Smith Micro Software (SMSI) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 05, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Trading Symbol	SMSI
Entity Registrant Name	SMITH MICRO SOFTWARE, INC.
Entity Central Index Key	0000948708
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		41,295,351
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	00-135525
Entity Tax Identification Number	33-0029027
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
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 25,872	$ 28,268
Accounts receivable, net of allowance for doubtful accounts and other adjustments of $84 (2020) and $253 (2019)	9,797	10,894
Prepaid expenses and other current assets	1,329	802
Total current assets	36,998	39,964
Equipment and improvements, net	2,250	2,109
Right-of-use assets	6,090	6,464
Deferred tax assets, net	94	94
Other assets	441	234
Intangible assets, net	14,186	4,535
Goodwill	11,493	7,797
Total assets	71,552	61,197
Current liabilities:
Accounts payable	1,855	2,050
Accrued payroll and benefits	2,705	2,107
Current operating lease liabilities	1,407	1,221
Other accrued liabilities	260	244
Deferred revenue	1,561	98
Total current liabilities	7,788	5,720
Non-current liabilities:
Operating lease liabilities	5,121	5,774
Deferred rent	928	885
Other long term liabilities	83	134
Total non-current liabilities	6,132	6,793
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 41,295,351 and 38,475,084 shares issued and outstanding (2020 and 2019, respectively)	41	38
Additional paid-in capital	279,401	274,041
Accumulated comprehensive deficit	(221,810)	(225,395)
Total stockholders’ equity	57,632	48,684
Total liabilities and stockholders' equity	$ 71,552	$ 61,197

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 84	$ 253
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	41,295,351	38,475,084
Common stock, shares outstanding	41,295,351	38,475,084

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenues	$ 12,629	$ 11,782	$ 38,883	$ 31,068
Cost of revenues	1,326	1,011	3,767	2,902
Gross profit	11,303	10,771	35,116	28,166
Operating expenses:
Selling and marketing	2,655	1,793	8,049	5,529
Research and development	5,446	3,063	13,774	8,487
General and administrative	2,997	2,396	9,741	7,522
Restructuring expense	9	39	19	154
Total operating expenses	11,107	7,291	31,583	21,692
Operating income	196	3,480	3,533	6,474
Other income (expense):
Interest income, net	7	87	94	117
Gain on sale of software product				483
Other expense	3		3	(15)
Income before provision for income taxes	206	3,567	3,630	7,059
Provision for income tax expense	45	0	45	8
Net income	$ 161	$ 3,567	$ 3,585	$ 7,051
Earnings per share:
Basic	$ 0	$ 0.10	$ 0.09	$ 0.21
Diluted	$ 0	$ 0.09	$ 0.08	$ 0.20
Weighted average shares outstanding:
Basic	41,351	36,094	40,656	33,170
Diluted	43,026	39,472	42,577	35,287
Preferred dividends per share		$ 70.50		$ 104.58

