Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SMSI | ||
Entity Registrant Name | SMITH MICRO SOFTWARE, INC. | ||
Entity Central Index Key | 0000948708 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Tax Identification Number | 33-0029027 | ||
Entity File Number | 01-35525 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 5800 Corporate Drive | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15237 | ||
City Area Code | 412 | ||
Local Phone Number | 837-5300 | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding | 39,484,420 | ||
Entity Public Float | $ 80,684,962 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders to be filed under the Securities Exchange Act of 1934 are incorporated by reference in Part III of this report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 28,268 | $ 12,159 |
Accounts receivable, net of allowances for doubtful accounts and other adjustments of $253 and $135 at December 31, 2019 and 2018, respectively | 10,894 | 7,130 |
Prepaid expenses and other current assets | 802 | 795 |
Total current assets | 39,964 | 20,084 |
Equipment and improvements, net | 2,109 | 865 |
Right-of-use assets | 6,464 | |
Deferred tax asset, net | 94 | 191 |
Other assets | 234 | 140 |
Intangible assets, net | 4,535 | 238 |
Goodwill | 7,797 | 3,685 |
Total assets | 61,197 | 25,203 |
Current liabilities: | ||
Accounts payable | 2,050 | 1,160 |
Accrued payroll and benefits | 2,107 | 1,745 |
Current operating lease liabilities | 1,221 | |
Other accrued liabilities | 244 | 450 |
Deferred revenue | 98 | 28 |
Total current liabilities | 5,720 | 3,383 |
Non-current liabilities: | ||
Operating lease liabilities | 5,774 | |
Deferred rent | 885 | 723 |
Other long term liabilities | 134 | 534 |
Total non-current liabilities | 6,793 | 1,257 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001 per share; 5,000,000 shares authorized; 0 and 1,345 shares issued and outstanding at December 31, 2019 and 2018, respectively | ||
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 38,475,084 and 28,241,129 shares issued and outstanding at December 31, 2019 and 2018, respectively | 38 | 28 |
Additional paid-in capital | 274,041 | 256,626 |
Accumulated comprehensive deficit | (225,395) | (236,091) |
Total stockholders’ equity | 48,684 | 20,563 |
Total liabilities and stockholders' equity | $ 61,197 | $ 25,203 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowances for doubtful accounts receivable | $ 253 | $ 135 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 1,345 |
Preferred stock, shares outstanding | 0 | 1,345 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 38,475,084 | 28,241,129 |
Common stock, shares outstanding | 38,475,084 | 28,241,129 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 43,346 | $ 26,285 |
Cost of revenues | 3,927 | 4,333 |
Gross profit | 39,419 | 21,952 |
Operating expenses: | ||
Selling and marketing | 7,517 | 5,784 |
Research and development | 11,682 | 8,602 |
General and administrative | 9,921 | 8,607 |
Restructuring expenses | 194 | 173 |
Total operating expenses | 29,314 | 23,166 |
Operating income (loss) | 10,105 | (1,214) |
Non-operating income (expense): | ||
Change in fair value of warrant liability | (812) | |
Loss on debt extinguishment | (203) | |
Gain on sale of software product | 483 | |
Interest income (expense), net | 228 | (472) |
Other expense, net | (14) | (26) |
Income (loss) before provision for income taxes | 10,802 | (2,727) |
Provision for income tax expense | 80 | 13 |
Net income (loss) | $ 10,722 | $ (2,740) |
Net earnings (loss) per share: | ||
Basic | $ 0.31 | $ (0.14) |
Diluted | $ 0.29 | $ (0.14) |
Weighted average shares outstanding: | ||
Basic | 34,513 | 22,322 |
Diluted | 36,991 | 22,322 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Comprehensive Deficit [Member] |
BALANCE at Dec. 31, 2017 | $ 4,567 | $ 14 | $ 237,486 | $ (232,933) | |
BALANCE, Shares at Dec. 31, 2017 | 6,000 | ||||
BALANCE, Shares at Dec. 31, 2017 | 14,269,000 | ||||
Non-cash compensation recognized on stock options and ESPP | 36 | 36 | |||
Restricted stock grants, net of cancellations | 899 | $ 1 | 898 | ||
Restricted stock grants, net of cancellations, shares | 1,124,000 | ||||
Cancellation of shares for payment of withholding tax | (209) | (209) | |||
Cancellation of shares for payment of withholding tax, shares | (94,000) | ||||
Employee stock purchase plan | 5 | 5 | |||
Employee stock purchase plan, shares | 5,000 | ||||
Preferred shares converted to common shares | $ 4 | (4) | |||
Preferred shares converted to common shares, shares | (5,000) | 3,645,000 | |||
Common shares issued in stock offering, net of offering costs | 17,600 | $ 9 | 17,591 | ||
Common shares issued in stock offering, net offering costs, shares | 9,267,000 | ||||
Issuance of warrants in stock offering | (6,792) | (6,792) | |||
Exercise of common stock warrants, shares | 26,000 | ||||
Reclassification of warrants previously classified as liabilities to equity | 7,604 | 7,604 | |||
Warrant repricing | 11 | (11) | |||
Canadian tax adjustments from prior period | (2) | (2) | |||
Preferred stock dividends | (404) | (404) | |||
Comprehensive loss | (2,741) | (2,741) | |||
BALANCE at Dec. 31, 2018 | $ 20,563 | $ 28 | 256,626 | (236,091) | |
BALANCE, Shares at Dec. 31, 2018 | 1,345 | 1,000 | |||
BALANCE, Shares at Dec. 31, 2018 | 28,241,129 | 28,242,000 | |||
Non-cash compensation recognized on stock options and ESPP | $ 43 | 43 | |||
Restricted stock grants, net of cancellations | 1,451 | $ 1 | 1,450 | ||
Restricted stock grants, net of cancellations, shares | 1,225,000 | ||||
Cancellation of shares for payment of withholding tax | (701) | (701) | |||
Cancellation of shares for payment of withholding tax, shares | (214,000) | ||||
Employee stock purchase plan | 10 | 10 | |||
Employee stock purchase plan, shares | 4,000 | ||||
Preferred shares converted to common shares | $ 1 | (1) | |||
Preferred shares converted to common shares, shares | (1,000) | 1,180,000 | |||
Common shares issued in stock offering, net of offering costs | (14) | (14) | |||
Common shares issued in connection with Smart Retail acquisition, net | 5,129 | $ 3 | 5,126 | ||
Common shares issued in connection, with Smart Retail acquisition, net, shares | 2,699,000 | ||||
Exercise of common stock warrants | 11,457 | $ 5 | 11,452 | ||
Exercise of common stock warrants, shares | 5,327,000 | ||||
Exercise of stock options | $ 50 | 50 | |||
Exercise of stock options, shares | 13,000 | 13,000 | |||
Preferred stock dividends | $ (119) | (119) | |||
Cumulative effect of adoption of ASC 842 | 93 | 93 | |||
Comprehensive loss | 10,722 | 10,722 | |||
BALANCE at Dec. 31, 2019 | $ 48,684 | $ 38 | $ 274,041 | $ (225,395) | |
BALANCE, Shares at Dec. 31, 2019 | 0 | ||||
BALANCE, Shares at Dec. 31, 2019 | 38,475,084 | 38,476,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ 10,722 | $ (2,740) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,341 | 779 |
Non-cash rent expense | 954 | |
Amortization of debt discounts and financing issuance costs | 239 | |
Restructuring costs | 194 | 173 |
Gain on sale of software product | (483) | |
Change in fair value of warrant liability | 812 | |
Loss on debt extinguishment | 203 | |
Provision for adjustments to accounts receivable and doubtful accounts | 143 | (82) |
Provision for excess and obsolete inventory | 1 | (16) |
Loss on disposal of fixed assets | 6 | 7 |
Non-cash compensation related to stock options and restricted stock | 1,494 | 935 |
Deferred income taxes | 97 | 213 |
Change in operating accounts: | ||
Accounts receivable | (3,811) | (1,903) |
Prepaid expenses and other assets | (32) | (197) |
Accounts payable and accrued liabilities | (417) | (1,252) |
Deferred revenue | (221) | (45) |
Net cash provided by (used in) operating activities | 9,988 | (2,874) |
Investing activities: | ||
Acquisitions, net | (3,974) | |
Proceeds from sale of software product | 370 | |
Capital expenditures | (1,659) | (173) |
Net cash used in investing activities | (5,263) | (173) |
Financing activities: | ||
Proceeds from exercise of common stock warrants | 11,457 | |
Proceeds from (payments related to) issuance of common stock | (14) | 17,600 |
Repayments of short-term secured promissory notes | (1,000) | |
Repayments of related-party notes payable | (1,200) | |
Repayments of notes payable | (2,000) | |
Proceeds from exercise of stock options | 50 | |
Proceeds from stock sale for employee stock purchase plan | 10 | 5 |
Preferred stock dividends | (119) | (404) |
Net cash provided by financing activities | 11,384 | 13,001 |
Net increase in cash and cash equivalents | 16,109 | 9,954 |
Cash and cash equivalents, beginning of period | 12,159 | 2,205 |
Cash and cash equivalents, end of period | 28,268 | 12,159 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 104 | 2 |
Cash paid for interest | 386 | |
Non-cash investing and financing activities: | ||
Issuance of common stock in connection with acquisition | 5,129 | |
Issuance of common stock warrants in connection with stock offering | 10,792 | |
Reclassification of warrants from liabilities to equity | 7,604 | |
Conversion of preferred stock to common stock | $ 1 | $ 4 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless and cable service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, we strive to enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. Our portfolio includes a wide range of products for creating, sharing and monetizing rich content, such as visual voice messaging, retail content display optimization and performance analytics on any product set. In general, we offer our customers: • Valuable digital services that connect today’s digital lifestyle, including leading edge family location and parental controls, as well as enabling connected family and consumer IoT devices to mobile consumers worldwide; • Easy visual access to wirelessly delivered voicemail messages, while also providing easy conversion of voice messages to text and email messages that can be delivered through a variety of devices; • Immediate, consistent and measurable retail content that educates consumers, creates awareness of products and services and drives in store sales; and • Engaging retail content displayed on wireless devices in retail locations that also gather valuable actionable analytics. We continue to innovate and evolve our business to respond to industry trends and maximize opportunities in emerging markets, such as digital lifestyle services and online safety, “Big Data” analytics, automotive telematics, and the consumer IoT marketplace. The key to our longevity, however, is not simply technological innovation, but our never-ending focus on understanding our customers’ needs and delivering 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 (“U.S. GAAP”). 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 are Serbia, Sweden, and Portugal. 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 upon the sale of an asset or the amount that would be 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 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, 2019, one customer, accounting for over 10% of revenues, made up 84% of revenues and 92% of accounts receivable, and one service provider with more than 10% of purchases totaled 10% of accounts payable. For the year ended December 31, 2018, one customer, accounting for over 10% of revenues, made up 81% of revenues and 82% of accounts receivable, and one service provider with more than 10% of purchases totaled 21% 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 one financial institution 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, 2019 and 2018, bank balances totaling approximately $28.0 million and $11.8 million, respectively, were uninsured. 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. 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, 2019, 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 two to ten years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. 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 Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 31, 2019, 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 historical operating loss and negative cash flow from operating activities trends, including the positive trends occurring in the recent year. 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 and management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date. Revenue Recognition The Company adopted FASB ASC Topic No. 606, Revenue from Contracts with Customers, In our Wireless segment, we transfer software licenses to our customers on a royalty free, non-exclusive, non-transferrable, limited use basis during the term of the agreement. In some instances, we perform customization services to ensure the software operates within our customer’s operating platforms as well as the operating platforms of the mobile devices used by their end customers before transferring the license. Revenue related to these services is recognized at a point in time upon acceptance of the software license by the customer. We also earn usage based revenue on our platforms. Usage based revenue is generated based on active licenses used by our customer’s end customers, the provision of hosting services, revenue share based on media placements on our platform, and use of our Cloud Based services. We recognize our usage based revenue when we have completed our performance obligation and have the right to invoice the customer. This revenue is generally recognized monthly or quarterly. Finally, in this segment, we ratably recognize revenue over the contract period when customers pay in advance of our service delivery. We also provide consulting services to develop customer specified functionality that are generally not on our software development roadmap. We recognize revenue from our consulting services upon delivery and acceptance by the customer of our software enhancements and upgrades. For certain Wireless segment customers we provide maintenance and technology support services for which the customer pays upfront or as we provide the services. When the customer pays upfront, we record the payments as contract liabilities and recognize revenue ratably over the contract period as this is our stand ready performance obligation that is satisfied ratably over the maintenance and technology services period For our Graphics products where we sell off-the-self software products with no customization or post sale technology support services, we recognize revenue at the time we transfer control of the product to the customer. This occurs upon shipment of the product or when the customer downloads the software from our website or website of our resellers. We offer a 30 day return option to our customers; a return reserve is established at the time revenue is recorded and the reserve is monitored and adjusted based on actual experience. Historically, returns have been insignificant. Product and Services Warranties Warranty related costs are recorded in our operating expenses as incurred as these costs are immaterial for the products and services we sell. Shipping and Handling Costs We incur shipping and handling costs as part of our Graphics software sales. These costs are treated as fulfillment costs and are expensed as incurred. Principal and Agent Considerations We own the Intellectual Property and retain ownership when we license our customized software solutions for use by our Wireless segment customers. We are a principal in these transactions and as such we recognize our Wireless segment revenue on a gross basis. We sell our Graphics software products directly to end consumers as well as through our distributors and re-sellers. We are a principal in these transactions as we bear the inventory risk, customers (or customer’s end users) view us as the primary obligor responsible for supporting the software products, and we have full discretion in establishing the prices for our graphics software products. As a principal we record our Graphics revenues on a gross basis. 