Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AWARE INC /MA/ | |
Entity Central Index Key | 0001015739 | |
Trading Symbol | awre | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,551,445 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 50,414 | $ 51,612 |
Accounts receivable, net | 1,911 | 2,010 |
Unbilled receivables | 3,918 | 3,279 |
Prepaid expenses and other current assets | 508 | 284 |
Total current assets | 56,751 | 57,185 |
Property and equipment, net | 3,995 | 4,085 |
Deferred tax assets | 5,180 | 5,171 |
Total assets | 65,926 | 66,441 |
Current liabilities: | ||
Accounts payable | 173 | 126 |
Accrued expenses | 1,225 | 1,319 |
Deferred revenue | 2,451 | 3,024 |
Total current liabilities | 3,849 | 4,469 |
Long-term deferred revenue | 65 | 75 |
Commitments and contingent liabilities | ||
Stockholders’ equity: | ||
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding | ||
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 21,551,445 as of March, 31, 2019 and 21,515,872 as of December 31, 2018 | 216 | 215 |
Additional paid-in capital | 96,262 | 96,376 |
Accumulated deficit | (34,466) | (34,694) |
Total stockholders’ equity | 62,012 | 61,897 |
Total liabilities and stockholders’ equity | $ 65,926 | $ 66,441 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 21,551,445 | 21,515,872 |
Common stock, shares outstanding | 21,551,445 | 21,515,872 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 3,732 | $ 2,911 |
Costs and expenses: | ||
Cost of services | 518 | 50 |
Research and development | 1,760 | 1,875 |
Selling and marketing | 826 | 924 |
General and administrative | 721 | 785 |
Total costs and expenses | 3,825 | 3,634 |
Patent related income | 49 | |
Operating loss | (44) | (723) |
Interest income | 275 | 162 |
Income (loss) before provision for (benefit from) income taxes | 231 | (561) |
Provision for (benefit from) income taxes | 3 | (66) |
Net income (loss) | $ 228 | $ (495) |
Net income (loss) per share - basic (in dollars per share) | $ 0.01 | $ (0.02) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.01 | $ (0.02) |
Weighted-average shares basic (in shares) | 21,565 | 21,547 |
Weighted-average shares - diluted (in shares) | 21,582 | 21,573 |
Software licenses | ||
Revenue: | ||
Total revenue | $ 1,537 | $ 1,473 |
Software maintenance | ||
Revenue: | ||
Total revenue | 1,355 | 1,294 |
Services | ||
Revenue: | ||
Total revenue | $ 840 | $ 144 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 228 | $ (495) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 110 | 122 |
Stock-based compensation | 14 | 24 |
Changes in assets and liabilities: | ||
Accounts receivable | 99 | 124 |
Unbilled receivables | (639) | 196 |
Prepaid expenses and other current assets | (224) | (108) |
Deferred tax assets | (9) | (92) |
Accounts payable | 47 | 68 |
Accrued expenses | (105) | (120) |
Accrued income taxes | 11 | 14 |
Deferred revenue | (583) | (536) |
Net cash used in operating activities | (1,051) | (803) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (20) | (96) |
Net cash used in investing activities | (20) | (96) |
Cash flows from financing activities: | ||
Payments made for taxes of employees who surrendered shares related to unrestricted stock | (49) | (61) |
Repurchase of common stock | (78) | |
Net cash used in financing activities | (127) | (61) |
Decrease in cash and cash equivalents | (1,198) | (960) |
Cash and cash equivalents, beginning of period | 51,612 | 51,608 |
Cash and cash equivalents, end of period | $ 50,414 | 50,648 |
Supplemental disclosure: | ||
Cash paid for income taxes | $ 8 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 215 | $ 96,246 | $ (35,927) | $ 60,534 |
Balance (in shares) at Dec. 31, 2017 | 21,493 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of unrestricted stock (in shares) | 67 | |||
Shares surrendered by employees to pay taxes related to unrestricted stock | (61) | (61) | ||
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares) | (13) | |||
Stock-based compensation expense | 24 | 24 | ||
Net income (loss) | (496) | (495) | ||
Balance at Mar. 31, 2018 | $ 215 | 96,209 | (36,423) | 60,001 |
Balance (in shares) at Mar. 31, 2018 | 21,547 | |||
Balance at Dec. 31, 2018 | $ 215 | 96,376 | 34,694 | $ 61,897 |
Balance (in shares) at Dec. 31, 2018 | 21,516 | 21,515,872 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of unrestricted stock | $ 1 | (1) | ||
Issuance of unrestricted stock (in shares) | 69 | |||
Shares surrendered by employees to pay taxes related to unrestricted stock | (49) | $ (49) | ||
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares) | (14) | |||
Stock-based compensation expense | 14 | 14 | ||
Repurchase of common stock | (78) | (78) | ||
Repurchase of common stock(in shares) | (20) | |||
Net income (loss) | 228 | 228 | ||
Balance at Mar. 31, 2019 | $ 216 | $ 96,262 | $ (34,466) | $ 62,012 |
Balance (in shares) at Mar. 31, 2019 | 21,551 | 21,551,445 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | A) Nature of Business. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Accounting [Abstract] | |
Basis of Presentation | B) Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2019, and of operations and cash flows for the interim periods ended March 31, 2019 and 2018. The results of operations for the interim period ended March 31, 2019 are not necessarily indicative of the results to be expected for the year. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | C) Revenue Recognition. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The core principle of the standard is that we recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve that core principle, we apply the following five step model: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) each performance obligation is satisfied. 