender or exchange offer or other business combination approved by the Board. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions On December 6, 2016, the Company entered into a short-term secured borrowing arrangement with William W. and Dieva L. Smith (“Smith”), pursuant to which Smith loaned to the Company $1,000,000 and the Company issued to Smith a Secured Promissory Note (the “Secured Note”) bearing interest at the rate of 18% per annum. The Secured Note was due and repaid on December 14, 2016. On September 2, 2016, the Company entered into a Note and Warrant Purchase Agreement (the “Purchase Agreement”) with William W. and Dieva L. Smith (collectively, the “Investors”), pursuant to which the Company issued and sold to the Investors in a private placement senior subordinated promissory notes in the aggregate principal amount of $2,000,000 (the “Notes”) and five-year warrants (the “Warrants”) to purchase an aggregate of 850,000 shares of the Company’s common stock at an exercise price of $2.74 per share. The Company completed the transactions contemplated by the Purchase Agreement and issued the Notes and Warrants on September 6, 2016. William W. Smith, Jr. is the Company’s Chairman of the Board, President and Chief Executive Officer. Refer to Notes 11 and 14 for additional details. |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 14. Long Term Debt On September 2, 2016, the Company entered into a Purchase Agreement with Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith (collectively, the “Investors”), pursuant to which the Company issued and sold Notes in the aggregate principal amount of $4,000,000 and five-year Warrants to purchase an aggregate of 1,700,000 shares of the Company’s common stock at an exercise price of $2.74 per share. The Company completed the transactions contemplated by the Purchase Agreement and issued the Notes and Warrants on September 6, 2016. The Notes mature three years following the issuance date, or September 6, 2019, and bear interest at the rate of 10% of the outstanding principal balance of the Notes, payable quarterly in cash or shares of the Company’s common stock at a conversion price equal to the greater of (i) the five-day volume weighted average closing price of the common stock on the Nasdaq Stock Market, measured on the third trading day prior to the date that interest is due, or (ii) the minimum price so that payment of interest for such installment in the form of common stock shall not constitute “equity compensation” to an officer, director, employee or consultant of the Company for purposes of Rule 5635(c) of the Nasdaq Stock Market or a private placement that, combined with the other securities issued or issuable under the Purchase Agreement, would require shareholder approval by the Company under Rule 5635(d) of the Nasdaq Stock Market. The Notes are subordinate and junior in right of payment to the prior payment in full of all claims, whether now existing or arising in the future, of holders of senior debt of the Company, as described in the Notes. Under the Notes, if an Acceleration Event occurs and shall be continuing, any Holder of the Notes, may by written notice delivered to the Secretary of the Company within ninety days after any occurrence of such Acceleration Event (an “Acceleration Notice”), declare the entire unpaid principal balance of the Note, together with all interest accrued, due and payable shall be accelerated and due and payable, without presentment, demand, protest, or notice (except for the delivery of an Acceleration Notice). For purposes of the Notes, an Acceleration Event shall occur if, while the Notes are outstanding, William W. Smith, Jr. (i) is not nominated for re-election as a director of the Company at the normal expiration of his term as director, (ii) is terminated or removed as Chairman of the Board of Directors of the Company, (iii) is terminated or removed as Chief Executive Officer of the Company or (iv) dies or becomes permanently disabled. An Acceleration Event shall not occur if Mr. Smith consents to any of the events referenced above or voluntarily resigns or retires from any of the positions listed. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events The Company evaluates and discloses subsequent events as required by ASC Topic No. 855, Subsequent Events On February 7, 2017, the Company entered into a short-term secured borrowing arrangement with William W. and Divea L. Smith (“Smith”) and on February 8, 2017 entered into a short-term secured borrowing arrangement with Steven L. and Monique P. Elfman (“Elfman”) pursuant to which Smith and Elfman each loaned to the Company $1,000,000 and the Company issued to each of them a Secured Promissory Note (the “Notes”) bearing interest at the rate of 18% per annum. The Notes are due on March 24, 2017 and are secured by the Company’s accounts receivable and certain other assets. Messrs. Smith and Elfman are each directors of the Company, and Mr. Smith is the Chairman and Chief Executive Officer of the Company. Subsequent events have been evaluated as of the date of this filing and there are no further disclosures required. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 16. Quarterly Financial Data (Unaudited) The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for fiscal 2016 and 2015 are as follows (in thousands, except per share data): Year ended December 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 7,214 $ 7,459 $ 6,478 $ 7,084 Gross profit $ 5,101 $ 5,547 $ 4,680 $ 5,343 Operating loss $ (3,679 ) $ (3,907 ) $ (4,557 ) $ (3,762 ) Net loss $ (3,706 ) $ (3,279 ) $ (4,314 ) $ (3,725 ) Net (loss) per share, basic (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding, basic 11,524 11,741 12,209 12,323 Net (loss) per share, diluted (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding, diluted 11,524 11,741 12,209 12,323 Year ended December 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 10,529 $ 9,386 $ 9,586 $ 10,006 Gross profit $ 8,411 $ 7,315 $ 7,627 $ 8,002 Operating income (loss) $ 2 $ (1,225 ) $ (768 ) $ (547 ) Net income (loss) $ (10 ) $ (1,231 ) $ (770 ) $ (591 ) Net (loss) per share, basic (1) $ (0.00 ) $ (0.11 ) $ (0.07 ) $ (0.05 ) Weighted average shares outstanding, basic 11,375 11,564 11,540 11,465 Net (loss) per share, diluted (1) $ (0.00 ) $ (0.11 ) $ (0.07 ) $ (0.05 ) Weighted average shares outstanding, diluted 11,375 11,564 11,540 11,465 (1) Basic and diluted net (loss) per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED DECEMBER 31, 2016 (In thousands) Additions Balance at charged to Balance at beginning of costs and end of period expenses Deductions period Allowance for accounts receivable (1): 2016 $ 201 $ 70 $ (74 ) $ 197 2015 602 31 (432 ) 201 2014 617 347 (362 ) 602 Allowance for excess and obsolete inventory: 2016 $ 158 $ 11 $ (21 ) $ 148 2015 151 48 (41 ) 158 2014 301 124 (274 ) 151 (1) Allowances are for retail return reserves, marketing development funds, and doubtful accounts. |
Organization, Basis of Presen25
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | The Company Smith Micro Software, Inc. (“Smith Micro,” “Company,” “we,” “us,” and “or”) develops software to simplify and enhance the mobile experience, providing solutions to leading wireless service providers, device manufacturers, and enterprise businesses around the world. From optimizing wireless networks to uncovering customer experience insights, and from streamlining Wi-Fi access to ensuring family safety, our solutions enrich connected lifestyles while creating new opportunities to engage consumers via smartphones. Our portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual messaging, video streaming, and 2D/3D graphics applications. With this as a focus, it is Smith Micro’s mission to help our customers thrive in a connected world. Over the past three decades, Smith Micro has developed deep expertise in embedded software for mobile devices, policy-based management platforms, and highly-scalable client and server applications. Tier 1 mobile network operators, cable providers, OEMs/device manufacturers, and enterprise businesses across a wide range of industries use our software to capitalize on the growth of connected consumers and the Internet of Things (“IoT”). In general, we help our customers: • Optimize networks, reduce operational costs, and deliver “best-connected” user experiences; • Manage mobile devices over-the-air for maximum performance, efficiency, reliability and cost-effectiveness; • Provide greater insight into the mobile user experience to improve service quality and customer loyalty; • Engage and grow high-value relationships with their customers using smartphones. We continue to innovate and evolve our business to take advantage of industry trends and opportunities in emerging markets, such as “Big Data” analytics, the explosion of Wi-Fi hotspots, and business-to-consumer (“B2C”) mobile marketing and advertising. The key to our longevity, however, is not simply technology innovation, but a never-ending focus on customer value. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements reflect the operating results and financial position of Smith Micro and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America. All intercompany amounts have been eliminated in consolidation. |
