Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BSQR | ||
Entity Registrant Name | BSQUARE CORP /WA | ||
Entity Central Index Key | 0001054721 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding | 13,042,293 | ||
Entity Public Float | $ 11.8 | ||
Entity File Number | 000-27687 | ||
Entity Tax Identification Number | 91-1650880 | ||
Entity Address, Address Line One | 110 110th Avenue NE | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Bellevue | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98004 | ||
City Area Code | 425 | ||
Local Phone Number | 519-5900 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common stock, no par value | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | WA | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement to be delivered to shareholders in connection with the 2020 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 7,712 | $ 10,005 |
Restricted cash | 600 | 263 |
Short-term investments | 2,249 | 6,409 |
Accounts receivable, net of allowance for doubtful accounts of $31 at December 31, 2019 and $40 at December 31, 2018 | 9,216 | 11,581 |
Prepaid expenses and other current assets | 244 | 685 |
Contract assets | 494 | 1,053 |
Total current assets | 20,515 | 29,996 |
Restricted cash, long-term | 263 | |
Equipment, furniture and leasehold improvements, net | 252 | 911 |
Deferred tax assets | 7 | 7 |
Intangible assets, net | 169 | 267 |
Right-of-use lease assets, net | 1,828 | |
Other non-current assets including contract assets | 284 | 550 |
Total assets | 23,055 | 31,994 |
Current liabilities: | ||
Third-party software fees payable | 7,224 | 7,620 |
Accounts payable | 408 | 565 |
Accrued compensation | 1,001 | 1,629 |
Other accrued expenses | 306 | 653 |
Deferred rent, current portion | 347 | |
Deferred revenue, current portion | 1,559 | 1,652 |
Operating leases | 702 | |
Total current liabilities | 11,200 | 12,466 |
Deferred rent | 150 | |
Deferred revenue | 903 | 1,037 |
Operating leases, long-term | 1,256 | |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Preferred stock, no par: 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par: 37,500,000 shares authorized; 13,042,293 issued and outstanding at December 31, 2019 and 12,777,573 issued and outstanding at December 31, 2018 | 138,877 | 138,280 |
Accumulated other comprehensive loss | (987) | (926) |
Accumulated deficit | (128,194) | (119,013) |
Total shareholders' equity | 9,696 | 18,341 |
Total liabilities and shareholders' equity | $ 23,055 | $ 31,994 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 31 | $ 40 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 37,500,000 | 37,500,000 |
Common stock, shares issued | 13,042,293 | 12,777,573 |
Common stock, shares outstanding | 13,042,293 | 12,777,573 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | ||
Total revenue | $ 59,283 | $ 73,414 |
Cost of revenue: | ||
Total cost of revenue | 49,187 | 57,904 |
Gross profit | 10,096 | 15,510 |
Operating expenses: | ||
Selling, general and administrative | 11,316 | 17,074 |
Research and development | 5,751 | 8,629 |
Restructuring costs | 2,343 | |
Goodwill impairment | 3,738 | |
Total operating expenses | 19,410 | 29,441 |
Loss from operations | (9,314) | (13,931) |
Other income, net | 149 | 207 |
Loss before income taxes | (9,165) | (13,724) |
Income tax expense | (16) | (13) |
Net loss | $ (9,181) | $ (13,737) |
Basic loss per share | $ (0.71) | $ (1.08) |
Diluted loss per share | $ (0.71) | $ (1.08) |
Shares used in per share calculations: | ||
Basic | 12,896 | 12,712 |
Diluted | 12,896 | 12,712 |
Comprehensive loss: | ||
Net loss | $ (9,181) | $ (13,737) |
Other comprehensive loss: | ||
Foreign currency translation, net of tax | (63) | (17) |
Unrealized gain on investments, net of tax | 2 | 7 |
Total other comprehensive loss | (61) | (10) |
Comprehensive loss | (9,242) | (13,747) |
Partner Solutions [Member] | ||
Revenue: | ||
Total revenue | 50,628 | 61,159 |
Cost of revenue: | ||
Total cost of revenue | 43,198 | 51,408 |
Gross profit | 7,430 | 9,751 |
Edge to Cloud [Member] | ||
Revenue: | ||
Total revenue | 8,655 | 12,255 |
Cost of revenue: | ||
Total cost of revenue | 5,989 | 6,496 |
Gross profit | $ 2,666 | $ 5,759 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2017 | $ 31,430 | $ 137,622 | $ (916) | $ (105,276) |
Balance, Shares at Dec. 31, 2017 | 12,664,489 | |||
Net loss | (2,434) | |||
Balance at Mar. 31, 2018 | 29,340 | |||
Balance at Dec. 31, 2017 | 31,430 | $ 137,622 | (916) | (105,276) |
Balance, Shares at Dec. 31, 2017 | 12,664,489 | |||
Exercise of stock options | $ 9 | $ 9 | ||
Exercise of stock options, Shares | 2,422 | 2,422 | ||
Share-based compensation, including issuance of restricted stock | $ 678 | $ 678 | ||
Share-based compensation, including issuance of restricted stock, Shares | 113,535 | |||
Shares of restricted stock withheld for taxes | (10) | $ (10) | ||
Shares of restricted stock withheld for taxes, Shares | 2,873 | |||
Net loss | (13,737) | (13,737) | ||
Foreign currency translation adjustment, net of tax | (36) | $ (19) | (17) | |
Unrealized gain on investments, net of tax | 7 | 7 | ||
Balance at Dec. 31, 2018 | $ 18,341 | $ 138,280 | (926) | (119,013) |
Balance, Shares at Dec. 31, 2018 | 12,777,573 | 12,777,573 | ||
Balance at Mar. 31, 2018 | $ 29,340 | |||
Net loss | (3,683) | |||
Balance at Jun. 30, 2018 | 25,635 | |||
Net loss | (2,087) | |||
Balance at Sep. 30, 2018 | 23,858 | |||
Net loss | (5,533) | |||
Balance at Dec. 31, 2018 | $ 18,341 | $ 138,280 | (926) | (119,013) |
Balance, Shares at Dec. 31, 2018 | 12,777,573 | 12,777,573 | ||
Net loss | $ (2,846) | |||
Balance at Mar. 31, 2019 | 15,673 | |||
Balance at Dec. 31, 2018 | $ 18,341 | $ 138,280 | (926) | (119,013) |
Balance, Shares at Dec. 31, 2018 | 12,777,573 | 12,777,573 | ||
Exercise of stock options, Shares | 264,720 | |||
Share-based compensation, including issuance of restricted stock | $ 519 | $ 519 | ||
Shares of restricted stock withheld for taxes | (24) | (24) | ||
Net loss | (9,181) | (9,181) | ||
Foreign currency translation adjustment, net of tax | 39 | 102 | (63) | |
Unrealized gain on investments, net of tax | 2 | 2 | ||
Balance at Dec. 31, 2019 | $ 9,696 | $ 138,877 | (987) | (128,194) |
Balance, Shares at Dec. 31, 2019 | 13,042,293 | 13,042,293 | ||
Balance at Mar. 31, 2019 | $ 15,673 | |||
Net loss | (3,868) | |||
Balance at Jun. 30, 2019 | 11,835 | |||