1) Identify the contract with the customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s intent and ability to pay, which is based on a variety of factors including the customer’s historical payment experience, or in the case of a new customer, published credit and financial information pertaining to the customer. We evaluate contract modifications for the impact on revenue recognition if they have been approved by both parties such that the enforceable rights and obligations under the contract have changed. Contract modifications are either accounted for using a cumulative effect adjustment or prospectively over the remaining term of the arrangement. The determination of which method is more appropriate depends on the nature of the modification, which we evaluate on a case-by-case basis. We combine two or more contracts entered into at or near the same time with the same customer and account for them as a single contract if (i) the contracts are negotiated as a package with a common commercial objective, (ii) the amount of consideration to be paid in one contract depends on the price or performance of the other contract, or (iii) some or all of the goods or services in one contract would be combined with some or all of the goods and services in the other contract into a single performance obligation. If two or more contracts are combined, the consideration to be paid is aggregated and allocated to the individual performance obligations without regard to the consideration specified in the individual contracts. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, we apply judgment to determine whether promised goods and services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. To identify performance obligations, we consider all of the goods or services promised in a contract regardless of whether they are explicitly stated or are implied by customary business practices. 3) Determine the transaction price The transaction price is determined based on the consideration we expect to be entitled in exchange for transferring promised goods and services to the customer. Determining the transaction price requires significant judgment. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period. The amount of consideration is not adjusted for a significant financing component if the time between payment and the transfer of the related good or service is expected to be one year or less under the practical expedient in ASC 606-10-32-18. Our revenue arrangements are typically accounted for under such expedient, as payment is typically due within 30 to 60 days. As of March 31, 2019 and 2018, none of our contracts contained a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relative SSPs. The SSP is the price at which we would sell a promised good or service separately to a customer. The best estimate of SSP is the observable price of a good or service when we sell that good or service separately. A contractually stated price or a list price for a good or service may be the SSP of that good or service. We use a range of amounts to estimate SSP when we sell each of the goods and services separately and need to determine whether there is a discount that needs to be allocated based on the relative SSP of the various goods and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we typically determine the SSP using an adjusted market assessment approach using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual goods and services due to the stratification of those goods and services by customers and circumstances. In these instances, we may use information such as the nature of the customer and distribution channel in determining the SSP. 5) Recognize revenue when or as we satisfy a performance obligation We satisfy performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized over time if 1) the customer simultaneously receives and consumes the benefits provided by our performance, 2) our performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or 3) our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. If we do not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. We categorize revenue as software licenses, software maintenance, or services. In addition to the general revenue recognition policies described above, specific revenue recognition policies apply to each category of revenue. Software licenses Software licenses consist of revenue from the sale of software licenses for biometrics and imaging applications. Our software licenses are functional intellectual property and typically provide customers with the right to use our software in perpetuity as it exists when made available to the customer. We recognize revenue from software licenses at a point in time upon delivery, provided all other revenue recognition criteria are met. Software maintenance Software maintenance consists of revenue from the sale of software maintenance contracts for biometrics and imaging software. Software maintenance contracts entitle customers to receive software support and software updates, if and when they become available, during the term of the maintenance contract. Software support and software updates are considered distinct services. However, these distinct services are considered a single performance obligation consisting of a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. We recognize software maintenance revenue over time on a straight-line basis over the contract period. Services Service revenue consists of fees from biometrics customers for software engineering services we provide to them. We recognize services revenue over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted), provided all other revenue recognition criteria are met. Refer to Note G – Business Segments for further information on the disaggregation of revenue, including revenue by geography and category. Arrangements with multiple performance obligations In addition to selling software licenses, software maintenance and software services on a standalone basis, a significant portion of our contracts include multiple performance obligations. The various combinations of multiple performance obligations and our revenue recognition for each are