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock [Member]Series B Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Comprehensive Deficit [Member]
BALANCE at Dec. 31, 2018	$ 20,563		$ 28	$ 256,626	$ (236,091)
BALANCE, Shares at Dec. 31, 2018		1,000
BALANCE, Shares at Dec. 31, 2018			28,242,000
Non-cash compensation recognized on stock options and ESPP	30			30
Restricted stock grants, net of cancellations	1,109		$ 1	1,108
Restricted stock grants, net of cancellations, shares			1,225,000
Cancellation of shares for payment of withholding tax	(506)			(506)
Cancellation of shares for payment of withholding tax, shares			(176,000)
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
Employee stock purchase plan	10			10
Employee stock purchase plan, shares			4,000
Exercise of warrants	11,403		$ 5	11,398
Exercise of warrants, shares			5,304,000
Exercise of stock options	38			38
Exercise of stock options, shares			10,000
Conversion of preferred stock to common stock			$ 1	(1)
Conversion of preferred stock to common stock, shares		(1,000)	1,180,000
Preferred stock dividends	(119)				(119)
Cumulative effect of adoption of ASC | ASC 842 [Member]	93				93
Net income	7,051				7,051
BALANCE at Sep. 30, 2019	44,787		$ 38	273,815	(229,066)
BALANCE, Shares at Sep. 30, 2019			38,488,000
BALANCE at Jun. 30, 2019	29,666		$ 32	262,215	(232,581)
BALANCE, Shares at Jun. 30, 2019		1,000
BALANCE, Shares at Jun. 30, 2019			32,042,000
Non-cash compensation recognized on stock options and ESPP	10			10
Restricted stock grants, net of cancellations	340			340
Cancellation of shares for payment of withholding tax	(191)			(191)
Cancellation of shares for payment of withholding tax, shares			(38,000)
Employee stock purchase plan	6			6
Employee stock purchase plan, shares			2,000
Exercise of warrants	11,403		$ 5	11,398
Exercise of warrants, shares			5,301,000
Exercise of stock options	38			38
Exercise of stock options, shares			10,000
Conversion of preferred stock to common stock			$ 1	(1)
Conversion of preferred stock to common stock, shares		(1,000)	1,171,000
Preferred stock dividends	(52)				(52)
Net income	3,567				3,567
BALANCE at Sep. 30, 2019	44,787		$ 38	273,815	(229,066)
BALANCE, Shares at Sep. 30, 2019			38,488,000
BALANCE at Dec. 31, 2019	$ 48,684		$ 38	274,041	(225,395)
BALANCE, Shares at Dec. 31, 2019	38,475,084		38,475,000
Non-cash compensation recognized on stock options and ESPP	$ 48			48
Restricted stock grants, net of cancellations	2,204		$ 1	2,203
Restricted stock grants, net of cancellations, shares			1,000,000
Cancellation of shares for payment of withholding tax	(1,122)			(1,122)
Cancellation of shares for payment of withholding tax, shares			(242,000)
Employee stock purchase plan	19			19
Employee stock purchase plan, shares			6,000
Exercise of warrants	4,196		$ 2	4,194
Exercise of warrants, shares			2,047,000
Exercise of stock options	18			18
Exercise of stock options, shares			9,000
Net income	3,585				3,585
BALANCE at Sep. 30, 2020	$ 57,632		$ 41	279,401	(221,810)
BALANCE, Shares at Sep. 30, 2020	41,295,351		41,295,000
BALANCE at Jun. 30, 2020	$ 56,898		$ 41	278,828	(221,971)
BALANCE, Shares at Jun. 30, 2020			41,356,000
Non-cash compensation recognized on stock options and ESPP	19			19
Restricted stock grants, net of cancellations	792			792
Cancellation of shares for payment of withholding tax	(254)			(254)
Cancellation of shares for payment of withholding tax, shares			(66,000)
Employee stock purchase plan	13			13
Employee stock purchase plan, shares			4,000
Exercise of stock options	3			3
Exercise of stock options, shares			1,000
Net income	161				161
BALANCE at Sep. 30, 2020	$ 57,632		$ 41	$ 279,401	$ (221,810)
BALANCE, Shares at Sep. 30, 2020	41,295,351		41,295,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities:
Net income	$ 3,585	$ 7,051
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,676	997
Non-cash lease expense	805	730
Restructuring costs	19	154
Provision for doubtful accounts and other adjustments to accounts receivable	(59)	127
Provision for excess and obsolete inventory		1
Loss on disposal of fixed assets		6
Stock based compensation	2,252	1,139
Gain in sale of software product		(483)
Changes in operating accounts:
Accounts receivable	1,159	(4,031)
Prepaid expenses and other assets	(530)	52
Accounts payable and accrued liabilities	(1,804)	(701)
Deferred revenue	173	(214)
Net cash provided by operating activities	8,276	4,828
Investing activities:
Proceeds from sale of software product		363
Capital expenditures	(1,212)	(824)
Other investing activities	(193)
Net cash used in investing activities	(14,905)	(4,435)
Financing activities:
Proceeds from exercise of common stock warrants	4,196	11,403
Dividends paid on preferred stock		(119)
Other financing activities	37	34
Net cash provided by financing activities	4,233	11,318
Net increase (decrease) in cash and cash equivalents	(2,396)	11,711
Cash and cash equivalents, beginning of period	28,268	12,159
Cash and cash equivalents, end of period	25,872	23,870
Supplemental disclosures of cash flow information:
Cash paid for income taxes	82	60
Supplemental disclosures of non-cash activities:
Issuance of common stock in connection with Smart Retail acquisition		5,129
Smart Retail [Member]
Investing activities:
Acquisition of Smart Retail business and Circle operator business, net		$ (3,974)
Circle Operator [Member]
Investing activities:
Acquisition of Smart Retail business and Circle operator business, net	$ (13,500)

The Company

The Company	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company	1. The Company Smith Micro Software, Inc. (“Smith Micro”, the “Company”, “we”, “us”, or “our”) 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.

