Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 10, 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 | INVE | |
Entity Registrant Name | Identiv, Inc. | |
Entity Central Index Key | 0001036044 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 000-29440 | |
Entity Tax Identification Number | 77-0444317 | |
Entity Address, Address Line One | 2201 Walnut Avenue | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 949 | |
Local Phone Number | 250-8888 | |
Entity Common Stock, Shares Outstanding | 18,020,175 | |
Security12b Title | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 12,294 | $ 9,383 |
Accounts receivable, net of allowances of $361 and $299 as of September 30, 2020 and December 31, 2019, respectively | 20,389 | 18,363 |
Inventories | 20,399 | 16,145 |
Prepaid expenses and other current assets | 3,236 | 2,292 |
Total current assets | 56,318 | 46,183 |
Property and equipment, net | 2,392 | 2,042 |
Operating lease right-of-use assets | 3,463 | 4,629 |
Intangible assets, net | 8,138 | 10,104 |
Goodwill | 10,204 | 10,238 |
Other assets | 1,053 | 1,122 |
Total assets | 81,568 | 74,318 |
Current liabilities: | ||
Accounts payable | 9,460 | 8,799 |
Current portion - contractual payment obligation | 950 | 1,311 |
Current portion - financial liabilities, net of debt issuance costs of $235 and $41 as of September 30, 2020 and December 31, 2019, respectively | 23,758 | 14,189 |
Operating lease liabilities | 1,957 | 1,814 |
Deferred revenue | 2,180 | 2,193 |
Accrued compensation and related benefits | 2,845 | 1,671 |
Other accrued expenses and liabilities | 2,757 | 4,498 |
Total current liabilities | 43,907 | 34,475 |
Long-term contractual payment obligation | 246 | 360 |
Long-term operating lease liabilities | 2,673 | 3,013 |
Long-term deferred revenue | 495 | 640 |
Other long-term liabilities | 381 | 364 |
Total liabilities | 47,702 | 38,852 |
Commitments and contingencies (see Note 17) | ||
Stockholders´ equity: | ||
Common stock, $0.001 par value: 50,000 shares authorized; 19,320 and 18,209 shares issued and 17,966 and 16,986 shares outstanding as of September 30, 2020 and December 31, 2019, respectively | 19 | 18 |
Additional paid-in capital | 451,271 | 447,965 |
Treasury stock, 1,354 and 1,223 shares as of September 30, 2020 and December 31, 2019, respectively | (9,647) | (9,043) |
Accumulated deficit | (409,911) | (405,504) |
Accumulated other comprehensive income | 2,129 | 2,025 |
Total stockholders´ equity | 33,866 | 35,466 |
Total liabilities and stockholders' equity | 81,568 | 74,318 |
Series B convertible preferred stock | ||
Stockholders´ equity: | ||
Series B convertible preferred stock, $0.001 par value: 5,000 shares authorized; 5,000 shares issued and outstanding as of September 30, 2020 and December 31, 2019 | $ 5 | $ 5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, allowances | $ 361 | $ 299 |
Debt instrument debt issuance costs, current | $ 235 | $ 41 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 19,320,000 | 18,209,000 |
Common stock, shares outstanding | 17,966,000 | 16,986,000 |
Treasury stock, shares | 1,354,000 | 1,223,000 |
Series B convertible preferred stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 5,000,000 | 5,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - 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] | ||||
Net revenue | $ 24,859 | $ 23,026 | $ 62,084 | $ 64,785 |
Cost of revenue | 14,974 | 12,500 | 36,987 | 35,672 |
Gross profit | 9,885 | 10,526 | 25,097 | 29,113 |
Operating expenses: | ||||
Research and development | 2,380 | 2,125 | 7,398 | 6,229 |
Selling and marketing | 4,245 | 4,470 | 12,978 | 13,689 |
General and administrative | 2,118 | 2,591 | 6,460 | 7,492 |
Increase (decrease) in fair value of earnout liability | 175 | (261) | 175 | |
Restructuring and severance | 163 | (87) | 1,645 | (101) |
Total operating expenses | 8,906 | 9,274 | 28,220 | 27,484 |
Income (loss) from operations | 979 | 1,252 | (3,123) | 1,629 |
Non-operating income (expense): | ||||
Interest expense, net | (407) | (246) | (1,066) | (766) |
Foreign currency (losses) gains, net | (175) | 168 | (119) | 96 |
Income (loss) before income tax provision | 397 | 1,174 | (4,308) | 959 |
Income tax provision | (8) | (105) | (99) | (289) |
Net income (loss) | 389 | 1,069 | (4,407) | 670 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 369 | (369) | 104 | (302) |
Liquidation of subsidiary with noncontrolling interest | (33) | (33) | ||
Comprehensive income (loss) | $ 758 | $ 667 | $ (4,303) | $ 335 |
Net income (loss) per common share: | ||||
Basic | $ 0.01 | $ 0.05 | $ (0.29) | $ (0.01) |
Diluted | $ 0.01 | $ 0.05 | $ (0.29) | $ (0.01) |
Weighted average shares used in computing net income (loss) per common share: | ||||
Basic | 18,144 | 17,006 | 17,868 | 16,933 |
Diluted | 18,650 | 17,766 | 17,868 | 16,933 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Series B convertible preferred stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income | Noncontrolling Interest |
Beginning Balances at Dec. 31, 2018 | $ 33,700 | $ 5 | $ 17 | $ 444,145 | $ (8,153) | $ (404,353) | $ 2,209 | $ (170) |
Beginning Balances (in shares) at Dec. 31, 2018 | 5,000 | 15,967 | ||||||
Net income (loss) | 670 | 670 | ||||||
Unrealized income (loss) from foreign currency translation adjustments | (302) | (302) | ||||||
Issuance of common stock in connection with acquisition of business | 1,635 | $ 1 | 1,634 | |||||
Issuance of common stock in connection with acquisition of business (shares) | 419 | |||||||
Issuance of common stock in connection with vesting of stock awards (shares) | 718 | |||||||
Stock-based compensation | 2,069 | 2,069 | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units | (688) | (688) | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units (shares) | (138) | |||||||
Issuance of common stock in connection with warrant exercise (shares) | 10 | |||||||
Cancellation of holdback shares in connection with acquisition | (340) | (340) | ||||||
Cancellation of holdback shares in connection with acquisition (shares) | (93) | |||||||
Liquidation of subsidiary with noncontrolling interest | 33 | (137) | (33) | 170 | ||||
Ending Balances at Sep. 30, 2019 | 36,744 | $ 5 | $ 18 | 447,371 | (8,841) | (403,683) | 1,874 | |
Ending Balances (in shares) at Sep. 30, 2019 | 5,000 | 16,883 | ||||||
Beginning Balances at Jun. 30, 2019 | 35,540 | $ 5 | $ 18 | 446,819 | (8,656) | (404,752) | 2,276 | (170) |
Beginning Balances (in shares) at Jun. 30, 2019 | 5,000 | 16,786 | ||||||
Net income (loss) | 1,069 | 1,069 | ||||||
Unrealized income (loss) from foreign currency translation adjustments | (369) | (369) | ||||||
Issuance of common stock in connection with vesting of stock awards (shares) | 136 | |||||||
Stock-based compensation | 689 | 689 | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units | (185) | (185) | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units (shares) | (39) | |||||||
Liquidation of subsidiary with noncontrolling interest | 33 | (137) | (33) | $ 170 | ||||
Ending Balances at Sep. 30, 2019 | 36,744 | $ 5 | $ 18 | 447,371 | (8,841) | (403,683) | 1,874 | |
Ending Balances (in shares) at Sep. 30, 2019 | 5,000 | 16,883 | ||||||
Beginning Balances at Dec. 31, 2019 | 35,466 | $ 5 | $ 18 | 447,965 | (9,043) | (405,504) | 2,025 | |
Beginning Balances (in shares) at Dec. 31, 2019 | 5,000 | 16,986 | ||||||
Net income (loss) | (4,407) | (4,407) | ||||||
Unrealized income (loss) from foreign currency translation adjustments | 104 | 104 | ||||||
Issuance of common stock in connection with vesting of stock awards (shares) | 505 | |||||||
Stock-based compensation | 2,182 | 2,182 | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units | (604) | (604) | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units (shares) | (131) | |||||||
Issuance of common stock in connection with Viscount Earnout | 489 | 489 | ||||||
Issuance of common stock in connection with Viscount Earnout, (shares) | 157 | |||||||
Issuance of shares to non-employees | 304 | 304 | ||||||
Issuance of shares to non-employees (shares) | 62 | |||||||
Issuance of common stock in connection with warrant exercise | $ 1 | (1) | ||||||
Issuance of common stock in connection with warrant exercise (shares) | 387 | |||||||
Issuance of warrants | 332 | 332 | ||||||
Ending Balances at Sep. 30, 2020 | 33,866 | $ 5 | $ 19 | 451,271 | (9,647) | (409,911) | 2,129 | |
Ending Balances (in shares) at Sep. 30, 2020 | 5,000 | 17,966 | ||||||
Beginning Balances at Jun. 30, 2020 | 32,513 | $ 5 | $ 19 | 450,480 | (9,451) | (410,300) | 1,760 | |
Beginning Balances (in shares) at Jun. 30, 2020 | 5,000 | 17,860 | ||||||
Net income (loss) | 389 | 389 | ||||||
Unrealized income (loss) from foreign currency translation adjustments | 369 | 369 | ||||||
Issuance of common stock in connection with vesting of stock awards (shares) | 143 | |||||||
Stock-based compensation | 791 | 791 | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units | (196) | (196) | ||||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units (shares) | (37) | |||||||
Ending Balances at Sep. 30, 2020 | $ 33,866 | $ 5 | $ 19 | $ 451,271 | $ (9,647) | $ (409,911) | $ 2,129 | |
Ending Balances (in shares) at Sep. 30, 2020 | 5,000 | 17,966 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (4,407) | $ 670 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 2,470 | 2,704 |
Accretion of interest on contractual payment obligation | 115 | 115 |
Stock-based compensation expense | 2,182 | 2,069 |
Amortization of debt issuance costs | 321 | 42 |
Impairment of right-of-use operating lease asset | 1,199 | |
(Decrease) increase in fair value of earnout liability | (261) | 175 |
Changes in operating assets and liabilities, net of acquisition: | ||
Accounts receivable | (2,035) | (3,667) |
Inventories | (4,244) | (72) |
Prepaid expenses and other assets | (875) | (33) |
Accounts payable | 962 | 1,556 |
Contractual payment obligation liability | (590) | (948) |
Deferred revenue | (158) | 721 |
Accrued expenses and other liabilities | (4) | (1,962) |
Net cash (used in) provided by operating activities | (5,325) | 1,370 |
Cash flows from investing activities: | ||
Capital expenditures | (928) | (202) |
Acquisition of business, net of cash acquired | (1,287) | |
Net cash used in investing activities | (928) | (1,489) |
Cash flows from financing activities: | ||
Repayments of notes payable | (2,000) | |
Taxes paid related to net share settlement of restricted stock units | (604) | (688) |
Net cash provided by financing activities | 8,976 | 595 |
Effect of exchange rates on cash | 188 | (290) |
Net increase in cash | 2,911 | 186 |
Cash at beginning of period | 9,383 | 10,866 |
Cash at end of period | 12,294 | 11,052 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 733 | 713 |
Taxes paid, net | 44 | 155 |
Non-cash investing and financing activities: | ||
Common stock issued to settle vendor liability | 304 | |
Common stock issued to settle earnout liability | 489 | |
Fair value of warrants issued in connection with financial liabilities | 332 | |
Liquidation of subsidiary with noncontrolling interest | 170 | |
Cancellation of holdback shares in connection with acquisition | 340 | |
Common Stock | ||
Non-cash investing and financing activities: | ||
Common stock issued for acquisition of business, net | 1,635 | |
April 21 Funds Promissory Notes | ||
Cash flows from financing activities: | ||
Proceeds from promissory notes | 4,000 | |
Paycheck Protection Program Promissory Note | ||
Cash flows from financing activities: | ||
Proceeds from promissory notes | 2,915 | |
Revolving Loan Facility | ||
Cash flows from financing activities: | ||
Borrowings under revolving loan facility and East West Bank term loan, net of issuance costs | 2,762 | 5,427 |
Repayments under revolving loan facility and East West Bank term loan, net of issuance costs | (3,347) | $ (2,144) |
East West Bank Term Loan | ||
Cash flows from financing activities: | ||
Borrowings under revolving loan facility and East West Bank term loan, net of issuance costs | 4,500 | |
Repayments under revolving loan facility and East West Bank term loan, net of issuance costs | $ (1,250) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Identiv, Inc. and its wholly and majority owned subsidiaries (“Identiv” or the “Company”). All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the fiscal year 2019 condensed consolidated financial statements to conform to the fiscal year 2020 presentation. The reclassifications had no impact on net income (loss), total assets, total liabilities, or stockholders’ equity. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s unaudited condensed consolidated financial statements have been included. The results of operations for the three months and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any future period. The condensed consolidated balance sheet as of December 31, 2019 has been derived from audited consolidated financial statements at that date, but does not include all disclosures required by U.S. GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” and the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | 2. Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies No material changes have been made to the Company's significant accounting policies disclosed in Note 1, Summary of Significant Accounting Policies Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Additionally, ASU No. 2019-10 defers the effective date for the adoption of the new standard on credit losses for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which will be fiscal 2023 for the Company if it continues to be classified as a SRC. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The subsequent amendments will have the same effective date and transition requirements as ASU No. 2016-13. Early adoption is permitted. Topic 326 requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company is currently evaluating the impact of Topic 326, Company does not expect the adoption of the ASU to have a material impact on its condensed consolidated financial statements. In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of its products, software licenses, and services, which are generally capable of being distinct and accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its standalone selling price. The stated contract value is generally the transaction price to be allocated to the separate performance obligations. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Nature of Products and Services The Company derives revenue primarily from sales of hardware products, software licenses, professional services, software maintenance and support, and extended hardware warranties. Hardware Product Revenue — The Company generally has two performance obligations in arrangements involving the sale of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide assurance that the product complies with its agreed-upon specifications and is free from defects in material and workmanship for a period of one to three years (i.e. assurance warranty). The entire transaction price is allocated to the hardware product and is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. The Company has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. None of the transaction price is allocated to the assurance warranty component, as the Company accounts for these product warranty costs in accordance with Accounting Standards Codification ("ASC”) 460, (“ASC 460”). Software License Revenue — The Company’s license arrangements grant customers the perpetual right to access and use the licensed software products at the outset of an arrangement. Technical support and software updates are generally made available throughout the term of the support agreement, which is generally one to three years. The Company accounts for these arrangements as two performance obligations: (1) the software licenses, and (2) the related updates and technical support. The software license revenue is recognized upon delivery of the license to the customer, while the software updates and technical support revenue is recognized over the term of the support contract. Professional Services Revenue — Professional services revenue consists primarily of programming customization services performed relating to the integration of the Company’s software products with the customers other systems, such as human resources systems. Professional services contracts are generally billed on a time and materials basis and revenue is recognized as the services are performed. Software Maintenance and Support Revenue — Support and maintenance contract revenue consists of the services provided to support the specialized programming applications performed by the Company’s professional services group. Support and maintenance contracts are typically billed at inception of the contract and recognized as revenue over the contract period, typically over a one to three year period. Extended Hardware Warranties Revenue — Sales of the Company’s hardware products may also include optional extended hardware warranties, which typically provide assurance that the product will continue function as initially intended. Extended hardware warranty contracts are typically billed at inception of the contract and recognized as revenue over the respective contract period, typically over one to two year periods after the expiration of the original assurance warranty. Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Hardware products When customer obtains control of the product (point-in-time) Within 30-60 days of shipment Observable in transactions without multiple performance obligations Software licenses When license is delivered to customer or made available for download, and the applicable license period has begun (point-in-time) Within 30-60 days of the beginning of license period Established pricing practices for software licenses bundled with software maintenance, which are separately observable in renewal transactions Professional services As services are performed and/or when the contract is fulfilled (point-in-time) Within 30-60 days of delivery Observable in transactions without multiple performance obligations Software maintenance and support services Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions Extended hardware warranties Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. For such arrangements, the Company allocates the transaction price to each performance obligation based on its relative standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation in a contract. For the majority of items, the Company estimates SSP using historical transaction data. The Company uses a range of amounts to estimate SSP when it sells each of the products and services separately and needs to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when the product or service is not sold separately, the Company determines the SSP using information that may include market conditions and other observable inputs. The determination of SSP is an ongoing process and information is reviewed regularly in order to ensure SSPs reflect the most current information or trends. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers based on the timing of transfer of goods or services to customers (point-in-time or over time) and geographic region based on the shipping location of the customer. The geographic regions that are tracked are the Americas, Europe and the Middle East, and Asia-Pacific regions. The Company operates as two operating segments. Total net revenue based on the disaggregation criteria described above is as follows (in thousands): Three Months Ended September 30, 2020 2019 Point-in- Time Over Time Total Point-in- Time Over Time Total Americas $ 14,217 $ 833 $ 15,050 $ 16,471 $ 1,354 $ 17,825 Europe and the Middle East 1,995 87 2,082 2,344 92 2,436 Asia-Pacific 7,727 — 7,727 2,765 — 2,765 Total $ 23,939 $ 920 $ 24,859 $ 21,580 $ 1,446 $ 23,026 Nine Months Ended September 30, 2020 2019 Point-in- Time Over Time Total Point-in- Time Over Time Total Americas $ 39,587 $ 3,001 $ 42,588 $ 44,755 $ 3,740 $ 48,495 Europe and the Middle East 7,033 279 7,312 8,541 249 8,790 Asia-Pacific 12,184 — 12,184 7,500 — 7,500 Total $ 58,804 $ 3,280 $ 62,084 $ 60,796 $ 3,989 $ 64,785 Contract Balances Amounts invoiced in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company’s deferred revenue balance is related to software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 60 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, not to receive financing from its customers. Changes in deferred revenue during the nine months ended September 30, 2020 and 2019 were as follows (in thousands): Nine Months Ended September 30, 2020 2019 Deferred revenue, beginning of period $ 2,833 $ 2,810 Fair value of deferred revenue acquired in acquisition, net of recognition — 4 Deferral of revenue billed in current period, net of recognition 1,719 2,567 Recognition of revenue deferred in prior periods (1,877 ) (1,816 ) Deferred revenue as, end of period $ 2,675 $ 3,565 Unsatisfied Performance Obligations Revenue expected to be recognized in future periods related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, and contracts where revenue is recognized as invoiced, was approximately $0.9 million as of September 30, 2020. Since the Company typically invoices customers at contract inception, this amount is included in its deferred revenue balance. As of September 30, 2020, the Company expects to recognize 18% of the revenue related to these unsatisfied performance obligations during the remainder of 2020, 52% during 2021, and 30% thereafter. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain sales incentive programs (i.e. commissions) meet the requirements to be capitalized. Capitalized incremental costs related to contracts are amortized over the respective contract periods. For the nine months ended September 30, 2020 and 2019, total capitalized costs to obtain contracts were immaterial. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 4. Business Combinations Thursby Software Systems On November 1, 2018, the Company completed the acquisition of Thursby Software Systems, Inc. (“Thursby”), a provider of security software for mobile devices, pursuant to an Agreement and Plan of Merger (the “Thursby Agreement”). Under the terms of the Thursby Agreement, at the closing of the acquisition, the Company acquired all of the outstanding shares of Thursby for total purchase consideration of $3.1 million, consisting of: (i) $0.6 million in cash, net of cash acquired; and (ii) the issuance of 426,621 shares of the Company’s common stock with a value of approximately $2.5 million. An aggregate of up to $0.5 million, or 85,324 shares, of the Company’s common stock issuable at the closing of the transaction were held back for a period of up to 12 months following the closing for the satisfaction of certain indemnification claims. In the fourth quarter of 2019, the Company and William Thursby reached agreement as to the satisfaction of the indemnification claims, and accordingly, the Company released the 85,324 holdback shares. Additionally, in the event that revenue from Thursby products was greater than $8.0 million, $11.0 million, or $15.0 million in product shipments in 2019, the Company would have been obligated to issue earnout consideration of up to a maximum of $7.5 million payable in shares of the Company’s common stock, subject to certain conditions. In the event that such revenue was less than $15.0 million in 2019, but 2020 revenue from Thursby products exceeds $15.0 million, the Company will be obligated to issue an additional $2.5 million in earnout consideration payable in shares of the Company’s common stock. The maximum total earnout consideration payable for all periods is $7.5 million in the aggregate, payable in shares of the Company’s common stock. Management has assessed the probability of the issuance of shares related to the earnout consideration and determined it as remote. Accordingly, no value was ascribed to the earnout consideration as of September Acquisition related intangibles included in the below table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized, as follows (in thousands): Gross Purchased Intangible Assets Estimated Useful Life (in Years) Trademarks $ 200 5 Customer relationships 1,500 10 Developed technology 700 10 $ 2,400 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The acquisition of Thursby resulted in $3.6 million of goodwill, which is not deductible for tax purposes. With the addition of the Thursby security software for mobile devices, the Company believes this goodwill largely reflects the synergistic strengthening of its Identity offerings providing complete solutions for secure and convenient logical access across smart cards and derived credentials on Apple iOS and Android mobile devices. In accordance with ASC 350, goodwill will not be amortized but is tested for impairment at least annually in the fourth quarter. See Note 6, Goodwill and Intangible Assets Viscount Systems, Inc. On January 2, 2019, the Company completed the purchase of substantially all the assets of the Freedom, Liberty, and Enterphone™ MESH products and services of Viscount Systems, Inc. (“Viscount”) and the assumption of certain liabilities (the “Asset Purchase”). Under the terms of the Asset Purchase, the Company was obligated to pay at closing aggregate consideration of $2.9 million consisting of: (i) payment in cash of approximately $1.3 million, and (ii) the issuance of 419,288 shares of the Company’s common stock with a value of approximately $1.6 million. An aggregate of approximately 31,447 shares of the Company’s common stock issuable at the closing of the transaction were held back for 12 months following the closing for the satisfaction of certain indemnification claims. In the first quarter of 2020, the Company released the 31,447 holdback shares as the indemnification claims were satisfied. Additionally, in the event that revenue from the assets purchased under the agreement in 2019 was greater than certain specified revenue targets, the Company would be obligated to issue earnout consideration of up to a maximum of $3.5 million payable in shares of the Company’s common stock (subject to certain conditions). In the event that such revenue targets were not met in 2019, but 2020 revenue from the assets purchased exceeds certain higher targets for 2020, then the Company will be obligated to issue up to a maximum of $2.25 million in earnout consideration in the form of common stock. The maximum total earnout consideration liability for all periods is $3.5 million in the aggregate, payable in the Company’s common stock. At December 31, 2019, management had assessed the probability of the issuance of shares related to the earnout consideration and determined its fair value to be $750,000. In the first quarter of 2020, the Company and the selling stockholders of the net assets acquired from Viscount reached agreement that certain of the 2019 revenue targets were achieved. In the second quarter of 2020, the Company issued to the selling stockholders earnout consideration consisting of 157,233 shares of its common stock with a fair value of approximately $489,000. The Company recognized a reduction in earnout consideration expense of $261,000 in the statement of comprehensive income (loss) during the quarter ended June 30, 2020, representing the settlement date fair value of the shares issued and the recorded earnout liability. Assets acquired and liabilities assumed are recorded based on valuations derived from estimated fair value assessments and assumptions used by the Company. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition (in thousands): Accounts receivable $ 636 Inventory 249 Prepaid expenses and other current assets 29 Property and equipment 190 Operating lease ROU assets 550 Trademarks 160 Customer relationships 710 Developed technology 800 Total identifiable assets acquired 3,324 Accounts payable (372 ) Operating lease liabilities (61 ) Accrued expenses and liabilities (120 ) Deferred revenue (34 ) Earnout consideration liability (200 ) Other current liabilities (326 ) Long-term operating lease liabilities (489 ) Total liabilities assumed (1,602 ) Net identifiable assets acquired 1,722 Goodwill 1,200 Net purchase price $ 2,922 Acquisition related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized, as follows (in thousands): Gross Purchased Intangible Assets Estimated Useful Life (in Years) Trademarks $ 160 5 Customer relationships 710 10 Developed technology 800 10 $ 1,670 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The Asset Purchase resulted in $1.2 million of goodwill. With the addition of Viscount’s products and services, the Company believes this goodwill largely reflects the expansion of its Premises offerings with advanced, complementary solutions for the commercial and small- and medium-sized business markets, leveraging Freedom’s IT-centric software, defined architecture, and hardware-light platform. In accordance with ASC 350, goodwill will not be amortized but is tested for impairment at least annually in the fourth quarter. See Note 6, Goodwill and Intangible Assets |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. Under ASC Topic 820, Fair Value Measurement and Disclosures (“ASC 820”) • Level 1 – Quoted prices (unadjusted) for identical assets and liabilities in active markets; • Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly; and • Level 3 – Unobservable inputs. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of September 30, 2020 The Company’s only liabilities measured at fair value on a recurring basis are the contingent consideration associated with the acquisitions of Thursby and Viscount . In the first quarter of 2020, the Company and the selling stockholders of the net assets acquired from Viscount reached agreement that certain of the 2019 revenue targets were achieved. Accordingly, in the second quarter of 2020, the Company issued to the selling stockholders the related earnout consideration consisting of 157,233 shares of its common stock with a fair value of approximately $489,000. Changes in the fair value of liabilities classified in Level 3 of the fair value hierarchy were as follows (in thousands): Viscount Earnout Consideration Balance as of December 31, 2019 $ 750 Decrease in fair value of earnout liability (261 ) Issuance of common stock in connection with earnout consideration (489 ) Balance as of September 30, 2020 $ — Assets and Liabilities Measured at Fair Value on a Non-recurring Basis Certain of the Company's assets, including goodwill, intangible assets, and privately-held investments, are measured at fair value on a nonrecurring basis if impairment is indicated. Purchased intangible assets are measured at fair value primarily using discounted cash flow projections. For additional discussion of measurement criteria used in evaluating potential impairment involving goodwill and intangible assets, refer to Note 6, Goodwill and Intangible Assets Privately-held investments, which are normally carried at cost, are measured at fair value due to events and circumstances that the Company identified as significantly impacting the fair value of the investments. The Company estimates the fair value of its privately-held investments using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. As of September 30, 2020 $ As of September Assets and Liabilities Not Measured at Fair Value The carrying amounts of the Company's accounts receivable, prepaid expenses and other current assets, accounts payable, financial liabilities and other accrued liabilities approximate fair value due to their short maturities. Based on the borrowing rates currently available to the Company for debt with similar terms, the carrying value of the outstanding debt approximates fair value. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table summarizes the activity in goodwill (in thousands): Premises Identity Total Balance as of December 31, 2019 $ 6,684 $ 3,554 $ 10,238 Currency translation adjustment (34 ) — (34 ) Balance as of September 30, 2020 $ 6,650 $ 3,554 $ 10,204 The Company tests goodwill for impairment on an annual basis, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. In testing for goodwill impairment, the Company compares the fair value of its reporting unit to its carrying value including the goodwill of that unit. If the carrying value, including goodwill, exceeds the reporting unit’s fair value, the Company will recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value. No impairment of goodwill was identified during the nine months ended September 2020 and 2019. Intangible Assets The following table summarizes the gross carrying amount and accumulated amortization for intangible assets resulting from acquisitions (in thousands): Developed Customer Trademarks Technology Relationships Total Amortization period (in years) 5 10 – 12 4 – 12 Gross carrying amount as of September 30, 2020 $ 758 $ 9,089 $ 15,739 $ 25,586 Accumulated amortization (342 ) (5,542 ) (11,564 ) (17,448 ) Intangible assets, net as of September 30, 2020 $ 416 $ 3,547 $ 4,175 $ 8,138 Gross carrying amount as of December 31, 2019 $ 763 $ 9,109 $ 15,763 $ 25,635 Accumulated amortization (229 ) (4,873 ) (10,429 ) (15,531 ) Intangible assets, net as of December 31, 2019 $ 534 $ 4,236 $ 5,334 $ 10,104 Each period, the Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. If a revision to the remaining period of amortization is warranted, amortization is prospectively adjusted over the remaining useful life of the intangible asset. Intangible assets subject to amortization are amortized on a straight-line basis 30, The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the three and nine months ended September 30, Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 223 $ 224 $ 669 $ 672 Selling and marketing 419 418 1,254 1,253 Total $ 642 $ 642 $ 1,923 $ 1,925 The estimated annual future amortization expense for purchased intangible assets with definite lives as of September 30, 2020 (remaining three months) $ 644 2021 1,111 2022 1,111 2023 1,034 2024 959 Thereafter 3,279 Total $ 8,138 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2020 | |
Statement Of Financial Position [Abstract] | |
Balance Sheet Components | 7. Balance Sheet Components The Company’s inventories are stated at the lower of cost or net realizable value. Inventories consists of (in thousands): September 30, December 31, 2020 2019 Raw materials $ 7,922 $ 4,612 Work-in-progress 124 100 Finished goods 12,353 11,433 Total $ 20,399 $ 16,145 Property and equipment, net consists of (in thousands): September 30, December 31, 2020 2019 Building and leasehold improvements $ 1,243 $ 1,200 Furniture, fixtures and office equipment 1,280 1,276 Plant and machinery 10,986 10,364 Purchased software 2,187 2,161 Total 15,696 15,001 Accumulated depreciation (13,304 ) (12,959 ) Property and equipment, net $ 2,392 $ 2,042 The Company recorded depreciation expense of $0.2 million and $0.3 million during the three months ended September September Other accrued expenses and liabilities consist of (in thousands): September 30, December 31, 2020 2019 Accrued professional fees $ 484 $ 1,511 Customer deposits 203 137 Accrued warranties 474 407 Earnout liability — 750 Other accrued expenses 1,596 1,693 Total $ 2,757 $ 4,498 |
Contractual Payment Obligation
Contractual Payment Obligation | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Contractual Payment Obligation | 8. Contractual Payment Obligation Hirsch Electronics Corporation (“Hirsch”) Acquisition – Secure Keyboards and Secure Networks . Prior to the Company’s acquisition of Hirsch in 2009, in November 1994, Hirsch had entered into a settlement agreement (the “1994 Settlement Agreement”) with two limited partnerships, Secure Keyboards, Ltd. (“Secure Keyboards”) and Secure Networks, Ltd. (“Secure Networks”). On April 8, 2009, the 1994 Settlement Agreement was amended and restated to replace the royalty-based payment arrangement with an installment payment schedule with contractual payments to be made in future periods through 2021 (the “2009 Settlement Agreement”). On April 30, 2009, as part of the acquisition of Hirsch, the Company provided Secure Keyboards and Secure Networks with a limited guarantee of Hirsch’s payment obligation under the 2009 Settlement Agreement. On April 13, 2020, the Company, Secure Keyboards, and Secure Networks, amended the 2009 Settlement Agreement. The amendment reduced the amount of quarterly payments due under the obligation in 2020, and requires three additional quarterly payments in 2021, increasing the total amount due under the obligation by approximately $90,000. The Company’s remaining payment obligation under the 2009 Settlement Agreement, as amended, was extended through October 31, 2021. The Company included approximately $28,000 and $115,000 The payment obligation under the 2009 Settlement Agreement, as amended, as of September 30, 2020, 2020 (remaining three months) $ 180 2021 1,083 Present value discount factor (67 ) Total $ 1,196 Less: Current portion - contractual payment obligation (950 ) Long-term contractual payment obligation $ 246 |
Financial Liabilities
Financial Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financial Liabilities | 9. Financial Liabilities Financial liabilities consist of (in thousands): September 30, December 31, 2020 2019 Revolving loan facility $ 13,828 $ 14,230 East West Bank term loan 3,250 — April 21 Funds promissory notes 4,000 — Paycheck Protection Program promissory note 2,915 — Total 23,993 14,230 Less: Current maturities of financial liabilities (23,758 ) (14,189 ) Less: Unamortized debt issuance costs (235 ) (41 ) Long-term financial liabilities $ — $ — On February 8, 2017, the Company entered into Loan and Security Agreements with East West Bank (“EWB”) and Venture Lending & Leasing VII, Inc. and Venture Lending VIII, Inc. (collectively referred to as “VLL7 and VLL8”). The Loan and Security agreement, as amended, with EWB provided a $16.0 million revolving loan facility (“Revolving Loan Facility”), and the Loan and Security Agreement with VLL7 and VLL8 provided a $10.0 million term loan facility (“Term Loan”). All amounts due under the Term Loan were paid in full in May 2018. On February 6, 2019, the Company entered into an amendment (the “Tenth Amendment”) to its Loan and Security Agreement, as amended, with EWB which increased the Revolving Loan Facility from $16.0 million to $20.0 million, lowered the interest rate from prime rate plus 1.0% to prime rate plus 0.75%, extended the maturity date to February 8, 2021, and amended certain financial covenants, including covenants with respect to minimum EBITDA levels. On March 27, 2019, the Company entered into an amendment (the “Eleventh Amendment”) which modified certain financial covenants. On January 28, 2020, the Company entered into an amendment (the “Twelfth Amendment”) to its Loan and Security Agreement with EWB, which provided a new term loan facility (“EWB Term Loan”) in a principal amount of $4.5 million, which was received on January 28, 2020, and reduced the Revolving Loan Facility under the Loan and Security Agreement from $20.0 million to $15.5 million. The EWB Term Loan has an interest rate equal to the prime rate plus 2.25%, began to amortize on February 1, 2020, with principal in the amount of $250,000 due monthly through the first anniversary of the Term Loan, and the remainder due on such first anniversary. In addition, certain definitions in the Loan and Security Agreement were amended pursuant to the Twelfth Amendment, including the definition of EBITDA and Borrowing Base, and a new fixed charge coverage ratio financial covenant was added. Upon repayment of the EWB Term Loan in full, the Revolving Loan Facility will be increased to $20.0 million and the fixed charge coverage ratio financial covenant will no longer apply. Legal and administrative costs of $90,000 were recorded as a direct reduction from the carrying amount of the EWB Term Loan and are being amortized as interest expense over the remaining term of the Loan and Security Agreement with EWB. On May 5, 2020, the Company entered into an amendment (the “Thirteenth Amendment”) to its Loan and Security Agreement with EWB. Under the Thirteenth Amendment, certain definitions were amended, including the definitions of Permitted Indebtedness and EBITDA, and certain financial covenants were amended, including reducing from $4.0 million to $3.0 million the amount of unrestricted cash that must be held in the Company’s accounts with EWB during the period from May 1, 2020 through September 30, 2020 and providing for minimum trailing six-month EBITDA of at least $0.6 million during such period and of $0.3 million thereafter. In addition, the Company is not required to make monthly principal payments on the EWB Term Loan for the three payment dates of May 1, 2020, June 1, 2020 and July 1, 2020. In addition, as discussed in Note 11, Stockholders’ Equity, The Company may voluntarily prepay amounts outstanding under the Revolving Loan Facility, without prepayment charges. In the event the Revolving Loan Facility is terminated prior to its maturity, the Company would be required to pay an early termination fee in the amount of 1.0% of the revolving line. Additional borrowing requests under the Revolving Loan Facility are subject to various customary conditions precedent, including satisfaction of a borrowing base test as more fully described in the Revolving Loan Facility. The Revolving Loan Facility contains customary representations and warranties, customary affirmative and negative covenants, including, limits or restrictions on the Company's ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate and dispose of assets, and various financial and liquidity covenants. As of September 30, 2020, the Company was in compliance with all financial covenants under the Revolving Loan Facility. On May 5, 2020, the Company issued secured subordinated promissory notes in an aggregate principal amount of $4.0 million (the “Notes”) to 21 April Fund, LP and 21 April Fund, Ltd. (collectively referred to as the “April 21 Funds”) pursuant to a Note and Warrant Purchase Agreement entered into with the April 21 Funds (the “Note Purchase Agreement”). The Notes are secured by the Company’s assets, but subordinate to the Company’s obligations to EWB under its Loan and Security Agreement. Proceeds from the sale of the Notes must be used for expenses incurred by the Company in connection with its provisions of goods and services under a statement of work with a third party. The Notes have an initial term of nine months and do not bear interest during this period. However, if the Notes are not repaid on or before the nine-month anniversary of issuance, (a) the Notes will thereafter bear interest of 8% per annum, payable quarterly, and (b) additional warrants to purchase common stock would be issuable to the April 21 Funds for each month all or a portion of the Notes remain unpaid, as further detailed in the Note Purchase Agreement. In the event the Notes are not paid in full by the first anniversary of their issuance, May 5, 2021, they shall thereafter bear interest of 12% per annum, payable quarterly, and additional warrants would be issuable to the April 21 Funds. As discussed in Note 11, Stockholders’ Equity, On April 9, 2020, the Company entered into a promissory note (the “Note”) under the Paycheck Protection Program established under Section 1102 of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The Note is dated April 8, 2020 with EWB. The Company borrowed a principal amount of approximately $2.9 million. The interest on the Note is 1.00% per annum. The Note is payable two years from the date of the Note, and there is no prepayment penalty. All interest which accrues during the initial six months of the loan period is deferred and payable on the maturity date of the Note. Notes issued under the CARES Act may be eligible for forgiveness in whole or in part in accordance with Small Business Administration rules established for the Paycheck Protection Program. The principal amount outstanding, including accrued interest, is included in current portion – financial liabilities in the accompanying condensed consolidated balance sheets, as the Company expects all amounts outstanding will be forgiven in the first quarter of 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company conducts business globally and, as a result, files federal, state and foreign tax returns. The Company strives to resolve open matters with each tax authority at the examination level and could reach agreement with a tax authority at any time. While the Company has accrued for amounts it believes are the probable outcomes, the final outcome with a tax authority may result in a tax liability that is more or less than that reflected in the condensed consolidated financial statements. Furthermore, the Company may later decide to challenge any assessments, if made, and may exercise its right to appeal. The Company applies the provisions of, and accounts for uncertain tax positions in accordance with ASC 740, Income Taxes The Company generally is no longer subject to tax examinations for years prior to 2016. However, if loss carryforwards of tax years prior to 2016 are utilized in the U.S., these tax years may become subject to investigation by the tax authorities. While timing of the resolution and/or finalization of tax audits is uncertain, the Company does not believe that its unrecognized tax benefits would materially change in the next 12 months. The CARES Act, which was enacted on March 27, 2020, includes several significant provisions for corporations, including the usage of net operating losses and payroll benefits. Several foreign (non-U.S.) jurisdictions in which we operate have taken similar economic stimulus measures. The Company analyzed the provisions of the CARES Act and determined there was no effect on its provision for the current period and will continue to evaluate the impact, if any, the CARES Act may have on the Company’s condensed consolidated financial statements and disclosures On June 29, 2020, California Governor Gavin Newsom signed Assembly Bill 85 (“AB85”) into law as part of the California 2020 Budget Act, which temporarily suspends the use of California net operating losses and imposes a cap on the amount of business incentive tax credits that companies can utilize against their net income for tax years 2020, 2021, and 2022. The Company analyzed the provisions of AB 85 and determined there was no impact on the Company’s provision for income taxes for the current period and will continue to evaluate the impact, if any, AB 85 may have on the Company’s condensed consolidated financial statements and disclosures. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Series B Convertible Preferred Stock Dividend Accretion The following tables summarize Series B convertible 30, 2020 Total Series B Convertible Preferred Stock: Balance as of December 31, 2019 $ 21,875 Cumulative dividends on Series B convertible preferred stock 818 Balance as of September 30, 2020 $ 22,693 Number of Common Shares Issuable Upon Conversion: Balance as of December 31, 2019 5,469 Cumulative dividends on Series B convertible preferred stock 204 Balance as of September 30, 2020 5,673 Based on the current conversion price, the outstanding shares, including the accretion of dividends, of Series B convertible preferred stock as of September 30, Each share of Series B convertible th convertible convertible Common Stock Warrants On February 8, 2017, the Company entered into Loan and Security Agreements with each of EWB and VLL7 and VLL8 as discussed in Note 9, Financial Liabilities Each of the EWB Warrant, the VLL7 Warrant and the VLL8 Warrant was immediately exercisable for cash or by net exercise and expire on February 8, 2022. On January 30, 2020, each of VLL7 and VLL8 exercised their warrant on a cashless net exercise basis, with each receiving 193,494 shares of the Company’s common stock. On May 5, 2020, the Company entered into the Thirteenth Amendment to its Loan and Security Agreement with EWB, as discussed in Note 9, Financial Liabilities On May 5, 2020, the Company entered into a Note and Warrant Purchase Agreement with the April 21 Funds, as discussed in Note 9, Financial Liabilities, Below is the summary of outstanding warrants issued by the Company as of S eptember 30, Warrant Type Number of Shares Issuable Upon Exercise Exercise Price Issue Date Expiration Date East West Bank Warrant 40,000 $ 3.50 February 8, 2017 February 8, 2023 April 21 Funds Warrants 275,000 $ 3.50 May 5, 2020 May 5, 2023 Total 315,000 Common Stock Reserved for Future Issuance Common stock reserved for future issuance as of September 30, Exercise of outstanding stock options, vesting of restricted stock units ("RSU"), and issuance of RSUs vested but not released 1,710,044 Employee Stock Purchase Plan 293,888 Shares of common stock available for grant under the 2011 Plan 1,166,485 Warrants to purchase common stock 315,000 Shares of common stock issuable upon conversion of Series B convertible preferred stock 7,541,449 Total 11,026,866 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation Stock Incentive Plans The Company maintains a stock-based compensation plan, the 2011 Incentive Compensation Plan (the “2011 Plan”), as amended, to attract, motivate, retain and reward employees, directors and consultants by providing its Board or a committee of the Board the discretion to award equity incentives to these persons. On June 6, 2011, the Company’s stockholders approved the 2011 Plan, which is administered by the Compensation Committee of the Board. The 2011 Plan provides that stock options, stock units, restricted shares, and stock appreciation rights may be granted to executive officers, directors, consultants, and other key employees. The Company reserved 400,000 shares of common stock under the 2011 Plan, plus 459,956 shares of common stock that remained available for delivery under the 2007 Plan and the 2010 Plan as of June 6, 2011. In aggregate, as of June 6, 2011, 859,956 shares were available for future grant under the 2011 Plan, including shares rolled over from the 2007 Plan and the 2010 Plan. Subsequent to June 6, 2011 through June 30, 2020, the number of shares of common stock authorized for issuance under the 2011 Plan has been increased by an aggregate of 4,400,000 shares. Stock Option Plans A summary of activity for the Company’s stock option plans for the nine months ended September Number Outstanding Average Exercise Price per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance as of December 31, 2019 562,102 $ 5.60 5.86 $ 572,869 Granted — — Cancelled or Expired (8,833 ) 8.17 Exercised — — Balance as of September 30, 2020 553,269 $ 5.56 5.14 $ 851,594 Vested or expected to vest as of September 30, 2020 553,269 $ 5.56 5.14 $ 851,594 Exercisable as of September 30, 2020 553,269 $ 5.56 5.14 $ 851,594 The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s common stock and the option exercise price of in-the-money options multiplied by the number of such options. The following table summarizes information about options outstanding as of September 30, Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $4.36 - $7.20 462,110 5.56 $ 4.44 462,110 $ 4.44 $7.50 - $11.25 70,698 3.42 9.95 70,698 9.95 $11.30 - $16.95 13,764 1.94 12.90 13,764 12.90 $17.60 - $26.40 6,697 0.99 21.55 6,697 21.55 $4.36 - $26.40 553,269 5.14 $ 5.56 553,269 $ 5.56 As of September related to stock options Restricted Stock Units The following is a summary of RSU activity for the nine months ended September Number of RSUs Weighted Average Fair Value Unvested as of December 31, 2019 1,148,110 $ 4.43 Granted 482,683 4.12 Vested (551,565 ) 4.10 Forfeited (173,224 ) 4.69 Unvested as of September 30, 2020 906,004 $ 4.41 Shares vested but not released 250,771 $ 5.02 The fair value of the Company’s RSUs is calculated based upon the fair market value of the Company’s stock on the date of grant. As of September Stock-Based Compensation Expense The following table illustrates all employee stock-based compensation expense related to stock options and RSUs included in the condensed consolidated statements of operations for the three and nine months ended September 30, Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 43 $ 34 $ 124 $ 97 Research and development 159 107 506 334 Selling and marketing 127 193 371 578 General and administrative 462 355 1,181 1,060 Total $ 791 $ 689 $ 2,182 $ 2,069 Restricted Stock Unit Net Share Settlements During the nine months ended September 30, |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | 13. Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders during the period by the weighted average number of common shares outstanding during that period. Diluted net income (loss) per common share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock or the if-converted method of accounting. The calculations for basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2020 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic net income (loss) per common share: Numerator: Net income (loss) $ 389 $ 1,069 $ (4,407 ) $ 670 Less: Accretion of Series B preferred stock dividends (275 ) (262 ) (818 ) (780 ) Net income (loss) available to common stockholders $ 114 $ 807 $ (5,225 ) $ (110 ) Denominator: Weighted average common shares outstanding - basic 18,144 17,006 17,868 16,933 Net income (loss) per common share - basic $ 0.01 $ 0.05 $ (0.29 ) $ (0.01 ) Diluted net income (loss) per common share: Numerator: Net income (loss) available to common stockholders $ 114 $ 807 $ (5,225 ) $ (110 ) Plus: Accretion of Series B preferred stock dividends, if dilutive — — — — Net income (loss) available to common stockholders $ 114 $ 807 $ (5,225 ) $ (110 ) Denominator: Weighted average common shares outstanding - basic 18,144 17,006 17,868 16,933 Dilutive securities: Stock options, RSUs, and Warrants 506 760 — — Weighted average common shares outstanding - diluted 18,650 17,766 17,868 16,933 Net income (loss) per common share - diluted $ 0.01 $ 0.05 $ (0.29 ) $ (0.01 ) The following common stock equivalents have been excluded from diluted net income (loss) per common share for the three and nine months ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Shares of common stock subject to outstanding RSUs — — 906 1,214 Shares of common stock subject to outstanding stock options 102 131 553 576 Shares of common stock subject to outstanding warrants — — 315 620 Shares of common stock issuable upon conversion of Series B convertible preferred stock 5,673 5,403 5,673 5,403 Total 5,775 5,534 7,447 7,813 |
Segment Reporting, Geographic I
Segment Reporting, Geographic Information, and Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting, Geographic Information, and Concentration of Credit Risk | 14. Segment Reporting, Geographic Information, and Concentration of Credit Risk Segment Reporting ASC 280, Segment Reporting The CODM reviews financial information and business performance for each operating segment. The Company evaluates the performance of its operating segments at the revenue and gross profit levels. The Company does not report total assets, capital expenditures or operating expenses by operating segment as such information is not used by the CODM for purposes of assessing performance or allocating resources. Net revenue and gross profit information by segment for the three and nine months ended September Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Premises: Net revenue $ 9,430 $ 12,938 $ 25,146 $ 32,939 Gross profit 5,191 7,212 13,810 17,573 Gross profit margin 55 % 56 % 55 % 53 % Identity: Net revenue 15,429 10,088 36,938 31,846 Gross profit 4,694 3,314 11,287 11,540 Gross profit margin 30 % 33 % 31 % 36 % Total: Net revenue 24,859 23,026 62,084 64,785 Gross profit 9,885 10,526 25,097 29,113 Gross profit margin 40 % 46 % 40 % 45 % Operating expenses: Research and development 2,380 2,125 7,398 6,229 Selling and marketing 4,245 4,470 12,978 13,689 General and administrative 2,118 2,591 6,460 7,492 Increase (decrease) in fair value of earnout liability — 175 (261 ) 175 Restructuring and severance 163 (87 ) 1,645 (101 ) Total operating expenses: 8,906 9,274 28,220 27,484 Income (loss) from operations 979 1,252 (3,123 ) 1,629 Non-operating income (expense): Interest expense, net (407 ) (246 ) (1,066 ) (766 ) Foreign currency (losses) gains, net (175 ) 168 (119 ) 96 Income (loss) before income tax provision $ 397 $ 1,174 $ (4,308 ) $ 959 Geographic Information Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the three and nine months ended September Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Americas $ 15,050 $ 17,825 $ 42,588 $ 48,495 Europe and the Middle East 2,082 2,436 7,312 8,790 Asia-Pacific 7,727 2,765 12,184 7,500 Total $ 24,859 $ 23,026 $ 62,084 $ 64,785 Percentage of net revenue: Americas 61 % 77 % 69 % 75 % Europe and the Middle East 8 % 11 % 12 % 14 % Asia-Pacific 31 % 12 % 19 % 11 % Total 100 % 100 % 100 % 100 % Concentration of Credit Risk No customer accounted for 10% or more of net revenue for either of the three or nine months ended September September Long-lived assets by geographic location as of September September 30, December 31, 2020 2019 Property and equipment, net: Americas $ 677 $ 839 Europe and the Middle East 75 55 Asia-Pacific 1,640 1,148 Total property and equipment, net $ 2,392 $ 2,042 Operating lease ROU assets: Americas $ 2,356 $ 4,265 Europe and the Middle East 129 105 Asia-Pacific 978 259 Total operating lease right-of-use assets $ 3,463 $ 4,629 |
Restructuring and Severance
Restructuring and Severance | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Severance | 15. Restructuring and Severance Restructuring expenses incurred in the three and nine months ended September September In the three and nine months ended September |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 16. Leases The Company’s leases consist primarily of operating leases for administrative office space, research and development facilities, a manufacturing facility, and sales offices in various countries around the world. The Company determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. Total rent expense was approximately $0.4 million and $1.2 million for the three and nine months ended September , respectively. Total rent expense was approximately $0.4 million and $1.1 million for the three and nine months ended September 30, 2019, respectively. Initial lease terms are determined at commencement and may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Remaining lease terms range from one to seven years, some of which include options to extend for up to five years. Leases with an initial term of twelve months or less are not recorded on the condensed consolidated balance sheets. As the Company’s leases do not provide an implicit rate, the present value of future lease payments is determined using the Company’s incremental borrowing rate based on information available at the lease commencement date. The table below reconciles the undiscounted cash flows for the first five years and the total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of September September 30, 2020 2020 (remaining three months) $ 684 2021 2,139 2022 1,446 2023 474 2024 223 Thereafter 298 Total minimum lease payments 5,264 Less: amount of lease payments representing interest (634 ) Present value of future minimum lease payments 4,630 Less: current liabilities under operating leases (1,957 ) Long-term operating lease liabilities $ 2,673 As of September 30 Cash paid for amounts included in the measurement of operating lease liabilities was $0.4 million and $1.4 million for the three and nine months ended September 30, 2020, respectively. million for the three and nine months ended September 30, 2020, respectively. The Company does not expect to receive any additional sublease rental income related to the subleased 3VR office space, as the sublease has gone into default due to non-payment a discussed in Note 15, Restructuring and Severance. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of September 30, 2020 Purchase Commitments Other Contractual Commitments Total 2020 (remaining three months) $ 12,384 $ 206 $ 12,590 2021 1,502 8 1,510 Total $ 13,886 $ 214 $ 14,100 Purchase commitments for inventories are highly dependent upon forecasts of customer demand. Due to the uncertainty in demand from its customers, the Company may have to change, reschedule, or cancel purchases or purchase orders from its suppliers. These changes may lead to vendor cancellation charges on these purchases or contractual commitments. The following table summarizes the Company’s warranty accrual account activity during the nine months ended September Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 407 $ 316 Warranty accrual acquired in acquisition — 90 Accruals for warranties charged to expense 125 177 Cost of warranty claims (58 ) (18 ) Balance at end of period $ 474 $ 565 The Company provides warranties on certain product sales for periods ranging from 12 to 36 months, and allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The Company currently establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior 12 months’ sales activities. If actual return rates and/or repair and replacement costs differ significantly from the Company’s estimates, adjustments to recognize additional cost of sales may be required in future periods. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Additionally, ASU No. 2019-10 defers the effective date for the adoption of the new standard on credit losses for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which will be fiscal 2023 for the Company if it continues to be classified as a SRC. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The subsequent amendments will have the same effective date and transition requirements as ASU No. 2016-13. Early adoption is permitted. Topic 326 requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company is currently evaluating the impact of Topic 326, Company does not expect the adoption of the ASU to have a material impact on its condensed consolidated financial statements. In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Performance Obligation | Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Hardware products When customer obtains control of the product (point-in-time) Within 30-60 days of shipment Observable in transactions without multiple performance obligations Software licenses When license is delivered to customer or made available for download, and the applicable license period has begun (point-in-time) Within 30-60 days of the beginning of license period Established pricing practices for software licenses bundled with software maintenance, which are separately observable in renewal transactions Professional services As services are performed and/or when the contract is fulfilled (point-in-time) Within 30-60 days of delivery Observable in transactions without multiple performance obligations Software maintenance and support services Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions Extended hardware warranties Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions |
Total Net Revenue Based on Disaggregation Criteria | Total net revenue based on the disaggregation criteria described above is as follows (in thousands): Three Months Ended September 30, 2020 2019 Point-in- Time Over Time Total Point-in- Time Over Time Total Americas $ 14,217 $ 833 $ 15,050 $ 16,471 $ 1,354 $ 17,825 Europe and the Middle East 1,995 87 2,082 2,344 92 2,436 Asia-Pacific 7,727 — 7,727 2,765 — 2,765 Total $ 23,939 $ 920 $ 24,859 $ 21,580 $ 1,446 $ 23,026 Nine Months Ended September 30, 2020 2019 Point-in- Time Over Time Total Point-in- Time Over Time Total Americas $ 39,587 $ 3,001 $ 42,588 $ 44,755 $ 3,740 $ 48,495 Europe and the Middle East 7,033 279 7,312 8,541 249 8,790 Asia-Pacific 12,184 — 12,184 7,500 — 7,500 Total $ 58,804 $ 3,280 $ 62,084 $ 60,796 $ 3,989 $ 64,785 |
Changes in Deferred Revenue | Changes in deferred revenue during the nine months ended September 30, 2020 and 2019 were as follows (in thousands): Nine Months Ended September 30, 2020 2019 Deferred revenue, beginning of period $ 2,833 $ 2,810 Fair value of deferred revenue acquired in acquisition, net of recognition — 4 Deferral of revenue billed in current period, net of recognition 1,719 2,567 Recognition of revenue deferred in prior periods (1,877 ) (1,816 ) Deferred revenue as, end of period $ 2,675 $ 3,565 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Thursby Software Systems | |
Summary of Acquisition Related Finite-lived Intangibles and Estimated Lives | Acquisition related intangibles included in the below table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized, as follows (in thousands): Gross Purchased Intangible Assets Estimated Useful Life (in Years) Trademarks $ 200 5 Customer relationships 1,500 10 Developed technology 700 10 $ 2,400 |
Viscount Systems, Inc. | |
Summary of Acquisition Related Finite-lived Intangibles and Estimated Lives | Acquisition related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized, as follows (in thousands): Gross Purchased Intangible Assets Estimated Useful Life (in Years) Trademarks $ 160 5 Customer relationships 710 10 Developed technology 800 10 $ 1,670 |
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition | Assets acquired and liabilities assumed are recorded based on valuations derived from estimated fair value assessments and assumptions used by the Company. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition (in thousands): Accounts receivable $ 636 Inventory 249 Prepaid expenses and other current assets 29 Property and equipment 190 Operating lease ROU assets 550 Trademarks 160 Customer relationships 710 Developed technology 800 Total identifiable assets acquired 3,324 Accounts payable (372 ) Operating lease liabilities (61 ) Accrued expenses and liabilities (120 ) Deferred revenue (34 ) Earnout consideration liability (200 ) Other current liabilities (326 ) Long-term operating lease liabilities (489 ) Total liabilities assumed (1,602 ) Net identifiable assets acquired 1,722 Goodwill 1,200 Net purchase price $ 2,922 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Fair Value of Liabilities in Level 3 of Fair Value Hierarchy | Changes in the fair value of liabilities classified in Level 3 of the fair value hierarchy were as follows (in thousands): Viscount Earnout Consideration Balance as of December 31, 2019 $ 750 Decrease in fair value of earnout liability (261 ) Issuance of common stock in connection with earnout consideration (489 ) Balance as of September 30, 2020 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Activity in Goodwill | The following table summarizes the activity in goodwill (in thousands): Premises Identity Total Balance as of December 31, 2019 $ 6,684 $ 3,554 $ 10,238 Currency translation adjustment (34 ) — (34 ) Balance as of September 30, 2020 $ 6,650 $ 3,554 $ 10,204 |
Summary of Gross Carrying Amount and Accumulated Amortization for Intangible Assets Resulting from Acquisitions | The following table summarizes the gross carrying amount and accumulated amortization for intangible assets resulting from acquisitions (in thousands): Developed Customer Trademarks Technology Relationships Total Amortization period (in years) 5 10 – 12 4 – 12 Gross carrying amount as of September 30, 2020 $ 758 $ 9,089 $ 15,739 $ 25,586 Accumulated amortization (342 ) (5,542 ) (11,564 ) (17,448 ) Intangible assets, net as of September 30, 2020 $ 416 $ 3,547 $ 4,175 $ 8,138 Gross carrying amount as of December 31, 2019 $ 763 $ 9,109 $ 15,763 $ 25,635 Accumulated amortization (229 ) (4,873 ) (10,429 ) (15,531 ) Intangible assets, net as of December 31, 2019 $ 534 $ 4,236 $ 5,334 $ 10,104 |
Amortization Expense Included in Condensed Consolidated Statements of Operations | The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the three and nine months ended September 30, Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 223 $ 224 $ 669 $ 672 Selling and marketing 419 418 1,254 1,253 Total $ 642 $ 642 $ 1,923 $ 1,925 |
Estimated Future Amortization Expense of Purchased Intangible Assets with Definite Lives | The estimated annual future amortization expense for purchased intangible assets with definite lives as of September 30, 2020 (remaining three months) $ 644 2021 1,111 2022 1,111 2023 1,034 2024 959 Thereafter 3,279 Total $ 8,138 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Statement Of Financial Position [Abstract] | |
Inventories | The Company’s inventories are stated at the lower of cost or net realizable value. Inventories consists of (in thousands): September 30, December 31, 2020 2019 Raw materials $ 7,922 $ 4,612 Work-in-progress 124 100 Finished goods 12,353 11,433 Total $ 20,399 $ 16,145 |
Property and Equipment, Net | Property and equipment, net consists of (in thousands): September 30, December 31, 2020 2019 Building and leasehold improvements $ 1,243 $ 1,200 Furniture, fixtures and office equipment 1,280 1,276 Plant and machinery 10,986 10,364 Purchased software 2,187 2,161 Total 15,696 15,001 Accumulated depreciation (13,304 ) (12,959 ) Property and equipment, net $ 2,392 $ 2,042 |
Other Accrued Expenses and Liabilities | Other accrued expenses and liabilities consist of (in thousands): September 30, December 31, 2020 2019 Accrued professional fees $ 484 $ 1,511 Customer deposits 203 137 Accrued warranties 474 407 Earnout liability — 750 Other accrued expenses 1,596 1,693 Total $ 2,757 $ 4,498 |
Contractual Payment Obligation
Contractual Payment Obligation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Payment Obligation Under 2009 Settlement Agreement | The payment obligation under the 2009 Settlement Agreement, as amended, as of September 30, 2020, 2020 (remaining three months) $ 180 2021 1,083 Present value discount factor (67 ) Total $ 1,196 Less: Current portion - contractual payment obligation (950 ) Long-term contractual payment obligation $ 246 |
Financial Liabilities (Tables)
Financial Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Financial Liabilities | Financial liabilities consist of (in thousands): September 30, December 31, 2020 2019 Revolving loan facility $ 13,828 $ 14,230 East West Bank term loan 3,250 — April 21 Funds promissory notes 4,000 — Paycheck Protection Program promissory note 2,915 — Total 23,993 14,230 Less: Current maturities of financial liabilities (23,758 ) (14,189 ) Less: Unamortized debt issuance costs (235 ) (41 ) Long-term financial liabilities $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Preferred Stock and the Accretion of Dividend Activity | The following tables summarize Series B convertible 30, 2020 Total Series B Convertible Preferred Stock: Balance as of December 31, 2019 $ 21,875 Cumulative dividends on Series B convertible preferred stock 818 Balance as of September 30, 2020 $ 22,693 Number of Common Shares Issuable Upon Conversion: Balance as of December 31, 2019 5,469 Cumulative dividends on Series B convertible preferred stock 204 Balance as of September 30, 2020 5,673 |
Summary of Outstanding Warrants Issued by Company | Below is the summary of outstanding warrants issued by the Company as of S eptember 30, Warrant Type Number of Shares Issuable Upon Exercise Exercise Price Issue Date Expiration Date East West Bank Warrant 40,000 $ 3.50 February 8, 2017 February 8, 2023 April 21 Funds Warrants 275,000 $ 3.50 May 5, 2020 May 5, 2023 Total 315,000 |
Schedule of Common Stock Reserved for Future Issuance | Common Stock Reserved for Future Issuance Common stock reserved for future issuance as of September 30, Exercise of outstanding stock options, vesting of restricted stock units ("RSU"), and issuance of RSUs vested but not released 1,710,044 Employee Stock Purchase Plan 293,888 Shares of common stock available for grant under the 2011 Plan 1,166,485 Warrants to purchase common stock 315,000 Shares of common stock issuable upon conversion of Series B convertible preferred stock 7,541,449 Total 11,026,866 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity for Stock Option Plans | A summary of activity for the Company’s stock option plans for the nine months ended September Number Outstanding Average Exercise Price per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance as of December 31, 2019 562,102 $ 5.60 5.86 $ 572,869 Granted — — Cancelled or Expired (8,833 ) 8.17 Exercised — — Balance as of September 30, 2020 553,269 $ 5.56 5.14 $ 851,594 Vested or expected to vest as of September 30, 2020 553,269 $ 5.56 5.14 $ 851,594 Exercisable as of September 30, 2020 553,269 $ 5.56 5.14 $ 851,594 |
Summary Information about Options Outstanding | The following table summarizes information about options outstanding as of September 30, Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $4.36 - $7.20 462,110 5.56 $ 4.44 462,110 $ 4.44 $7.50 - $11.25 70,698 3.42 9.95 70,698 9.95 $11.30 - $16.95 13,764 1.94 12.90 13,764 12.90 $17.60 - $26.40 6,697 0.99 21.55 6,697 21.55 $4.36 - $26.40 553,269 5.14 $ 5.56 553,269 $ 5.56 |
Summary of RSU Activity | The following is a summary of RSU activity for the nine months ended September Number of RSUs Weighted Average Fair Value Unvested as of December 31, 2019 1,148,110 $ 4.43 Granted 482,683 4.12 Vested (551,565 ) 4.10 Forfeited (173,224 ) 4.69 Unvested as of September 30, 2020 906,004 $ 4.41 Shares vested but not released 250,771 $ 5.02 |
Stock-Based Compensation Expense Related to Stock Options and RSUs | The following table illustrates all employee stock-based compensation expense related to stock options and RSUs included in the condensed consolidated statements of operations for the three and nine months ended September 30, Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 43 $ 34 $ 124 $ 97 Research and development 159 107 506 334 Selling and marketing 127 193 371 578 General and administrative 462 355 1,181 1,060 Total $ 791 $ 689 $ 2,182 $ 2,069 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculations for Basic and Diluted Net Income (Loss) Per Common Share | The calculations for basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2020 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic net income (loss) per common share: Numerator: Net income (loss) $ 389 $ 1,069 $ (4,407 ) $ 670 Less: Accretion of Series B preferred stock dividends (275 ) (262 ) (818 ) (780 ) Net income (loss) available to common stockholders $ 114 $ 807 $ (5,225 ) $ (110 ) Denominator: Weighted average common shares outstanding - basic 18,144 17,006 17,868 16,933 Net income (loss) per common share - basic $ 0.01 $ 0.05 $ (0.29 ) $ (0.01 ) Diluted net income (loss) per common share: Numerator: Net income (loss) available to common stockholders $ 114 $ 807 $ (5,225 ) $ (110 ) Plus: Accretion of Series B preferred stock dividends, if dilutive — — — — Net income (loss) available to common stockholders $ 114 $ 807 $ (5,225 ) $ (110 ) Denominator: Weighted average common shares outstanding - basic 18,144 17,006 17,868 16,933 Dilutive securities: Stock options, RSUs, and Warrants 506 760 — — Weighted average common shares outstanding - diluted 18,650 17,766 17,868 16,933 Net income (loss) per common share - diluted $ 0.01 $ 0.05 $ (0.29 ) $ (0.01 ) |
Common Stock Equivalents Excluded From Diluted Net Income (Loss) Per Common Share | The following common stock equivalents have been excluded from diluted net income (loss) per common share for the three and nine months ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Shares of common stock subject to outstanding RSUs — — 906 1,214 Shares of common stock subject to outstanding stock options 102 131 553 576 Shares of common stock subject to outstanding warrants — — 315 620 Shares of common stock issuable upon conversion of Series B convertible preferred stock 5,673 5,403 5,673 5,403 Total 5,775 5,534 7,447 7,813 |