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 Stock-Based Compensation The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognizes such awards 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 Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), Recently Issued Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions In December 2018, the Company entered into a definitive agreement to acquire the net assets of ISM Connect, LLC’s Smart Retail product Suite (“Smart Retail”). The transaction closed on January 9, 2019. The following table summarizes the consideration paid for the Smart Retail acquisition in 2019 (in thousands): Fair value of assets acquired $ 9,394 Fair value of liabilities assumed 291 Total purchase price $ 9,103 Components of purchase price: Cash $ 3,974 Common stock 5,129 Total purchase price $ 9,103 The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Costs incurred on projects not complete $ 53 Intangible assets 5,229 Goodwill 4,112 Total assets $ 9,394 Liabilities: Deferred revenue $ 291 Total liabilities 291 Total purchase price $ 9,103 The purpose of the Smart Retail acquisition was to acquire a new growing and profitable revenue stream while deepening the relationships with our customers. The Smart Retail platform, which the Company now calls ViewSpot, enables wireless carriers and retailers to offer powerful on-screen, interactive device demos that deliver consistent, secure and targeted content that showcase the features of the devices that consumers what to see and learn more about. ViewSpot provides analytics capabilities, which allows customers to gain valuable insights and buying behaviors. The platform was a logical addition to the Company’s existing product line that reaches wireless carriers and provides them with services that can attract and retain customers. Unaudited pro forma results of operations for the years ended December 31, 2019 and 2018 are included below as if the acquisition occurred on January 1, 2018. This summary of the unaudited pro forma results of operations is not necessarily indicative of what the Company’s results of operations would have been had Smart Retail been acquired at the beginning of 2018, nor does it purport to represent results of operations for any future periods. Year Ended December 31, 2019 2018 (in thousands, except per share amounts) Revenues $ 43,346 $ 30,086 Net income (loss) 10,722 (1,421 ) Earnings (loss) per share: Basic $ 0.31 $ (0.08 ) Diluted $ 0.29 $ (0.08 ) |
Equipment and Improvements
Equipment and Improvements | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Equipment and Improvements | 3. Equipment and Improvements Equipment and improvements consist of the following (in thousands): December 31, 2019 2018 Computer hardware, software, and equipment $ 9,079 $ 14,658 Leasehold improvements 2,808 5,316 Office furniture and fixtures 1,017 962 Construction in progress 494 25 13,398 20,961 Less accumulated depreciation and amortization (11,289 ) (20,096 ) Equipment and improvements, net $ 2,109 $ 865 Depreciation and amortization expense on equipment and improvements was $0.4 million and $0.5 million for the years ended December 31, 2019 and 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets The following table sets forth our acquired intangible assets by major asset class as of December 31, 2019 and December 31, 2018 (in thousands, except for useful life data): December 31, 2019 Useful life (years) Gross Additions Accumulated amortization Net book value before impairment Impairment charge in 2016 Net book value Purchased technology 4-6 $ 265 $ 2,253 $ (687 ) $ 1,831 $ — $ 1,831 Customer relationships 3-10 999 2,976 (860 ) 3,115 (411 ) 2,704 Trademarks/trade names 2 38 — (38 ) — — — Non-compete 3 51 — (51 ) — — — Total $ 1,353 $ 5,229 $ (1,636 ) $ 4,946 $ (411 ) $ 4,535 December 31, 2018 Useful life (years) Gross Additions Accumulated amortization Net book value before impairment Impairment charge in 2016 Net book value Purchased technology 4-6 $ 265 $ — $ (125 ) $ 140 $ — $ 140 Customer relationships 3-6 999 — (499 ) 500 (411 ) 89 Trademarks/trade names 2 38 — (38 ) — — — Non-compete 3 51 — (42 ) 9 — 9 Total $ 1,353 — $ (704 ) $ 649 $ (411 ) $ 238 Intangible assets amortization expense was $0.9 million and $0.2 million for the years ended December 31, 2019 and 2018, respectively. Future amortization expense related to intangible assets as of December 31, 2019 are as follows (in thousands): Year Ending December 31, 2020 $ 907 2021 901 2022 869 2023 345 2024 1,513 Total $ 4,535 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 a previously acquired intangible asset. 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, 2019 and 2018. |
Debt and Related Party Transact
Debt and Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Debt And Related Party Transactions [Abstract] | |
Debt and Related Party Transactions | 5. Debt and Related Party Transactions Short-term Debt On February 7, 2017, the Company entered into a short-term secured borrowing arrangement with William W. and Dieva 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 $1.0 million and the Company issued to each of them a Secured Promissory Note (the “Original Notes”) bearing interest at the rate of 18% per annum. The Original Notes were due on March 24, 2017 and were secured by the Company’s accounts receivable and certain other assets. William W. Smith, Jr. is the Company’s Chairman of the Board, President and Chief Executive Officer, and Steven L. Elfman is a director of the Company. On March 25, 2017, the Company entered into an Amendment to the Original Note issued to Smith that extended the Maturity Date of the Note to June 26, 2017. On March 31, 2017, the Company entered into a new short-term secured borrowing arrangement with Elfman for $1.0 million which matured on June 23, 2017. On June 30, 2017, the Company entered into a new short-term secured borrowing arrangement with each of Smith and Elfman to refinance the prior arrangement with each of them, which matured on June 26, 2017 and June 23, 2017, respectively. Under the new borrowing arrangements, the Company issued to each of Smith and Elfman a new Secured Promissory Note (“Replacement Notes”) with a principal balance of $1.0 million, bearing interest at the rate of 12% per annum, and maturing on September 25, 2017. The maturity date of the Replacement Note entered into with Smith may be extended by up to 180 days upon the mutual consent of the Company and Smith. Each of the Replacement Notes were secured by the Company’s accounts receivable and certain other assets. On August 18, 2017, the Company entered into Amendments to the Replacement Notes issued to each of Smith and Elfman, which extended the Maturity Date of the Replacement Notes from September 25, 2017 to January 25, 2018. The amendments did not change any other terms of the Replacement Notes. On August 23, 2017, the Company entered into a borrowing arrangement with Smith, under which the Company borrowed $0.8 million and issued to Smith a Secured Promissory Note, bearing interest at the rate of 12% per annum, and maturing on January 25, 2018. On August 24, 2017, the Company entered into a new borrowing arrangement with Andrew Arno (“Arno”), under which the Company borrowed $0.3 million and issued to Arno new Secured Promissory Notes with an aggregate principal balance of $0.3 million, bearing interest at the rate of 12% per annum, and maturing on January 31, 2018. Andrew Arno is a director of the Company. On January 30, 2018, the Company amended certain of its existing Secured Promissory Notes (the “Notes”) for the sole purpose of extending the relevant maturity dates. The Note dated August 18, 2017 issued to Steven L. Elfman and Monique P. Elfman was amended to extend its maturity date to February 11, 2018 and was subsequently paid in full. The Note dated June 26, 2017 issued to William W. Smith, Jr. and Dieva L. Smith was amended to extend its maturity date to July 25, 2018. The Notes dated August 24, 2017 issued to Next Generation TC FBO Andrew Arno IRA 1663 and Andrew Arno were amended to extend the maturity date of each to July 25, 2018. As a condition to closing of the private placement offering in March 2018 discussed in Note 6, the following Notes were further amended for the sole purpose of extending the maturity dates of each to March 25, 2020: (i) Secured Promissory Note dated June 26, 2017, issued to William W. Smith and Dieva L. Smith, as amended; (ii) Secured Promissory Note dated August 24, 2017, issued to Next Generation TC FBO Andrew Arno IRA 1663, as amended; and (iii) Secured Promissory Note, dated August 24, 2017 issued to Andrew Arno, as amended. On September 29, 2017, the Company exchanged shares of the Company’s newly designated Series B 10% Convertible Preferred Stock (“Series B Preferred Stock”) for outstanding short-term indebtedness with a principal amount of $0.8 million owed to Smith and $0.1 million to Arno for 750 and 50 shares, respectively. See Note 6, Equity Transactions, for further details on the Series B Preferred Stock Offering. Long-term Debt 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 (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 $4.0 million (the “Notes”). The Company completed the transactions contemplated by the Note and Warrant Purchase Agreement and issued the Notes on September 6, 2016. The Notes were to 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. On September 29, 2017, the Company exchanged shares of the Company’s newly designated Series B 10% Convertible Preferred Stock for outstanding long-term indebtedness with a principal amount of $2.0 million owed to Smith for 2,000 of the Series B Preferred Stock. See Note 6, Equity Transactions, for further details on the Series B Preferred Stock Offering. In November 2018, the $2.0 million Unterberg Koller Note was paid in full, and an extinguishment loss consisting of the unamortized debt discount and issuance costs totaling $0.2 million was recognized. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity Transactions | 6. Equity Transactions Preferred Stock Offering On September 29, 2017, the Company entered into a Securities Purchase Agreement with several investors for the issuance and sale (the “Offering”) of 5,500 shares of the Company’s newly designated Series B 10% Convertible Preferred Stock (the “Series B Preferred Stock”) at a stated value of $1,000 per share, for a total purchase price of $5.5 million. The Series B Preferred Stock is convertible into the Company’s Common Stock at a conversion price of $1.14 per share, which was the closing bid price of the Common Stock on September 28, 2017, or 4,824,562 shares of Common Stock in the aggregate. The holders of Series B Preferred Stock were entitled to receive cumulative dividends out of funds legally available thereof at a rate of ten percent (10%) per annum, payable (i) when and as declared by the Board of Directors, in quarterly installments on March 1, June 1, September 1 and December 1, (ii) upon conversion into Common Stock with respect the Series B Preferred Stock being converted, and (iii) upon redemption of the Series B Preferred Stock by the Company. In the event that the trading price of the Company’s Common Stock for 20 consecutive trading days (as determined in the Certificate of Designation) exceeds 400% of the then effective Conversion Price of the Series B Preferred Stock (initially set at $1.14), the Company may force conversion of the Series B Preferred Stock into shares of Common Stock or elect to redeem the Series B Preferred Stock for cash. In addition, upon the occurrence of certain triggering events, each holder of Series B Preferred Stock will have the right to require the Company to redeem such holder’s shares for cash equal to the stated value plus accrued and unpaid dividends and liquidated damages, costs, expenses and other amounts due in respect of the Series B Preferred Stock, and with respect to certain other triggering events, each holder will have the right to increase the dividend rate on such holder’s Series B Preferred Stock to twelve percent (12%) while such triggering event is continuing. In the Offering, the Company raised gross cash proceeds of $2.7 million, and exchanged outstanding indebtedness with a principal amount of $2.8 million owed to Smith (both long and short-term debt) and $0.1 million owed to Arno for 2,750 and 50 shares, respectively. The Offering raised net cash proceeds of $2.5 million (after deducting the placement agent fee and expenses of the Offering). In connection with the Offering, the Company entered into a Registration Rights Agreement with investors (the “Series B Registration Rights Agreement”) under which the Company agreed to prepare and file a registration statement with the SEC within 30 days after closing of the Series B Transaction for the purpose of registering the resale of shares of common stock issuable upon conversion of the Series B Preferred Stock (the “Conversion Shares”). The Company agreed to use its reasonable best efforts to cause such resale registration statement to be declared effective by the SEC within 90 days after the closing of the Series B Transaction (120 days in the event the registration statement is reviewed by the SEC) and agreed to pay liquidated damages to the Series B Stockholders if such resale registration statement were not to become effective within the applicable time period. The Conversion Shares were included in the registration statement filed in connection with the March Offering, and such registration statement became effective on April 19, 2018, which was later than the deadline specified in the Series B Registration Rights Agreement, resulting in liquidated damage payments of $48 thousand to Series B Stockholders. Certain Series B Stockholders, including without limitation, Smith and Arno, waived their rights to receive such liquidated damage payments. During the third quarter of 2019, the Company forced conversion of all outstanding Series B Preferred Stock in accordance with its terms. Common Stock Offerings March 2018 Offering On March 6, 2018, the Company completed the March Offering, wherein a total of 2,857,144 shares of the Company’s common stock were issued at a purchase price of $1.75 per share, for a total purchase price of $5.0 million, with each investor also receiving a warrant to purchase up to a number of shares of common stock equal to the number of shares of common stock purchased by such investor in the offering at an exercise price of $2.17 per share. The March Offering raised net cash proceeds of approximately $4.5 million (after deducting the placement agent fee and expenses of the March Offering). The Company used the net cash proceeds from the March Offering for working capital purposes, to fund required dividend payments, payment of principal and interest payments under short-term borrowing obligations, and payment of interest (but not principal) under long-term borrowing obligations. The Company engaged Chardan as