Net loss | (1,107) | |||
Balance at Sep. 30, 2019 | 10,888 | |||
Net loss | (1,360) | |||
Balance at Dec. 31, 2019 | $ 9,696 | $ 138,877 | $ (987) | $ (128,194) |
Balance, Shares at Dec. 31, 2019 | 13,042,293 | 13,042,293 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (9,181) | $ (13,737) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization | 897 | 639 |
Share-based compensation | 519 | 678 |
Software development costs impairment | 375 | |
Goodwill impairment | 3,738 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,365 | 6,433 |
Prepaid expenses and other assets | 593 | (115) |
Contract assets | 559 | (644) |
Third-party software fees payable | (396) | (2,927) |
Accounts payable and accrued expenses | (1,132) | (475) |
Operating leases | 130 | |
Deferred revenue | (227) | (591) |
Deferred rent | (497) | (358) |
Net cash used by operating activities | (5,995) | (7,359) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (418) | (463) |
Proceeds from maturities of short-term investments | 12,390 | 18,125 |
Purchases of short-term investments | (8,114) | (12,595) |
Net cash provided by investing activities | 3,858 | 5,067 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 9 | |
Effect of exchange rates on cash | (82) | (45) |
Net decrease in cash, restricted cash, and cash equivalents | (2,219) | (2,328) |
Cash, restricted cash, and cash equivalents, beginning of year | 10,531 | 12,859 |
Cash, restricted cash, and cash equivalents, end of year | 8,312 | 10,531 |
Supplemental cash flow information: | ||
Cash (refund of) paid for income taxes | $ (7) | $ 75 |
Description of Business and Acc
Description of Business and Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Accounting Policies | 1. Description of Business and Accounting Policies Description of business BSQUARE Corporation (“BSQUARE,” “we,” “us” and “our”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Bsquare builds technology that is powering the next generation of intelligent systems. We help companies realize the promise of IoT through the development of devices and systems that are cloud-enabled, share data seamlessly, facilitate distributed learning and control, and operate at securely scale. We believe that IoT-enabled systems can not only deliver value to our customers but can also help people make better use of the resources of our planet. Bsquare's suite of services and software components create new revenue streams and operating models for our customers while providing opportunities for lowering costs and improving operations. Basis of consolidation The consolidated financial statements include the accounts of BSQUARE and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Recently adopted accounting standards We adopted Accounting Standard Update (ASU) No. 2016-02, Leases (ASU 2016-02) on January 1, 2019. See Note 9, “Leases.” In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) by removing certain exceptions permitted under ASC 740, Accounting for Income Taxes, and clarifying existing guidance to facilitate consistent application. We are planning to early adopt this ASU as of January 1, 2020. Since we maintain a full valuation allowance on our net deferred tax assets, the adoption is not expected to have a material impact on our financial condition, results of operations and cash flows, or financial statement disclosures. Standards issued and not yet implemented In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We plan to adopt the new credit loss standard effective January 1, 2020. We do not expect the new credit loss standard to have a material impact on our financial condition, results of operations and cash flows, or financial statement disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force), (ASU 2018-15). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). We do not expect the new standard to have a material effect on our financial condition, results of operations and cash flows, or financial statement disclosures. Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of share-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates. Actual results may differ from these estimates. Income (loss) per share We compute basic per share amounts using the weighted average number of common shares outstanding during the period and exclude any dilutive effects of common stock equivalent shares, such as options and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income or loss per share only when vested. We compute diluted per share amounts using the weighted average number of common shares outstanding plus common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. Unvested but outstanding RSUs are included in the diluted per share calculation. In a period where we are in a net loss position, the diluted loss per share is computed using the basic share count. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2019 2018 Weighted average common shares outstanding, basic 12,896 12,712 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,896 12,712 Common stock equivalent shares of approximately 1,570,000 Cash, cash equivalents and investments We invest our excess cash primarily in highly liquid debt instruments of U.S. government agencies and municipalities, debt instruments issued by foreign governments, corporate commercial paper, money market funds, and corporate debt securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months and not longer than 12 months as short-term investments. Short-term investments consist entirely of marketable securities, which are all classified as available-for-sale securities and are recorded at their estimated fair value. We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation at each balance sheet date. We may or may not hold securities with stated maturities greater than 12 months until maturity. As we view these securities as available to support current operations, we classify securities with maturities less than 12 months as short-term investments. We carry these securities at fair value and report the unrealized gains and losses, net of taxes, as a component of shareholders’ equity, except for unrealized losses determined to be other than temporary, which are recorded in other expense. Restricted cash Restricted cash represents two deposits at a financial institution; one held as security on a letter of credit expiring during 2020 on our