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Accounting Policies	2. Accounting Policies Basis of Presentation The accompanying interim consolidated balance sheet as of September 30, 2020, and the related consolidated statements of operations, stockholders’ equity and cash flows for each of the three and nine months ended September 30, 2020 and 2019, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted. In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments which are normal and recurring, and necessary to fairly state the financial position, results of operations, and cash flows of the Company. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on March 13, 2020. Intercompany balances and transactions have been eliminated in consolidation. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2020. Impact of COVID-19 In March 2020, the World Health Organization categorized coronavirus disease 2019 (COVID-19) as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. COVID-19 continues to spread throughout the United States and other countries across the world, and the duration and severity of its effects are currently unknown. While the response to the COVID-19 outbreak continues to rapidly evolve, it has led to stay-at-home orders and social distancing guidelines that have seriously disrupted activities in large segments of the economy. During the second and third quarters of 2020, we saw a reduction in the number of SafePath ® The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. As the impact of the COVID-19 pandemic on the economy and the Company’s operations continues to evolve, we will continue to monitor the impact on the Company’s operations and, if needed, postpone non-essential capital expenditures, reduce operating costs, and substantially reduce discretionary spending. 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 o n our platform, and use of our cloud b ased 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. On February 12, 2020, we acquired certain assets from Circle (as defined in Note 3 below), including a source code license to Circle’s parental control software solution and two customer contracts. Pursuant to these contracts, the customer parties thereto license the parental control software solution for distribution to their respective subscribers in designated markets. In each case, the contracts allow the customer to take possession of the software solution and to host it on their platform or with an independent third party hosting service provider without significant cost. We also provide significant services that are required by the customer to ensure they have the utility of the license. As the license to the software solution and the services we provide are highly interrelated, we have concluded that the license and our services are a single performance obligation. The license fee is earned and recognized on a pro-rata basis over the contract term based on our customer’s continued use of the license and our services. 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 either 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. We receive upfront payments from customers from services to be provided under our ViewSpot® contracts. The advance receipts are deferred and subsequently recognized ratably over the contract period. 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 these revenues upon delivery of the configured promotional content to the cloud platform. For our Graphics products where we sell off-the-shelf 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. Fair Value Measurements The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures Fair value is an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets • Level 2 - Include other inputs that are directly or indirectly observable in the marketplace • Level 3 - Unobservable inputs which are supported by little or no market activity The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash and cash equivalents at fair value. Our cash equivalents are classified within Level 1 by using quoted market prices utilizing market observable inputs. 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 .

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Acquisitions	3. Acquisitions On February 12, 2020, the Company acquired the operator business of Circle Media Labs Inc. (“Circle”) pursuant to a certain Asset Purchase Agreement by and between the Company and Circle. The following table summarizes the consideration paid for the Circle acquisition in 2020 (unaudited, in thousands): Fair value of assets acquired $ 14,966 Fair value of liabilities assumed 1,466 Total purchase price $ 13,500 Components of purchase price: Cash $ 12,150 Cash holdback 1,350 Total purchase price $ 13,500 The Company’s preliminary allocation of the purchase price is summarized as follows (unaudited, in thousands): Assets: Inventory, net $ 14 Intangible assets 11,256 Goodwill 3,696 Total assets $ 14,966 Liabilities: Deferred revenue $ 1,290 Amounts due to seller 176 Total liabilities 1,466 Total purchase price $ 13,500 Pursuant to the transaction, Smith Micro acquired certain assets related to the Circle operator business, including two new customer contracts and a source code license to Circle’s then deployed parental control software and related technology. Unaudited pro forma results of operations for the three and nine months ended September 30, 2020 and 2019 are included below as if the Circle acquisition occurred on January 1, 2019. 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 the operator business of Circle been acquired at the beginning of 2019, nor does it purport to represent results of operations for any future periods. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited, in thousands, except per share amounts) (unaudited, in thousands, except per share amounts) Revenues $ 12,629 $ 12,909 $ 39,350 $ 33,860 Net income 161 3,821 3,645 6,211 Earnings per share: Basic $ 0.00 $ 0.10 $ 0.09 $ 0.19 Diluted $ 0.00 $ 0.10 $ 0.09 $ 0.18

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	4. Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share	5. Earnings Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share The following table sets forth the details of basic and diluted earnings per share: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited, in thousands, except per share amounts) (unaudited, in thousands, except per share amounts) Numerator: Net income $ 161 $ 3,567 $ 3,585 $ 7,051 Dividends paid to preferred stockholders — (52 ) — (119 ) Net income available to common stockholders $ 161 $ 3,515 $ 3,585 $ 6,932 Denominator: Weighted average shares outstanding – basic 41,351 36,094 40,656 33,170 Potential common shares – options / warrants (treasury stock method) 1,675 3,378 1,921 2,117 Weighted average shares outstanding – diluted 43,026 39,472 42,577 35,287 Shares excluded (anti-dilutive) 101 67 101 131 Net earnings per common share: Basic $ 0.00 $ 0.10 $ 0.09 $ 0.21 Diluted $ 0.00 $ 0.09 $ 0.08 $ 0.20