described as follows: • Software licenses and software maintenance. When software licenses and software maintenance contracts are sold together, the software licenses and software maintenance are generally considered distinct performance obligations. The transaction price is allocated to the software licenses and the software maintenance based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the software maintenance is recognized over time on a straight-line basis over the contract period. • Software licenses and services. When software licenses and significant customization engineering services are sold together, they are accounted for as a combined performance obligation, as the software licenses are generally highly dependent on, and interrelated with, the associated services and therefore are not distinct performance obligations. Revenue for the combined performance obligation is recognized over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). When software licenses and standard implementation or consulting-type services are sold together, they are generally considered distinct performance obligations as the software licenses are not dependent on or interrelated with the associated services. The transaction price in these arrangements is allocated to the software licenses and services based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the services is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). In arrangements with both software licenses and services, the software license portion of the arrangement is classified as software license revenue and the services portion is classified as services revenue in our consolidated statements of operations. • Software licenses, software maintenance and services. When we sell software licenses, software maintenance and software services together, we account for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations based on relative SSP. Revenue allocated to the software licenses is recognized at a point in time upon delivery. Revenue allocated to the services is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). Revenue for the software maintenance is recognized over time on a straight-line basis over the contract period. However, if the software services are significant customization engineering services, they are accounted for with the software licenses as a combined performance obligation, as stated above. Revenue for the combined performance obligation is recognized over time using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted). Returns We do not offer rights of return for our products and services in the normal course of business. Customer Acceptance Our contracts with customers generally do not include customer acceptance clauses. Contract Balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by the deferred revenue below until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consist of unbilled receivables. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software maintenance contracts. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The following table presents changes in our contract assets and liabilities during the three months ended March 31, 2018 and 2019 (in thousands): Revenue Balance at Recognized Beginning of In Advance of Balance at End of Period Billings Billings Period Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 1,429 $ 33 $ (229 ) $ 1,233 Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 3,279 $ 1,059 $ (420 ) $ 3,918 Balance at Beginning of Revenue Balance at End of Period Billings Recognized Period Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 2,932 $ 758 $ (1,294 ) $ 2,396 Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 3,099 $ 772 $ (1,355 ) $ 2,516 Remaining Performance Obligations Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 97% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of March 31, 2019 and 2018, the aggregate amount of the transaction price allocated to remaining performance obligations for software maintenance contracts with a duration greater than one year was $0.1 million. Contract Costs We recognize an other asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales commissions meet the requirements to be capitalized, and we amortize these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets. We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. These costs include sales commissions on software maintenance contracts with a contract period of one year or less as sales commissions paid on contract renewals are commensurate with those paid on the initial contract. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | D) Fair Value Measurements. Cash and cash equivalents, which primarily include money market mutual funds, were $50.4 million and $51.6 million as of March 31, 2019 and December 31, 2018, respectively. We classified our cash equivalents of $48.1 million and $47.9 million as of March 31, 2019 and December 31, 2018 within Level 1 of the fair value hierarchy because they are valued using quoted market prices. As of March 31, 2019, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at March 31, 2019 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 48,136 Total $ 48,136 $ - $ - As of December 31, 2018, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands): Fair Value Measurement at December 31, 2018 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 47,939 Total $ 47,939 $ - $ - |
Computation of Earnings per Sha