headquarters lease obligation, the other held as security on our corporate credit card line. Financial instruments and concentrations of risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, and accounts receivable. Allowance for doubtful accounts We record accounts receivable at the invoiced amount net of an estimated allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review customers that have past due invoices to identify specific customers with known disputes or collectability issues. In determining the amount of the allowance, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Equipment, furniture and leasehold improvements We account for equipment, furniture and leasehold improvements at cost less accumulated depreciation and amortization. We compute depreciation of equipment and furniture using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives, ranging from two to ten years. We expense maintenance and repair costs as incurred. When assets are retired or otherwise disposed of, gains or losses are included in the consolidated statements of operations. When facts and circumstances indicate that the value of long-lived assets may be impaired, we perform an evaluation of recoverability comparing the carrying value of the asset to projected undiscounted future cash flows. Upon indication that the carrying value of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations based on the difference between the carrying value of the asset and its fair value. Leases We lease office facilities, primarily under operating leases, which expire at various dates through 2027. These leases generally contain a renewal options for a defined number of years at the then-fair market rental rate or rate stipulated in the lease agreement; which the Company has an option to exercise at the end of the initial lease term. We determine if an arrangement is a lease at inception. On our balance sheet, our office facility leases, with a lease term greater than 12-months, are included in Right-of-Use (“ROU”) assets and related lease liabilities are included in the Operating leases and Operating leases, long-term statement line items. ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do not provide an implicit rate, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. We will use the implicit rate in the lease when readily determinable. The Company accounts for its lease expense with free rent periods and step-rent provisions on a straight-line basis over the original term of the lease and any extension options that the Company more likely than not expects to exercise, from the date the Company has control of the property. Certain leases provide for periodic rental increases based on price indices. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Intangible assets Intangible assets were recorded in connection with business acquisitions and are stated at estimated fair value at the time of acquisition less accumulated amortization. We amortize our acquired intangible assets using the straight-line method using lives ranging from one to ten years. We review intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If intangible assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. Goodwill We evaluate goodwill for impairment annually during the fourth quarter or more frequently when an event occurs, or circumstances change that indicate that the carrying value may not be recoverable. We have two reporting units for the purpose of evaluating goodwill for impairment—Partner Solutions and Edge to Cloud. See Note 15, “Information about Operating Segments and Geographic Areas.” For reporting units that carry goodwill, we test for impairment by performing an optional qualitative assessment to determine whether the fair value of the reporting unit is more likely than not less than the carrying amount. If we determine that the fair value of the reporting unit is more likely greater than its carrying amount, we test for impairment by comparing the fair value of the reporting unit to the carrying value, including goodwill, recording an impairment charge for the excess. Alternatively, at our option, we can forego performing the qualitative assessment and proceed directly to perform the impairment test by comparing the fair value of the reporting unit with its carrying amount, including goodwill, and recording an impairment charge for the excess. Third-party software fees payable We record all fees payable and accrued liabilities related to the sale of embedded operating system software, such as Microsoft Windows IoT and Windows Mobile operating systems, as third-party software fees payable. Research and development Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs would be capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this would be reached after all high-risk development issues have been resolved through coding and testing and would occur shortly before the product is released. Research and development expense was $5.8 Internally developed software We capitalize payroll and benefits costs incurred internally during the application development stage of developing a computer software product for general release to customers. Amortization of costs incurred after this point is included in cost of revenue over the estimated life of the products. Advertising costs All costs of advertising, including cooperative marketing arrangements, are expensed as incurred. Advertising expense was $154,000 and $171,000 in 2019 and 2018, respectively. Share-based compensation The estimated fair value of share-based awards is recognized as compensation expense over the requisite service period, net of estimated forfeitures. We estimate forfeitures of share-based awards based on historical experience and expected future activity. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock options is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. Comprehensive loss Comprehensive loss refers to net loss and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net loss. Income taxes We are subject to income taxes in the U.S. and certain foreign jurisdictions. Significant judgment is required in determining our provision for income taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for on the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Our deferred tax amounts are measured using currently enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We apply judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2019, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. Foreign currency The functional currency of foreign subsidiaries is their local currency. Accordingly, assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Resulting translation adjustments are included in other comprehensive loss and accumulated other comprehensive loss, a separate component of shareholders’ equity. The net gains and losses resulting from foreign currency transactions are recorded in the period incurred and were not significant for any of the periods presented. Revenue recognition We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. Embedded operating system software We sell embedded operating system software licenses based upon a customer purchase order, shipping a certificate of authenticity (“COA”) to satisfy this single performance obligation. These shipments are also subject to limited return rights; historically, returns have averaged less than one-quarter of one percent. In accordance with ASC Topic 606, Revenue from Contracts with Customers, (“Topic 606”), we recognize revenue from third-party products at the time of shipment when the customer accepts control of the COA. Proprietary software We sell our proprietary software products to customers under a contract or by purchase order. Our DataV software contracts generally include professional services, a perpetual or term license and support and maintenance. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined. Contracts that include software customization may result in the combination of the customization services with the software license as one distinct performance obligation. The transaction price is generally in the form of a fixed fee at contract inception. Certain DataV contracts also include variable consideration in the form of royalties earned when customers meet contractual volume thresholds. We allocate the transaction price to each distinct performance obligation based on the estimated standalone selling price for each performance obligation. We then look to how control of the software transfers to the customer in order to determine the timing of revenue recognition. In contracts that include customer acceptance, we recognize revenue when we have delivered the software and received customer acceptance. We recognize revenue from support and maintenance over the service delivery period. We recognize revenue from royalties in the period of usage. Our software products, other than for DataV products, generally do not include customization or modification services and are sold in the form of term licenses. These software licenses represent one distinct performance obligation. Revenue is recognized when the software is delivered to the customer. Professional services We enter into contracts for professional services, including for our IoT-related service offerings, that include software development and customization. We identify each performance obligation in our professional services contracts at contract inception. The contracts generally include project deliverables specified by each customer. The performance obligations in the contracts are generally combined into one deliverable. The contract pricing is either at stated billing rates per service hour and material costs or at a fixed amount. Services provided under professional engineering contracts generally result in the transfer of control of the applicable deliverable over time. We recognize revenue on service contracts based on time and materials as we have the right to invoice. We recognize revenue on fixed fee contracts on the proportion of labor hours expended (under Topic 606, the ‘input method’) to the total hours expected to complete the contract performance obligation. Certain professional service contracts include substantive customer acceptance provisions; in which case we recognize revenue upon customer acceptance. The determination of the total labor hours expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. In certain situations, when it is impractical for us to reasonably measure the outcome of a performance obligation, and where we anticipate that we will not incur a loss, an adjusted cost-based input method is used for revenue recognition. Equal amounts of revenue and cost are recognized during the contract period, and profit is recognized when the project is completed and accepted. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Disaggregation of revenue The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographical markets: North America $ 42,443 $ 7,667 $ 50,110 $ 58,523 $ 10,565 $ 69,088 Europe 1,273 750 2,023 2,239 816 3,055 Asia 6,912 238 7,150 397 874 1,271 Total $ 50,628 $ 8,655 $ 59,283 $ 61,159 $ 12,255 $ 73,414 Major products/services lines: Partner Solutions $ 50,628 $ - $ 50,628 $ 61,159 $ - $ 61,159 Edge to Cloud - 8,655 8,655 - 12,255 12,255 Total $ 50,628 $ 8,655 $ 59,283 $ 61,159 $ 12,255 $ 73,414 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 31, 2019 December 31, 2018 Receivables $ 9,216 $ 11,581 Short-term contract assets 494 1,053 Long-term contract assets 237 528 Short-term contract liabilities (deferred revenue) 1,559 1,652 Long-term contract liabilities (deferred revenue) 903 1,037 We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance objectives not yet invoiced and deferred contract acquisition costs, which are amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. We had no asset impairment charges related to contract assets in the period. Significant changes in contract assets and liabilities balances were as follows (in thousands): December 31, 2019 December 31, 2018 Contract Assets Contract Liabilities (1) Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability at beginning of the period $ - $ 2,033 $ - $ 3,663 Transferred to receivables from contract assets recognized at beginning of the period $ 302 $ - $ 263 $ - (1) Comprised of deferred revenue Contract acquisition costs In connection with the adoption of Topic 606, we capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. For contracts that have a duration of less than one year, we follow a Topic 606 practical expedient and expense these costs when incurred. For contracts with lives exceeding one year, as is more common with our DataV software bookings, we record these costs in proportion to each completed contract performance obligation. During the years ended December 31, 2019 and December 31, 2018, we recorded $108,000 Performance obligations We did not recognize any revenue from performance obligations satisfied in previous periods. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period, in thousands. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that were unexercised as of December 31, 2019. 2020 2021 2022 2023 2024 Thereafter Partner Solutions $ 14 $ - $ - $ - $ - $ - Edge to Cloud 1,581 2,232 274 - - - Practical expedients and exemptions We generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within selling, general and administrative expenses. The Company has the right to invoice customers in an amount that directly corresponds with the value to the customer of the Company's performance to date and recognizes revenue based on the invoiced amount. |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Investments | 3. Cash and Investments Cash, cash equivalents, restricted cash, and short-term investments consisted of the following (in thousands): December 31, 2019 2018 Cash $ 4,092 $ 6,780 Cash equivalents (see detail in Note 4) 3,620 3,225 Restricted cash 600 263 Restricted cash, long-term (see detail in Note 4) - 263 Total cash, cash equivalents and restricted cash as presented in the statement of cash flows 8,312 10,531 Short-term investments (see detail in Note 4) 2,249 6,409 Total cash, cash equivalents, restricted cash and short-term investments $ 10,561 $ 16,940 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements We measure our cash equivalents, restricted cash, and short-term investments at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable market-based inputs or unobservable inputs used in models or other valuation methodologies. Level 3: Unobservable inputs that are not corroborated by market data. The inputs require significant management judgment or estimation. We classify our cash equivalents, restricted cash, and short-term investments within Level 1 or Level 2 because our cash equivalents and short-term investments are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. We review the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believe that the policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 1,871 $ - $ 1,871 Corporate commercial paper - 999 999 Corporate debt - 750 750 Total cash equivalents 1,871 1,749 3,620 Restricted cash: Money market funds 600 - 600 Short-term investments: Corporate commercial paper - 748 748 Corporate debt - 1,501 1,501 Total short-term investments - 2,249 2,249 Total assets measured at fair value $ 2,471 $ 3,998 $ 6,469 December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 1,277 $ - $ 1,277 Corporate commercial paper - 1,198 1,198 Corporate debt - 750 750 Total cash equivalents 1,277 1,948 3,225 Restricted cash: Money market funds 526 - 526 Short-term investments: Corporate commercial paper - 3,874 3,874 Corporate debt - 2,535 2,535 Total short-term investments - 6,409 6,409 Total assets measured at fair value $ 1,803 $ 8,357 $ 10,160 As of December 31, 2019 and 2018, contractual maturities of our short-term investments were less than one year, and gross unrealized gains and losses on those investments were not material. |
Equipment, Furniture and Leaseh
Equipment, Furniture and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Equipment, Furniture and Leasehold Improvements | 5. Equipment, Furniture and Leasehold Improvements Equipment, furniture, and leasehold improvements consisted of the following (in thousands): December 31, 2019 2018 Computer equipment and software $ 1,290 $ 1,637 Office furniture and equipment 262 302 Leasehold improvements 1,165 1,163 Software development costs 45 329 Total 2,762 3,431 Less: accumulated depreciation and amortization (2,510 ) (2,520 ) Equipment, furniture and leasehold improvements, net $ 252 $ 911 Depreciation and amortization expense related to these assets was $799,000 and $541,000 in 2019 and 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6 . Goodwill and Intangible Assets Goodwill was recorded in connection with the September 2011 acquisition of MPC Data, Ltd. (renamed BSQUARE EMEA, Ltd. in 2015), a United Kingdom based provider of software engineering services. For 2018, we performed our annual goodwill assessment in the fourth quarter of 2018. We chose to forego performing the qualitative assessment and proceeded directly to performing the quantitative impairment test by comparing the fair value of our Professional Engineering Service (PES) reporting unit (renamed to Edge to Cloud in Q3 2019) with its carrying value, including goodwill, recording an impairment charge for the excess. When performing the assessment, we determined the fair value of our PES reporting unit based on our forecast of future revenue and expense cash flow streams. Based on the uncertainty of future sales for new PES services and the results of this assessment, we determined that the carrying value of goodwill was impaired. As a result, an impairment charge of $3.7 million was recorded. For 2019, there was no carrying amount of goodwill recorded on the balance sheet. The carrying value of goodwill consisted of the following (in thousands): Cost Impairment Loss Net Carrying Value Reconciliation of Goodwill carrying amount: Balance as of December 31, 2019 $ - $ - $ - Balance as of December 31, 2018 $ 3,738 $ (3,738 ) $ - Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011 and were as follows (in thousands): Gross Carrying Accumulated Net Carrying Amount Amortization Value Customer relationships: Balance as of December 31, 2019 $ 1,275 $ (1,106 ) $ 169 Balance as of December 31, 2018 $ 1,275 $ (1,008 ) $ 267 Amortization expense was $98,000 for both 2019 and 2018. Amortization expense in future periods is expected to be as follows (in thousands): 2020 $ 98 2021 71 Total $ 169 |
Other Income and Loss
Other Income and Loss | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Loss [Abstract] | |