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	6. Stock-Based Compensation Stock Plans During the three and nine months ended September 30, 2020, the Company granted 0 and 1,000,000 shares of restricted stock, respectively, and incentive stock options exercisable for 0 and 22,000 shares, respectively, under the Company’s 2015 Omnibus Equity Incentive Plan, as amended (the “2015 Plan”). As of September 30, 2020, there were approximately 5.1 million shares available for future grants under the Company’s 2015 Plan.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Revenues	7. Revenues Revenue Recognition We primarily sell our software solutions, cloud-based services and consulting services to major wireless network and cable operators. We sell our off-the-shelf Graphics software products directly to end users as well as through our distribution and reseller channel partners. 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. As discussed in Note 3, on February 12, 2020, we purchased two customer contracts from Circle. Under these contracts, we provide our customers with licenses to software solutions and related services, for which we earn license fees, managed and hosting service fees, and consulting services which are provided throughout the life of the licensing arrangement. Our contracts with the Tier 1 customers include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Our cloud-based service includes a software solution license integrated with cloud-based services. Judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and recognized over time. Since we do not allow our customers to take possession of the software solution, and since the utility of the license comes from the could-based services that we provide, we consider the software license and the cloud services to be single performance obligation. We provide the Circle software solution license together with highly integrated consulting services to generate the utility of the license to the customers. Since the software solution and consulting services provided are highly interrelated, we consider the license and the consulting services to be a single performance obligation. We also provide consulting services to configure ad hoc targeted promotional content to be presented on our solutions as well as consulting services to provide additional functionality for our software solutions based on our customer’s request. These requests are driven by our customer’s marketing initiatives and tend to be short term “bursts” of activity or specific incremental functionality to existing software solutions. We recognize these revenues upon delivery and acceptance of the configured promotional content or additional functionality to the software solution. 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. Deferred Revenue Deferred revenue represents amounts billed to customers for which revenue has not been recognized. Deferred 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. As of September 30, 2020, our total deferred revenue balance was $1.6 million, of which $1.5 million was related to the acquisition of the Circle operator business. Disaggregation of Revenues We disaggregate revenue by our Wireless and Graphics products. Revenues on a disaggregated basis are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Wireless: License and service fees $ 1,006 $ — $ 2,569 $ — Hosted environment usage fees 4,555 4,916 13,444 14,863 Cloud based usage fees 6,068 5,650 20,420 13,079 Consulting services and other 880 1,048 1,991 2,480 Total wireless $ 12,509 $ 11,614 $ 38,424 $ 30,422 Graphics: Software 120 168 459 646 Total revenues $ 12,629 $ 11,782 $ 38,883 $ 31,068

Segment, Customer Concentration

Segment, Customer Concentration and Geographical Information	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Segment, Customer Concentration and Geographical Information	8. Segment, Customer Concentration and Geographical Information Segment Information Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting The Company does not separately allocate operating expenses to these business units, nor does it allocate specific assets. Therefore, business unit information reported includes only revenues. The following table presents the Wireless revenues by product (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) SafePath $ 6,755 $ 5,200 $ 21,948 $ 11,108 CommSuite 4,542 4,602 13,411 13,957 ViewSpot 1,157 1,260 2,873 3,673 Netwise 33 493 118 1,492 Other 22 59 74 192 Total wireless revenues $ 12,509 $ 11,614 $ 38,424 $ 30,422 Customer Concentration Information Revenues generated from our sales to Sprint and, subsequent to its April 2020 merger with Sprint, the combined T-Mobile, and their respective affiliates in the Wireless business segment accounted for 76% and 83% of the Company’s total revenues for the three months ended September 30, 2020 and 2019, respectively, and 85% and 81% for the nine months ended September 30, 2020 and 2019, respectively. T-Mobile comprised 70% and Sprint comprised 80% Geographical Information During the nine months ended September 30, 2020 and 2019, 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 customers’ bill-to address were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Americas $ 12,045 $ 11,755 $ 37,451 $ 30,978 EMEA 581 18 1,411 56 Asia Pacific 3 9 21 34 Total revenues $ 12,629 $ 11,782 $ 38,883 $ 31,068 The Company does not separately allocate specific assets to these geographic locations.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies 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	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	10. 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. Operating lease cost consists of the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) Lease cost $ 558 $ 518 $ 1,673 $ 1,553 Sublease income (151 ) (151 ) (452 ) (452 ) Total lease cost $ 407 $ 367 $ 1,221 $ 1,101 The maturity of operating lease liabilities is presented in the following table (in thousands): As of September 30, 2020 (unaudited) 2020 $ 450 2021 1,785 2022 1,535 2023 1,522 2024 1,182 Thereafter 1,158 Total lease payments 7,632 Less imputed interest (1,104 ) Present value of lease liabilities $ 6,528 Additional information relating to the Company’s operating leases follows: As of September 30, 2020 (unaudited) Weighted average remaining lease term (years) 4.70 Weighted average discount rate 6.85 %