Foreign Currency Transactions | Foreign Currency Transactions The Company has international operations resulting from current and prior year acquisitions. The countries in which the Company has a subsidiary or branch office in are Serbia, Sweden, Portugal, the United Kingdom and Canada. The functional currency for all of these foreign entities is the U.S. dollar in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 830-30, Foreign Currency Matters-Translation of Financial Statements |
Business Combinations | Business Combinations The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations , in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period that exists up to twelve months from the acquisition date, the Company may record adjustments to the tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the reporting period in which the adjusted amounts are determined. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company’s internal operations are accounted for as a one-time termination and exit cost pursuant to FASB ASC Topic No. 420, Exit or Disposal Cost Obligations , and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the Company’s consolidated statement of operations in the period in which the liability is incurred. Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill if such adjustments occur within the 12-month measurement period. Subsequent to the end of the measurement period or the Company’s final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. • Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash equivalents and short-term investments at fair value. Our cash equivalents and short-term investments are classified within Level 1 by using quoted market prices utilizing market observable inputs. As required by FASB ASC Topic No. 825, Financial Instruments Investments-Debt and Equity Securities As required by FASB ASC Topic No. 350, for goodwill and other intangibles impairment analysis, we utilize fair value measurements which are categorized within Level 3 of the fair value hierarchy. |
Significant Concentrations | Significant Concentrations For the year ended December 31, 2016, two customers, each accounting for over 10% of revenues, made up 76.1% of revenues and 80% of accounts receivable, and one service provider with more than 10% of purchases totaled 24% of accounts payable. For the year ended December 31, 2015, two customers, each accounting for over 10% of revenues, made up 76.7% of revenues and 83% of accounts receivable, and one service provider with more than 10% of purchases totaled 13% of accounts payable. For the year ended December 31, 2014, two customers, each accounting for over 10% of revenues, made up 79.2% of revenues and 87% of accounts receivable, and one service provider with more than 10% of purchases totaled 27% of accounts payable. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally consist of cash, government securities, mutual funds, and money market funds. These securities are primarily held in two financial institutions and are uninsured except for the minimum Federal Deposit Insurance Corporation coverage, and have original maturity dates of three months or less. As of December 31, 2016 and 2015, bank balances totaling approximately $2.1 million and $8.5 million, respectively, were uninsured. |
Short-Term Investments | Short-Term Investments Short-term investments have consisted of corporate notes, bonds, and commercial paper and U.S. government agency and government sponsored enterprise obligations. The Company accounts for these short-term investments as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. These debt and equity securities are not classified as either held-to-maturity securities or trading securities. As such, they are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with unrealized gains or losses recorded as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts We sell our products worldwide. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history, the customer’s current credit worthiness and various other factors, as determined by our review of their current credit information. We continuously monitor collections and payments from our customers. We estimate credit losses and maintain an allowance for doubtful accounts reserve based upon these estimates. While such credit losses have historically been within our estimated reserves, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. If not, this could have an adverse effect on our consolidated financial statements. Allowances for product returns are included in other adjustments to accounts receivable on the accompanying consolidated balance sheets. Product returns are estimated based on historical experience and have also been within management’s estimates. |
Inventories | Inventories Inventories consist principally of compact disks (“CDs”), boxes and manuals and are stated at the lower of cost (determined by the first-in, first-out method) or market. The Company regularly reviews its inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on management’s forecast of product demand and production requirements. At December 31, 2016 and 2015, our net inventory of $12,000 and $39,000 respectively, consisted mostly of components. |
Equipment and Improvements | Equipment and Improvements Equipment and improvements are stated at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets, generally ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
Internal Software Development Costs | Internal Software Development Costs Development costs incurred in the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility has been established. The Company considers technological feasibility to be established when all planning, designing, coding, and testing has been completed according to design specifications. After technological feasibility is established, any additional costs are capitalized. Through December 31, 2016, software has been substantially completed concurrently with the establishment of technological feasibility; accordingly, no costs have been capitalized to date. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long Lived Assets Long-lived assets to be held are reviewed for events or changes in circumstances which indicate that their carrying value may not be recoverable. They are tested for recoverability using undiscounted cash flows to determine whether or not impairment to such value has occurred as required by FASB ASC Topic No. 360, Property, Plant, and Equipment |
Goodwill | Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other |
Intangible Assets and Amortization | Intangible Assets and Amortization Amortization expense related to other intangibles acquired in acquisitions is calculated on a straight line basis over the useful lives. |
Derivatives | Derivatives The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities From Equity Derivatives and Hedging |
Deferred Rent and Other Long-Term Liabilities | Deferred Rent and Other Long-Term Liabilities The long-term liabilities are for deferred rent to account for the difference between straight-line and bargain rents, lease incentives included in deferred rent, restructuring expenses, and sublease deposits. |
Going Concern Evaluation | Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 31, 2016, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: • Operating losses for seven consecutive quarters. • Negative cash flow from operating activities for three consecutive quarters. • Depressed stock price resulting in being non-compliant with NASDAQ listing rules to maintain a stock price of $1.00/share resulting in the necessity to execute a 1:4 reverse stock split. • Loss of 32% of revenue from our number one customer, Sprint, in fiscal year 2016 versus fiscal year 2015. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: • The Company raised $4.0 million of debt financing during the year ended December 31, 2016. • The Company has been able to raise capital from short-term loans from its Board members. • As a result of the Company’s restructuring that was implemented during the three months ended December 31, 2016, and again during the first quarter of fiscal 2017, the Company’s cost structure is now in line with its current baseline revenue projections. See Footnote 3 for additional details regarding restructuring. Management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months. The Company will take the following actions if it starts to trend unfavorable to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: • Raise additional capital through short-term loans. • Implement additional restructuring and cost reductions. • Raise additional capital through a private placement. • Secure a commercial bank line of credit. • Dispose of one or more product lines. • Sell or license intellectual property. |