Other Income and Loss | 7. Other Income and Loss Other income and loss consisted of the following (in thousands): Year Ended December 31, 2019 2018 Interest income $ 179 $ 207 Other income (loss) (30 ) - Total $ 149 $ 207 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Pre-tax loss consisted of the following (in thousands): Year Ended December 31, 2019 2018 U.S. $ (8,225 ) $ (13,081 ) Foreign (940 ) (643 ) Total $ (9,165 ) $ (13,724 ) Income tax expense consisted of the following (in thousands): Year Ended December 31, 2019 2018 Current taxes: Federal $ - $ - State and local 16 13 Foreign - - Current taxes 16 13 Deferred taxes: Federal - - State and local - - Foreign - - Deferred taxes - - Total $ 16 $ 13 Net deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2019 2018 Net operating loss carryforwards $ 18,677 $ 17,443 Research and development credit carryforwards 3,576 3,337 Share-based compensation 645 1,006 Accrued expenses and reserves 127 47 Depreciation and amortization 17 48 Deferred revenue 275 (63 ) Other 14 19 Gross deferred tax assets 23,331 21,837 Less: valuation allowance (23,324 ) (21,830 ) Net deferred tax assets $ 7 $ 7 Net deferred tax assets and liabilities were recorded as follows (in thousands): December 31, 2019 2018 Deferred tax assets, non-current $ 7 $ 7 Deferred tax liability, non-current - - Net deferred tax assets $ 7 $ 7 As of December 31, 2019, our deferred tax assets were primarily the result of U.S. net operating loss, research and development credit carryforwards and share-based compensation expense. We have applied a full valuation allowance against the U.S. deferred tax assets in the U.S. and foreign jurisdictions. We use judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2019, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. The provision for income taxes differed from the amount of expected income tax expense determined by applying the applicable U.S. statutory federal income tax rate to pre-tax loss as follows (in thousands, except percentages): Year Ended December 31, 2019 2018 U.S. Federal tax benefit at statutory rates $ (1,925 ) 21.0 % $ (2,889 ) 21.0 % Impact of: Tax credits (715 ) 7.8 (517 ) 3.8 State income tax (108 ) 1.2 10 (0.1 ) International operations 409 (4.5 ) 30 (0.2 ) Share-based compensation 348 (3.8 ) 2 - Valuation allowance 1,471 (16.0 ) 2,280 (16.6 ) Expiration of tax attributes 475 (5.2 ) 217 (1.6 ) Goodwill impairment - - 784 (5.7 ) Other, net 61 (0.7 ) 96 (0.7 ) Tax expense and effective tax rate $ 16 (0.2 )% $ 13 (0.1 )% At December 31, 2019, we had approximately $79.7 million of federal and $12.4 million of state net operating loss carryforwards, which have begun to expire. We have evaluated all the material income tax positions taken on our income tax filings to various tax authorities, and we determined that we did not have unrealized tax benefits related to uncertain tax positions recorded at December 31, 2019 or 2018. Because of net operating loss and tax credit carryforwards, substantially all of our tax years remain open and subject to examination. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases We adopted ASU 2016-02 effective January 1, 2019 and elected the modified retrospective transition method , recording a cumulative-effect adjustment as of that date and presenting comparative prior year periods in accordance with Accounting Standards Codification Topic 840. On the date of adoption, we recorded a cumulative adjustment to recognize new net lease liabilities of $1.7 million and new right-of-use (ROU) assets of $1.2 million, for operating leases on our consolidated balance sheets, based on the present value of remaining rental payments for existing operating leases. As part of adoption, we also de-recognized $0.5 million in deferred rent. Adoption of the standard did not have a material impact on our statement of operations or statement of cash flows. As part of adoption, we elected the short-term lease recognition exemption for our facility rental and equipment leases (all leases that qualified), which means that we did not recognize ROU assets or lease liabilities for existing short-term leases (leases of 12-months or less) as of the January 1, 2019 adoption date. In addition, when adopting ASU 2016-02 we applied the following practical expedients to forego assessing: • whether any expired or existing contracts are or contain a lease, • lease classification for any expired or existing leases, and • initial direct costs for any existing leases. • to separate non-lease components from lease components for leases of real estate assets. We determine if an arrangement is a lease at inception. On our balance sheet, our office leases are included in ROU assets and related lease liabilities are included in the Operating leases and Operating leases, long-term statement line items. We determined that we do not currently have finance leases. ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do not provide an implicit rate, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. We will use the implicit rate in the lease when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Our leases have remaining terms of one to eight years. The only leases that contain renewal options are for office space leases at our Bellevue and Taiwan locations. As of January 1, 2019, because of changes in our business, we were not able to determine with reasonable certainty whether we will renew our Bellevue or Taiwan leases, As a result, we have not considered renewal options when recording ROU assets, lease liabilities or lease expense. In the fourth quarter of 2019, we made the decision not to renew our Bellevue lease, which expires at the end of May 2020 and we do not intend to renew our Taiwan lease (see Note 17, “Restructuring Costs”). In December 2019, we entered into an operating lease agreement for a new corporate office facility in Seattle, Washington. The term of the lease is 87 months, with a rent date starting on May 1, 2020 and the lease term ending on July 31, 2027. As a result of entering this lease agreement December 2019, we recorded additional ROU assets and net lease liabilities of $1.2 million on our consolidated balance sheets. There was no material impact to our statement of operations or statement of cash flows as a result of entering into this lease. Twelve months ended Total component lease expense was as follows (in thousands): December 31, 2019 Operating leases $ 992 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 1,359 Supplemental balance sheet information related to leases was as follows (dollars in thousands): December 31, 2019 Operating leases: Right of use $ 1,828 Current portion of operating leases liability $ 702 Operating leases liability, net