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes 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 After a review of the four sources of taxable income as of December 31, 2019, and after consideration of the Company’s cumulative loss position as of December 31, 2019, the Company will continue to reserve its U.S.-based deferred tax amounts, which total $50.4 million as of September 30, 2020. The Company is subject to U.S. federal income tax as well as 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. We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our consolidated financial results. It is the Company’s policy to classify any interest and/or penalties in the consolidated financial statements as a component of income tax expense. On March 27, 2020, President Trump signed into U.S. federal law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which is aimed at providing emergency assistance and health care for individuals, families and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In particular, under the CARES Act, (i) for taxable years beginning before 2021, net operating loss carryforwards and carrybacks may offset 100% of taxable income, (ii) NOLs arising in 2018, 2019 and 2020 taxable years may be carried back to each of the preceding five years to generate a refund and (iii) for taxable years beginning in 2019 and 2020, the base for interest deductibility is increased from 30% to 50% of EBITDA. We continue to analyze the different aspects of the CARES Act to determine whether any specific provisions may impact us.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events The Company evaluates and discloses subsequent events as required by FASB ASC Topic No. 855, Subsequent Events

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
The Company	The Company Smith Micro Software, Inc. (“Smith Micro”, the “Company”, “we”, “us”, or “our”) 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.
Basis of Presentation	Basis of Presentation The accompanying interim consolidated balance sheet as of September 30, 2020, and the related consolidated statements of operations, stockholders’ equity and cash flows for each of the three and nine months ended September 30, 2020 and 2019, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted. In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments which are normal and recurring, and necessary to fairly state the financial position, results of operations, and cash flows of the Company. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on March 13, 2020. Intercompany balances and transactions have been eliminated in consolidation. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2020.
Impact of COVID-19	Impact of COVID-19 In March 2020, the World Health Organization categorized coronavirus disease 2019 (COVID-19) as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. COVID-19 continues to spread throughout the United States and other countries across the world, and the duration and severity of its effects are currently unknown. While the response to the COVID-19 outbreak continues to rapidly evolve, it has led to stay-at-home orders and social distancing guidelines that have seriously disrupted activities in large segments of the economy. During the second and third quarters of 2020, we saw a reduction in the number of SafePath ® The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. As the impact of the COVID-19 pandemic on the economy and the Company’s operations continues to evolve, we will continue to monitor the impact on the Company’s operations and, if needed, postpone non-essential capital expenditures, reduce operating costs, and substantially reduce discretionary spending.
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 o n our platform, and use of our cloud b ased 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. On February 12, 2020, we acquired certain assets from Circle (as defined in Note 3 below), including a source code license to Circle’s parental control software solution and two customer contracts. Pursuant to these contracts, the customer parties thereto license the parental control software solution for distribution to their respective subscribers in designated markets. In each case, the contracts allow the customer to take possession of the software solution and to host it on their platform or with an independent third party hosting service provider without significant cost. We also provide significant services that are required by the customer to ensure they have the utility of the license. As the license to the software solution and the services we provide are highly interrelated, we have concluded that the license and our services are a single performance obligation. The license fee is earned and recognized on a pro-rata basis over the contract term based on our customer’s continued use of the license and our services. 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 either 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. We receive upfront payments from customers from services to be provided under our ViewSpot® contracts. The advance receipts are deferred and subsequently recognized ratably over the contract period. 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 these revenues upon delivery of the configured promotional content to the cloud platform. For our Graphics products where we sell off-the-shelf 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.
Fair Value Measurements	Fair Value Measurements The Company measures and discloses fair value measurements as required by FASB ASC Topic No. 820, Fair Value Measurements and Disclosures Fair value is an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets • Level 2 - Include other inputs that are directly or indirectly observable in the marketplace • Level 3 - Unobservable inputs which are supported by little or no market activity The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As required by FASB ASC Topic No. 820, we measure our cash and cash equivalents at fair value. Our cash equivalents are classified within Level 1 by using quoted market prices utilizing market observable inputs. 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 .
Goodwill	Goodwill In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other
Earnings Per Share	Earnings Per Share The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share The following table sets forth the details of basic and diluted earnings per share: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited, in thousands, except per share amounts) (unaudited, in thousands, except per share amounts) Numerator: Net income $ 161 $ 3,567 $ 3,585 $ 7,051 Dividends paid to preferred stockholders — (52 ) — (119 ) Net income available to common stockholders $ 161 $ 3,515 $ 3,585 $ 6,932 Denominator: Weighted average shares outstanding – basic 41,351 36,094 40,656 33,170 Potential common shares – options / warrants (treasury stock method) 1,675 3,378 1,921 2,117 Weighted average shares outstanding – diluted 43,026 39,472 42,577 35,287 Shares excluded (anti-dilutive) 101 67 101 131 Net earnings per common share: Basic $ 0.00 $ 0.10 $ 0.09 $ 0.21 Diluted $ 0.00 $ 0.09 $ 0.08 $ 0.20
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
Income Taxes	We account for income taxes as required by FASB ASC Topic No. 740, Income Taxes