Revenue Recognition | Revenue Recognition We currently report our net revenues under two operating groups: Wireless and Graphics. Within each of these groups, software revenue is recognized based on the customer and contract type. We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable, and collectability is probable as required by FASB ASC Topic No. 605-985, Revenue Recognition-Software We have a few multiple element agreements for which we have contracted to provide a perpetual license for use of proprietary software, to provide non-recurring engineering, and in some cases, to provide software maintenance (post contract support). For these software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is post contract support, the entire arrangement fee is recognized ratably over the performance period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our post contract support services and non-recurring engineering. On occasion, we enter into fixed fee arrangements, i.e. for trials, in which customer payments are tied to the achievement of specific milestones. Revenue for these contracts is recognized based on customer acceptance of certain milestones as they are achieved. We also enter hosting arrangements that sometimes include up-front, non-refundable set-up fees. Revenue is recognized for these fees over the term of the agreement. For Graphics sales, management reviews available retail channel information and makes a determination of a return provision for sales made to distributors and retailers based on current channel inventory levels and historical return patterns. Certain sales to distributors or retailers are made on a consignment basis. Revenue for consignment sales are not recognized until sell through to the final customer is established. Certain revenues are booked net of revenue sharing payments. Sales directly to end users are recognized upon shipment. End users have a thirty-day right of return, but such returns are reasonably estimable and have historically been immaterial. We also provide technical support to our customers. Such costs have historically been insignificant. |
Sales Incentives | Sales Incentives For our Graphics sales, the cost of sales incentives the Company offers without charge to customers that can be used in, or that are exercisable by a customer as a result of, a single exchange transaction is accounted for as a reduction of revenue as required by FASB ASC Topic No. 605-50, Revenue Recognition-Customer Payments and Incentives |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred. Advertising expenses were $0.5 million, $0.3 million, and $0.3 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation |
Net Income (Loss) Per Share | Net Loss Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earning Per Share Year Ended December 31, 2016 2015 2014 (in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (15,343 ) $ (2,602 ) $ (11,799 ) Denominator: Weighted average shares outstanding - basic 11,951 11,486 10,162 Potential common shares - options (treasury stock method) — — — Weighted average shares outstanding - diluted 11,951 11,486 10,162 Shares excluded (anti-dilutive) — 17 37 Shares excluded due to an exercise price greater than weighted average stock price for the period 2,094 383 377 Net loss per common share: Basic $ (1.28 ) $ (0.23 ) $ (1.16 ) Diluted $ (1.28 ) $ (0.23 ) $ (1.16 ) |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In September 2015, FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments • An acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. • An acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects resulting from the change to the provisional amounts. This effect is required to be calculated as if the accounting had been completed at the acquisition date. • An entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance was effective for financial statements issued for annual periods beginning after December 15, 2015, including interim periods within those fiscal years. The Company has adopted this standard and it did not have a material impact on the Company’s consolidated financial statements. In April 2015, FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Topic 835-30): In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40) |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards not yet Adopted In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued final guidance in ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Topic 825-10). In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). |
Segment Information | Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting |
Organization, Basis of Presen26
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Net Loss Per Share | For purposes of this calculation, common stock subject to repurchase by the Company and options are considered to be common stock equivalents, and are only included in the calculation of diluted earnings per share when their effect is dilutive. Year Ended December 31, 2016 2015 2014 (in thousands, except per share amounts) Numerator: Net loss available to common stockholders $ (15,343 ) $ (2,602 ) $ (11,799 ) Denominator: Weighted average shares outstanding - basic 11,951 11,486 10,162 Potential common shares - options (treasury stock method) — — — Weighted average shares outstanding - diluted 11,951 11,486 10,162 Shares excluded (anti-dilutive) — 17 37 Shares excluded due to an exercise price greater than weighted average stock price for the period 2,094 383 377 Net loss per common share: Basic $ (1.28 ) $ (0.23 ) $ (1.16 ) Diluted $ (1.28 ) $ (0.23 ) $ (1.16 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
iMobileMagic - Mobile Experiences LDA [Member] | |
Summary of Total Purchase Price | The total purchase price is summarized as follows (in thousands): Cash paid at closing $ 581 Common stock 1,737 Total purchase price $ 2,318 |
Summary of Allocation of Purchase Price | The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 23 Short term investments 1 Accounts receivable 156 Prepaids and other current assets 8 Intangible assets 683 Goodwill 1,695 Total assets $ 2,566 Liabilities: Accounts payable $ 13 Accrued liabilities 64 Deferred tax liability 171 Total liabilities $ 248 Total purchase price $ 2,318 |
Birdstep Technology AB [Member] | |
Summary of Total Purchase Price | The total purchase price is summarized as follows (in thousands): Cash paid at closing $ 2,883 Less: Reimbursement of cash on hand at closing (883 ) Total purchase price $ 2,000 |
Summary of Allocation of Purchase Price | The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Cash and cash equivalents $ 73 Accounts receivable 99 Income tax receivable 103 Prepaids and other current assets 311 Equipment and improvements 30 Intangible assets 670 Goodwill 1,991 Total assets $ 3,277 Liabilities: Accounts payable $ 223 Accrued liabilities 421 Deferred revenue 486 Deferred tax liability 147 Total liabilities $ 1,277 Total purchase price $ 2,000 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
2013 Restructuring [Member] | |
Activity in Restructuring Liability Account | Following is the activity in our restructuring liability for the year ended December 31, 2016 (in thousands): December 31, 2015 December 31, 2016 Balance Provision-net Usage Balance Lease/rental terminations $ 2,123 $ 17 $ (354 ) $ 1,786 One-time employee termination benefits — 239 (174 ) 65 Datacenter consolidation, other 86 47 (24 ) 109 Total $ 2,209 $ 303 $ (552 ) $ 1,960 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Aggregate Fair Value and Carrying Value of Long-term Debt | At December 31, 2016, the aggregate fair value and the carrying value of the Company’s long-term debt was as follows (in thousands): As of December 31, 2016 As of December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt - related party $ 1,295 $ 1,295 $ — $ — Long-term debt 1,295 1,295 — — Total long-term debt $ 2,590 $ 2,590 $ — $ — |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Available-for-Sale Securities Recorded at Fair Value with Unrealized Gains or Losses | Available-for-sale securities with contractual maturities of less than 12 months were as follows (in thousands): December 31, 2016 December 31, 2015 Amortized Gross Fair Amortized Gross Fair cost basis unrealized value cost basis unrealized loss value Corporate bonds and notes $ — $ — $ — $ — $ — $ — Government securities/money market — — — 4,080 (2 ) 4,078 Total $ — $ — $ — $ 4,080 $ (2 ) $ 4,078 |
Summary of Equipment and Improvements | Equipment and improvements consist of the following (in thousands): December 31, 2016 2015 Computer hardware, software, and equipment $ 14,617 $ 16,288 Leasehold improvements 5,315 5,170 Office furniture and fixtures 1,073 1,214 21,005 22,672 Less accumulated depreciation and amortization (19,194 ) (20,180 ) Equipment and improvements, net $ 1,811 $ 2,492 |
Schedule of Acquired Intangible Assets by Major Asset Class | The following table sets forth our acquired intangible assets by major asset class as of December 31, 2016 and December 31, 2015 (in thousands except for useful life data): December 31, 2016 December 31, 2015 Useful life Accumulated Net book value Impairment Net Accumulated Net (years) Gross amortization before impairment charge book value Gross amortization book value Purchased technology 5 -6 $ 265 $ (32 ) $ 233 $ — $ 233 $ — $ — $ — Customer relationships 3-6 999 (147 ) 852 (411 ) 441 — — — Trademarks/trade names 2 38 (9 ) 29 — 29 — — — Non-compete 3 51 (9 ) 42 — 42 — — — Total $ 1,353 $ (197 ) $ 1,156 $ (411 ) $ 745 $ — $ — $ — |