placement agent for the March Offering pursuant to an engagement letter agreement. The Company agreed to pay Chardan a cash placement fee equal to 8.0% of the gross proceeds of the March Offering, and issued to Chardan a warrant to purchase shares of common stock equal to 3.0% of the number of shares sold in the March Offering (the “Chardan Warrant”). The Chardan Warrant has an exercise price of $2.365 per share, a term of 5.5 years from the closing date of the March Offering, and otherwise has identical terms to the warrants issued to the investors in the March Offering. Pursuant to the purchase agreement entered in connection with the March Offering (the “March Purchase Agreement”), the Company used its best efforts to cause the conversion of all shares of the Company’s Series B 10% Convertible Preferred Stock (the “Series B Preferred Stock”) into shares of common stock pursuant to the terms of the Company’s Certificate of Designation (the “Certificate of Designation”) with respect to the Series B Preferred Stock. In connection therewith, the Company entered into letter agreements with each of William W. Smith, Jr. (“Smith”) and Andrew Arno (“Arno”), whereby each of Smith and Arno agreed to take certain action to convert the shares of Series B Preferred Stock held by them pursuant to terms outlined in the March Purchase Agreement, and further agreed that the shares of common stock issued upon such conversion shall not be subject to resale registration rights. Each of Smith and Arno completed the conversion of their shares of Series B Preferred Stock in accordance with such letter agreements. The Company prepared and filed a registration statement with the SEC for the purpose of registering the resale of shares of common stock issued in the March Offering, and such registration statement became effective within the time period agreed by the parties to the March Offering. The Company has outstanding warrants issued pursuant to an agreement entered into on September 6, 2016 with Unterberg Koller Capital Fund L.P. (the “Unterberg Warrant Agreement”). The March Offering caused a Triggering Event as defined in the Unterberg Warrant Agreement, and the warrants were repriced from an exercise price of $2.14 to $2.07. The Triggering Event charges of $11 thousand were recorded to Stockholders’ Equity during the first quarter of 2018. May 2018 Offering On May 3, 2018, the Company completed the May Offering, wherein a total of 3,170,000 shares of the Company’s common stock were issued at a purchase price of $2.21 per share, for a total purchase price of approximately $7.0 million, with each investor also receiving a warrant to purchase up to a number of shares of common stock equal to the number of shares of common stock purchased by such investor in the Offering at an exercise price of $2.11 per share. The May Offering raised net cash proceeds of approximately $6.3 million (after deducting the placement agent fee and expenses). The Company used the net cash proceeds from the May Offering for working capital purposes, and to fund required dividend payments, payment of principal and interest payments under short-term borrowing obligations, and payment of interest (but not principal) under long-term borrowing obligations. The Company engaged Chardan as placement agent for the May Offering pursuant to an engagement letter agreement. The Company agreed to pay Chardan a cash placement fee equal to 7.0% of the gross proceeds of the May Offering. The Company also engaged Roth Capital Partners, LLC (“Roth”) as its financial advisor for the May Offering. The Company agreed to pay Roth a cash fee equal to 2.0% of the gross proceeds of the May Offering. The Company prepared and filed a registration statement with the SEC for the purpose of registering the resale of shares of common stock issued in the May Offering, and such registration statement became effective within the time period agreed by the parties to the May Offering. November 2018 Offering On November 7, 2018, the Company completed the November Offering, wherein a total of 3,239,785 shares of the Company’s common stock were issued at a purchase price of $2.32 per share, for a total purchase price of approximately $7.5 million, with each investor also receiving a warrant to purchase up to a number of shares of common stock equal to the number of shares of common stock purchased by such investor in the Offering at an exercise price of $2.20 per share. As part of the November Offering, the previously issued warrant agreements from the March and May 2018 Offerings were amended, which allowed the Company to reclassify them from liability to equity treatment. These warrants were initially accounted for as liabilities under ASC 815-40-25 since the original warrants provided the investors a cash settlement option in the event of a fundamental transaction that was not also provided to the common stockholders. In connection with the November Offering, these warrants were amended to remove the cash settlement option in the event of a fundamental transaction, thereby allowing equity treatment. The November Offering raised net cash proceeds of approximately $6.9 million (after deducting the placement agent fee and expenses). The Company is using the net cash proceeds for general corporate purposes and repaid certain short and long-term debt obligations of $3.2 million. The Company engaged Chardan as placement agent for the November Offering pursuant to an engagement letter agreement. The Company agreed to pay Chardan a cash placement fee equal to 6.0% of the gross proceeds of the November Offering. The Company also engaged Roth as its financial advisor for the November Offering. The Company agreed to pay Roth a cash fee equal to 2.0% of the gross proceeds of the November Offering. The Company prepared and filed a registration statement with the SEC for the purpose of registering the resale of shares of common stock issued in the November Offering, and such registration statement became effective within the time period agreed by the parties to the November Offering. Warrants The Company issued warrants to purchase shares of Common Stock in connection with a registered direct offering completed in May 2017, March 2018, May 2018 and November 2018. See the prior section under the heading “Common Stock Offering” for additional details regarding the warrants issued in connection with those offerings. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Income (loss) before provision for income taxes was generated from the following sources (in thousands): Year Ended December 31, 2019 2018 Domestic $ 10,833 $ (2,541 ) Foreign (31 ) (186 ) Total loss before provision for income taxes $ 10,802 $ (2,727 ) A summary of the income tax expense (benefit) is as follows (in thousands): Year Ended December 31, 2019 2018 Current: Federal $ (132 ) $ (265 ) State 7 2 Foreign 108 63 Total current (17 ) (200 ) Deferred: Federal 144 265 State — — Foreign (47 ) (52 ) Total deferred 97 213 Total income tax expense (benefit) $ 80 $ 13 A reconciliation of the provision for income taxes to the amount of income tax expense (benefit) that would result from applying the federal statutory rate to the loss before income taxes is as follows: Year Ended December 31, 2019 2018 Federal statutory rate 21.0 % 21.0 % State tax, net of federal benefit 3.6 3.0 Equity compensation 0.1 (0.7 ) International tax items 0.2 (1.7 ) Foreign taxes 0.6 (0.4 ) State NOL true-up (6.1 ) (30.4 ) Miscellaneous 0.4 (7.7 ) Effect of change in rate 0.9 (12.6 ) Change in valuation allowance (19.8 ) 29.0 0.7 % (0.5 ) % The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2019 2018 Deferred income tax assets Net operating loss carry forwards $ 41,650 $ 41,356 Credit carry forwards 3,159 3,292 Fixed assets 373 493 Intangibles 4,679 6,417 Equity-based compensation 308 439 Nondeductible accruals 319 565 Various reserves 209 55 Other 2 107 Valuation allowance (50,397 ) (52,414 ) Total deferred income taxes - net 302 310 Deferred income tax liabilities Foreign intangibles (27 ) (74 ) Unrealized translation gain/loss (120 ) (4 ) Prepaid expenses (61 ) (41 ) Total deferred income liabilities (208 ) (119 ) Net deferred income tax assets $ 94 $ 191 The Company has federal and state net operating loss (“NOL”) carryforwards of approximately $158.1 million and $145.9 million, respectively, at December 31, 2019, to reduce future cash payments for income taxes. These federal NOL carryforwards will expire from 2024 through 2037 and state NOL carryforwards will expire 2019 through 2039. The Company also had $0.1 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, 2019. These tax credits will begin to expire in 2028. 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, 2019 and 2018, the Company had unrecognized tax benefits, including interest and penalties, of approximately $0.4 million. The Company’s gross unrecognized tax benefits as of December 31, 2019 and 2018 and the changes in those balances are as follows (in thousands): Year Ended December 31, 2019 2018 Beginning balance $ 428 $ 428 Increases (decreases) in tax positions for the current year — — Increases (decreases) in tax positions for the prior year — — Gross unrecognized tax benefits, ending balance $ 428 $ 428 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. In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. A significant factor in the Company’s assessment is that the Company was in a five-year historical cumulative loss as of the end of fiscal 2018. These facts, combined with uncertain near-term market and economic conditions, reduced the Company’s ability to rely on projections of future taxable income in assessing the realizability of its deferred tax assets. After a review of the four sources of taxable income as of December 31, 2019 (as described above), and after consideration of the Company’s cumulative loss position as of December 31, 2019, the Company recorded a valuation allowance related to its U.S.-based deferred tax assets of $50.4 million at December 31, 2019. The valuation allowance on deferred tax assets decreased by $2.0 million and $0.5 million in 2019 and 2018, respectively. We recognized interest and penalties accrued related to unrecognized tax benefits in income tax expense. During 2019 and 2018, we recognized $0 in interest and penalties. The cumulative interest and penalties at December 31, 2019 and 2018 were $0. 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. Currently there are no audits in process or pending from Federal or state tax authorities. State income tax returns are subject to examination for a period of three to four years after filing. As of December 31, 2019, 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. As of December 31, 2019, a current estimate of the range of changes that may occur within the next twelve months cannot be made due to the uncertainty regarding the timing of these events. For financial reporting purposes, income (loss) before provision for income taxes for our foreign subsidiaries was $(31) thousand and $(186) thousand for the years ended December 31, 2019 and 2018, respectively. We do not provide for U.S. taxes on our unremitted earnings of foreign subsidiaries that have not been previously taxed since we intend to invest such undistributed earnings indefinitely outside of the U.S. As a part of the provisions of the 2017 Act, the corporate alternative minimum tax (“AMT”) has been repealed for tax years beginning after December 31, 2017. Taxpayers with AMT credit carryforwards that have not yet been used may claim a refund in future years for those credit. Since the AMT credit will now be fully refundable regardless of whether there is a future income tax liability before AMT credits, the benefit of the AMT credit will be realized in the future. Accordingly, a valuation allowance established against AMT credit carryforward balance is no longer necessary and a benefit has been recognized with respect to a $0.5 million AMT credit carryforward balance that was generated with 2011 net operating loss carrybacks. The Company has opted to reflect the balance as part of deferred tax asset balance. With the filing of the 2019 federal tax return, the Company will receive a refund of $133 thousand of the balance and this amount has been classified as a federal income tax receivable. The 2017 Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share Year Ended December 31, 2019 2018 (in thousands, except per share amounts) Numerator: Net income (loss) $ 10,722 $ (2,740 ) Dividends paid to preferred stockholders (119 ) (404 ) Net income (loss) available to common stockholders $ 10,603 $ (3,144 ) Denominator: Weighted average shares outstanding - basic 34,513 22,322 Potential common shares - options (treasury stock method) 2,478 — Weighted average shares outstanding - diluted 36,991 22,322 Shares excluded due to an exercise price greater than weighted average stock price for the period 88 1,081 Earnings (loss) per common share: Basic $ 0.31 $ (0.14 ) Diluted $ 0.29 $ (0.14 ) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 9. Employee Benefit Plans The Company offers its employees participation in 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 and $0.1 million for the years ended December 31, 2019 and 2018, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Plans On June 18, 2015, our stockholders approved the 2015 Omnibus Equity Incentive Plan (“2015 OEIP”) and a subsequent amendment to the 2015 OEIP to increase the number of shares reserved thereunder was approved by our stockholders on June 14, 2018. The 2015 OEIP 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 the 2005 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 4,625,000 shares. The 2015 OEIP provides for the issuance of full value awards (restricted stock, performance stock, dividend equivalent right or restricted stock units) and partial 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 partial value awards settled in shares will be debited as 1.0 shares against the share reserve. The exercise price per share for stock 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. Stock 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 stock options terminate and all vested stock options may be exercised within a period of 90 days following termination. In general, stock 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 in the aggregate 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, 2019 and 2018, using the Black-Scholes option pricing model, were as follows: Year Ended December 31, 2019 2018 Weighted average grant date fair value of stock options $ 1.84 $ 1.56 Assumptions Risk-free interest rate (weighted average) 2.36 % 2.90 % Expected dividend yield — — Weighted average expected life (years) 6.2 6.2 Volatility (weighted average) 78.7 % 73.8 % Forfeiture rate 26.0 % 26.6 % 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. 