Computation of Earnings per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share | E) Computation of Earnings per Share. Net income (loss) per share is calculated as follows (in thousands, except per share data): Three Months Ended 2019 2018 Net income (loss) $ 228 $ (495 ) Shares outstanding: Weighted-average common shares outstanding 21,565 21,547 Additional dilutive common stock equivalents 17 26 Diluted shares outstanding 21,582 21,573 Net income (loss) per share – basic $ 0.01 $ (0.02 ) Net income (loss) per share - diluted $ 0.01 $ (0.02 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock-Based Compensation | F) Stock-Based Compensation. Three Months Ended March 31, 2019 2018 Cost of services $ 1 $ - Research and development 3 5 Selling and marketing - 1 General and administrative 10 18 Stock-based compensation expense $ 14 $ 24 Stock Option Grants Unrestricted Stock Grants We granted shares of unrestricted stock in 2019 and 2018 that affected financial results for the three month periods ended March 31, 2019 and 2018. These grants are described below. 2019 Grant. 2018 Grant |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | G) Business Segments We conduct our operations in the United States and sell our products and services to domestic and international customers. Revenues were generated from the following geographic regions for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 United States $ 1,723 $ 2,069 United Kingdom 880 134 Rest of World 1,129 708 $ 3,732 $ 2,911 Revenue by product group for the three months ended March 31, 2019 and 2018 was (in thousands): Three Months Ended March 31, 2019 2018 Biometrics $ 3,472 $ 2,485 Imaging 260 426 $ 3,732 $ 2,911 Revenue by timing of transfer of goods or services for the three months ended March 31, 2019 and 2018 was (in thousands): Three Months Ended March 31, 2019 2018 Goods or services transferred at a point in time $ 1,172 $ 1,474 Goods or services transferred over time 2,560 1,437 $ 3,732 $ 2,911 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Not Yet Adopted | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements Not Yet Adopted | H) Recent Accounting Pronouncements Not Yet Adopted. FASB ASU No. 2016-13. With the exception of the standard discussed above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of March 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | I) Income Taxes . As of March 31, 2019, we had a total of $5.2 million of deferred tax assets for which we had recorded no valuation allowance. We have assessed the need for a valuation allowance on our deferred tax assets. Based on our assessment of future sources of income, including reversing deferred tax liabilities, and future earnings, we have determined that it is more likely than not that the deferred tax assets will be realized, and therefore there is no valuation allowance required for the deferred tax assets. We will continue to assess the level of valuation allowance in future periods. Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly. |
Income from patent arrangement
Income from patent arrangement | 3 Months Ended |
Mar. 31, 2019 | |
Income From Patent Arrangement [Abstract] | |
Income from patent arrangement | J) Income from patent arrangement. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited consolidated balance sheets, statements of operations, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2019, and of operations and cash flows for the interim periods ended March 31, 2019 and 2018. The results of operations for the interim period ended March 31, 2019 are not necessarily indicative of the results to be expected for the year. |
Recent Accounting Pronouncements Not Yet Adopted. | Recent Accounting Pronouncements Not Yet Adopted. FASB ASU No. 2016-13. With the exception of the standard discussed above, there have been no other recently issued accounting pronouncements that are of significance or potential significance to us that we have not adopted as of March 31, 2019. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of changes in contract assets and liabilities | Revenue Balance at Recognized Beginning of In Advance of Balance at End of Period Billings Billings Period Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 1,429 $ 33 $ (229 ) $ 1,233 Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 3,279 $ 1,059 $ (420 ) $ 3,918 Balance at Beginning of Revenue Balance at End of Period Billings Recognized Period Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 2,932 $ 758 $ (1,294 ) $ 2,396 Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 3,099 $ 772 $ (1,355 ) $ 2,516 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurement at March 31, 2019 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 48,136 Total $ 48,136 $ - $ - Fair Value Measurement at December 31, 2018 Using: Quoted Prices in Significant Other Significant (Level 1) (Level 2) (Level 3) Money market funds (included in cash and cash equivalents) $ 47,939 Total $ 47,939 $ - $ - |
Computation of Earnings per S_2
Computation of Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) per share | Three Months Ended 2019 2018 Net income (loss) $ 228 $ (495 ) Shares outstanding: Weighted-average common shares outstanding 21,565 21,547 Additional dilutive common stock equivalents 17 26 Diluted shares outstanding 21,582 21,573 Net income (loss) per share – basic $ 0.01 $ (0.02 ) Net income (loss) per share - diluted $ 0.01 $ (0.02 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of stock-based employee compensation expense included in unaudited consolidated statements of comprehensive income | Three Months Ended March 31, 2019 2018 Cost of services $ 1 $ - Research and development 3 5 Selling and marketing - 1 General and administrative 10 18 Stock-based compensation expense $ 14 $ 24 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenues generated from geographic regions | Three Months Ended March 31, 2019 2018 United States $ 1,723 $ 2,069 United Kingdom 880 134 Rest of World 1,129 708 $ 3,732 $ 2,911 |
Schedule of revenue by product group | Three Months Ended March 31, 2019 2018 Biometrics $ 3,472 $ 2,485 Imaging 260 426 $ 3,732 $ 2,911 |
Schedule of revenue by timing of transfer of goods or services | Three Months Ended March 31, 2019 2018 Goods or services transferred at a point in time $ 1,172 $ 1,474 Goods or services transferred over time 2,560 1,437 $ 3,732 $ 2,911 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contract assets: | ||