Future Amortization Expense Related to Intangible Assets | Future amortization expense related to intangible assets as of December 31, 2016 are as follows (in thousands): Year Ending December 31, 2017 259 2018 249 2019 143 2020 46 2021 40 Beyond 8 Total $ 745 |
Summary of Accrued Short-term Liabilities | Accrued short-term liabilities consist of the following (in thousands): December 31, 2016 2015 Salaries and benefits $ 2,545 $ 2,723 Restructuring liabilities 485 442 Pennsylvania grant liability 65 1,000 Royalties and revenue sharing 146 643 Income & other taxes payable 56 205 Interest payable 97 — Marketing expenses, rebates, and other 109 51 Total accrued short-term liabilities $ 3,503 $ 5,064 |
Deferred Rent and Other Long Term Liabilities | Deferred rent and other long-term liabilities consist of the following (in thousands): December 31, 2016 2015 Deferred rent $ 1,162 $ 1,402 Restructuring liabilities 1,475 1,767 Pennsylvania grant liability 267 — Sublease deposits 66 66 Total deferred rent and other long-term liabilities $ 2,970 $ 3,235 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Provision for Income Taxes | Income (loss) before provision for income taxes was generated from the following sources (in thousands): Year Ended December 31, 2016 2015 2014 Domestic $ (15,145 ) $ (2,651 ) $ (11,867 ) Foreign (427 ) 117 117 Total loss before provision for income taxes $ (15,572 ) $ (2,534 ) $ (11,750 ) |
Summary of Income Tax Expense | A summary of the income tax expense is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ — $ — $ — State (153 ) 5 5 Foreign 61 63 44 Total current (92 ) 68 49 Deferred: Federal — — — State — — — Foreign (137 ) — — Total deferred (137 ) — — Total provision $ (229 ) $ 68 $ 49 |
Federal Statutory Rate to Profit before Income Taxes | A reconciliation of the provision for income taxes to the amount of income tax expense that would result from applying the federal statutory rate to the profit before income taxes is as follows: Year Ended December 31, 2016 2015 2014 Federal statutory rate 35.0 % 35.0 % 35.0 State tax, net of federal benefit 4.6 (20.4 ) 1.2 Equity compensation (0.3 ) (13.7 ) (6.6 ) International tax items (1.0 ) (4.6 ) 0.1 Foreign taxes 0.5 (2.5 ) (0.4 ) Uncertain tax positions 1.1 0.0 0.0 Other (0.2 ) (10.6 ) (2.5 ) Miscellaneous (0.5 ) (1.1 ) 0.0 Change in valuation allowance (37.7 ) 15.2 (27.5 ) 1.5 % (2.7 ) % (0.7 ) |
Components of Deferred Tax Assets and Liabilities | The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2016 2015 Deferred income tax assets Net operating loss carry forwards $ 53,986 $ 48,003 Credit carry forwards 3,464 3,708 Fixed assets 985 1,181 Intangibles 15,894 19,588 Equity based compensation 688 311 Nondeductible accruals 1,346 1,977 Various reserves 132 142 Other 29 56 Valuation allowance (76,648 ) (74,907 ) Total deferred income taxes - net (124 ) 59 Deferred income tax liabilities Prepaid expenses (57 ) (59 ) Total deferred income liabilities (57 ) (59 ) Net deferred income tax assets (liabilities) $ (181 ) $ — |
Gross Unrecognized Tax Benefits Changes in Balances | The Company’s gross unrecognized tax benefits as of December 31, 2016 and 2015 and the changes in those balances are as follows (in thousands): Year Ended December 31, 2016 2015 Beginning balance $ 592 $ 592 Increases/(decreases) in tax positions for the current year (164 ) — Increases/(decreases) in tax positions for the prior year — — Gross unrecognized tax benefits, ending balance $ 428 $ 592 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Company Lease of Buildings under Non-Cancellable Operating Leases | Future minimum annual lease payments under such leases as of December 31, 2016 are as follows (in thousands): Year Ending December 31, Operating 2017 $ 2,364 2018 2,387 2019 1,998 2020 1,702 2021 1,705 Beyond 33 Total $ 10,189 |
Segment, Customer Concentrati33
Segment, Customer Concentration and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues Generated by Each Business Unit | The following table shows the revenues generated by each business unit (in thousands): Year Ended December 31, 2016 2015 2014 Wireless $ 23,086 $ 33,553 $ 31,276 Graphics 5,149 5,954 5,703 Total revenues 28,235 39,507 36,979 Cost of revenues 7,564 8,152 9,317 Gross profit $ 20,671 $ 31,355 $ 27,662 |
Company's Customers that Represent 10% or More of Company's Revenues | A summary of the Company’s customers that represent 10% or more of the Company’s revenues is as follows: Year Ended December 31, 2016 2015 2014 Wireless: Sprint (& affiliates) 62.6 % 65.4 % 68.0 % Graphics: FastSpring 13.5 % 11.3 % 11.2 % |
Company Revenue in Different Geographic Locations | Revenues attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands): Year ended December 31, 2016 2015 2014 Americas $ 27,618 $ 39,008 $ 35,689 EMEA 424 239 964 Asia Pacific 193 260 326 Total revenues $ 28,235 $ 39,507 $ 36,979 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used to Compute Share-Based Compensation Costs for Stock Options Granted | The assumptions used to compute the share-based compensation costs for the stock options granted during the years ended December 31, 2016, 2015, and 2014, respectively, using the Black-Scholes option pricing model, were as follows: Year Ended December 31, 2016 2015 2014 Weighted average grant-date fair value of stock options $ 1.40 $ 3.08 $ 2.28 Assumptions Risk-free interest rate (weighted average) 1.1 % 1.1 % 1.2 % Expected dividend yield — — — Weighted average expected life (years) 4.8 4.0 3.5 Volatility (weighted average) 74.3 % 83.5 % 82.9 % Forfeiture rate 23.0 % 23.3 % 25.5 % |
Assumptions Used Estimate Fair Value of Employee Stock Purchase Plans | Following is a schedule of the shares purchased, the fair value per share, and the Black-Scholes model assumptions for each offering period: (Ending) September March 31, September 30, March 31, September 30, Offering Period Ended 2016 2016 2015 2015 2014 Shares purchased for offering period 3,536 3,498 3,113 2,804 3,405 Fair value per share $ 0.77 $ 1.24 $ 2.39 $ 1.72 $ 3.32 Assumptions Risk-free interest rate (average) 0.47 % 0.18 % 0.11 % 0.40 % 0.80 % Expected dividend yield — — — — — Weighted average expected life (years) 0.5 0.5 0.5 0.5 0.5 Volatility (average) 40.4 % 66.1 % 103.8 % 109.1 % 74.0 % |
Non-Cash Stock-Based Compensation Expenses | Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP were recorded in the financial statements as follows (in thousands): Year Ended December 31, 2016 2015 2014 Cost of revenues $ 3 $ 12 $ 13 Selling and marketing 277 335 270 Research and development 495 644 659 General and administrative 753 1,167 1,437 Restructuring expense — — 1,273 Total non-cash stock compensation expense $ 1,528 $ 2,158 $ 3,652 |
Summary of Outstanding Stock Options and Related Activity | A summary of the Company’s stock options outstanding under the 2015 and 2005 Plans as of December 31, 2016 and the activity during the years ended herein are as follows (in thousands except per share amounts): Weighted Ave. Aggregate Shares Exercise Price Intrinsic Value Outstanding as of December 31, 2013 543 $ 27.04 $ — (393 options exercisable at a weighted average exercise price of $35.24) Granted (weighted average fair value of $2.28) 158 $ 3.80 Exercised (1 ) $ 5.52 Cancelled (166 ) $ 23.92 Outstanding as of December 31, 2014 534 $ 21.16 $ — (322 options exercisable at a weighted average exercise price of $32.16) Granted (weighted average fair value of $3.08) 18 $ 5.08 Exercised (2 ) $ 4.76 Cancelled (139 ) $ 16.20 Outstanding as of December 31, 2015 411 $ 21.56 $ — (1,291 options exercisable at a weighted average exercise price of $8.04) Granted (weighted average fair value of $1.40) 33 $ 2.36 Exercised — $ — Cancelled (71 ) $ 8.04 Outstanding as of December 31, 2016 373 $ 22.44 $ — Exercisable as of December 31, 2016 307 $ 26.48 $ — Vested and expected to vest at December 31, 2016 366 $ 22.79 $ — |