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: September March 31, September March 31, Offering Period Ended 2019 2019 2018 2018 Shares purchased for offering period 2,195 2,112 1,843 3,250 Fair value per share $ 2.28 $ 1.07 $ 0.96 $ 0.75 Assumptions Risk-free interest rate (average) 1.84 % 2.44 % 2.29 % 1.92 % Expected dividend yield — — — — Weighted average expected life (years) 0.5 0.5 0.5 0.5 Volatility (average) 86.3 % 51.7 % 54.3 % 81.4 % 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, 2019 2018 Selling and marketing $ 247 $ 112 Research and development 278 207 General and administrative 969 616 Total non-cash stock compensation expense $ 1,494 $ 935 Stock Options A summary of the Company’s stock options outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2019 and the activity during the years ended herein are as follows (in thousands except per share amounts): Shares Weighted Avg. Exercise Price Wtd. Avg. Remaining Contractual Life (Yrs) Aggregate Intrinsic Value Outstanding as of December 31, 2017 137 $ 5.71 $ 7 (114 options exercisable at a weighted average exercise price of $6.18) Granted 30 $ 2.32 $ — Exercised — $ — $ — Canceled / expired (9 ) $ 8.96 $ — Outstanding as of December 31, 2018 158 $ 4.88 5.9 $ — (121 options exercisable at a weighted average exercise price of $5.64) Granted 65 $ 2.65 $ — Exercised (13 ) $ 3.81 $ 28 Canceled / expired (13 ) $ 7.81 $ 22 Outstanding as of December 31, 2019 197 $ 4.03 6.3 $ 171 Exercisable as of December 31, 2019 112 $ 5.16 4.1 $ 35 Vested and expected to vest at December 31, 2019 163 $ 3.67 6.0 $ 133 As of December 31, 2019, there was $2.9 million of unrecognized compensation costs related to non-vested stock options and restricted stock granted under the Plans. At December 31, 2019, there were 1.3 million and 0 shares available for future grants under the 2015 OEIP and 2005 Plan, respectively. Restricted Stock Awards A summary of the Company’s restricted stock awards outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2019, and the activity during years ended therein, are as follows (in thousands): Weighted Number grant date of shares fair value Unvested at December 31, 2017 167 3.49 Granted 1,125 1.92 Vested (283 ) 2.52 Canceled and forfeited (2 ) 0.83 Unvested at December 31, 2018 1,007 2.01 Granted 1,250 2.00 Vested (673 ) 2.06 Canceled and forfeited (25 ) 1.97 Unvested at December 31, 2019 1,559 1.98 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 11. Revenues Adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) We adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. We have applied the new standard to all open contracts at the date of initial application. The cumulative adjustment to the opening accumulated deficit balance at January 1, 2018 was immaterial. Revenue Recognition We recognize sales of goods and services based on the five-step analysis of transactions as provided in Topic 606. For all contracts with customers, we first identify the contract which usually is established when a contract is fully executed by each party and consideration is expected to be received. Next, we identify the performance obligations in the contract. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. We then determine the transaction price in the arrangement and allocate the transaction price, if necessary, to each performance obligation identified in the contract. The allocation of the transaction price to the performance obligations are based on the relative standalone selling prices for the goods and services contained in a particular performance obligation. The transaction price is adjusted for the Company’s estimate of variable consideration which may include certain incentives and discounts, product returns, distributor fees, and storage fees. We evaluate the total amount of variable consideration expected to be earned by using the expected value method, as we believe this method represents the most appropriate estimate for this consideration, based on historical service trends, the individual contract considerations and our best judgment at the time. We include estimates of variable consideration in revenues only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We also generate the majority of our revenue on usage based fees which are variable and depend entirely on our customers use of perpetual licenses, transactions processed on our hosted environment, advertisement placements on our service platform, and activity on our cloud based service platform. We have made accounting policy elections to exclude all taxes by governmental authorities from the measurement of the transaction price, and since our standard payment terms are less than one year, we have elected the practical expedient not to assess whether a contract has a significant financing component. Performance Obligations CommSuite and Netwise Revenue In our Wireless segment, we sell our software solutions to major wireless network and cable operators. For our Netwise and CommSuite products, we may provide customization services for a fee to ensure our software solution can operate on their operating platforms and the operating platform of the mobile devices of our customer’s end users. In addition, since the mobile device OEMs change their operating systems regularly, we provide maintenance services to ensure utility of the software license is not diminished for our customers. We consider the customization services, the software license, and maintenance services to maintain the utility of the software license for our customers as a single performance obligation. We provide the perpetual license on a royalty free basis. Revenue related to customization services, if charged, is recognized at a point in time upon delivery and acceptance of the customized software license by the customer. To support the Netwise and CommSuite solutions, we also provide customers with our hosted environment and ASP services for the duration of the license term. We consider the provision of these services to be a separate performance obligation. In these transactions, the total consideration expected is variable. We do not estimate when the variable consideration will be recognized because the License Usage Based Fees, Hosting Service Fees and ASP Advertising Fees relate specifically to our efforts to transfer the services for a specified period (month or quarter) which are distinct from the services provided in other specified periods. Our customer’s or the customer’s end customer’s usage occurs within the defined period, and the variability of our license, hosting and ASP fees is resolved in the specified period, and such fees earned are not subject to adjustment based on the activity in other periods. We earn revenue from these services on a fixed fee per perpetual license usage on our hosted environment and advertising revenue share for advertisements placed by our customers on our platform. The usage fees are not earned until we transfer our software license to our customers. We recognize the usage based fees when we are entitled to the consideration earned for the distinct service period based on our customer’s usage of our licenses, hosting services, and ASP advertising platform (“hosted environment usage fees”). SafePath Cloud Based Services Our SafePath solution is a hybrid Software as a Service offering. We consider the provision of the perpetual license and the cloud based platform as a single performance obligation. We provide the perpetual license on a royalty free basis and earn revenue based on a fixed fee usage of our cloud based services. We recognize the usage based fees when we are entitled to the consideration earned for the distinct service period based on our customer’s usage of our cloud based services. ViewSpot Cloud Based Services During the first quarter of 2019, we acquired the Smart Retail contract asset from ISM Connect, LLC, later branded as ViewSpot. ViewSpot product is a cloud based platform that its Mobile Network Operator customers use to display its promotional content to mobile devices being sold in its retail outlets. Using this solution, the MNOs have the ability to promote specific mobile devices in targeted geographic retail locations and monitor the efficacy of the promotions and the mobile device user’s behavior to the targeted advertising. We sell a royalty free license, consulting services to configure the advertising content so that it can be displayed on targeted mobile devices, and cloud-based services to serve the advertising content and capture end consumer’s behavior on the mobile device. ViewSpot services depend on a significant level of integration, interdependency, and interrelation between the on-premise applications, consulting services and the cloud services, and are accounted for together as a single performance obligation. The ViewSpot services are sold on a fixed fee basis to our customers based on pre-defined purchase order. We receive upfront payments from customers for services to be provided under our ViewSpot arrangements. Since we are obligated to provide the required services over the contract period, the revenue is recognized over time. The advance receipts are deferred and subsequently recognized ratably over the contract period. From time to time, we also provide consulting services to configure ad hoc targeted promotional content for our customers upon request. These requests are driven by our customers’ marketing initiatives and tend to be short term “bursts” of activity. We recognize revenues from these ad hoc services at a point in time which is upon delivery of the configured promotional content to the cloud platform. Consulting Services and Other In our Wireless segment, we have developed a roadmap for adding new functionality to our products to extend the product lifecycle and expand our customer’s use of the product on their networks. From time to time, we enter into consulting services arrangements with our customers to develop incremental functionality not included on our developmental roadmap. We earn revenue from our consulting services that is recognized at the time of delivery of the software when the services have been completed and control has been transferred to our customers. We also enter into arrangements with certain customers to provide technology support services beyond the initial warranty period. Technology support services include e-mail and telephone support and unspecified rights to bug fixes available on a when-and-if available basis. We consider the provision of such technology support services to be a separate performance obligation. We generally bill in advance for a fixed term and recognize revenue from these arrangements ratably over the contractual term as we perform our services. Graphics Revenue We sell our off-the-shelf Graphics software products directly to end users as well as through our distribution and reseller channel partners. These products require no customization and minimal post-sale technology support services. We recognize revenue from Software sales at the time we transfer control of the product to the customer. This occurs upon shipment of the product or when the customer downloads the software from our website or website of our distributor and resellers partners. In some instances, we will consign our software products to a distributor or reseller. In those instances, we recognize revenue when the end consumer takes control of the product. We offer a 30 day return policy to our customers; a return reserve is established at the time revenue is recorded. We review available retail channel information and make a determination of a return provision for sales made to distributors and retailers based on current channel inventory levels and historical return patterns. The return reserve is monitored and adjusted based on actual experience. Historically, returns have been insignificant. Unearned Revenue Unearned revenue represents amounts billed to customers for which revenue has not been recognized. Unearned revenue primarily consists of the unearned portion of monthly, quarterly and annually billed service fees and prepayments made by customers for a future period. We recognize revenue upon transfer of control. Costs to Obtain a Customer Contract We generally pay sales commissions to our sales force, which are incremental and recoverable costs of acquiring contracts. In most instances, sales commissions are only paid when we earn usage based fees on the contracts. The commission obligation is established each quarter based on the usage based fees earned. The commission obligation is not adjusted by future usage based fees earned, that is each period is discrete from the other. As a result of the structure of the commission plan, we record the commission expense when the commission obligation is determined, which is generally quarterly. In the second quarter of 2019, we introduced an amended and restated sales commission plan that incentivizes and recognizes the efforts of eligible participants to earn commissions on future revenue generated on new contracts, sale of a new product to an existing contract, or sale of a product to a different group within an existing customer. The sales commissions are tiered based on the opportunity size. Sales commissions paid under this amended sales commission plan are incremental contract acquisition costs, and accordingly are recorded as a deferred contract asset that is amortized on a straight-line basis over the average contract life of the new, renewed and modified contract. Costs to Fulfill a Customer Contract We incur costs to fulfill obligations under a contract. We recognize these costs as we fulfill our performance obligation and recognize revenue. Where we provide services and earn revenue over the contract term based on usage of our platforms, we recognize the associated fulfillment costs as they are incurred and as usage based revenue is recognized. Disaggregation of Revenues We disaggregate revenue by our Wireless and Graphics products. Revenues on a disaggregated basis are as follows (in thousands): Year Ended December 31, 2019 2018 Wireless: Hosted environment usage fees $ 19,517 $ 18,889 Cloud based usage fees 20,011 3,327 Consulting services and other 3,076 2,258 Total wireless $ 42,604 $ 24,474 Graphics: Software 742 1,811 Total revenues $ 43,346 $ 26,285 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies 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 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 connection with 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 use of such facility or under such 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 13. Leases The Company leases office space and equipment, and certain office space is subleased. Management determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease. During the second quarter of 2019, the Company extended the lease term on its Pittsburgh, PA headquarters, which resulted in a net increase in right-of-use assets and lease liabilities of approximately $3.0 million. Additionally, an office lease in Aliso Viejo, CA commenced during the second quarter, which increased right-of-use assets and lease liabilities by approximately $1.5 million. During the fourth quarter of 2019, the company extended the lease term on its Belgrade, Serbia office space, which resulted in a net increase in right-to-use assets and lease liabilities of approximately $0.2 million. Operating lease cost consists of the following (in thousands): For the Year Ended December 31, 2019 Lease cost, gross $ 2,076 Sublease income (603 ) Total lease cost, net $ 1,473 Operating lease assets and liabilities are summarized as follows (in thousands): As of December 31, 2019 Right-of-use assets $ 6,464 Current lease liabilities $ 1,221 Long-term lease liabilities 5,774 Total lease liabilities $ 6,995 The maturity of operating lease liabilities is presented in the following table (in thousands): As of December 31, 2019 2020 $ 1,656 2021 1,633 2022 1,376 2023 1,388 2024 1,182 Thereafter 1,159 Total lease payments 8,394 Less imputed interest (1,399 ) Present value of lease liabilities $ 6,995 |