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Summary of Consideration Paid for Acquisitions	The following table summarizes the consideration paid for the Circle acquisition in 2020 (unaudited, in thousands): Fair value of assets acquired $ 14,966 Fair value of liabilities assumed 1,466 Total purchase price $ 13,500 Components of purchase price: Cash $ 12,150 Cash holdback 1,350 Total purchase price $ 13,500
Summary of Preliminary Allocation of Purchase Price	The Company’s preliminary allocation of the purchase price is summarized as follows (unaudited, in thousands): Assets: Inventory, net $ 14 Intangible assets 11,256 Goodwill 3,696 Total assets $ 14,966 Liabilities: Deferred revenue $ 1,290 Amounts due to seller 176 Total liabilities 1,466 Total purchase price $ 13,500
Summary of Unaudited Proforma Results of Operation	Unaudited pro forma results of operations for the three and nine months ended September 30, 2020 and 2019 are included below as if the Circle acquisition occurred on January 1, 2019. 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 the operator business of Circle been acquired at the beginning of 2019, nor does it purport to represent results of operations for any future periods. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited, in thousands, except per share amounts) (unaudited, in thousands, except per share amounts) Revenues $ 12,629 $ 12,909 $ 39,350 $ 33,860 Net income 161 3,821 3,645 6,211 Earnings per share: Basic $ 0.00 $ 0.10 $ 0.09 $ 0.19 Diluted $ 0.00 $ 0.10 $ 0.09 $ 0.18

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Details of Basic and Diluted Earnings Per Share	The following table sets forth the details of basic and diluted earnings per share: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited, in thousands, except per share amounts) (unaudited, in thousands, except per share amounts) Numerator: Net income $ 161 $ 3,567 $ 3,585 $ 7,051 Dividends paid to preferred stockholders — (52 ) — (119 ) Net income available to common stockholders $ 161 $ 3,515 $ 3,585 $ 6,932 Denominator: Weighted average shares outstanding – basic 41,351 36,094 40,656 33,170 Potential common shares – options / warrants (treasury stock method) 1,675 3,378 1,921 2,117 Weighted average shares outstanding – diluted 43,026 39,472 42,577 35,287 Shares excluded (anti-dilutive) 101 67 101 131 Net earnings per common share: Basic $ 0.00 $ 0.10 $ 0.09 $ 0.21 Diluted $ 0.00 $ 0.09 $ 0.08 $ 0.20

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Schedule of Revenues on Disaggregated Basis	Revenues on a disaggregated basis are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Wireless: License and service fees $ 1,006 $ — $ 2,569 $ — Hosted environment usage fees 4,555 4,916 13,444 14,863 Cloud based usage fees 6,068 5,650 20,420 13,079 Consulting services and other 880 1,048 1,991 2,480 Total wireless $ 12,509 $ 11,614 $ 38,424 $ 30,422 Graphics: Software 120 168 459 646 Total revenues $ 12,629 $ 11,782 $ 38,883 $ 31,068

Segment, Customer Concentrati_2

Segment, Customer Concentration and Geographical Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Wireless Revenues by Product	The following table presents the Wireless revenues by product (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) SafePath $ 6,755 $ 5,200 $ 21,948 $ 11,108 CommSuite 4,542 4,602 13,411 13,957 ViewSpot 1,157 1,260 2,873 3,673 Netwise 33 493 118 1,492 Other 22 59 74 192 Total wireless revenues $ 12,509 $ 11,614 $ 38,424 $ 30,422
Company Revenue in Different Geographic Locations	Revenues attributed to the geographic location of the customers’ bill-to address were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Americas $ 12,045 $ 11,755 $ 37,451 $ 30,978 EMEA 581 18 1,411 56 Asia Pacific 3 9 21 34 Total revenues $ 12,629 $ 11,782 $ 38,883 $ 31,068