Segment Reporting, Geographic_2
Segment Reporting, Geographic Information, and Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Information Regarding Net Revenue and Gross Profit by Segment | Net revenue and gross profit information by segment for the three and nine months ended September Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Premises: Net revenue $ 9,430 $ 12,938 $ 25,146 $ 32,939 Gross profit 5,191 7,212 13,810 17,573 Gross profit margin 55 % 56 % 55 % 53 % Identity: Net revenue 15,429 10,088 36,938 31,846 Gross profit 4,694 3,314 11,287 11,540 Gross profit margin 30 % 33 % 31 % 36 % Total: Net revenue 24,859 23,026 62,084 64,785 Gross profit 9,885 10,526 25,097 29,113 Gross profit margin 40 % 46 % 40 % 45 % Operating expenses: Research and development 2,380 2,125 7,398 6,229 Selling and marketing 4,245 4,470 12,978 13,689 General and administrative 2,118 2,591 6,460 7,492 Increase (decrease) in fair value of earnout liability — 175 (261 ) 175 Restructuring and severance 163 (87 ) 1,645 (101 ) Total operating expenses: 8,906 9,274 28,220 27,484 Income (loss) from operations 979 1,252 (3,123 ) 1,629 Non-operating income (expense): Interest expense, net (407 ) (246 ) (1,066 ) (766 ) Foreign currency (losses) gains, net (175 ) 168 (119 ) 96 Income (loss) before income tax provision $ 397 $ 1,174 $ (4,308 ) $ 959 |
Information Regarding Net Revenue by Geographic Region | Geographic Information Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the three and nine months ended September Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Americas $ 15,050 $ 17,825 $ 42,588 $ 48,495 Europe and the Middle East 2,082 2,436 7,312 8,790 Asia-Pacific 7,727 2,765 12,184 7,500 Total $ 24,859 $ 23,026 $ 62,084 $ 64,785 Percentage of net revenue: Americas 61 % 77 % 69 % 75 % Europe and the Middle East 8 % 11 % 12 % 14 % Asia-Pacific 31 % 12 % 19 % 11 % Total 100 % 100 % 100 % 100 % |
Long-Lived Assets by Geographic Location | Long-lived assets by geographic location as of September September 30, December 31, 2020 2019 Property and equipment, net: Americas $ 677 $ 839 Europe and the Middle East 75 55 Asia-Pacific 1,640 1,148 Total property and equipment, net $ 2,392 $ 2,042 Operating lease ROU assets: Americas $ 2,356 $ 4,265 Europe and the Middle East 129 105 Asia-Pacific 978 259 Total operating lease right-of-use assets $ 3,463 $ 4,629 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Reconciles Undiscounted Cash flows of Operating Lease Liabilities Recorded on the Condensed Consolidated Balance Sheet | The table below reconciles the undiscounted cash flows for the first five years and the total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of September September 30, 2020 2020 (remaining three months) $ 684 2021 2,139 2022 1,446 2023 474 2024 223 Thereafter 298 Total minimum lease payments 5,264 Less: amount of lease payments representing interest (634 ) Present value of future minimum lease payments 4,630 Less: current liabilities under operating leases (1,957 ) Long-term operating lease liabilities $ 2,673 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Principal Contractual Obligations, Excluding Operating Leases | The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of September 30, 2020 Purchase Commitments Other Contractual Commitments Total 2020 (remaining three months) $ 12,384 $ 206 $ 12,590 2021 1,502 8 1,510 Total $ 13,886 $ 214 $ 14,100 |
Summary of Warranty Accrual Account Activity | The following table summarizes the Company’s warranty accrual account activity during the nine months ended September Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 407 $ 316 Warranty accrual acquired in acquisition — 90 Accruals for warranties charged to expense 125 177 Cost of warranty claims (58 ) (18 ) Balance at end of period $ 474 $ 565 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)Segment | |
Revenue From Contract With Customer [Line Items] | |
Number of operating segments | Segment | 2 |
Remaining performance obligations | $ | $ 0.9 |
Minimum | |
Revenue From Contract With Customer [Line Items] | |
Payment period from contract inception | 30 days |
Maximum | |
Revenue From Contract With Customer [Line Items] | |
Payment period from contract inception | 60 days |
Software Licenses | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 year |
Software Licenses | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 3 years |
Software Maintenance and Support Services | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 year |
Software Maintenance and Support Services | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 3 years |
Extended Hardware Warranties | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 year |
Extended Hardware Warranties | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 2 years |
Schedule of Performance Obligat
Schedule of Performance Obligation (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Hardware Products | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Hardware products |
When Performance Obligation is Typically Satisfied | When customer obtains control of the product (point-in-time) |
When Payment is Typically Due | Within 30-60 days of shipment |
How Standalone Selling Price is Typically Estimated | Observable in transactions without multiple performance obligations |
Software Licenses | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Software licenses |
When Performance Obligation is Typically Satisfied | When license is delivered to customer or made available for download, and the applicable license period has begun (point-in-time) |
When Payment is Typically Due | Within 30-60 days of the beginning of license period |
How Standalone Selling Price is Typically Estimated | Established pricing practices for software licenses bundled with software maintenance, which are separately observable in renewal transactions |
Professional Services | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Professional services |
When Performance Obligation is Typically Satisfied | As services are performed and/or when the contract is fulfilled (point-in-time) |
When Payment is Typically Due | Within 30-60 days of delivery |
How Standalone Selling Price is Typically Estimated | Observable in transactions without multiple performance obligations |
Software Maintenance and Support Services | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Software maintenance and support services |
When Performance Obligation is Typically Satisfied | Ratably over the course of the support contract (over time) |
When Payment is Typically Due | Within 30-60 days of the beginning of the contract period |
How Standalone Selling Price is Typically Estimated | Observable in renewal transactions |
Extended Hardware Warranties | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Extended hardware warranties |
When Performance Obligation is Typically Satisfied | Ratably over the course of the support contract (over time) |
When Payment is Typically Due | Within 30-60 days of the beginning of the contract period |
How Standalone Selling Price is Typically Estimated | Observable in renewal transactions |
Schedule of Performance Oblig_2
Schedule of Performance Obligation (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Hardware Products | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Hardware Products | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Software Licenses | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Software Licenses | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Professional Services | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Professional Services | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Software Maintenance and Support Services | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Software Maintenance and Support Services | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Extended Hardware Warranties | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Extended Hardware Warranties | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Total Net Revenue Based on Disa
Total Net Revenue Based on Disaggregation Criteria (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] | ||||
Total net revenue | $ 24,859 | $ 23,026 | $ 62,084 | $ 64,785 |
Point-in-Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 23,939 | 21,580 | 58,804 | 60,796 |
Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 920 | 1,446 | 3,280 | 3,989 |
Americas | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 15,050 | 17,825 | 42,588 | 48,495 |
Americas | Point-in-Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 14,217 | 16,471 | 39,587 | 44,755 |
Americas | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 833 | 1,354 | 3,001 | 3,740 |
Europe and the Middle East | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 2,082 | 2,436 | 7,312 | 8,790 |
Europe and the Middle East | Point-in-Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 1,995 | 2,344 | 7,033 | 8,541 |
Europe and the Middle East | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 87 | 92 | 279 | 249 |
Asia-Pacific | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | 7,727 | 2,765 | 12,184 | 7,500 |
Asia-Pacific | Point-in-Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenue | $ 7,727 | $ 2,765 | $ 12,184 | $ 7,500 |
Changes in Deferred Revenue (De
Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue | $ 2,833 | $ 2,810 |
Fair value of deferred revenue acquired in acquisition, net of recognition | 4 | |
Deferral of revenue billed in current period, net of recognition | 1,719 | 2,567 |
Recognition of revenue deferred in prior periods | (1,877) | (1,816) |
Deferred revenue | $ 2,675 | $ 3,565 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligation - Additional Information (Detail) | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Revenue From Contract With Customer [Line Items] | |
Unsatisfied performance obligations, expected to recognize | 18.00% |
Unsatisfied performance obligations, expected to recognize, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue From Contract With Customer [Line Items] | |
Unsatisfied performance obligations, expected to recognize | 52.00% |
Unsatisfied performance obligations, expected to recognize, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue From Contract With Customer [Line Items] | |
Unsatisfied performance obligations, expected to recognize | 30.00% |
Unsatisfied performance obligations, expected to recognize, period |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Jan. 02, 2019 | Nov. 01, 2018 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 10,238,000 | $ 10,204,000 | ||||||
Business combination reduction in earnout consideration expense | $ (175,000) | $ 261,000 | $ (175,000) | |||||
Thursby Software Systems | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition completed | Nov. 1, 2018 | |||||||
Business combination, aggregate consideration | $ 3,100,000 | |||||||
Business combination, payment of cash | $ 600,000 | |||||||
Business combination, issuance of common stock, shares | 426,621 | |||||||
Business combination, issuance of common stock | $ 2,500,000 | |||||||
Business combination, issuance of common stock shares held back | 85,324 | 85,324 | ||||||
Product revenue to be achieved to obligate earnout consideration | $ 11,000,000 | |||||||
Amount of additional earnout consideration of payable in shares of common stock | 2,500,000 | |||||||
Amount of maximum earnout consideration of payable for all periods in shares of common stock | 7,500,000 | |||||||
Goodwill | 3,600,000 | |||||||
Thursby Software Systems | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, issuance of common stock value held back | 500,000 | |||||||
Product revenue to be achieved to obligate earnout consideration | 15,000,000 | |||||||
Amount of earnout consideration of payable in shares of common stock | 7,500,000 | |||||||
Product revenue to be achieved to obligate additional earnout consideration | 15,000,000 | |||||||
Thursby Software Systems | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Product revenue to be achieved to obligate earnout consideration | 8,000,000 | |||||||
Product revenue to be achieved to obligate additional earnout consideration | $ 15,000,000 | |||||||
Viscount Systems, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition completed | Jan. 2, 2019 | |||||||
Business combination, aggregate consideration | $ 2,900,000 | |||||||
Business combination, payment of cash | $ 1,300,000 | |||||||
Business combination, issuance of common stock, shares | 419,288 | |||||||
Business combination, issuance of common stock | $ 1,600,000 | |||||||
Business combination, issuance of common stock shares held back | 31,447 | 31,447 | ||||||
Amount of maximum earnout consideration of payable for all periods in shares of common stock | $ 3,500,000 | |||||||
Goodwill | 1,200,000 | |||||||
Fair value of earnout consideration | 200,000 | $ 489,000 | $ 750,000 | |||||
Business combination issued to selling stockholder earnout consideration of shares | 157,233 | |||||||
Business combination reduction in earnout consideration expense | $ 261,000 | |||||||
Viscount Systems, Inc. | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Amount of earnout consideration of payable in shares of common stock | 3,500,000 | |||||||
Amount of additional earnout consideration of payable in shares of common stock | $ 2,250,000 |
Summary of Acquisition Related
Summary of Acquisition Related Finite-lived Intangibles and Estimated Lives (Detail) - USD ($) $ in Thousands | Jan. 02, 2019 | Nov. 01, 2018 |
Thursby Software Systems | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 2,400 | |
Thursby Software Systems | Trademarks | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 200 | |
Estimated Useful Life (in Years) | 5 years | |
Thursby Software Systems | Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 1,500 | |
Estimated Useful Life (in Years) | 10 years | |
Thursby Software Systems | Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 700 | |
Estimated Useful Life (in Years) | 10 years | |
Viscount Systems, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 1,670 | |
Viscount Systems, Inc. | Trademarks | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 160 | |
Estimated Useful Life (in Years) | 5 years | |
Viscount Systems, Inc. | Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 710 | |
Estimated Useful Life (in Years) | 10 years | |
Viscount Systems, Inc. | Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Purchased Intangible Assets | $ 800 | |
Estimated Useful Life (in Years) | 10 years |
Summary of Fair Values of Asset
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition (Detail) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 02, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 10,204,000 | $ 10,238,000 | ||
Viscount Systems, Inc. | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 636,000 | |||
Inventory | 249,000 | |||