Summary of Outstanding Restricted Stock Awards and Related Activity | A summary of the Company’s restricted stock awards outstanding under the 2015 and 2005 Plans as of December 31, 2016, and the activity during years ended therein, are as follows (in thousands): Weighted Number grant date of shares fair value Unvested at December 31, 2013 436 $ 9.92 Granted 406 $ 7.16 Vested (360 ) $ 9.92 Cancelled and forfeited (51 ) $ 7.16 Unvested at December 31, 2014 431 $ 7.64 Granted 343 $ 6.00 Vested (252 ) $ 7.80 Cancelled and forfeited (71 ) $ 6.68 Unvested at December 31, 2015 451 $ 6.44 Granted 375 $ 2.70 Vested (253 ) $ 5.83 Cancelled and forfeited (139 ) $ 4.16 Unvested at December 31, 2016 434 $ 4.30 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Information | Summarized quarterly data for fiscal 2016 and 2015 are as follows (in thousands, except per share data): Year ended December 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 7,214 $ 7,459 $ 6,478 $ 7,084 Gross profit $ 5,101 $ 5,547 $ 4,680 $ 5,343 Operating loss $ (3,679 ) $ (3,907 ) $ (4,557 ) $ (3,762 ) Net loss $ (3,706 ) $ (3,279 ) $ (4,314 ) $ (3,725 ) Net (loss) per share, basic (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding, basic 11,524 11,741 12,209 12,323 Net (loss) per share, diluted (1) $ (0.32 ) $ (0.28 ) $ (0.35 ) $ (0.30 ) Weighted average shares outstanding, diluted 11,524 11,741 12,209 12,323 Year ended December 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 10,529 $ 9,386 $ 9,586 $ 10,006 Gross profit $ 8,411 $ 7,315 $ 7,627 $ 8,002 Operating income (loss) $ 2 $ (1,225 ) $ (768 ) $ (547 ) Net income (loss) $ (10 ) $ (1,231 ) $ (770 ) $ (591 ) Net (loss) per share, basic (1) $ (0.00 ) $ (0.11 ) $ (0.07 ) $ (0.05 ) Weighted average shares outstanding, basic 11,375 11,564 11,540 11,465 Net (loss) per share, diluted (1) $ (0.00 ) $ (0.11 ) $ (0.07 ) $ (0.05 ) Weighted average shares outstanding, diluted 11,375 11,564 11,540 11,465 (1) Basic and diluted net (loss) per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year. |
Organization, Basis of Presen36
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)CustomerServiceProviderInstitutionBusiness_Unit$ / shares | Dec. 31, 2015USD ($)CustomerServiceProvider | Dec. 31, 2014USD ($)CustomerServiceProvider | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Experience in operation period | 30 years | ||
Number of customers concentrated | Customer | 2 | 2 | 2 |
Number of service providers concentrated | ServiceProvider | 1 | 1 | 1 |
Financial institutions to held securities | Institution | 2 | ||
Cash and cash equivalents original maturity dates | Three months or less | ||
Bank balances | $ 2,100,000 | $ 8,500,000 | |
Inventory components | 12,000 | 39,000 | |
Costs capitalized | $ 0 | ||
Substantial doubt about going concern, management's evaluation | In connection with preparing consolidated financial statements for the year ended December 31, 2016, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: Operating losses for seven consecutive quarters. Negative cash flow from operating activities for three consecutive quarters. Depressed stock price resulting in being non-compliant with NASDAQ listing rules to maintain a stock price of $1.00/share resulting in the necessity to execute a 1:4 reverse stock split. Loss of 32% of revenue from our number one customer, Sprint, in fiscal year 2016 versus fiscal year 2015. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: The Company raised $4.0 million of debt financing during the year ended December 31, 2016. The Company has been able to raise capital from short-term loans from its Board members. As a result of the Company’s restructuring that was implemented during the three months ended December 31, 2016, and again during the first quarter of fiscal 2017, the Company’s cost structure is now in line with its current baseline revenue projections. See Footnote 3 for additional details regarding restructuring. Management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months. | ||
Number of consecutive period of operating losses | 21 months | ||
Number of consecutive period of negative cash flows from operating activities | 9 months | ||
Stock price | $ / shares | $ 1 | ||
Reverse stock split ratio | 0.25 | ||
Debt financing | $ 4,000,000 | ||
Substantial doubt about going concern, management's plans, substantial doubt not alleviated | The Company will take the following actions if it starts to trend unfavorable to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: Raise additional capital through short-term loans. Implement additional restructuring and cost reductions. Raise additional capital through a private placement. Secure a commercial bank line of credit. Dispose of one or more product lines. Sell or license intellectual property. | ||
Number of operating groups | Business_Unit | 2 | ||
Advertising expenses | $ 500,000 | 300,000 | $ 300,000 |
Graphics [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Total sales incentives | $ 300,000 | $ 200,000 | $ 500,000 |
Sprint and Affiliates [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of loss of business | 32.00% | ||
Customer Relationships Intangible Asset [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Asset impairment charges | $ 400,000 | ||
Customer Concentration Risk [Member] | Revenues [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 76.10% | 76.70% | 79.20% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 80.00% | 83.00% | 87.00% |
Supplier concentration risk [Member] | Accounts payable [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 24.00% | 13.00% | 27.00% |
Minimum [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 3 years | ||
Minimum [Member] | Customer Concentration Risk [Member] | Revenues [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 10.00% | 10.00% | 10.00% |
Minimum [Member] | Supplier concentration risk [Member] | Purchase [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 10.00% | 10.00% | 10.00% |
Maximum [Member] | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 7 years |
Organization, Basis of Presen37
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net loss available to common stockholders | $ (3,725) | $ (4,314) | $ (3,279) | $ (3,706) | $ (591) | $ (770) | $ (1,231) | $ (10) | $ (15,343) | $ (2,602) | $ (11,799) |
Denominator: | |||||||||||
Weighted average shares outstanding - basic | 12,323 | 12,209 | 11,741 | 11,524 | 11,465 | 11,540 | 11,564 | 11,375 | 11,951 | 11,486 | 10,162 |
Weighted average shares outstanding - diluted | 12,323 | 12,209 | 11,741 | 11,524 | 11,465 | 11,540 | 11,564 | 11,375 | 11,951 | 11,486 | 10,162 |
Shares excluded (anti-dilutive) | 17 | 37 | |||||||||
Shares excluded due to an exercise price greater than weighted average stock price for the period | 2,094 | 383 | 377 | ||||||||
Net loss per common share: | |||||||||||
Basic | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.05) | $ (0.07) | $ (0.11) | $ 0 | $ (1.28) | $ (0.23) | $ (1.16) |
Diluted | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.05) | $ (0.07) | $ (0.11) | $ 0 | $ (1.28) | $ (0.23) | $ (1.16) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Jul. 19, 2016USD ($)Employee | Jul. 19, 2016EUR (€) | Apr. 07, 2016USD ($)Employee | Dec. 31, 2016USD ($) | Jul. 19, 2016EUR (€)Employee |
Business Acquisition [Line Items] | |||||
Total cash consideration | $ 1,927,000 | ||||
iMobileMagic - Mobile Experiences LDA [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition agreement date | Jul. 19, 2016 | ||||
Business acquisition, equity interests acquired | 100.00% | 100.00% | |||
Purchase price in cash | € | € 500,000 | ||||
Purchase price in cash, difference between cash and debt | € | € 20,238 | ||||
Total cash consideration | $ 580,577 | 520,238 | |||
Buyers common stock initial shares | 578,994 | € 500,000 | |||
Buyers common stock in escrow | $ 1,157,989 | € 1,000,000 | |||
Number of employees | Employee | 16 | 16 | |||
Acquisition-related costs | $ 200,000 | ||||
Total purchase price | $ 2,318,000 | ||||
Birdstep Technology AB [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition agreement date | Mar. 8, 2016 | ||||
Business acquisition, equity interests acquired | 100.00% | ||||
Number of employees | Employee | 18 | ||||
Total purchase price | $ 2,000,000 | ||||
Birdstep Technology AB [Member] | General and Administrative [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition-related costs | $ 200,000 |
Acquisitions - Summary of Total
Acquisitions - Summary of Total Purchase Price (Detail) - USD ($) | Jul. 19, 2016 | Apr. 07, 2016 |
iMobileMagic - Mobile Experiences LDA [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid at closing | $ 581,000 | |
Common stock | 1,737,000 | |
Total purchase price | $ 2,318,000 | |
Birdstep Technology AB [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid at closing | $ 2,883,000 | |
Less: Reimbursement of cash on hand at closing | (883,000) | |
Total purchase price | $ 2,000,000 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jul. 19, 2016 | Apr. 07, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,686 | ||
iMobileMagic - Mobile Experiences LDA [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 23 | ||
Short term investments | 1 | ||
Accounts receivable | 156 | ||
Prepaids and other current assets | 8 | ||
Intangible assets | 683 | ||
Goodwill | 1,695 | ||
Total assets | 2,566 | ||
Accounts payable | 13 | ||
Accrued liabilities | 64 | ||
Deferred tax liability | 171 | ||
Total liabilities | 248 | ||
Total purchase price | $ 2,318 | ||
Birdstep Technology AB [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 73 | ||
Accounts receivable | 99 | ||
Income tax receivable | 103 | ||
Prepaids and other current assets | 311 | ||
Equipment and improvements | 30 | ||
Intangible assets | 670 | ||
Goodwill | 1,991 | ||
Total assets | 3,277 | ||
Accounts payable | 223 | ||
Accrued liabilities | 421 | ||
Deferred revenue | 486 | ||
Deferred tax liability | 147 | ||
Total liabilities | 1,277 | ||