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Summary of Operating Lease Cost	Operating lease cost consists of the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) Lease cost $ 558 $ 518 $ 1,673 $ 1,553 Sublease income (151 ) (151 ) (452 ) (452 ) Total lease cost $ 407 $ 367 $ 1,221 $ 1,101
Summary of Maturity of Operating Lease Liabilities	The maturity of operating lease liabilities is presented in the following table (in thousands): As of September 30, 2020 (unaudited) 2020 $ 450 2021 1,785 2022 1,535 2023 1,522 2024 1,182 Thereafter 1,158 Total lease payments 7,632 Less imputed interest (1,104 ) Present value of lease liabilities $ 6,528
Summary of Additional Information Relating to Company's Operating Leases	Additional information relating to the Company’s operating leases follows: As of September 30, 2020 (unaudited) Weighted average remaining lease term (years) 4.70 Weighted average discount rate 6.85 %

Accounting Policies - Additiona

Accounting Policies - Additional Information (Details)	Feb. 12, 2020Customer
Circle Media Labs Inc. [Member]
Business Acquisition [Line Items]
Number of customer contracts	2

Acquisitions - Summary of Consi

Acquisitions - Summary of Consideration Paid for Acquisitions (Detail) - Circle Media Labs Inc. [Member] $ in Thousands	Feb. 12, 2020USD ($)
Business Acquisition [Line Items]
Fair value of assets acquired	$ 14,966
Fair value of liabilities assumed	1,466
Total purchase price	13,500
Components of purchase price:
Cash	12,150
Cash holdback	1,350
Total purchase price	$ 13,500

Acquisitions - Summary of Preli

Acquisitions - Summary of Preliminary Allocation of Purchase Price (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Feb. 12, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 11,493		$ 7,797
Circle Media Labs Inc. [Member]
Business Acquisition [Line Items]
Inventory, net		$ 14
Intangible assets		11,256
Goodwill		3,696
Total assets		14,966
Deferred revenue		1,290
Amounts due to seller		176
Total liabilities		1,466
Total purchase price		$ 13,500

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail)	Feb. 12, 2020Customer
Circle Media Labs Inc. [Member]
Business Acquisition [Line Items]
Number of customer contracts	2

Acquisitions - Summary of Unaud

Acquisitions - Summary of Unaudited Proforma Results of Operation (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Business Acquisition Pro Forma Information [Abstract]
Revenues	$ 12,629	$ 12,909	$ 39,350	$ 33,860
Net income	$ 161	$ 3,821	$ 3,645	$ 6,211
Earnings per share:
Basic	$ 0	$ 0.10	$ 0.09	$ 0.19
Diluted	$ 0	$ 0.10	$ 0.09	$ 0.18

Goodwill - Additional Informati

Goodwill - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 0

Earnings Per Share - Details of

Earnings Per Share - Details of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income	$ 161	$ 3,567	$ 3,585	$ 7,051
Dividends paid to preferred stockholders		(52)		(119)
Net income available to common stockholders	$ 161	$ 3,515	$ 3,585	$ 6,932
Denominator:
Weighted average shares outstanding – basic	41,351	36,094	40,656	33,170
Potential common shares – options / warrants (treasury stock method)	1,675	3,378	1,921	2,117
Weighted average shares outstanding – diluted	43,026	39,472	42,577	35,287
Shares excluded (anti-dilutive)	101	67	101	131
Net earnings per common share:
Basic	$ 0	$ 0.10	$ 0.09	$ 0.21
Diluted	$ 0	$ 0.09	$ 0.08	$ 0.20

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - 2015 Omnibus Equity Incentive Plan [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2020shares	Sep. 30, 2020shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants	5,100,000	5,100,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, granted	0	1,000,000
Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive stock options, exercisable	0	22,000

Revenues - Additional Informati

Revenues - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Deferred revenue	$ 1,561	$ 98
Circle Operator Business [Member]
Disaggregation Of Revenue [Line Items]
Deferred revenue	$ 1,500