of current portion 1,256 Total operating leases liabilities $ 1,958 Weighted Average Remaining Lease Term 5.25 years Weighted Average Discount Rate 8.0 % Future operating lease commitments are as follows (in thousands): As of December 31, 2019, maturities of lease liabilities were as follows: Operating leases Years Ended December 31, 2020 $ 727 2021 304 2022 249 2023 255 2024 262 Thereafter 709 Total minimum lease payments 2,506 Less: amount representing imputed interest (548 ) Present value of lease liabilities $ 1,958 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2027. We have lease commitments for office space in Bellevue, Washington; Seattle, Washington; and Trowbridge, UK. See Note 9, “Leases.” Loss contingencies From time to time, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business including tax assessments. We defend ourselves vigorously against any such claims. When (i) it is probable that an asset has been impaired, or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | 1 1 . Shareholders’ Equity Equity compensation plans We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (the “Inducement Plan”) (collectively the “Plans”). Under the Plans, stock options may be granted with a fixed exercise price that is equivalent to the fair market value of our common stock on the date of grant. These options have a term of up to 10 years and vest over a predetermined period, generally four years. Incentive stock options granted under the Stock Plan may only be granted to our employees. The Plans also allow for awards of non-qualified stock options, stock appreciation rights, restricted and unrestricted stock awards, and RSUs. Share-based compensation The estimated fair value of share-based awards is recognized as compensation expense over the vesting period of the award, net of estimated forfeitures. We estimate forfeitures based on historical experience and expected future activity. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock options is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. The fair values of our stock option grants were estimated with the following weighted average assumptions: Year Ended December 31, 2019 2018 Dividend yield 0 % 0 % Expected life 4.9 years 6.1 years Expected volatility 59 % 56 % Risk-free interest rate 1.6 % 2.6 % The impact on our results of operations from share-based compensation expense was as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 Cost of revenue— professional engineering service $ 1 $ 28 Selling, general and administrative 546 460 Research and development (28 ) 190 Total share-based compensation expense $ 519 $ 678 Per basic share $ 0.04 $ 0.05 Per diluted share $ 0.04 $ 0.05 Stock option activity The following table summarizes stock option activity: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2017 1,912,161 $ 4.88 7.61 Granted 316,393 3.63 Exercised (2,422 ) 3.59 Forfeited (434,374 ) 4.88 Expired (401,746 ) 4.27 Balance at December 31, 2018 1,390,012 4.77 6.83 Granted 958,798 1.69 Exercised — - Forfeited (251,213 ) 4.81 Expired (552,771 ) 5.07 Balance at December 31, 2019 1,544,826 2.74 7.47 $ 46,582 Vested and expected to vest at December 31, 2019 1,278,079 2.95 7.04 32,307 Exercisable at December 31, 2019 525,289 $ 4.52 3.92 $ 31 At December 31, 2019, total compensation cost related to stock options granted but not yet recognized was approximately $553,906, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 2.3 years. The following table summarizes certain additional information about stock options: Year Ended December 31, 2019 2018 Weighted average grant-date fair value for options granted during the year $ 1.33 $ 1.81 Vested options in-the-money 344 — Aggregate intrinsic value of options exercised during the year $ — $ 1,853 The aggregate intrinsic value represents the difference between the exercise price of the underlying options and the quoted price of our common stock for the number of options that were exercised during the periods indicated. We issue new shares of common stock upon exercise of stock options. Restricted stock unit activity The following table summarizes RSU activity : Number of Weighted Average Shares Award Price Unvested at December 31, 2017 116,968 $ 5.33 Granted 251,371 2.72 Vested (113,535 ) 4.19 Forfeited (68,288 ) 4.30 Unvested at December 31, 2018 186,516 2.87 Granted 225,693 1.44 Vested (264,720 ) 2.03 Forfeited (34,643 ) 4.68 Unvested at December 31, 2019 112,846 1.44 Expected to vest after December 31, 2019 106,295 $ 1.44 At December 31, 2019, total compensation cost related to RSUs granted but not recognized was approximately $53,566, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 0.3 years. Common stock reserved for future issuance The following table summarizes our shares of common stock reserved for future issuance under the Plans as of December 31, 2019: Stock options outstanding 1,544,826 Restricted stock units outstanding 112,846 Stock options available for future grant 1,730,036 Common stock reserved for future issuance 3,387,708 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 1 2 . Employee Benefit Plan We maintain a Profit Sharing and Deferred Compensation Plan, The BSQUARE Corporation 401(k) Plan and Trust (the “Profit Sharing Plan”) under Section 401(k) of the Internal Revenue Code. Substantially all full-time employees are eligible to participate in the Profit-Sharing Plan. We typically elect to match the participants’ contributions to the Profit-Sharing Plan up to a certain amount subject to vesting. Participants will receive their share of the value of their investments, and any applicable vested match, upon retirement or termination. We made matching contributions of $256,000 and $439,000 in 2019 and 2018, respectively. |
Significant Concentrations