Segment, Customer Concentration
Segment, Customer Concentration and Geographical Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment, Customer Concentration and Geographical Information | 14. 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 has historically had two primary business units based on how management internally evaluates separate financial information, business activities and management responsibility: Wireless and Graphics. Wireless primarily includes our SafePath®, CommSuite®, and ViewSpot® family of products. Graphics includes our consumer-based products: Moho®, MotionArtist®, Rebelle, PhotoDonut and StuffIt®, Poser® (through June 2019), and Clip Studio® (through April 2018). With the more recent divestitures of Poser and Clip Studio, the Graphics business has become insignificant in relation to total consolidated revenues and no longer qualifies as a reportable operating segment. Therefore, the Company will disclose only one reportable operating segment, Wireless, and the following disclosures reflect this change. 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 presents the Wireless revenues by product (in thousands): Year Ended December 31, 2019 2018 CommSuite $ 18,713 $ 17,760 SafePath 17,782 3,327 ViewSpot 4,229 — Netwise 1,642 3,104 Other 238 283 Total wireless revenues $ 42,604 $ 24,474 The following table presents the quarterly revenues generated by the Wireless segment (in thousands): Year Ended December 31, 2019 2018 Quarter 1 $ 8,172 $ 4,816 Quarter 2 10,637 6,506 Quarter 3 11,614 6,283 Quarter 4 12,181 6,869 Total wireless revenues $ 42,604 $ 24,474 Customer Concentration Information Revenues generated from our sales to Sprint and their respective affiliates in the Wireless business segment accounted for 84% and 81% of the Company’s total revenues for fiscal years 2019 and 2018, respectively. This customer comprised 92% and 82% of our accounts receivable as of December 31, 2019 and 2018, respectively. This major customer could reduce their orders of our products in favor of a competitor's product or for any other reason. The loss of this major customer 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, 2019 and 2018, 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, 2019 2018 Americas $ 43,236 $ 26,054 EMEA 67 90 Asia Pacific 43 141 Total revenues $ 43,346 $ 26,285 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 15. Restructuring Restructuring charges in 2019 and 2018 related to one-time employee termination costs. The activity in our restructuring liability for the year ended December 31, 2019 (in thousands) follows: Balance at December 31, 2018 Provision, net Usage Transfer Balance at December 31, 2019 Lease/rental terminations $ 495 (11 ) — (484 ) $ — One-time employee termination benefits 114 194 (308 ) — — Total $ 609 $ 183 $ (308 ) $ (484 ) $ — On January 1, 2019, $0.5 million of reserves associated with lease terminations was offset with the right-of-use assets upon the adoption of ASC 842. |
Gain on Sale of Software Produc
Gain on Sale of Software Product | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Gain on Sale of Software Product | 16. Gain on Sale of Software Product In June 2019, pursuant to an Asset Purchase Agreement entered earlier in the same month, the Company sold certain assets of its Poser 3D animation software product to Bondware, Inc. for $500 thousand, of which $350 thousand was paid at closing and the remainder to be paid in quarterly installments over three years. The Company recorded a gain on the transaction in the amount of approximately $483 thousand, which is presented as Other Income in the consolidated statements of operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events The Company evaluates and discloses subsequent events as required by ASC Topic No. 855, Subsequent Events On February 12, 2020, the Company acquired the operator business of Circle Media Labs Inc. (“Circle”), a Delaware corporation, pursuant to a certain Asset Purchase Agreement (the “Purchase Agreement”) dated as of the same date by and between the Company and Circle. Pursuant to the terms of the Purchase Agreement, the Company acquired certain assets, including customer contracts and a perpetual source code license, for a purchase price of $13.5 million in cash. The Company has engaged a third party firm to value the acquired assets, and the results of such valuation are not available as of the date of issuance of the financial statements. During February 2020, certain holders of common stock warrants exercised approximately 1.0 million warrants resulting in cash proceeds of approximately $2.2 million. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 18. 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 2019 and 2018 are as follows (in thousands, except per share data): Year Ended December 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 8,432 $ 10,854 $ 11,782 $ 12,278 Gross profit $ 7,516 $ 9,880 $ 10,771 $ 11,252 Operating income $ 62 $ 2,932 $ 3,480 $ 3,631 Net income $ 48 $ 3,436 $ 3,567 $ 3,671 Net earnings per share - basic (1) $ — $ 0.11 $ 0.10 $ 0.10 Weighted average shares outstanding - basic 31,297 32,068 36,094 38,501 Net earnings per share - diluted (1) $ — $ 0.10 $ 0.09 $ 0.09 Weighted average shares outstanding - diluted 31,323 35,308 39,472 41,767 Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 5,463 $ 6,945 $ 6,525 $ 7,352 Gross profit $ 4,154 $ 5,829 $ 5,546 $ 6,423 Operating income (loss) $ (2,021 ) $ 74 $ 55 $ 678 Net income (loss) $ (2,381 ) $ (2,177 ) $ (983 ) $ 2,801 Net earnings (loss) per share - basic (1) $ (0.16 ) $ (0.10 ) $ (0.04 ) $ 0.10 Weighted average shares outstanding - basic 15,299 21,888 25,020 26,925 Net earnings (loss) per share - diluted (1) $ (0.16 ) $ (0.10 ) $ (0.04 ) $ 0.10 Weighted average shares outstanding - diluted 15,299 21,888 25,020 27,395 (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 Presen_2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | The Company Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless and cable service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, we strive to enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. Our portfolio includes a wide range of products for creating, sharing and monetizing rich content, such as visual voice messaging, retail content display optimization and performance analytics on any product set. In general, we offer our customers: • Valuable digital services that connect today’s digital lifestyle, including leading edge family location and parental controls, as well as enabling connected family and consumer IoT devices to mobile consumers worldwide; • Easy visual access to wirelessly delivered voicemail messages, while also providing easy conversion of voice messages to text and email messages that can be delivered through a variety of devices; • Immediate, consistent and measurable retail content that educates consumers, creates awareness of products and services and drives in store sales; and • Engaging retail content displayed on wireless devices in retail locations that also gather valuable actionable analytics. We continue to innovate and evolve our business to respond to industry trends and maximize opportunities in emerging markets, such as digital lifestyle services and online safety, “Big Data” analytics, automotive telematics, and the consumer IoT marketplace. The key to our longevity, however, is not simply technological innovation, but our never-ending focus on understanding our customers’ needs and delivering 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 (“U.S. GAAP”). 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 are Serbia, Sweden, and Portugal. 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 upon the sale of an asset or the amount that would be 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 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, 2019, one customer, accounting for over 10% of revenues, made up 84% of revenues and 92% of accounts receivable, and one service provider with more than 10% of purchases totaled 10% of accounts payable. For the year ended December 31, 2018, one customer, accounting for over 10% of revenues, made up 81% of revenues and 82% of accounts receivable, and one service provider with more than 10% of purchases totaled 21% 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 one financial institution 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, 2019 and 2018, bank balances totaling approximately $28.0 million and $11.8 million, respectively, were uninsured. |
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. |
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, 2019, 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 two to ten years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. |
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 |
Going Concern Evaluation | Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 31, 2019, 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 historical operating loss and negative cash flow from operating activities trends, including the positive trends occurring in the recent year. 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 and management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date. |
Revenue Recognition | Revenue Recognition The Company adopted FASB ASC Topic No. 606, Revenue from Contracts with Customers, In our Wireless segment, we transfer software licenses to our customers on a royalty free, non-exclusive, non-transferrable, limited use basis during the term of the agreement. In some instances, we perform customization services to ensure the software operates within our customer’s operating platforms as well as the operating platforms of the mobile devices used by their end customers before transferring the license. Revenue related to these services is recognized at a point in time upon acceptance of the software license by the customer. We also earn usage based revenue on our platforms. Usage based revenue is generated based on active licenses used by our customer’s end customers, the provision of hosting services, revenue share based on media placements on our platform, and use of our Cloud Based services. We recognize our usage based revenue when we have completed our performance obligation and have the right to invoice the customer. This revenue is generally recognized monthly or quarterly. Finally, in this segment, we ratably recognize revenue over the contract period when customers pay in advance of our service delivery. We also provide consulting services to develop customer specified functionality that are generally not on our software development roadmap. We recognize revenue from our consulting services upon delivery and acceptance by the customer of our software enhancements and upgrades. For certain Wireless segment customers we provide maintenance and technology support services for which the customer pays upfront or as we provide the services. When the customer pays upfront, we record the payments as contract liabilities and recognize revenue ratably over the contract period as this is our stand ready performance obligation that is satisfied ratably over the maintenance and technology services period For our Graphics products where we sell off-the-self software products with no customization or post sale technology support services, we recognize revenue at the time we transfer control of the product to the customer. This occurs upon shipment of the product or when the customer downloads the software from our website or website of our resellers. We offer a 30 day return option to our customers; a return reserve is established at the time revenue is recorded and the reserve is monitored and adjusted based on actual experience. Historically, returns have been insignificant. |
Product and Services Warranties | Product and Services Warranties Warranty related costs are recorded in our operating expenses as incurred as these costs are immaterial for the products and services we sell. |
Shipping and Handling Costs | Shipping and Handling Costs We incur shipping and handling costs as part of our Graphics software sales. These costs are treated as fulfillment costs and are expensed as incurred. |
Principal and Agent Considerations | Principal and Agent Considerations We own the Intellectual Property and retain ownership when we license our customized software solutions for use by our Wireless segment customers. We are a principal in these transactions and as such we recognize our Wireless segment revenue on a gross basis. We sell our Graphics software products directly to end consumers as well as through our distributors and re-sellers. We are a principal in these transactions as we bear the inventory risk, customers (or customer’s end users) view us as the primary obligor responsible for supporting the software products, and we have full discretion in establishing the prices for our graphics software products. As a principal we record our Graphics revenues on a gross basis. |
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 |
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 recognizes such awards 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 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) |
Earnings Per Share | Earnings Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share Year Ended December 31, 2019 2018 (in thousands, except per share amounts) Numerator: Net income (loss) $ 10,722 $ (2,740 ) Dividends paid to preferred stockholders (119 ) (404 ) Net income (loss) available to common stockholders $ 10,603 $ (3,144 ) Denominator: Weighted average shares outstanding - basic 34,513 22,322 Potential common shares - options (treasury stock method) 2,478 — Weighted average shares outstanding - diluted 36,991 22,322 Shares excluded due to an exercise price greater than weighted average stock price for the period 88 1,081 Earnings (loss) per common share: Basic $ 0.31 $ (0.14 ) Diluted $ 0.29 $ (0.14 ) |
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. The Company has historically had two primary business units based on how management internally evaluates separate financial information, business activities and management responsibility: Wireless and Graphics. Wireless primarily includes our SafePath®, CommSuite®, and ViewSpot® family of products. Graphics includes our consumer-based products: Moho®, MotionArtist®, Rebelle, PhotoDonut and StuffIt®, Poser® (through June 2019), and Clip Studio® (through April 2018). With the more recent divestitures of Poser and Clip Studio, the Graphics business has become insignificant in relation to total consolidated revenues and no longer qualifies as a reportable operating segment. Therefore, the Company will disclose only one reportable operating segment, Wireless, and the following disclosures reflect this change. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid for Acquisitions | The following table summarizes the consideration paid for the Smart Retail acquisition in 2019 (in thousands): Fair value of assets acquired $ 9,394 Fair value of liabilities assumed 291 Total purchase price $ 9,103 Components of purchase price: Cash $ 3,974 Common stock 5,129 Total purchase price $ 9,103 |
Summary of Allocation of Purchase Price | The Company’s allocation of the purchase price is summarized as follows (in thousands): Assets: Costs incurred on projects not complete $ 53 Intangible assets 5,229 Goodwill 4,112 Total assets $ 9,394 Liabilities: Deferred revenue $ 291 Total liabilities 291 Total purchase price $ 9,103 |