Prepaid expenses and other current assets | 29,000 | |||
Property and equipment | 190,000 | |||
Operating lease ROU assets | 550,000 | |||
Finite-lived intangibles | 1,670,000 | |||
Total identifiable assets acquired | 3,324,000 | |||
Accounts payable | (372,000) | |||
Operating lease liabilities | (61,000) | |||
Accrued expenses and liabilities | (120,000) | |||
Deferred revenue | (34,000) | |||
Earnout consideration liability | $ (489,000) | $ (750,000) | (200,000) | |
Other current liabilities | (326,000) | |||
Long-term operating lease liabilities | (489,000) | |||
Total liabilities assumed | (1,602,000) | |||
Net identifiable assets acquired | 1,722,000 | |||
Goodwill | 1,200,000 | |||
Net purchase price | 2,922,000 | |||
Viscount Systems, Inc. | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 160,000 | |||
Viscount Systems, Inc. | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 710,000 | |||
Viscount Systems, Inc. | Developed Technology | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 800,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | |
Fair Value Measurements, Non-recurring | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Liability measured and recognized at fair value | $ 0 | $ 0 | ||
Fair Value Measurements, Non-recurring | Fair Value, Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Privately-held investments measured at fair value | $ 348,000 | 348,000 | ||
Viscount Systems, Inc. | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value of earnout consideration | $ 489,000 | $ 750,000 | $ 200,000 | |
Business combination issued to selling stockholder earnout consideration of shares | 157,233 |
Summary of Changes in Fair Valu
Summary of Changes in Fair Value of Liabilities in Level 3 of Fair Value Hierarchy (Detail) - Viscount Earnout Consideration $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance as of December 31, 2019 | $ 750 |
Decrease in fair value of earnout liability | (261) |
Issuance of common stock in connection with earnout consideration | $ (489) |
Summary of Activity in Goodwill
Summary of Activity in Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 10,238 |
Currency translation adjustment | (34) |
Ending Balance | 10,204 |
Premises | |
Goodwill [Line Items] | |
Beginning Balance | 6,684 |
Currency translation adjustment | (34) |
Ending Balance | 6,650 |
Identity | |
Goodwill [Line Items] | |
Beginning Balance | 3,554 |
Ending Balance | $ 3,554 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill | $ 0 | $ 0 |
Impairment of intangible assets | $ 0 |
Summary of Gross Carrying Amoun
Summary of Gross Carrying Amount and Accumulated Amortization for Intangible Assets Resulting from Acquisitions (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 25,586 | $ 25,635 |
Accumulated amortization | (17,448) | (15,531) |
Intangible assets, net | $ 8,138 | 10,104 |
Trademarks | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 5 years | |
Gross carrying amount | $ 758 | 763 |
Accumulated amortization | (342) | (229) |
Intangible assets, net | 416 | 534 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 9,089 | 9,109 |
Accumulated amortization | (5,542) | (4,873) |
Intangible assets, net | $ 3,547 | 4,236 |
Developed Technology | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 10 years | |
Developed Technology | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 12 years | |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 15,739 | 15,763 |
Accumulated amortization | (11,564) | (10,429) |
Intangible assets, net | $ 4,175 | $ 5,334 |
Customer Relationships | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 4 years | |
Customer Relationships | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 12 years |
Amortization Expense Included i
Amortization Expense Included in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 642 | $ 642 | $ 1,923 | $ 1,925 |
Cost of revenue | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 223 | 224 | 669 | 672 |
Selling and Marketing Expense | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 419 | $ 418 | $ 1,254 | $ 1,253 |
Estimated Future Amortization E
Estimated Future Amortization Expense of Purchased Intangible Assets with Definite Lives (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 (remaining three months) | $ 644 | |
2021 | 1,111 | |
2022 | 1,111 | |
2023 | 1,034 | |
2024 | 959 | |
Thereafter | 3,279 | |
Intangible assets, net | $ 8,138 | $ 10,104 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,922 | $ 4,612 |
Work-in-progress | 124 | 100 |
Finished goods | 12,353 | 11,433 |
Total | $ 20,399 | $ 16,145 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 15,696 | $ 15,001 |
Accumulated depreciation | (13,304) | (12,959) |
Property and equipment, net | 2,392 | 2,042 |
Building and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,243 | 1,200 |
Furniture, Fixtures and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,280 | 1,276 |
Plant and Machinery | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 10,986 | 10,364 |
Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,187 | $ 2,161 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 0.2 | $ 0.3 | $ 0.6 | $ 0.8 |
Other Accrued Expenses and Liab
Other Accrued Expenses and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Accrued professional fees | $ 484 | $ 1,511 |
Customer deposits | 203 | 137 |
Accrued warranties | 474 | 407 |
Earnout liability | 750 | |
Other accrued expenses | 1,596 | 1,693 |
Total | $ 2,757 | $ 4,498 |
Contractual Payment Obligatio_2
Contractual Payment Obligation - Additional Information (Detail) - USD ($) | Apr. 13, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Related Party Transaction [Line Items] | |||||
Interest accreted on payment obligation | $ 28,000 | $ 33,000 | $ 115,000 | $ 115,000 | |
Settlement Agreement | |||||
Related Party Transaction [Line Items] | |||||
Amended installment payment, contractual payment period | Oct. 31, 2021 | ||||
Increase in contractual payment obligation | $ 90,000 | ||||
Settlement Agreement | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Installment payment, contractual payment year | 2021 |
Payment Obligation Under 2009 S
Payment Obligation Under 2009 Settlement Agreement (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
2020 (remaining three months) | $ 12,384 | |
2021 | 1,502 | |
Total | 13,886 | |
Less: Current portion - contractual payment obligation | (950) | $ (1,311) |
Long-term contractual payment obligation | 246 | $ 360 |
Settlement Agreement | ||
Related Party Transaction [Line Items] | ||
2020 (remaining three months) | 180 | |
2021 | 1,083 | |
Present value discount factor | (67) | |
Total | 1,196 | |
Less: Current portion - contractual payment obligation | (950) | |
Long-term contractual payment obligation | $ 246 |
Summary of Financial Liabilitie
Summary of Financial Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 23,993 | $ 14,230 |
Less: Current maturities of financial liabilities | (23,758) | (14,189) |
Less: Unamortized debt issuance costs | (235) | (41) |
April 21 Funds Promissory Notes | ||
Debt Instrument [Line Items] | ||
Total | 4,000 | |
Paycheck Protection Program Promissory Note | ||
Debt Instrument [Line Items] | ||
Total | 2,915 | |
Revolving Loan Facility | ||
Debt Instrument [Line Items] | ||
Total | 13,828 | $ 14,230 |
East West Bank Term Loan | ||
Debt Instrument [Line Items] | ||
Total | $ 3,250 |
Financial Liabilities - Additio
Financial Liabilities - Additional Information (Detail) | Oct. 01, 2020USD ($) | May 05, 2020USD ($)DividendYieldyr | Apr. 09, 2020USD ($) | Jan. 28, 2020USD ($) | Feb. 06, 2019USD ($) | Feb. 08, 2017USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Team loan | $ 23,993,000 | $ 23,993,000 | $ 14,230,000 | ||||||
April 21 Funds Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Team loan | 4,000,000 | 4,000,000 | |||||||
Promissory notes principal amount | $ 4,000,000 | ||||||||
Interest rate | 8.00% | ||||||||
Debt instrument, frequency of periodic payment | quarterly | ||||||||
Paycheck Protection Program Promissory Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from lines of credit | $ 2,900,000 | ||||||||
Team loan | 2,915,000 | $ 2,915,000 | |||||||
Interest rate | 1.00% | ||||||||
Notes payable, description | The Company borrowed a principal amount of approximately $2.9 million. The interest on the Note is 1.00% per annum. The Note is payable two years from the date of the Note, and there is no prepayment penalty. | ||||||||
Number of years note payable | 2 years | ||||||||
April 21 Funds Warrants | April 21 Funds Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of warrants | $ 290,000 | ||||||||
Estimated Volatility | Amended EWB Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 0.632 | ||||||||
Estimated Volatility | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 0.632 | ||||||||
Risk Free Interest Rate | Amended EWB Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 0.0024 | ||||||||
Risk Free Interest Rate | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 0.0024 | ||||||||
Dividend Yield | Amended EWB Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | DividendYield | 0 | ||||||||
Dividend Yield | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | DividendYield | 0 | ||||||||
Expected Life | Amended EWB Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | yr | 3 | ||||||||
Expected Life | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | yr | 3 | ||||||||
Period One | April 21 Funds Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 12.00% | ||||||||
Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Team loan | 13,828,000 | $ 13,828,000 | $ 14,230,000 | ||||||
Loan and Security Agreements | Amended EWB Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Legal and administrative costs | $ 92,000 | ||||||||
Fair value of warrants | 42,000 | ||||||||
Loan and Security Agreements | Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan facility payable date | Feb. 8, 2021 | ||||||||
Line of credit facility early termination fee percentage | 1.00% | ||||||||
Loan and Security Agreements | Revolving Loan Facility | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of interest rate | 0.75% | 1.00% | |||||||
Loan and Security Agreements | EWB Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing capacity under credit facility | $ 15,500,000 | $ 20,000,000 | |||||||
Proceeds from lines of credit | 4,500,000 | ||||||||
Loan facility, principal payment through first anniversary | 250,000 | ||||||||
Legal and administrative costs | $ 90,000 | ||||||||
Loan and Security Agreements | EWB Term Loan | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of interest rate | 2.25% | ||||||||
Loan and Security Agreements | East West Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Team loan | $ 3,000,000 | 4,000,000 | $ 4,000,000 | ||||||
Minimum trailing six month EBITDA | $ 600,000 | ||||||||
Loan and Security Agreements | East West Bank | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Minimum trailing six month EBITDA | $ 300,000 | ||||||||
Loan and Security Agreements | East West Bank | Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan facility payable date | May 1, 2020 | ||||||||
Loan and Security Agreements | East West Bank | Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan facility payable date | Jun. 1, 2020 | ||||||||
Loan and Security Agreements | East West Bank | Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan facility payable date | Jul. 1, 2020 | ||||||||
Loan and Security Agreements | East West Bank | Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing capacity under credit facility | $ 20,000,000 | $ 16,000,000 | |||||||
Loan and Security Agreements | Venture Lending & Leasing VII and VIII, Inc. | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing capacity under credit facility | $ 10,000,000 |
Summary of Series B Convertible
Summary of Series B Convertible Preferred Stock and Accretion of Dividend (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholders Equity [Line Items] | ||||
Cumulative dividends on Series B convertible preferred stock | $ 275 | $ 262 | $ 818 | $ 780 |
Series B convertible preferred stock | ||||
Stockholders Equity [Line Items] | ||||
Balance as of December 31, 2019 | 21,875 | |||
Cumulative dividends on Series B convertible preferred stock | 818 | |||
Balance as of September 30, 2020 | $ 22,693 | $ 22,693 | ||
Balance as of December 31, 2019, Shares | 5,469 | |||
Cumulative dividends on Series B convertible preferred stock | 204 | |||
Balance as of June 30, 2020, Shares | 5,673 | 5,673 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | May 05, 2020 | Feb. 08, 2017 | Sep. 30, 2020 |
EWB Warrant | |||
Stockholders Equity [Line Items] | |||
Warrants issued to purchase common stock | 40,000 | ||
Warrant exercise price | $ 3.64 | $ 3.50 | |
Warrant expiration date | Feb. 8, 2022 | ||
VLL7 Warrant | |||
Stockholders Equity [Line Items] | |||
Warrants issued to purchase common stock | 290,000 | ||
Warrant exercise price | $ 2 | ||
Warrant expiration date | Feb. 8, 2022 | ||
Warrants or exercised received for common shares | 193,494 | ||
VLL8 Warrant | |||
Stockholders Equity [Line Items] | |||
Warrants issued to purchase common stock | 290,000 | ||
Warrant exercise price | $ 2 | ||
Warrant expiration date | Feb. 8, 2022 | ||
April 21 Funds Warrants | |||
Stockholders Equity [Line Items] | |||
Warrants issued to purchase common stock | 275,000,000 | ||
Warrant exercise price | 3.50 | ||
Warrants, term | 3 years | ||
Series B convertible preferred stock | |||
Stockholders Equity [Line Items] | |||
Minimum conversion price | $ 3.27 | ||
Dividend payment terms | Each share of Series B convertible preferred stock is entitled to a cumulative annual dividend of 5% for the first six (6) years following the issuance of such share and 3% for each year thereafter, with the Company retaining the option to settle each year’s dividend after the tenth (10th) year in cash. The dividends accrue and are payable in kind upon such time as the shares convert into the Company’s common stock | ||
Cumulative annual dividend for first six years | 5.00% | ||
Cumulative annual dividend for each year after sixth year | 3.00% | ||
Price per share distributable to stockholders | $ 4 | ||
Series B convertible preferred stock | Common Stock | |||
Stockholders Equity [Line Items] | |||
Preferred stock shares convertible into common stock | 5,673,281 | ||
Maximum | EWB Warrant | |||
Stockholders Equity [Line Items] | |||
Warrant exercise price | $ 3.50 | ||
Warrant expiration date | Feb. 8, 2023 | ||
Maximum | Common Stock | |||
Stockholders Equity [Line Items] | |||
Shares issued, price per share | $ 4 | ||
Minimum | EWB Warrant | |||
Stockholders Equity [Line Items] | |||
Warrant exercise price | $ 3.64 | ||
Warrant expiration date | Feb. 8, 2022 |
Summary of Outstanding Warrants
Summary of Outstanding Warrants Issued by Company (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Feb. 08, 2017 | |
Class Of Warrant Or Right [Line Items] | ||
Number of Shares Issuable Upon Exercise | 315,000 | |
East West Bank Warrant | ||
Class Of Warrant Or Right [Line Items] | ||
Number of Shares Issuable Upon Exercise | 40,000 | |