Total purchase price | $ 2,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ / qtr in Millions, $ in Millions | May 06, 2014$ / qtr | Mar. 31, 2017USD ($)$ / qtr | Dec. 31, 2016USD ($)$ / qtr | Jun. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
2016 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 30.00% | ||||||
Reduction of overall cost structure | $ / qtr | 2.5 | ||||||
Special charges for restructuring plan | $ 0.3 | ||||||
2016 Restructuring [Member] | Scenario Forecast [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 16.00% | ||||||
Special charges for restructuring plan | $ 0.3 | ||||||
Non-cash stock based compensation expense | $ 0.1 | ||||||
2016 Restructuring [Member] | Minimum [Member] | Scenario Forecast [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction of overall cost structure | $ / qtr | 0.9 | ||||||
2016 Restructuring [Member] | Maximum [Member] | Scenario Forecast [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction of overall cost structure | $ / qtr | 1 | ||||||
2014 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 20.00% | ||||||
Reduction of overall cost structure | $ / qtr | 2 | ||||||
Special charges for restructuring plan | $ 1.8 | ||||||
Non-cash stock based compensation expense | 1.3 | ||||||
Severance costs for affected employees | 0.4 | ||||||
Other restructuring related costs | $ 0.1 | ||||||
2013 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reductions in company's worldwide workforce | 26.00% | ||||||
Special charges for restructuring plan | $ 5.6 | ||||||
Severance costs for affected employees | 1.1 | ||||||
Other restructuring related costs | 0.2 | ||||||
Annualized savings | $ 16 | ||||||
Lease/rental termination charges for restructuring | $ 0.8 | 3.3 | |||||
Equipment and improvements write-offs due to lease/rental terminations | $ 0.6 | $ 1 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Liability Accounts (Detail) - 2013 Restructuring [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 2,209 |
Provision-net | 303 |
Usage | (552) |
Ending Balance | 1,960 |
Lease/Rental Terminations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 2,123 |
Provision-net | 17 |
Usage | (354) |
Ending Balance | 1,786 |
One-Time Employee Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Provision-net | 239 |
Usage | (174) |
Ending Balance | 65 |
Datacenter Consolidation, Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 86 |
Provision-net | 47 |
Usage | (24) |
Ending Balance | $ 109 |
Fair Value of Financial Instr43
Fair Value of Financial Instruments - Aggregate Fair Value and Carrying Value of Long-term Debt (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Instruments [Abstract] | |
Long-term debt - related party, Fair Value | $ 1,295 |
Long-term debt, Fair Value | 1,295 |
Total long-term debt, Fair Value | 2,590 |
Long-term debt - related party, Carrying Value | 1,295 |
Long-term debt, Carrying Value | 1,295 |
Total long-term debt, Carrying Value | $ 2,590 |
Fair Value of Financial Instr44
Fair Value of Financial Instruments - Additional Information (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Fair Value Disclosures [Abstract] | |
Debt discount | $ 1,200 |
Long-term debt, carrying amount | 2,590 |
Debt issuance costs | $ 200 |
Balance Sheet Details - Availab
Balance Sheet Details - Available-for-Sale Securities Recorded at Fair Value with Unrealized Gains or Losses (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost basis | $ 4,080 |
Gross unrealized loss | (2) |
Fair value | 4,078 |
Government Securities/Money Market [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost basis | 4,080 |
Gross unrealized loss | (2) |
Fair value | $ 4,078 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheet Details [Line Items] | ||||
Realized gains (losses) recognized in interest and other income | $ 0 | $ 0 | $ 0 | |
Depreciation and amortization expense on equipment and improvements | 1,300,000 | $ 1,900,000 | $ 2,900,000 | |
Intangible assets amortization expense | $ 100,000 | 100,000 | ||
Impairment of goodwill | 0 | |||
Birdstep Technology AB [Member] | ||||
Balance Sheet Details [Line Items] | ||||
Impairment loss of intangible assets | $ 400,000 | $ 400,000 |
Balance Sheet Details - Summary
Balance Sheet Details - Summary of Equipment and Improvements (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Gross, Total | $ 21,005 | $ 22,672 |
Less accumulated depreciation and amortization | (19,194) | (20,180) |
Equipment and improvements, net | 1,811 | 2,492 |
Computer Hardware, Software, and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 14,617 | 16,288 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 5,315 | 5,170 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | $ 1,073 | $ 1,214 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Acquired Intangible Assets by Major Asset Class (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Gross | $ 1,353 |
Accumulated amortization | (197) |
Net book value before impairment | 1,156 |
Impairment charge | (411) |
Net book value | 745 |
Purchased Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Gross | 265 |
Accumulated amortization | (32) |
Net book value before impairment | 233 |
Net book value | $ 233 |
Purchased Technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Purchased Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 6 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Gross | $ 999 |
Accumulated amortization | (147) |
Net book value before impairment | 852 |
Impairment charge | (411) |
Net book value | $ 441 |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 6 years |
Trademarks/Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Gross | $ 38 |
Accumulated amortization | (9) |
Net book value before impairment | 29 |
Net book value | $ 29 |
Non-Compete [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Gross | $ 51 |
Accumulated amortization | (9) |
Net book value before impairment | 42 |
Net book value | $ 42 |
Balance Sheet Details - Future
Balance Sheet Details - Future Amortization Expense Related to Intangible Assets (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Finite Lived Intangible Assets Net [Abstract] | |
2,017 | $ 259 |
2,018 | 249 |
2,019 | 143 |
2,020 | 46 |
2,021 | 40 |
Beyond | 8 |
Total | $ 745 |
Balance Sheet Details - Summa50
Balance Sheet Details - Summary of Accrued Short-term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Salaries and benefits | $ 2,545 | $ 2,723 |
Restructuring liabilities | 485 | 442 |
Pennsylvania grant liability | 65 | 1,000 |
Royalties and revenue sharing | 146 | 643 |
Income & other taxes payable | 56 | 205 |
Interest payable | 97 | |
Marketing expenses, rebates, and other | 109 | 51 |
Total accrued short-term liabilities | $ 3,503 | $ 5,064 |
Balance Sheet Details - Deferre
Balance Sheet Details - Deferred Rent and Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 1,162 | $ 1,402 |
Restructuring liabilities | 1,475 | 1,767 |
Pennsylvania grant liability | 267 | |
Sublease deposits | 66 | 66 |
Total deferred rent and other long-term liabilities | $ 2,970 | $ 3,235 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (15,145) | $ (2,651) | $ (11,867) |
Foreign | (427) | 117 | 117 |
Loss before provision for income taxes | $ (15,572) | $ (2,534) | $ (11,750) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | (153) | 5 | 5 |
Foreign | 61 | 63 | 44 |
Total current | (92) | 68 | 49 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (137) | 0 | 0 |
Total deferred | (137) | 0 | 0 |
Total provision | $ (229) | $ 68 | $ 49 |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Rate to Profit before Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State tax, net of federal benefit | 4.60% | (20.40%) | 1.20% |
Equity compensation | (0.30%) | (13.70%) | (6.60%) |
International tax items | (1.00%) | (4.60%) | 0.10% |
Foreign taxes | 0.50% | (2.50%) | (0.40%) |
Uncertain tax positions | 1.10% | 0.00% | 0.00% |
Other | (0.20%) | (10.60%) | (2.50%) |
Miscellaneous | (0.50%) | (1.10%) | 0.00% |
Change in valuation allowance | (37.70%) | 15.20% | (27.50%) |
Total | 1.50% | (2.70%) | (0.70%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets | ||
Net operating loss carry forwards | $ 53,986 | $ 48,003 |
Credit carry forwards | 3,464 | 3,708 |
Fixed assets | 985 | 1,181 |
Intangibles | 15,894 | 19,588 |
Equity based compensation | 688 | 311 |
Nondeductible accruals | 1,346 | 1,977 |
Various reserves | 132 | 142 |
Other | 29 | 56 |
Valuation allowance | (76,648) | (74,907) |
Total deferred income taxes - net | (124) | 59 |
Deferred income tax liabilities | ||
Prepaid expenses | (57) | (59) |
Total deferred income liabilities | (57) | (59) |
Net deferred income tax assets (liabilities) | $ (181) | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Excess tax benefits from employee restricted stock included in net operating loss carryforwards | $ 800,000 | |||
Alternative minimum tax credit carryforwards | $ 500,000 | |||
Tax credit carryforwards, Expire year | 2,027 | |||
Unrecognized tax benefits | $ 428,000 | $ 592,000 | $ 592,000 | |
Valuation allowance | 76,648,000 | 74,907,000 | ||
Increase (decrease) in valuation allowance of deferred tax assets | 1,700,000 | (800,000) | 3,200,000 | |