Summary of Unaudited Proforma Results of Operation | Unaudited pro forma results of operations for the years ended December 31, 2019 and 2018 are included below as if the acquisition occurred on January 1, 2018. This summary of the unaudited pro forma results of operations is not necessarily indicative of what the Company’s results of operations would have been had Smart Retail been acquired at the beginning of 2018, nor does it purport to represent results of operations for any future periods. Year Ended December 31, 2019 2018 (in thousands, except per share amounts) Revenues $ 43,346 $ 30,086 Net income (loss) 10,722 (1,421 ) Earnings (loss) per share: Basic $ 0.31 $ (0.08 ) Diluted $ 0.29 $ (0.08 ) |
Equipment and Improvements (Tab
Equipment and Improvements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Equipment and Improvements | Equipment and improvements consist of the following (in thousands): December 31, 2019 2018 Computer hardware, software, and equipment $ 9,079 $ 14,658 Leasehold improvements 2,808 5,316 Office furniture and fixtures 1,017 962 Construction in progress 494 25 13,398 20,961 Less accumulated depreciation and amortization (11,289 ) (20,096 ) Equipment and improvements, net $ 2,109 $ 865 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
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, 2019 and December 31, 2018 (in thousands, except for useful life data): December 31, 2019 Useful life (years) Gross Additions Accumulated amortization Net book value before impairment Impairment charge in 2016 Net book value Purchased technology 4-6 $ 265 $ 2,253 $ (687 ) $ 1,831 $ — $ 1,831 Customer relationships 3-10 999 2,976 (860 ) 3,115 (411 ) 2,704 Trademarks/trade names 2 38 — (38 ) — — — Non-compete 3 51 — (51 ) — — — Total $ 1,353 $ 5,229 $ (1,636 ) $ 4,946 $ (411 ) $ 4,535 December 31, 2018 Useful life (years) Gross Additions Accumulated amortization Net book value before impairment Impairment charge in 2016 Net book value Purchased technology 4-6 $ 265 $ — $ (125 ) $ 140 $ — $ 140 Customer relationships 3-6 999 — (499 ) 500 (411 ) 89 Trademarks/trade names 2 38 — (38 ) — — — Non-compete 3 51 — (42 ) 9 — 9 Total $ 1,353 — $ (704 ) $ 649 $ (411 ) $ 238 |
Future Amortization Expense Related to Intangible Assets | Future amortization expense related to intangible assets as of December 31, 2019 are as follows (in thousands): Year Ending December 31, 2020 $ 907 2021 901 2022 869 2023 345 2024 1,513 Total $ 4,535 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Domestic $ 10,833 $ (2,541 ) Foreign (31 ) (186 ) Total loss before provision for income taxes $ 10,802 $ (2,727 ) |
Summary of Income Tax Expense (Benefit) | A summary of the income tax expense (benefit) is as follows (in thousands): Year Ended December 31, 2019 2018 Current: Federal $ (132 ) $ (265 ) State 7 2 Foreign 108 63 Total current (17 ) (200 ) Deferred: Federal 144 265 State — — Foreign (47 ) (52 ) Total deferred 97 213 Total income tax expense (benefit) $ 80 $ 13 |
Federal Statutory Rate to Loss Before Income Taxes | A reconciliation of the provision for income taxes to the amount of income tax expense (benefit) that would result from applying the federal statutory rate to the loss before income taxes is as follows: Year Ended December 31, 2019 2018 Federal statutory rate 21.0 % 21.0 % State tax, net of federal benefit 3.6 3.0 Equity compensation 0.1 (0.7 ) International tax items 0.2 (1.7 ) Foreign taxes 0.6 (0.4 ) State NOL true-up (6.1 ) (30.4 ) Miscellaneous 0.4 (7.7 ) Effect of change in rate 0.9 (12.6 ) Change in valuation allowance (19.8 ) 29.0 0.7 % (0.5 ) % |
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, 2019 2018 Deferred income tax assets Net operating loss carry forwards $ 41,650 $ 41,356 Credit carry forwards 3,159 3,292 Fixed assets 373 493 Intangibles 4,679 6,417 Equity-based compensation 308 439 Nondeductible accruals 319 565 Various reserves 209 55 Other 2 107 Valuation allowance (50,397 ) (52,414 ) Total deferred income taxes - net 302 310 Deferred income tax liabilities Foreign intangibles (27 ) (74 ) Unrealized translation gain/loss (120 ) (4 ) Prepaid expenses (61 ) (41 ) Total deferred income liabilities (208 ) (119 ) Net deferred income tax assets $ 94 $ 191 |
Gross Unrecognized Tax Benefits Changes in Balances | The Company’s gross unrecognized tax benefits as of December 31, 2019 and 2018 and the changes in those balances are as follows (in thousands): Year Ended December 31, 2019 2018 Beginning balance $ 428 $ 428 Increases (decreases) in tax positions for the current year — — Increases (decreases) in tax positions for the prior year — — Gross unrecognized tax benefits, ending balance $ 428 $ 428 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Year Ended December 31, 2019 2018 (in thousands, except per share amounts) Numerator: Net income (loss) $ 10,722 $ (2,740 ) Dividends paid to preferred stockholders (119 ) (404 ) Net income (loss) available to common stockholders $ 10,603 $ (3,144 ) Denominator: Weighted average shares outstanding - basic 34,513 22,322 Potential common shares - options (treasury stock method) 2,478 — Weighted average shares outstanding - diluted 36,991 22,322 Shares excluded due to an exercise price greater than weighted average stock price for the period 88 1,081 Earnings (loss) per common share: Basic $ 0.31 $ (0.14 ) Diluted $ 0.29 $ (0.14 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018, using the Black-Scholes option pricing model, were as follows: Year Ended December 31, 2019 2018 Weighted average grant date fair value of stock options $ 1.84 $ 1.56 Assumptions Risk-free interest rate (weighted average) 2.36 % 2.90 % Expected dividend yield — — Weighted average expected life (years) 6.2 6.2 Volatility (weighted average) 78.7 % 73.8 % Forfeiture rate 26.0 % 26.6 % |
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: September March 31, September March 31, Offering Period Ended 2019 2019 2018 2018 Shares purchased for offering period 2,195 2,112 1,843 3,250 Fair value per share $ 2.28 $ 1.07 $ 0.96 $ 0.75 Assumptions Risk-free interest rate (average) 1.84 % 2.44 % 2.29 % 1.92 % Expected dividend yield — — — — Weighted average expected life (years) 0.5 0.5 0.5 0.5 Volatility (average) 86.3 % 51.7 % 54.3 % 81.4 % |
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, 2019 2018 Selling and marketing $ 247 $ 112 Research and development 278 207 General and administrative 969 616 Total non-cash stock compensation expense $ 1,494 $ 935 |
Summary of Outstanding Stock Options and Related Activity | A summary of the Company’s stock options outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2019 and the activity during the years ended herein are as follows (in thousands except per share amounts): Shares Weighted Avg. Exercise Price Wtd. Avg. Remaining Contractual Life (Yrs) Aggregate Intrinsic Value Outstanding as of December 31, 2017 137 $ 5.71 $ 7 (114 options exercisable at a weighted average exercise price of $6.18) Granted 30 $ 2.32 $ — Exercised — $ — $ — Canceled / expired (9 ) $ 8.96 $ — Outstanding as of December 31, 2018 158 $ 4.88 5.9 $ — (121 options exercisable at a weighted average exercise price of $5.64) Granted 65 $ 2.65 $ — Exercised (13 ) $ 3.81 $ 28 Canceled / expired (13 ) $ 7.81 $ 22 Outstanding as of December 31, 2019 197 $ 4.03 6.3 $ 171 Exercisable as of December 31, 2019 112 $ 5.16 4.1 $ 35 Vested and expected to vest at December 31, 2019 163 $ 3.67 6.0 $ 133 |
Summary of Outstanding Restricted Stock Awards and Related Activity | A summary of the Company’s restricted stock awards outstanding under the 2015 OEIP and 2005 Plan as of December 31, 2019, and the activity during years ended therein, are as follows (in thousands): Weighted Number grant date of shares fair value Unvested at December 31, 2017 167 3.49 Granted 1,125 1.92 Vested (283 ) 2.52 Canceled and forfeited (2 ) 0.83 Unvested at December 31, 2018 1,007 2.01 Granted 1,250 2.00 Vested (673 ) 2.06 Canceled and forfeited (25 ) 1.97 Unvested at December 31, 2019 1,559 1.98 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues on Disaggregated Basis | Revenues on a disaggregated basis are as follows (in thousands): Year Ended December 31, 2019 2018 Wireless: Hosted environment usage fees $ 19,517 $ 18,889 Cloud based usage fees 20,011 3,327 Consulting services and other 3,076 2,258 Total wireless $ 42,604 $ 24,474 Graphics: Software 742 1,811 Total revenues $ 43,346 $ 26,285 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Operating Lease Cost | Operating lease cost consists of the following (in thousands): For the Year Ended December 31, 2019 Lease cost, gross $ 2,076 Sublease income (603 ) Total lease cost, net $ 1,473 |
Summary of Operating Lease Assets and Liabilities | Operating lease assets and liabilities are summarized as follows (in thousands): As of December 31, 2019 Right-of-use assets $ 6,464 Current lease liabilities $ 1,221 Long-term lease liabilities 5,774 Total lease liabilities $ 6,995 |
Summary of Maturity of Operating Lease Liabilities | The maturity of operating lease liabilities is presented in the following table (in thousands): As of December 31, 2019 2020 $ 1,656 2021 1,633 2022 1,376 2023 1,388 2024 1,182 Thereafter 1,159 Total lease payments 8,394 Less imputed interest (1,399 ) Present value of lease liabilities $ 6,995 |
Segment, Customer Concentrati_2
Segment, Customer Concentration and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Wireless Revenues by Product and Quarterly Revenues Generated by the Wireless Segment | The following table presents the Wireless revenues by product (in thousands): Year Ended December 31, 2019 2018 CommSuite $ 18,713 $ 17,760 SafePath 17,782 3,327 ViewSpot 4,229 — Netwise 1,642 3,104 Other 238 283 Total wireless revenues $ 42,604 $ 24,474 The following table presents the quarterly revenues generated by the Wireless segment (in thousands): Year Ended December 31, 2019 2018 Quarter 1 $ 8,172 $ 4,816 Quarter 2 10,637 6,506 Quarter 3 11,614 6,283 Quarter 4 12,181 6,869 Total wireless revenues $ 42,604 $ 24,474 |
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, 2019 2018 Americas $ 43,236 $ 26,054 EMEA 67 90 Asia Pacific 43 141 Total revenues $ 43,346 $ 26,285 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Activity in Restructuring Liability Account | The activity in our restructuring liability for the year ended December 31, 2019 (in thousands) follows: Balance at December 31, 2018 Provision, net Usage Transfer Balance at December 31, 2019 Lease/rental terminations $ 495 (11 ) — (484 ) $ — One-time employee termination benefits 114 194 (308 ) — — Total $ 609 $ 183 $ (308 ) $ (484 ) $ — |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Information | Summarized quarterly data for fiscal 2019 and 2018 are as follows (in thousands, except per share data): Year Ended December 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 8,432 $ 10,854 $ 11,782 $ 12,278 Gross profit $ 7,516 $ 9,880 $ 10,771 $ 11,252 Operating income $ 62 $ 2,932 $ 3,480 $ 3,631 Net income $ 48 $ 3,436 $ 3,567 $ 3,671 Net earnings per share - basic (1) $ — $ 0.11 $ 0.10 $ 0.10 Weighted average shares outstanding - basic 31,297 32,068 36,094 38,501 Net earnings per share - diluted (1) $ — $ 0.10 $ 0.09 $ 0.09 Weighted average shares outstanding - diluted 31,323 35,308 39,472 41,767 Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Selected quarterly financial data: Revenues $ 5,463 $ 6,945 $ 6,525 $ 7,352 Gross profit $ 4,154 $ 5,829 $ 5,546 $ 6,423 Operating income (loss) $ (2,021 ) $ 74 $ 55 $ 678 Net income (loss) $ (2,381 ) $ (2,177 ) $ (983 ) $ 2,801 Net earnings (loss) per share - basic (1) $ (0.16 ) $ (0.10 ) $ (0.04 ) $ 0.10 Weighted average shares outstanding - basic 15,299 21,888 25,020 26,925 Net earnings (loss) per share - diluted (1) $ (0.16 ) $ (0.10 ) $ (0.04 ) $ 0.10 Weighted average shares outstanding - diluted 15,299 21,888 25,020 27,395 (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 Presen_3
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)CustomerServiceProviderInstitution | Dec. 31, 2018USD ($)CustomerServiceProvider | Dec. 31, 2016USD ($) |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers concentrated | Customer | 1 | 1 | ||
Number of service providers concentrated | ServiceProvider | 1 | 1 | ||
Financial institutions to held securities | Institution | 1 | |||
Cash and cash equivalents original maturity dates | Three months or less | |||
Bank balances | $ 28,000,000 | $ 11,800,000 | ||
Costs capitalized | $ 0 | |||
Substantial doubt about going concern, management's evaluation | In connection with preparing consolidated financial statements for the year ended December 31, 2019, 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 historical operating loss and negative cash flow from operating activities trends, including the positive trends occurring in the recent year. 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 and management believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date. | |||
Net lease assets | $ 6,464,000 | |||
Lease liabilities | 6,995,000 | |||
Adjustment to retained earnings | 93,000 | |||
ASC 842 [Member] | ||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Net lease assets | $ 3,100,000 | |||
Lease liabilities | 3,100,000 | |||
Adjustment to retained earnings | $ 100,000 | |||
Graphics [Member] | ||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Total sales incentives | $ 16,000 | $ 100,000 | ||
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 | 84.00% | 81.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration percentage | 92.00% | 82.00% | ||
Supplier concentration risk [Member] | Accounts payable [Member] | ||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration percentage | 10.00% | 21.00% | ||
Minimum [Member] | ||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of the assets | 3 years | |||
Intangible assets and amortization, useful life | 2 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% | ||
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% | ||
Maximum [Member] | ||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of the assets | 7 years | |||
Intangible assets and amortization, useful life | 10 years |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Paid for Acquisitions (Detail) - Smart Retail [Member] $ in Thousands | Jan. 09, 2019USD ($) |
Business Acquisition [Line Items] | |
Fair value of assets acquired | $ 9,394 |
Fair value of liabilities assumed | 291 |
Total purchase price | 9,103 |
Components of purchase price: | |
Cash | 3,974 |
Common stock | 5,129 |
Total purchase price | $ 9,103 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 09, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 7,797 | $ 3,685 | |
Smart Retail [Member] | |||
Business Acquisition [Line Items] | |||
Costs incurred on projects not complete | $ 53 | ||
Intangible assets | 5,229 | ||
Goodwill | 4,112 | ||
Total assets | 9,394 | ||
Deferred revenue | 291 | ||
Total liabilities | 291 | ||
Total purchase price | $ 9,103 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Proforma Results of Operation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition Pro Forma Information [Abstract] | ||
Revenues | $ 43,346 | $ 30,086 |
Net income (loss) | $ 10,722 | $ (1,421) |
Earnings (loss) per share: | ||
Basic | $ 0.31 | $ (0.08) |
Diluted | $ 0.29 | $ (0.08) |
Equipment and Improvements - Su
Equipment and Improvements - Summary of Equipment and Improvements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Gross, Total | $ 13,398 | $ 20,961 |