Unbilled receivables, Balance at Beginning of Period | $ 3,279 | $ 1,429 |
Unbilled receivables, Revenue Recognized In Advance of Billings | 1,059 | 33 |
Unbilled receivables, Billings | (420) | (229) |
Unbilled receivables, Balance at End of Period | $ 3,918 | $ 1,233 |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contract liabilities: | ||
Deferred revenue, Balance at Beginning of Period | $ 3,099 | $ 2,932 |
Deferred revenue, Billings | 772 | 758 |
Deferred revenue, Revenue Recognized | (1,355) | (1,294) |
Deferred revenue, Balance at End of Period | $ 2,516 | $ 2,396 |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textuals) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue Recognition [Abstract] | |
Percentage of remaining performance obligations expected to be recognized as revenue | 97.00% |
Minimum period of remaining performance obligations | 1 year |
Revenue recognition performance obligation transaction price | $ 0.1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets measured at fair value on a recurring basis (Details) - Fair value on recurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | $ 48,136 | $ 47,939 |
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds (included in cash and cash equivalents) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Money market funds (included in cash and cash equivalents) | 48,136 | 47,939 |
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 0 | 0 |
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Money market funds (included in cash and cash equivalents) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Money market funds (included in cash and cash equivalents) | 0 | 0 |
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 0 | 0 |
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Money market funds (included in cash and cash equivalents) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Money market funds (included in cash and cash equivalents) | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail Textuals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, primarily include money market funds | $ 50,414 | $ 51,612 | $ 50,648 | $ 51,608 |
Fair value on recurring basis | Money market funds (included in cash and cash equivalents) | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash equivalents, primarily include money market funds | $ 48,100 | $ 47,900 |
Computation of Earnings per S_3
Computation of Earnings per Share - Summary of net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 228 | $ (495) |
Shares outstanding: | ||
Weighted-average common shares outstanding (in shares) | 21,565 | 21,547 |
Additional dilutive common stock equivalents (in shares) | 17 | 26 |
Diluted shares outstanding (in shares) | 21,582 | 21,573 |
Net income (loss) per share - basic (in dollars per share) | $ 0.01 | $ (0.02) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.01 | $ (0.02) |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 14 | $ 24 |
Cost of services | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1 | 0 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 3 | 5 |
Selling and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 0 | 1 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 10 | $ 18 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail Textuals) | 1 Months Ended | 3 Months Ended | ||||
Mar. 25, 2019Installmentshares | Jan. 31, 2019USD ($)shares | Jul. 31, 2018USD ($)shares | Mar. 20, 2018shares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 14,000 | $ 24,000 | ||||
2001 Nonqualified Stock Plan | Unrestricted Stock | 2019 Grant | Directors, officers and employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | shares | 143,000 | |||||
Number of installment | Installment | 2 | |||||
Stock-based compensation expense | 547,000 | |||||
Stock based compensation expense charged | 14,000 | |||||
Remaining stock based compensation expense | $ 533,000 | |||||
2001 Nonqualified Stock Plan | Unrestricted Stock | 2018 Grant | Directors, officers and employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | shares | 138,000 | |||||
Stock-based compensation expense | $ 580,000 | |||||
Number of shares issued (in shares) | shares | 55,278 | 57,592 | ||||
Number of common stock shares surrendered by employees withholding taxes | shares | 13,722 | 11,408 | ||||
Common stock value surrendered by employees withholding taxes | $ 49,000 | $ 51,000 |
Business Segments - Revenues ge
Business Segments - Revenues generated following geographic regions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 3,732 | $ 2,911 |
Operating Segments | United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,723 | 2,069 |
Operating Segments | United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 880 | 134 |
Operating Segments | Rest of World | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 1,129 | $ 708 |
Business Segments - Summary of
Business Segments - Summary of revenue by product group (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 3,732 | $ 2,911 |
Operating Segments | Biometrics | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,472 | 2,485 |
Operating Segments | Imaging | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 260 | $ 426 |
Business Segments - Revenue by
Business Segments - Revenue by timing of transfer of goods or services (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 3,732 | $ 2,911 |
Goods or services transferred at a point in time | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,172 | 1,474 |
Goods or services transferred over time | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 2,560 | $ 1,437 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (Benefit) | $ 3 | $ (66) | |
U.S. statutory tax rate | 21.00% | ||
Deferred tax assets | $ 5,180 | $ 5,171 |
Income from patent arrangement
Income from patent arrangement (Detail Textuals) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income From Patent Arrangement [Abstract] | |
Income from intangible assets | $ 49 |