Revenues - Schedule of Revenues

Revenues - Schedule of Revenues on Disaggregated Basis (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Revenues	$ 12,629	$ 11,782	$ 38,883	$ 31,068
Wireless [Member]
Disaggregation Of Revenue [Line Items]
Revenues	12,509	11,614	38,424	30,422
Wireless [Member] | License and Service Fees [Member]
Disaggregation Of Revenue [Line Items]
Revenues	1,006		2,569
Wireless [Member] | Hosted Environment Usage Fees [Member]
Disaggregation Of Revenue [Line Items]
Revenues	4,555	4,916	13,444	14,863
Wireless [Member] | Cloud Based Usage Fees [Member]
Disaggregation Of Revenue [Line Items]
Revenues	6,068	5,650	20,420	13,079
Wireless [Member] | Consulting Services and Other [Member]
Disaggregation Of Revenue [Line Items]
Revenues	880	1,048	1,991	2,480
Graphics [Member] | Software [Member]
Disaggregation Of Revenue [Line Items]
Revenues	$ 120	$ 168	$ 459	$ 646

Segment, Customer Concentrati_3

Segment, Customer Concentration and Geographical Information - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020Business_UnitLocation	Sep. 30, 2019Location
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] | T-Mobile [Member]
Revenue, Major Customer [Line Items]
Concentration percentage			70.00%	70.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Sprint [Member]
Revenue, Major Customer [Line Items]
Concentration percentage			80.00%	80.00%
Customer Concentration Risk [Member] | Revenues [Member] | Sprint, T-Mobile and Respective Affiliates [Member] | Wireless [Member]
Revenue, Major Customer [Line Items]
Concentration percentage	76.00%	83.00%	85.00%	81.00%

Segment, Customer Concentrati_4

Segment, Customer Concentration and Geographical Information - Wireless Revenues by Product (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from External Customer [Line Items]
Total revenues	$ 12,629	$ 11,782	$ 38,883	$ 31,068
Wireless [Member]
Revenue from External Customer [Line Items]
Total revenues	12,509	11,614	38,424	30,422
Wireless [Member] | SafePath [Member]
Revenue from External Customer [Line Items]
Total revenues	6,755	5,200	21,948	11,108
Wireless [Member] | CommSuite [Member]
Revenue from External Customer [Line Items]
Total revenues	4,542	4,602	13,411	13,957
Wireless [Member] | ViewSpot [Member]
Revenue from External Customer [Line Items]
Total revenues	1,157	1,260	2,873	3,673
Wireless [Member] | Netwise [Member]
Revenue from External Customer [Line Items]
Total revenues	33	493	118	1,492
Wireless [Member] | Other [Member]
Revenue from External Customer [Line Items]
Total revenues	$ 22	$ 59	$ 74	$ 192

Segment, Customer Concentrati_5

Segment, Customer Concentration and Geographical Information - Company Revenue in Different Geographic Locations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from External Customer [Line Items]
Total revenues	$ 12,629	$ 11,782	$ 38,883	$ 31,068
Americas [Member] | Reportable Geographical Components [Member]
Revenue from External Customer [Line Items]
Total revenues	12,045	11,755	37,451	30,978
EMEA [Member] | Reportable Geographical Components [Member]
Revenue from External Customer [Line Items]
Total revenues	581	18	1,411	56
Asia Pacific [Member] | Reportable Geographical Components [Member]
Revenue from External Customer [Line Items]
Total revenues	$ 3	$ 9	$ 21	$ 34

Leases - Additional Information

Leases - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2020
Lessee Disclosure [Abstract]
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.

Leases - Summary of Operating L

Leases - Summary of Operating Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Lease Cost [Abstract]
Lease cost	$ 558	$ 518	$ 1,673	$ 1,553
Sublease income	(151)	(151)	(452)	(452)
Total lease cost	$ 407	$ 367	$ 1,221	$ 1,101

Leases - Summary of Maturity of

Leases - Summary of Maturity of Operating Lease Liabilities (Detail) $ in Thousands	Sep. 30, 2019USD ($)
Operating Lease Liabilities Payments Due [Abstract]
2020	$ 450
2021	1,785
2022	1,535
2023	1,522
2024	1,182
Thereafter	1,158
Total lease payments	7,632
Less imputed interest	(1,104)
Present value of lease liabilities	$ 6,528

Leases - Summary of Additional

Leases - Summary of Additional Information Relating to Company's Operating Leases (Detail)	Sep. 30, 2020
Leases [Abstract]
Weighted average remaining lease term (years)	4 years 8 months 12 days
Weighted average discount rate	6.85%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Cumulative loss period	5 years
Reserve on US-based deferred tax amounts	$ 50,400,000
Outstanding tax audit		$ 0
State [Member]
Operating Loss Carryforwards [Line Items]
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