Exercise Price | $ 3.50 | $ 3.64 |
Issue Date | Feb. 8, 2017 | |
Expiration Date | Feb. 8, 2023 | |
April 21 Funds Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Number of Shares Issuable Upon Exercise | 275,000 | |
Exercise Price | $ 3.50 | |
Issue Date | May 5, 2020 | |
Expiration Date | May 5, 2023 |
Summary of Common Stock Reserve
Summary of Common Stock Reserved for Future Issuance (Detail) | Sep. 30, 2020shares |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 11,026,866 |
Exercise of Outstanding Stock Options, Vesting of Restricted Stock Units ("RSU"), and Issuance of RSUs Vested but not Released | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 1,710,044 |
Employee Stock Purchase Plan | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 293,888 |
Shares of Common Stock Available for Grant Under the 2011 Plan | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 1,166,485 |
Warrants to Purchase Common Stock | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 315,000 |
Shares of Common Stock Issuable Upon Conversion of Series B Convertible Preferred Stock | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 7,541,449 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 9 Months Ended | 109 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jun. 06, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 11,026,866 | |||
Unrecognized compensation expense related to stock options | $ 0 | |||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 3,300,000 | |||
Unrecognized stock-based compensation expense, weighted average period of recognition | 2 years 2 months 12 days | |||
Repurchase of common stock (in shares) | 130,745 | 136,519 | ||
2011 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 400,000 | |||
Number of shares available for grant | 859,956 | |||
Increase in shares of common stock authorized for issuance | 4,400,000 | |||
2007 Plan and 2010 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available for grant | 459,956 |
Summary of Activity for Stock O
Summary of Activity for Stock Option Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Stock Options Number Outstanding | ||
Beginning Balance | 562,102 | |
Cancelled or Expired | (8,833) | |
Ending Balance | 553,269 | 562,102 |
Vested or expected to vest as of September 30, 2020 | 553,269 | |
Exercisable as of September 30, 2020 | 553,269 | |
Stock Options Average Exercise Price per share | ||
Beginning Balance | $ 5.60 | |
Cancelled or Expired | 8.17 | |
Ending Balance | 5.56 | $ 5.60 |
Vested or expected to vest as of September 30, 2020 | 5.56 | |
Exercisable as of September 30, 2020 | $ 5.56 | |
Stock Options Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Term (Years) | 5 years 1 month 20 days | 5 years 10 months 9 days |
Vested or expected to vest as of September 30, 2020 | 5 years 1 month 20 days | |
Exercisable as of September 30, 2020 | 5 years 1 month 20 days | |
Stock Options Aggregate Intrinsic Value | ||
Aggregate intrinsic value | $ 851,594 | $ 572,869 |
Vested or expected to vest as of September 30, 2020 | 851,594 | |
Exercisable as of September 30, 2020 | $ 851,594 |
Summary Information about Optio
Summary Information about Options Outstanding (Detail) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
$4.36 - $7.20 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | $ 4.36 |
Range of Exercise Prices, upper limit | $ 7.20 |
Options Number Outstanding | shares | 462,110 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 5 years 6 months 21 days |
Options Outstanding Weighted Average Exercise Price | $ 4.44 |
Options Number Exercisable | shares | 462,110 |
Options Exercisable Weighted Average Exercise Price | $ 4.44 |
$7.50 - $11.25 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 7.50 |
Range of Exercise Prices, upper limit | $ 11.25 |
Options Number Outstanding | shares | 70,698 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 3 years 5 months 1 day |
Options Outstanding Weighted Average Exercise Price | $ 9.95 |
Options Number Exercisable | shares | 70,698 |
Options Exercisable Weighted Average Exercise Price | $ 9.95 |
$11.30 - $16.950 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 11.30 |
Range of Exercise Prices, upper limit | $ 16.950 |
Options Number Outstanding | shares | 13,764 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 1 year 11 months 8 days |
Options Outstanding Weighted Average Exercise Price | $ 12.90 |
Options Number Exercisable | shares | 13,764 |
Options Exercisable Weighted Average Exercise Price | $ 12.90 |
$17.60 - $26.40 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 17.60 |
Range of Exercise Prices, upper limit | $ 26.40 |
Options Number Outstanding | shares | 6,697 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 11 months 26 days |
Options Outstanding Weighted Average Exercise Price | $ 21.55 |
Options Number Exercisable | shares | 6,697 |
Options Exercisable Weighted Average Exercise Price | $ 21.55 |
$4.36 - $26.40 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 4.36 |
Range of Exercise Prices, upper limit | $ 26.40 |
Options Number Outstanding | shares | 553,269 |
Options Outstanding Weighted Average Remaining Contractual Life (Years) | 5 years 1 month 20 days |
Options Outstanding Weighted Average Exercise Price | $ 5.56 |
Options Number Exercisable | shares | 553,269 |
Options Exercisable Weighted Average Exercise Price | $ 5.56 |
Summary of RSU Activity (Detail
Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Unvested, Number of RSUs | shares | 1,148,110 |
Granted, Number of RSUs | shares | 482,683 |
Vested, Number of RSUs | shares | (551,565) |
Forfeited, Number of RSUs | shares | (173,224) |
Ending Unvested, Number of RSUs | shares | 906,004 |
Shares vested but not released, Number of RSUs | shares | 250,771 |
Beginning Unvested, Weighted Average Fair Value | $ / shares | $ 4.43 |
Granted, Weighted Average Fair Value | $ / shares | 4.12 |
Vested, Weighted Average Fair Value | $ / shares | 4.10 |
Forfeited, Weighted Average Fair Value | $ / shares | 4.69 |
Ending Unvested, Weighted Average Fair Value | $ / shares | 4.41 |
Shares vested but not released, Weighted Average Fair Value | $ / shares | $ 5.02 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Related to Stock Options and RSUs (Detail) - Stock Options and Restricted Stock Units - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | $ 791 | $ 689 | $ 2,182 | $ 2,069 |
Cost of revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | 43 | 34 | 124 | 97 |
Research and Development Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | 159 | 107 | 506 | 334 |
Selling and Marketing Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | 127 | 193 | 371 | 578 |
General and Administrative Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | $ 462 | $ 355 | $ 1,181 | $ 1,060 |
Calculations for Basic and Dilu
Calculations for Basic and Diluted Net Income (Loss) Per Common 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 (loss) | $ 389 | $ 1,069 | $ (4,407) | $ 670 |
Less: Accretion of Series B preferred stock dividends | (275) | (262) | (818) | (780) |
Net income (loss) available to common stockholders | $ 114 | $ 807 | $ (5,225) | $ (110) |
Denominator: | ||||
Weighted average common shares outstanding - basic | 18,144 | 17,006 | 17,868 | 16,933 |
Net income (loss) per common share - basic | $ 0.01 | $ 0.05 | $ (0.29) | $ (0.01) |
Dilutive securities: | ||||
Stock options, RSUs, and Warrants | 506 | 760 | ||
Weighted average common shares outstanding - diluted | 18,650 | 17,766 | 17,868 | 16,933 |
Net income (loss) per common share - diluted | $ 0.01 | $ 0.05 | $ (0.29) | $ (0.01) |
Diluted net income (loss) per common share: | ||||
Net income (loss) available to common stockholders | $ 114 | $ 807 | $ (5,225) | $ (110) |
Net income (loss) available to common stockholders | $ 114 | $ 807 | $ (5,225) | $ (110) |
Common Stock Equivalents Exclud
Common Stock Equivalents Excluded From Diluted Net Income (Loss) Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 5,775 | 5,534 | 7,447 | 7,813 |
RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 906 | 1,214 | ||
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 102 | 131 | 553 | 576 |
Warrants | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 315 | 620 | ||
Shares of Common Stock Issuable Upon Conversion of Series B Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 5,673 | 5,403 | 5,673 | 5,403 |
Information Regarding Net Reven
Information Regarding Net Revenue and Gross Profit by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 24,859 | $ 23,026 | $ 62,084 | $ 64,785 |
Gross profit | $ 9,885 | $ 10,526 | $ 25,097 | $ 29,113 |
Gross profit margin | 40.00% | 46.00% | 40.00% | 45.00% |
Operating expenses: | ||||
Research and development | $ 2,380 | $ 2,125 | $ 7,398 | $ 6,229 |
Selling and marketing | 4,245 | 4,470 | 12,978 | 13,689 |
General and administrative | 2,118 | 2,591 | 6,460 | 7,492 |
Increase (decrease) in fair value of earnout liability | 175 | (261) | 175 | |
Restructuring and severance | 163 | (87) | 1,645 | (101) |
Total operating expenses | 8,906 | 9,274 | 28,220 | 27,484 |
Income (loss) from operations | 979 | 1,252 | (3,123) | 1,629 |
Non-operating income (expense): | ||||
Interest expense, net | (407) | (246) | (1,066) | (766) |
Foreign currency (losses) gains, net | (175) | 168 | (119) | 96 |
Income (loss) before income tax provision | 397 | 1,174 | (4,308) | 959 |
Premises | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 9,430 | 12,938 | 25,146 | 32,939 |
Gross profit | $ 5,191 | $ 7,212 | $ 13,810 | $ 17,573 |
Gross profit margin | 55.00% | 56.00% | 55.00% | 53.00% |
Identity | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 15,429 | $ 10,088 | $ 36,938 | $ 31,846 |
Gross profit | $ 4,694 | $ 3,314 | $ 11,287 | $ 11,540 |
Gross profit margin | 30.00% | 33.00% | 31.00% | 36.00% |
Information Regarding Net Rev_2
Information Regarding Net Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 24,859 | $ 23,026 | $ 62,084 | $ 64,785 |
Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 15,050 | $ 17,825 | $ 42,588 | $ 48,495 |
Americas | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 61.00% | 77.00% | 69.00% | 75.00% |
Europe and the Middle East | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 2,082 | $ 2,436 | $ 7,312 | $ 8,790 |
Europe and the Middle East | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 8.00% | 11.00% | 12.00% | 14.00% |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 7,727 | $ 2,765 | $ 12,184 | $ 7,500 |
Asia-Pacific | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 31.00% | 12.00% | 19.00% | 11.00% |
Segment Reporting, Geographic_3
Segment Reporting, Geographic Information and Concentration of Credit Risk - Additional Information (Detail) - Customer | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | |||
Concentration Risk, Customer | No customer accounted for 10% or more of net revenue for either of the three or nine months ended September 30, 2020 or 2019. No customer accounted for 10% of net accounts receivable as of September 30, 2020 or December 31, 2019. | ||
Number of major customer represented stated percentage of total net revenue | 0 | 0 | |
Number of customers who accounted for 10% or more net accounts receivable | 0 | 0 |
Long-Lived Assets by Geographic
Long-Lived Assets by Geographic Location (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 2,392 | $ 2,042 |
Operating lease ROU assets | 3,463 | 4,629 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 677 | 839 |
Operating lease ROU assets | 2,356 | 4,265 |
Europe and the Middle East | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 75 | 55 |
Operating lease ROU assets | 129 | 105 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 1,640 | 1,148 |
Operating lease ROU assets | $ 978 | $ 259 |
Restructuring and Severance - A
Restructuring and Severance - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring and severance expenses | $ 163,000 | $ (87,000) | $ 1,645,000 | $ (101,000) | |
Sublease income received | 0 | 200,000 | |||
3VR | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring and severance expenses | 163,000 | 1,645,000 | |||
Sublease income received | $ 198,000 | 0 | |||
3VR | Facility Rental | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring and severance expenses | 18,000 | 1,416,000 | |||
3VR | Severance | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring and severance expenses | 145,000 | 229,000 | |||
3VR | Impairment of ROU Operating Lease Asset | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring and severance expenses | $ 1,199,000 | $ 1,199,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee Lease Description [Line Items] | ||||
Total rent expense | $ 400,000 | $ 400,000 | $ 1,200,000 | $ 1,100,000 |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |||
Weighted average remaining operating lease term | 2 years 10 months 24 days | 2 years 10 months 24 days | ||
Weighted average discount rate of operating lease | 6.40% | 6.40% | ||
Sublease rental income due in future under non-cancelable subleases | $ 1,600,000 | $ 1,600,000 | ||
Operating lease liabilities, cash paid | 400,000 | 1,400,000 | ||
Sublease rental income | $ 0 | $ 200,000 | ||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Remaining lease term | 1 year | 1 year | ||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Remaining lease term | 7 years | 7 years | ||
Operating leases, options to extend leases term | 5 years | 5 years |
Leases - Schedule of Reconciles
Leases - Schedule of Reconciles Undiscounted Cash flows of Operating Lease Liabilities Recorded on the Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining three months) | $ 684 | |
2021 | 2,139 | |
2022 | 1,446 | |
2023 | 474 | |
2024 | 223 | |
Thereafter | 298 | |
Total minimum lease payments | 5,264 | |
Less: amount of lease payments representing interest | (634) | |
Present value of future minimum lease payments | 4,630 | |
Less: current liabilities under operating leases | (1,957) | $ (1,814) |
Long-term operating lease liabilities | $ 2,673 | $ 3,013 |
Summary of Principal Contractua
Summary of Principal Contractual Obligations, Excluding Operating Leases (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Purchase Commitments | |
2020 (remaining three months) | $ 12,384 |
2021 | 1,502 |
Total | 13,886 |
Other Contractual Commitments | |
2020 (remaining three months) | 206 |
2021 | 8 |
Total | 214 |
Total Commitments | |
2020 (remaining three months) | 12,590 |
2021 | 1,510 |
Total | $ 14,100 |
Summary of Warranty Accrual Acc
Summary of Warranty Accrual Account Activity (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Deferred revenue | $ 407 | $ 316 |
Warranty accrual acquired in acquisition | 90 | |
Accruals for warranties charged to expense | 125 | 177 |
Cost of warranty claims | (58) | (18) |
Deferred revenue | $ 474 | $ 565 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Minimum | |
Commitment And Contingencies [Line Items] | |
Term of warranties on certain product sales | 12 months |
Maximum | |
Commitment And Contingencies [Line Items] | |
Term of warranties on certain product sales | 36 months |