Less accumulated depreciation and amortization | (11,289) | (20,096) |
Equipment and improvements, net | 2,109 | 865 |
Computer Hardware, Software, and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 9,079 | 14,658 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 2,808 | 5,316 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | 1,017 | 962 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross, Total | $ 494 | $ 25 |
Equipment and Improvements - Ad
Equipment and Improvements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense on equipment and improvements | $ 0.4 | $ 0.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets by Major Asset Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,353 | $ 1,353 |
Additions | 5,229 | |
Accumulated amortization | (1,636) | (704) |
Net book value before impairment | 4,946 | 649 |
Impairment charge | (411) | (411) |
Net book value | 4,535 | 238 |
Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 265 | 265 |
Additions | 2,253 | |
Accumulated amortization | (687) | (125) |
Net book value before impairment | 1,831 | 140 |
Net book value | 1,831 | 140 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 999 | 999 |
Additions | 2,976 | |
Accumulated amortization | (860) | (499) |
Net book value before impairment | 3,115 | 500 |
Impairment charge | (411) | (411) |
Net book value | $ 2,704 | $ 89 |
Trademarks/Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 2 years | 2 years |
Gross | $ 38 | $ 38 |
Accumulated amortization | $ (38) | $ (38) |
Non-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | 3 years |
Gross | $ 51 | $ 51 |
Accumulated amortization | $ (51) | (42) |
Net book value before impairment | 9 | |
Net book value | $ 9 | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 2 years | |
Minimum [Member] | Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 4 years | 4 years |
Minimum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | 3 years |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Maximum [Member] | Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 6 years | 6 years |
Maximum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | 6 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible assets amortization expense | $ 900,000 | $ 200,000 | ||
Impairment loss of intangible assets | $ 400,000 | $ 400,000 | ||
Impairment of goodwill | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets Net [Abstract] | ||
2020 | $ 907 | |
2021 | 901 | |
2022 | 869 | |
2023 | 345 | |
2024 | 1,513 | |
Total | $ 4,535 | $ 238 |
Debt and Related Party Transa_2
Debt and Related Party Transactions - Additional Information (Detail) - USD ($) | Mar. 06, 2018 | Jan. 30, 2018 | Jan. 29, 2018 | Sep. 29, 2017 | Aug. 24, 2017 | Aug. 23, 2017 | Aug. 18, 2017 | Aug. 17, 2017 | Mar. 31, 2017 | Feb. 08, 2017 | Feb. 07, 2017 | Sep. 06, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Jun. 30, 2017 | Sep. 02, 2016 |
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Gain (loss) on related party debt extinguishment | $ (203,000) | ||||||||||||||||
Series B 10% Convertible Preferred Stock [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Preferred stock, dividend rate | 10.00% | ||||||||||||||||
William W. and Dieva L. Smith [Member] | Short-term Indebtedness [Member] | Series B 10% Convertible Preferred Stock [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 800,000 | ||||||||||||||||
Preferred stock, shares issued upon convertible debt | 750 | ||||||||||||||||
William W. and Dieva L. Smith [Member] | Long-term Indebtedness [Member] | Series B 10% Convertible Preferred Stock [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||||||||
Preferred stock, shares issued upon convertible debt | 2,000 | ||||||||||||||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | ||||||||||||||||
Interest rate per annum | 18.00% | ||||||||||||||||
Notes due date | Jul. 25, 2018 | Jun. 26, 2017 | Mar. 24, 2017 | ||||||||||||||
Debt instrument extended maturity date | Mar. 25, 2020 | Jun. 26, 2017 | |||||||||||||||
William W. and Dieva L. Smith [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Interest rate per annum | 12.00% | 12.00% | |||||||||||||||
Notes due date | Jan. 25, 2018 | Jan. 25, 2018 | Sep. 25, 2017 | Sep. 25, 2017 | |||||||||||||
Aggregate principal amount | $ 1,000,000 | ||||||||||||||||
Notes due date, description | The maturity date of the Replacement Note entered into with Smith may be extended by up to 180 days upon the mutual consent of the Company and Smith. Each of the Replacement Notes were secured by the Company’s accounts receivable and certain other assets. | ||||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 800,000 | ||||||||||||||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | ||||||||||||||||
Interest rate per annum | 18.00% | ||||||||||||||||
Notes due date | Feb. 11, 2018 | Aug. 18, 2017 | Mar. 24, 2017 | ||||||||||||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement Matured on June 23, 2017 [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 1,000,000 | ||||||||||||||||
Notes due date | Jun. 23, 2017 | ||||||||||||||||
Steven L. and Monique P. Elfman [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Interest rate per annum | 12.00% | ||||||||||||||||
Notes due date | Jan. 25, 2018 | Sep. 25, 2017 | Sep. 25, 2017 | ||||||||||||||
Aggregate principal amount | $ 1,000,000 | ||||||||||||||||
Andrew Arno [Member] | Short-term Indebtedness [Member] | Series B 10% Convertible Preferred Stock [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 100,000 | ||||||||||||||||
Preferred stock, shares issued upon convertible debt | 50 | ||||||||||||||||
Andrew Arno [Member] | Secured Promissory Note [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Notes due date | Jul. 25, 2018 | Aug. 24, 2017 | |||||||||||||||
Debt instrument extended maturity date | Mar. 25, 2020 | ||||||||||||||||
Andrew Arno [Member] | Secured Promissory Note [Member] | New Short-term Secured Borrowing Arrangement [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Interest rate per annum | 12.00% | ||||||||||||||||
Notes due date | Jan. 31, 2018 | ||||||||||||||||
Aggregate principal amount | $ 300,000 | ||||||||||||||||
Proceeds from short term secured borrowing arrangement | $ 300,000 | ||||||||||||||||
Next Generation TC FBO Andrew Arno IRA 1663 [Member] | Secured Promissory Note [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Notes due date | Jul. 25, 2018 | Aug. 24, 2017 | |||||||||||||||
Debt instrument extended maturity date | Mar. 25, 2020 | ||||||||||||||||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Senior Subordinated Notes [Member] | Long Term Related Party Loan Extinguishment | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Repayment of long-term note | $ 2,000,000 | ||||||||||||||||
Gain (loss) on related party debt extinguishment | $ (200,000) | ||||||||||||||||
Unterberg Koller Capital Fund L.P. and William W. and Dieva L. Smith [Member] | Note and Warrant Purchase Agreement [Member] | Senior Subordinated Notes [Member] | |||||||||||||||||
Debt and Related Party Transactions [Line Items] | |||||||||||||||||
Interest rate per annum | 10.00% | ||||||||||||||||
Notes due date | Sep. 6, 2019 | ||||||||||||||||
Aggregate principal amount | $ 4,000,000 | ||||||||||||||||
Notes maturity period | 3 years |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Detail) - USD ($) | Nov. 07, 2018 | May 03, 2018 | Apr. 19, 2018 | Mar. 06, 2018 | Sep. 29, 2017 | Sep. 06, 2016 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||||
Repayment of short and long-term debt obligations | $ 3,200,000 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, issued and sold to investors | 9,267,000 | |||||||
Series B Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, conversion price per share | $ 1.14 | |||||||
Convertible preferred stock, terms of conversion | In the event that the trading price of the Company’s Common Stock for 20 consecutive trading days (as determined in the Certificate of Designation) exceeds 400% of the then effective Conversion Price of the Series B Preferred Stock (initially set at $1.14), the Company may force conversion of the Series B Preferred Stock into shares of Common Stock or elect to redeem the Series B Preferred Stock for cash. | |||||||
Preferred stock threshold consecutive trading days | 20 days | |||||||
Trading price of common stock exceeds conversion price, percentage | 400.00% | |||||||
Convertible preferred stock, right to increase in dividend percentage upon stock price trigger | 12.00% | |||||||
Series B Preferred Stock [Member] | Smith Warrant [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares converted into common stock | 2,750 | |||||||
Series B Preferred Stock [Member] | Andrew Arno [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares converted into common stock | 50 | |||||||
Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Gross proceeds from issuance of preferred stock | $ 2,700,000 | |||||||
Net proceeds from issuance of preferred stock | 2,500,000 | |||||||
Preferred stock liquidation damage payments | $ 48,000 | |||||||
Offering [Member] | Smith Warrant [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Debt instrument, principal amount | 2,800,000 | |||||||
Offering [Member] | Andrew Arno [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Debt instrument, principal amount | $ 100,000 | |||||||
Offering [Member] | Series B Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, issued and sold to investors | 5,500 | |||||||
Preferred stock, dividend rate | 10.00% | |||||||
Preferred stock, price per share | $ 1,000 | |||||||
Preferred stock, issued and sold to investors, purchase price | $ 5,500,000 | |||||||
Preferred stock, conversion price per share | $ 1.14 | |||||||
Preferred stock, shares converted into common stock | 4,824,562 | |||||||
Preferred stock, dividend payment terms | The holders of Series B Preferred Stock were entitled to receive cumulative dividends out of funds legally available thereof at a rate of ten percent (10%) per annum, payable (i) when and as declared by the Board of Directors, in quarterly installments on March 1, June 1, September 1 and December 1, (ii) upon conversion into Common Stock with respect the Series B Preferred Stock being converted, and (iii) upon redemption of the Series B Preferred Stock by the Company. | |||||||
March 2018 Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Gross proceeds before deducting transaction fees and other expenses | $ 5,000,000 | |||||||
Cash proceeds from issuance of common stock, net of offering costs | $ 4,500,000 | |||||||
March 2018 Offering [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, issued and sold to investors | 2,857,144 | |||||||
Common stock, price per share | $ 1.75 | |||||||
Common stock exercise price | 2.17 | |||||||
March 2018 Offering [Member] | Warrant [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Triggering event charges | $ 11,000 | |||||||
March 2018 Offering [Member] | Unterberg Koller Capital Fund L P [Member] | Maximum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock exercise price | $ 2.14 | |||||||
March 2018 Offering [Member] | Unterberg Koller Capital Fund L P [Member] | Minimum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock exercise price | $ 2.07 | |||||||
Chardan Capital Markets, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock exercise price | $ 2.365 | |||||||
Percentage of gross proceeds of offering | 6.00% | 7.00% | 8.00% | |||||
Percentage of warrants to purchase shares of common stock on number of shares sold | 3.00% | |||||||
Warrants term | 5 years 6 months | |||||||
May 2018 Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Gross proceeds before deducting transaction fees and other expenses | $ 7,000,000 | |||||||
Cash proceeds from issuance of common stock, net of offering costs | $ 6,300,000 | |||||||
May 2018 Offering [Member] | Roth Capital Partners, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Percentage of gross proceeds of offering | 2.00% | |||||||
May 2018 Offering [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, issued and sold to investors | 3,170,000 | |||||||
Common stock, price per share | $ 2.21 | |||||||
Common stock exercise price | $ 2.11 | |||||||
November 2018 Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Gross proceeds before deducting transaction fees and other expenses | $ 7,500,000 | |||||||
Cash proceeds from issuance of common stock, net of offering costs | $ 6,900,000 | |||||||
November 2018 Offering [Member] | Roth Capital Partners, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Percentage of gross proceeds of offering | 2.00% | |||||||
November 2018 Offering [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, issued and sold to investors | 3,239,785 | |||||||
Common stock, price per share | $ 2.32 | |||||||
Common stock exercise price | $ 2.20 |
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, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ 10,833 | $ (2,541) |
Foreign | (31) | (186) |
Income (loss) before provision for income taxes | $ 10,802 | $ (2,727) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
Federal | $ (132) | $ (265) |
State | 7 | 2 |
Foreign | 108 | 63 |
Total current | (17) | (200) |
Deferred: | ||
Federal | 144 | 265 |
Foreign | (47) | (52) |
Total deferred | 97 | 213 |
Total income tax expense (benefit) | $ 80 | $ 13 |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Rate to Loss Before Income Taxes (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 21.00% |
State tax, net of federal benefit | 3.60% | 3.00% |
Equity compensation | 0.10% | (0.70%) |
International tax items | 0.20% | (1.70%) |
Foreign taxes | 0.60% | (0.40%) |
State NOL true-up | (6.10%) | (30.40%) |
Miscellaneous | 0.40% | (7.70%) |
Effect of change in rate | 0.90% | (12.60%) |
Change in valuation allowance | (19.80%) | 29.00% |
Total | 0.70% | (0.50%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets | ||
Net operating loss carry forwards | $ 41,650 | $ 41,356 |
Credit carry forwards | 3,159 | 3,292 |
Fixed assets | 373 | 493 |
Intangibles | 4,679 | 6,417 |
Equity-based compensation | 308 | 439 |
Nondeductible accruals | 319 | 565 |
Various reserves | 209 | 55 |
Other | 2 | 107 |
Valuation allowance | (50,397) | (52,414) |
Total deferred income taxes - net | 302 | 310 |
Deferred income tax liabilities | ||
Foreign intangibles | (27) | (74) |
Unrealized translation gain | (120) | (4) |
Prepaid expenses | (61) | (41) |
Total deferred income liabilities | (208) | (119) |
Net deferred income tax assets | $ 94 | $ 191 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Alternative minimum tax credit carryforwards | $ 100,000 | ||
Tax credit carryforwards, Expire year | 2028 | ||
Unrecognized tax benefits | $ 428,000 | $ 428,000 | $ 428,000 |
Cumulative loss period | 5 years | ||
Valuation allowance | $ 50,397,000 | 52,414,000 | |
Increase (decrease) in valuation allowance of deferred tax assets | (2,000,000) | (500,000) | |
Interest and penalties | 0 | 0 | |
Cumulative interest and penalties | 0 | 0 | |
Outstanding tax audit | 0 | ||
Income (loss) before provision for income taxes for foreign subsidiaries | (31,000) | $ (186,000) | |
Alternative minimum tax credit carryforwards | 500,000 | ||
Amount of income tax refund classified as federal income tax receivable | 133,000 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income related to GILTI | 59,000 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 158,100,000 | ||