Interest and penalties | 0 | $ 3,000 | ||
Cumulative interest and penalties | 0 | $ 47,000 | ||
Unrecognized tax benefits impacted due to expiration of statute of limitations | $ 164,000,000 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 134,500,000 | |||
Net operating loss carryforwards, expiry terms | Federal NOL carryforwards will expire from 2024 through 2036 | |||
Tax credit carryforwards | $ 2,500,000 | |||
Federal income tax returns subject to examination description | Federal income tax returns of the Company are subject to IRS examination for the 2012 – 2015 tax years | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 147,400,000 | |||
Net operating loss carryforwards, expiry terms | State NOL carryforwards will expire 2016 through 2036 | |||
Tax credit carryforwards | $ 700,000 | |||
Federal income tax returns subject to examination description | State income tax returns are subject to examination for a period of three to four years after filing |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits Changes in Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 592 | $ 592 |
Increases/(decreases) in tax positions for the current year | (164) | 0 |
Increases/(decreases) in tax positions for the prior year | 0 | 0 |
Gross unrecognized tax benefits, ending balance | $ 428 | $ 592 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 19, 2016USD ($)Installment | Dec. 31, 2016USD ($)$ / ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013Number_Of_People | Jun. 27, 2016USD ($) | Sep. 26, 2011USD ($) |
Leases [Abstract] | |||||||
Expiration of non-cancellable operating leases | Through 2,022 | ||||||
Accrued lease commitments expense | $ 4 | ||||||
Estimated sublease income | 2.1 | ||||||
Rent expense under operating leases | $ 1.6 | $ 1.3 | $ 1.2 | ||||
Incentives per square feet | $ / ft² | 40 | ||||||
Incentives for improvements to space | $ 2.2 | ||||||
Amount received to start-up new facility | $ 1 | ||||||
Minimum number of people to be employed | Number_Of_People | 232 | ||||||
Time period to meet employment commitment | 3 years | ||||||
New deadline to meet employment commitment | Apr. 30, 2016 | ||||||
Repayment of granted amount under the agreement | $ 0.3 | ||||||
Interest rate of funds under the agreement | 0.00% | ||||||
Number of equal quarterly installments | Installment | 20 | ||||||
Grant earned under agreement | $ 0.7 |
Commitments and Contingencies59
Commitments and Contingencies - Company Lease of Buildings under Non-Cancellable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 2,364 |
2,018 | 2,387 |
2,019 | 1,998 |
2,020 | 1,702 |
2,021 | 1,705 |
Beyond | 33 |
Total | $ 10,189 |
Segment, Customer Concentrati60
Segment, Customer Concentration and Geographical Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016Business_UnitLocation | Dec. 31, 2015Location | Dec. 31, 2014Location | |
Revenue, Major Customer [Line Items] | |||
Number of primary business units | Business_Unit | 2 | ||
Number of geographic locations | Location | 3 | 3 | 3 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 80.00% | 83.00% | 87.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Sprint and Fast Spring [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 80.00% | 83.00% | 87.00% |
Segment, Customer Concentrati61
Segment, Customer Concentration and Geographical Information - Revenues Generated by Each Business Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 7,084 | $ 6,478 | $ 7,459 | $ 7,214 | $ 10,006 | $ 9,586 | $ 9,386 | $ 10,529 | $ 28,235 | $ 39,507 | $ 36,979 |
Cost of revenues | 7,564 | 8,152 | 9,317 | ||||||||
Gross profit | $ 5,343 | $ 4,680 | $ 5,547 | $ 5,101 | $ 8,002 | $ 7,627 | $ 7,315 | $ 8,411 | 20,671 | 31,355 | 27,662 |
Wireless [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 23,086 | 33,553 | 31,276 | ||||||||
Graphics [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 5,149 | $ 5,954 | $ 5,703 |
Segment, Customer Concentrati62
Segment, Customer Concentration and Geographical Information - Company's Customers that Represent 10% or More of Company's Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Customer concentrating on 10% or more of revenue | 76.10% | 76.70% | 79.20% |
Wireless [Member] | Sprint and Affiliates [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer concentrating on 10% or more of revenue | 62.60% | 65.40% | 68.00% |
Graphics [Member] | FastSpring [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer concentrating on 10% or more of revenue | 13.50% | 11.30% | 11.20% |
Segment, Customer Concentrati63
Segment, Customer Concentration and Geographical Information - Company Revenue in Different Geographic Locations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 7,084 | $ 6,478 | $ 7,459 | $ 7,214 | $ 10,006 | $ 9,586 | $ 9,386 | $ 10,529 | $ 28,235 | $ 39,507 | $ 36,979 |
Americas [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 27,618 | 39,008 | 35,689 | ||||||||
EMEA [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 424 | 239 | 964 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 193 | $ 260 | $ 326 |
Profit Sharing - Additional Inf
Profit Sharing - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employers matching contribution percentage to 401(k) plan | 20.00% | ||
Total employer contributions to 401(k) plan | $ 0.2 | $ 0.2 | $ 0.2 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 18, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of common stock options, shares | 2,000 | 1,000 | ||
Weighted average grant-date fair value of stock options granted | $ 2.36 | $ 5.08 | $ 3.80 | |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance under plan | 250,000 | |||
Percentage of market value | 85.00% | |||
Percentage of employee's payroll deductions limited to employee's compensation | 10.00% | |||
Maximum Stock value of shares purchased by employees if one thousand shares purchased | $ 25,000 | |||
Maximum number of shares that employee can purchase each period | 250 | |||
Restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash payment of income taxes related to grants included in share-based compensation | $ 0 | $ 100,000 | $ 200,000 | |
Restricted stock [Member] | Board of Directors non-employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 12 months | |||
Restricted stock shares granted | 75,000 | |||
Value of restricted stock granted | $ 51,000 | |||
Restricted stock [Member] | Key officers and employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 48 months | |||
Restricted stock shares granted | 300,000 | |||
Value of restricted stock granted | $ 900,000 | |||
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of common stock options, shares | 0 | |||
Unrecognized compensation costs related to non-vested awards granted | $ 2,100,000 | |||
2015 Omnibus Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
1995 Stock option expiry date | Jul. 28, 2015 | |||
Maximum number of shares available for issuance under plan | 2,125,000 | |||
Number of shares available for future grants | 1,700,000 | |||
2015 Omnibus Equity Incentive Plan [Member] | Full Value Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award settled against shares | 1.2 | |||
2015 Omnibus Equity Incentive Plan [Member] | Not Full Value Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award settled against shares | 1 | |||
2015 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 4 years | |||
Stock option expiration period | 10 years | |||
2015 Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 12 months | |||
2015 Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 48 months | |||
2005 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future grants | 0 | |||
2015 Omnibus Equity Incentive Plan and 2005 Stock Option Plan [Member] | Restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted | 375,000 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Compute Share-Based Compensation Costs for Stock Options Granted (Detail) - $ / shares | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Weighted average grant-date fair value of stock options | $ 1.40 | $ 3.08 | $ 2.28 | |||||
Assumptions | ||||||||
Risk-free interest rate (weighted average) | 0.47% | 0.18% | 0.11% | 0.40% | 0.80% | 1.10% | 1.10% | 1.20% |
Weighted average expected life (years) | 6 months | 6 months | 6 months | 6 months | 6 months | 4 years 9 months 18 days | 4 years | 3 years 6 months |
Volatility (weighted average) | 40.40% | 66.10% | 103.80% | 109.10% | 74.00% | 74.30% | 83.50% | 82.90% |
Forfeiture rate | 23.00% | 23.30% | 25.50% |
Stock-Based Compensation - As67
Stock-Based Compensation - Assumptions Used Estimate Fair Value of Employee Stock Purchase Plans (Detail) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Shares purchased for offering period | 3,536 | 3,498 | 3,113 | 2,804 | 3,405 | |||
Fair value per share | $ 0.77 | $ 1.24 | $ 2.39 | $ 1.72 | $ 3.32 | |||
Assumptions | ||||||||
Risk-free interest rate (average) | 0.47% | 0.18% | 0.11% | 0.40% | 0.80% | 1.10% | 1.10% | 1.20% |
Weighted average expected life (years) | 6 months | 6 months | 6 months | 6 months | 6 months | 4 years 9 months 18 days | 4 years | 3 years 6 months |