Net operating loss carryforwards, expiry terms | Federal NOL carryforwards will expire from 2024 through 2037 | ||
Tax credit carryforwards | $ 2,500,000 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 145,900,000 | ||
Net operating loss carryforwards, expiry terms | State NOL carryforwards will expire 2019 through 2039 | ||
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, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 428 | $ 428 |
Increases (decreases) in tax positions for the prior year | 0 | 0 |
Gross unrecognized tax benefits, ending balance | $ 428 | $ 428 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||||||||||
Net income (loss) | $ 10,722 | $ (2,740) | ||||||||
Dividends paid to preferred stockholders | (119) | (404) | ||||||||
Net income (loss) available to common stockholders | $ 10,603 | $ (3,144) | ||||||||
Denominator: | ||||||||||
Weighted average shares outstanding - basic | 38,501 | 36,094 | 32,068 | 31,297 | 26,925 | 25,020 | 21,888 | 15,299 | 34,513 | 22,322 |
Potential common shares - options (treasury stock method) | 2,478 | |||||||||
Weighted average shares outstanding - diluted | 41,767 | 39,472 | 35,308 | 31,323 | 27,395 | 25,020 | 21,888 | 15,299 | 36,991 | 22,322 |
Shares excluded due to an exercise price greater than weighted average stock price for the period | 88 | 1,081 | ||||||||
Earnings (loss) per common share: | ||||||||||
Basic | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.10 | $ (0.04) | $ (0.10) | $ (0.16) | $ 0.31 | $ (0.14) | |
Diluted | $ 0.09 | $ 0.09 | $ 0.10 | $ 0.10 | $ (0.04) | $ (0.10) | $ (0.16) | $ 0.29 | $ (0.14) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Employers matching contribution percentage to 401(k) plan | 20.00% | |
Total employer contributions to 401(k) plan | $ 0.2 | $ 0.1 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Jun. 18, 2015 | |
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 | |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs related to non-vested awards granted | $ 2,900,000 | |
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 | 4,625,000 | |
Number of shares available for future grants | 1,300,000 | |
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] | Partial 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] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 48 months | |
Vested stock options exercised period following termination | 90 days | |
2015 Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 12 months | |
2005 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for future grants | 0 |
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, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Weighted average grant date fair value of stock options | $ 1.84 | $ 1.56 | ||||
Assumptions | ||||||
Risk-free interest rate (weighted average) | 1.84% | 2.44% | 2.29% | 1.92% | 2.36% | 2.90% |
Weighted average expected life (years) | 6 months | 6 months | 6 months | 6 months | 6 years 2 months 12 days | 6 years 2 months 12 days |
Volatility (weighted average) | 86.30% | 51.70% | 54.30% | 81.40% | 78.70% | 73.80% |
Forfeiture rate | 26.00% | 26.60% |
Stock-Based Compensation - As_2
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, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Shares purchased for offering period | 2,195 | 2,112 | 1,843 | 3,250 | ||
Fair value per share | $ 2.28 | $ 1.07 | $ 0.96 | $ 0.75 | ||
Assumptions | ||||||
Risk-free interest rate (average) | 1.84% | 2.44% | 2.29% | 1.92% | 2.36% | 2.90% |
Weighted average expected life (years) | 6 months | 6 months | 6 months | 6 months | 6 years 2 months 12 days | 6 years 2 months 12 days |
Volatility (average) | 86.30% | 51.70% | 54.30% | 81.40% | 78.70% | 73.80% |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Cash Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | $ 1,494 | $ 935 |
Selling and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 247 | 112 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | 278 | 207 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock compensation expense | $ 969 | $ 616 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Stock Options and Related Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Outstanding Shares, beginning balance | 158 | 137 | |
Granted Shares | 65 | 30 | |
Exercised Shares | (13) | ||
Canceled / expired Shares | (13) | (9) | |
Outstanding Shares, ending balance | 197 | 158 | |
Exercisable Shares | 112 | 121 | 114 |
Vested and expected to vest Shares | 163 | ||
Outstanding Weighted Avg. Exercise Price, beginning balance | $ 4.88 | $ 5.71 | |
Granted, Weighted Avg. Exercise Price | 2.65 | 2.32 | |
Exercised, Weighted Avg. Exercise Price | 3.81 | ||
Canceled / expired, Weighted Avg. Exercise Price | 7.81 | 8.96 | |
Outstanding Weighted Avg. Exercise Price, ending balance | 4.03 | 4.88 | |
Exercisable, Weighted Avg. Exercise Price | 5.16 | $ 5.64 | $ 6.18 |
Vested and expected to vest, Weighted Avg. Exercise Price | $ 3.67 | ||
Outstanding Wtd. Avg. Remaining Contractual Life | 6 years 3 months 18 days | 5 years 10 months 24 days | |
Exercisable, Wtd. Avg. Remaining Contractual Life | 4 years 1 month 6 days | ||
Vested and expected to vest, Wtd. Avg. Remaining Contractual Life | 6 years | ||
Aggregate Intrinsic Value, beginning balance | $ 7 | ||
Aggregate Intrinsic Value, Exercised | $ 28 | ||
Aggregate Intrinsic Value, Canceled / Expired | 22 | ||
Aggregate Intrinsic Value, ending balance | 171 | ||
Exercisable, Aggregate Intrinsic Value | 35 | ||
Vested and expected to vest, Aggregate Intrinsic Value | $ 133 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Outstanding Stock Options and Related Activity (Parenthetical) (Detail) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Exercisable, options | 112 | 121 | 114 |
Exercisable, weighted average exercise price | $ 5.16 | $ 5.64 | $ 6.18 |
Stock-Based Compensation - Su_3
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, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, beginning balance | 1,007 | 167 |
Number of shares, Granted | 1,250 | 1,125 |
Number of shares, Vested | (673) | (283) |
Number of shares, Canceled and forfeited | (25) | (2) |
Number of shares, ending balance | 1,559 | 1,007 |
Weighted average grant date fair value, beginning balance | $ 2.01 | $ 3.49 |
Weighted average grant date fair value, Granted | 2 | 1.92 |
Weighted average grant date fair value, Vested | 2.06 | 2.52 |
Number of shares, Canceled and forfeited | 1.97 | 0.83 |
Weighted average grant date fair value, ending balance | $ 1.98 | $ 2.01 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation Of Revenue [Abstract] | |
Sales return period | 30 days |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues on Disaggregated Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenues | $ 12,278 | $ 11,782 | $ 10,854 | $ 8,432 | $ 7,352 | $ 6,525 | $ 6,945 | $ 5,463 | $ 43,346 | $ 26,285 |
Wireless [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenues | $ 12,181 | $ 11,614 | $ 10,637 | $ 8,172 | $ 6,869 | $ 6,283 | $ 6,506 | $ 4,816 | 42,604 | 24,474 |
Wireless [Member] | Hosted Environment Usage Fees [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenues | 19,517 | 18,889 | ||||||||
Wireless [Member] | Cloud Based Usage Fees [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenues | 20,011 | 3,327 | ||||||||
Wireless [Member] | Consulting Services and Other [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenues | 3,076 | 2,258 | ||||||||
Graphics [Member] | Software [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Revenues | $ 742 | $ 1,811 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 19, 2016USD ($)Installment | Dec. 31, 2019 | Dec. 31, 2013Number_Of_People | Jun. 27, 2016USD ($) | Sep. 26, 2011USD ($) |
Leases [Abstract] | |||||
Amount received to start-up new facility | $ 1 | $ 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 | ||||
Funds to be repaid 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 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Lessee Lease Description [Line Items] | ||
Operating lease description | The Company leases office space and equipment, and certain office space is subleased. Management determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. | |
Right-of-use assets | $ 6,464 | |
Lease liabilities | 6,995 | |
PA | ||
Lessee Lease Description [Line Items] | ||
Right-of-use assets | $ 3,000 | |
Lease liabilities | 3,000 | |
CA | ||
Lessee Lease Description [Line Items] | ||
Right-of-use assets | 1,500 | |
Lease liabilities | $ 1,500 | |
Serbia | ||
Lessee Lease Description [Line Items] | ||
Right-of-use assets | 200 | |
Lease liabilities | $ 200 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost [Abstract] | |
Lease cost, gross | $ 2,076 |
Sublease income | 603 |
Total lease cost, net | $ 1,473 |
Leases - Summary of Operating_2
Leases - Summary of Operating Lease Assets and Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Assets And Liabilities Lessee [Abstract] | |
Right-of-use assets | $ 6,464 |
Current lease liabilities | 1,221 |
Long-term lease liabilities | 5,774 |
Total lease liabilities | $ 6,995 |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 1,656 |
2021 | 1,633 |
2022 | 1,376 |
2023 | 1,388 |
2024 | 1,182 |
Thereafter | 1,159 |
Total lease payments | 8,394 |
Less imputed interest | (1,399) |
Present value of lease liabilities | $ 6,995 |
Segment, Customer Concentrati_3
Segment, Customer Concentration and Geographical Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019Business_UnitLocation | Dec. 31, 2018Location | |
Revenue, Major Customer [Line Items] | ||
Number of primary business units | Business_Unit | 1 | |
Number of geographic locations | Location | 3 | 3 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration percentage | 92.00% | 82.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Sprint and Fast Spring [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration percentage | 92.00% | 82.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Sprint and Affiliates [Member] | Wireless [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration percentage | 84.00% | 81.00% |
Segment, Customer Concentrati_4
Segment, Customer Concentration and Geographical Information - Wireless Revenues by Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 12,278 | $ 11,782 | $ 10,854 | $ 8,432 | $ 7,352 | $ 6,525 | $ 6,945 | $ 5,463 | $ 43,346 | $ 26,285 |
Wireless [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 12,181 | $ 11,614 | $ 10,637 | $ 8,172 | $ 6,869 | $ 6,283 | $ 6,506 | $ 4,816 | 42,604 | 24,474 |
Wireless [Member] | CommSuite [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | 18,713 | 17,760 | ||||||||
Wireless [Member] | SafePath [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | 17,782 | 3,327 | ||||||||
Wireless [Member] | ViewSpot [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | 4,229 | |||||||||
Wireless [Member] | Netwise [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | 1,642 | 3,104 | ||||||||
Wireless [Member] | Other [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 238 | $ 283 |
Segment, Customer Concentrati_5
Segment, Customer Concentration and Geographical Information - Quarterly Revenues Generated by the Wireless Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 12,278 | $ 11,782 | $ 10,854 | $ 8,432 | $ 7,352 | $ 6,525 | $ 6,945 | $ 5,463 | $ 43,346 | $ 26,285 |
Wireless [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 12,181 | $ 11,614 | $ 10,637 | $ 8,172 | $ 6,869 | $ 6,283 | $ 6,506 | $ 4,816 | $ 42,604 | $ 24,474 |
Segment, Customer Concentrati_6
Segment, Customer Concentration and Geographical Information - Company Revenue in Different Geographic Locations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 12,278 | $ 11,782 | $ 10,854 | $ 8,432 | $ 7,352 | $ 6,525 | $ 6,945 | $ 5,463 | $ 43,346 | $ 26,285 |
Americas [Member] | Reportable Geographical Components [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | 43,236 | 26,054 | ||||||||
EMEA [Member] | Reportable Geographical Components [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | 67 | 90 | ||||||||
Asia Pacific [Member] | Reportable Geographical Components [Member] | ||||||||||
Revenue from External Customer [Line Items] | ||||||||||
Total revenues | $ 43 | $ 141 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Liability Accounts (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 609 |
Provision, net | 183 |
Usage | (308) |
Transfer | (484) |
Lease/Rental Terminations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 495 |
Provision, net | (11) |
Transfer | (484) |
One-Time Employee Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 114 |
Provision, net | 194 |
Usage | $ (308) |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Reserves associated with lease terminations | $ 609 | |
Lease Terminations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserves associated with lease terminations | $ 495 | |
Lease Terminations [Member] | ASC 842 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserves associated with lease terminations | $ 500 |
Gain on Sale of Software Prod_2
Gain on Sale of Software Product - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2019 | |
Income Statement Balance Sheet and Additional Disclosures by Disposal Groups Including Discontinued Operations [Line Items] | ||
Proceeds from sale of software product | $ 370 | |
Gain on sale of software product | $ 483 | |
Asset Purchase Agreement [Member] | Poser 3D Software Product [Member] | Bondware, Inc. [Member] | ||
Income Statement Balance Sheet and Additional Disclosures by Disposal Groups Including Discontinued Operations [Line Items] | ||
Consideration for sale of asset | $ 500 | |
Proceeds from sale of software product | $ 350 | |
Remaining consideration payment period | 3 years | |
Gain on sale of software product | $ 483 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | Feb. 12, 2020 | Feb. 29, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Proceeds from exercise of common stock warrants | $ 11,457 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of warrants exercised | 1 | ||
Proceeds from exercise of common stock warrants | $ 2,200 | ||
Asset Purchase Agreement [Member] | Subsequent Event [Member] | Circle Media Labs Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Cash | $ 13,500 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summarized Quarterly Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenues | $ 12,278 | $ 11,782 | $ 10,854 | $ 8,432 | $ 7,352 | $ 6,525 | $ 6,945 | $ 5,463 | $ 43,346 | $ 26,285 |
Gross profit | 11,252 | 10,771 | 9,880 | 7,516 | 6,423 | 5,546 | 5,829 | 4,154 | 39,419 | 21,952 |
Operating income (loss) | 3,631 | 3,480 | 2,932 | 62 | 678 | 55 | 74 | (2,021) | 10,105 | (1,214) |
Net income (loss) | $ 3,671 | $ 3,567 | $ 3,436 | $ 48 | $ 2,801 | $ (983) | $ (2,177) | $ (2,381) | $ 10,722 | $ (2,740) |
Net earnings (loss) per share - basic | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.10 | $ (0.04) | $ (0.10) | $ (0.16) | $ 0.31 | $ (0.14) | |
Weighted average shares outstanding - basic | 38,501 | 36,094 | 32,068 | 31,297 | 26,925 | 25,020 | 21,888 | 15,299 | 34,513 | 22,322 |
Net earnings (loss) per share - diluted | $ 0.09 | $ 0.09 | $ 0.10 | $ 0.10 | $ (0.04) | $ (0.10) | $ (0.16) | $ 0.29 | $ (0.14) | |
Weighted average shares outstanding - diluted | 41,767 | 39,472 | 35,308 | 31,323 | 27,395 | 25,020 | 21,888 | 15,299 | 36,991 | 22,322 |