Volatility (average) | 40.40% | 66.10% | 103.80% | 109.10% | 74.00% | 74.30% | 83.50% | 82.90% |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Cash Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | $ 1,528 | $ 2,158 | $ 3,652 |
Cost of Revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | 3 | 12 | 13 |
Selling and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | 277 | 335 | 270 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | 495 | 644 | 659 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | $ 753 | $ 1,167 | 1,437 |
Restructuring Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total non-cash stock compensation expense | $ 1,273 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Stock Options and Related Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 06, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Outstanding Shares, beginning balance | 411 | 534 | 543 | |
Granted Shares | 33 | 18 | 158 | |
Exercised Shares | (2) | (1) | ||
Cancelled Shares | (71) | (139) | (166) | |
Outstanding Shares, ending balance | 373 | 411 | 534 | |
Exercisable Shares | 307 | 322 | 393 | 1,291 |
Vested and expected to vest Shares | 366 | |||
Outstanding Weighted Ave. Exercise Price, beginning balance | $ 21.56 | $ 21.16 | $ 27.04 | |
Granted, Weighted Ave. Exercise Price | 2.36 | 5.08 | 3.80 | |
Exercised, Weighted Ave. Exercise Price | 4.76 | 5.52 | ||
Cancelled, Weighted Ave. Exercise Price | 8.04 | 16.20 | 23.92 | |
Outstanding Weighted Ave. Exercise Price, ending balance | 22.44 | 21.56 | 21.16 | |
Exercisable, Weighted Ave. Exercise Price | 26.48 | $ 32.16 | $ 35.24 | $ 8.04 |
Vested and expected to vest, Weighted Ave. Exercise Price | $ 22.79 |
Stock-Based Compensation - Su70
Stock-Based Compensation - Summary of Outstanding Stock Options and Related Activity (Parenthetical) (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 06, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Exercisable, options | 307 | 322 | 393 | 1,291 |
Exercisable, weighted average exercise price | $ 26.48 | $ 32.16 | $ 35.24 | $ 8.04 |
Weighted average grant-date fair value of stock options granted | $ 1.40 | $ 3.08 | $ 2.28 |
Stock-Based Compensation - Su71
Stock-Based Compensation - Summary of Outstanding Restricted Stock Awards and Related Activity (Detail) - Restricted stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, beginning balance | 451 | 431 | 436 |
Number of shares, Granted | 375 | 343 | 406 |
Number of shares, Vested | (253) | (252) | (360) |
Number of shares, Cancelled and forfeited | (139) | (71) | (51) |
Number of shares, ending balance | 434 | 451 | 431 |
Weighted average grant date fair value, beginning balance | $ 6.44 | $ 7.64 | $ 9.92 |
Weighted average grant date fair value, Granted | 2.70 | 6 | 7.16 |
Weighted average grant date fair value, Vested | 5.83 | 7.80 | 9.92 |
Weighted average grant date fair value, Cancelled and forfeited | 4.16 | 6.68 | 7.16 |
Weighted average grant date fair value, ending balance | $ 4.30 | $ 6.44 | $ 7.64 |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Detail) - USD ($) | Aug. 15, 2014 | Dec. 31, 2016 | Sep. 02, 2016 |
Class of Stock [Line Items] | |||
Gross proceeds before deduction commissions and other expenses | $ 5,600,000 | ||
Offering cost related to the transaction | 400,000 | ||
Cash from issuance of common stock, net of offering costs | $ 5,200,000 | ||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | |||
Class of Stock [Line Items] | |||
Warrants expiration period | 5 years | ||
Purchase of warrants | 1,700,000 | ||
Common stock exercise price | $ 2.74 | ||
Notes and warrants issuance date | Sep. 6, 2016 | ||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Senior Subordinated Notes [Member] | Note and Warrant Purchase Agreement [Member] | |||
Class of Stock [Line Items] | |||
Aggregate principal amount | $ 4,000,000 | ||
Private Placement [Member] | |||
Class of Stock [Line Items] | |||
Common stock, issued and sold to investors | 6,845,830 | ||
Common stock, price per share | $ 0.816 | ||
Commission | $ 200,000 | ||
Legal and other expenses | $ 200,000 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Oct. 16, 2016 | Dec. 31, 2015 | |
Preferred Stock [Line Items] | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred Shares Rights Agreement [Member] | |||
Preferred Stock [Line Items] | |||
Common stock, par value | $ 0.001 | ||
Dividend payable, Record Date | Oct. 26, 2015 | ||
Preferred stock, par value | 0.001 | ||
Rights exercise price | $ 6.69 | ||
Preferred Shares Rights Agreement, description | Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.001 per share (“Preferred Shares”), of the Company at an exercise price of $6.69 per one one-thousandth of a Preferred Share, subject to adjustment. | ||
Preferred Shares Rights Agreement [Member] | Minimum [Member] | |||
Preferred Stock [Line Items] | |||
Percentage of ownership restriction by person or group | 20.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Dec. 06, 2016 | Dec. 31, 2016 | Sep. 02, 2016 |
Related Party Transaction [Line Items] | |||
Proceeds from short term secured borrowing arrangement | $ 1,903,000 | ||
Interest rate per annum | 10.00% | ||
William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Warrants expiration period | 5 years | ||
Purchase of warrants | 850,000 | ||
Common stock exercise price | $ 2.74 | ||
Notes and warrants issuance date | Sep. 6, 2016 | ||
William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | Senior Subordinated Notes [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate principal amount | $ 2,000,000 | ||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | |||
Related Party Transaction [Line Items] | |||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | ||
Interest rate per annum | 18.00% | ||
Note due and repaid date | Dec. 14, 2016 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Sep. 02, 2016 | |
Debt Instrument [Line Items] | ||
Debt instrument maturity period | 3 years | |
Debt interest rate | 10.00% | |
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Warrants expiration period | 5 years | |
Purchase of warrants | 1,700,000 | |
Common stock exercise price | $ 2.74 | |
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Senior Subordinated Notes [Member] | Note and Warrant Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 4,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Feb. 08, 2017 | Feb. 07, 2017 | Dec. 06, 2016 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||
Proceeds from short term secured borrowing arrangement | $ 1,903,000 | |||
Interest rate per annum | 10.00% | |||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | |||
Interest rate per annum | 18.00% | |||
Note due and repaid date | Dec. 14, 2016 | |||
Subsequent Event [Member] | William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | |||
Interest rate per annum | 18.00% | |||
Note due and repaid date | Mar. 24, 2017 | |||
Subsequent Event [Member] | Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | |||
Interest rate per annum | 18.00% | |||
Note due and repaid date | Mar. 24, 2017 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summarized Quarterly Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 7,084 | $ 6,478 | $ 7,459 | $ 7,214 | $ 10,006 | $ 9,586 | $ 9,386 | $ 10,529 | $ 28,235 | $ 39,507 | $ 36,979 |
Gross profit | 5,343 | 4,680 | 5,547 | 5,101 | 8,002 | 7,627 | 7,315 | 8,411 | 20,671 | 31,355 | 27,662 |
Operating income (loss) | (3,762) | (4,557) | (3,907) | (3,679) | (547) | (768) | (1,225) | 2 | (15,905) | (2,538) | (11,742) |
Net income (loss) | $ (3,725) | $ (4,314) | $ (3,279) | $ (3,706) | $ (591) | $ (770) | $ (1,231) | $ (10) | $ (15,343) | $ (2,602) | $ (11,799) |
Net (loss) per share, basic | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.05) | $ (0.07) | $ (0.11) | $ 0 | $ (1.28) | $ (0.23) | $ (1.16) |
Weighted average shares outstanding, basic | 12,323 | 12,209 | 11,741 | 11,524 | 11,465 | 11,540 | 11,564 | 11,375 | 11,951 | 11,486 | 10,162 |
Net (loss) per share, diluted | $ (0.30) | $ (0.35) | $ (0.28) | $ (0.32) | $ (0.05) | $ (0.07) | $ (0.11) | $ 0 | $ (1.28) | $ (0.23) | $ (1.16) |
Weighted average shares outstanding, diluted | 12,323 | 12,209 | 11,741 | 11,524 | 11,465 | 11,540 | 11,564 | 11,375 | 11,951 | 11,486 | 10,162 |
Schedule II - Valuation and Q78
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for accounts receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance at beginning of period | $ 201 | $ 602 | $ 617 |
Valuation Allowances and Reserves, Additions charged to costs and expenses | 70 | 31 | 347 |
Valuation Allowances and Reserves, Deductions | (74) | (432) | (362) |
Valuation Allowances and Reserves, Balance at end of period | 197 | 201 | 602 |
Allowance for excess and obsolete inventory [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance at beginning of period | 158 | 151 | 301 |
Valuation Allowances and Reserves, Additions charged to costs and expenses | 11 | 48 | 124 |
Valuation Allowances and Reserves, Deductions | (21) | (41) | (274) |
Valuation Allowances and Reserves, Balance at end of period | $ 148 | $ 158 | $ 151 |