Significant Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Significant Concentrations | 1 3 . Significant Concentrations Significant customer Honeywell International, Inc. and affiliated entities (“Honeywell”) accounted for revenue and accounts receivable as follows (in thousands, except percentages): Year Ended December 31, 2019 2018 Honeywell revenue $ 1,737 $ 7,013 As a percentage of total revenue 3 % 10 % December 31, 2019 2018 Honeywell accounts receivable $ 1,223 $ 2,758 As a percentage of total accounts receivable 13 % 24 % No other customer accounted for 10% or more of total revenue in 2019 or 2018 or 10% or more of total accounts receivable at December 31, 2019 or 2018. Significant supplier Effective March 1, 2019, pursuant to a Global Partnership Agreement with Microsoft, we are authorized to sell Windows IoT operating systems in Canada, the United States, Argentina, Brazil, Chile, Mexico, Peru, Venezuela, Puerto Rico, Columbia, and several Caribbean countries. Of our total revenue, 79% in 2019 and 75% in 2018 resulted from the sale of Windows IoT operating systems. Our existing distribution agreement for sales of Windows IoT operating systems in the European Union (“E.U.”), the European Free Trade Association, Turkey and Africa, expired on June 30, 2019 and was not renewed thereafter. We generated approximately 3% of our Partner Solutions software sales under this agreement in 2019. We have also entered into ODAs with Microsoft pursuant to which we are licensed to sell Microsoft Windows Mobile operating systems to customers in North America, South America, Central America (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa. The ODAs to sell Windows Mobile operating systems are effective through April 30, 2022. Software sales under these agreements constitute a significant portion of our software revenue and total revenue. There is no automatic renewal provision in any of these agreements, and these agreements can be terminated unilaterally by Microsoft at any time. Microsoft currently offers a rebate program to sell Microsoft Windows IoT operating systems pursuant to which we earn money for achieving certain predefined objectives. In accordance with Microsoft rebate program rules, we allocate 20% and 30% of rebates in 2019 and 2018, respectively, to reduce cost of sales, with the remaining 80% in 2019 and 70% in 2018 used to offset qualified marketing expenses in the period the expenditures are claimed and approved. Under this rebate program, we recorded rebate credits as follows (in thousands): Year Ended December 31, 2019 2018 Reductions to cost of revenue $ 314 $ 718 Reductions to marketing expense $ 1,217 $ 682 There was a balance of approximately $1.0 million in outstanding rebate credits for which we qualified as of December 31, 2019. If qualified program expenditures are made, these will be accounted for as reductions in marketing expense in the period in which such expenditures are made. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 1 4 . Credit Agreement Line of credit In September 2015, we entered into a two-year unsecured line of credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. in the principal amount of up to $12.0 million. In September 2016, the Credit Agreement was modified to extend the final due date an additional year to September 2018, at which point it expired. No borrowings were ever outstanding under the Credit Agreement. |
Information about Operating Seg
Information about Operating Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information about Operating Segments and Geographic Areas | 1 5 . Information about Operating Segments and Geographic Areas Our chief operating decision-makers (i.e. our Chief Executive Officer and certain direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, or planning for levels or components below the consolidated unit level. We operate within a single industry segment of computer software and services. Effective as of July 1, 2019, we made the following changes to our operating segments: • Our Third-Party Software operating segment was renamed to Partner Solutions; • Our Professional Engineering Service operating segment was renamed to Edge to Cloud; and • We no longer present separate information for the Proprietary Software operating segment. Results are no longer quantifiably significant, nor does management view the segment as of continuing significance after deciding to stop marketing of DataV as an IoT platform in the second quarter of 2019. Results for the Proprietary Software segment are now combined with the Edge to Cloud segment as part of continuing operations, with prior period segment results recast to reflect our reporting segments on a comparable basis. As of July 1, 2019, we have two major product lines – Partner Solutions and Edge to Cloud– each of which we consider to be operating and reportable segments. We do not allocate costs other than direct cost of goods sold to the segments or produce segment income statements, and we do not produce asset information by reportable segment. The following table sets forth profit and loss information about our segments (in thousands): Year Ended December 31, 2019 2018 Partner Solutions: Revenue $ 50,628 $ 61,159 Cost of revenue 43,198 51,408 Gross profit 7,430 9,751 Edge to Cloud: Revenue 8,655 12,255 Cost of revenue 5,989 6,496 Gross profit 2,666 5,759 Total gross profit 10,096 15,510 Operating expenses 19,410 29,441 Other income, net 149 207 Income tax expense (16 ) (13 ) Net loss $ (9,181 ) $ (13,737 ) Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Year Ended December 31, 2019 2018 Total revenue: North America $ 50,110 $ 69,088 Asia 7,150 1,271 Europe 2,023 3,055 Total revenue $ 59,283 $ 73,414 December 31, 2019 2018 Long-lived assets: North America $ 2,016 $ 1,578 Asia 177 91 Europe 340 322 Total long-lived assets $ 2,533 $ 1,991 |
Impairment of Software Developm
Impairment of Software Development Costs | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Impairment of Software Development Costs | 16. Impairment of Software Development Costs As a result of an impairment analysis associated with our long-lived equipment, furniture and leasehold improvement assets, the Company recorded a charge of $0.4 million related to certain software development cost assets during the three months ended June 30, 2019. For the twelve months of 2019 and 2018, we incurred charges of $0.4 million and none, respectively, for impairment of software development costs. The charges are reflected in the “Restructuring costs” line item on the Company’s consolidated statement of operations and comprehensive loss. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 17. Restructuring Costs In May 2019, we approved a severance plan that included a workforce elimination of approximately 38 positions in the U.S. and internationally. In October 2019, we determined to close our Taiwan branch office by December 31, 2019, which resulted in elimination of approximately 17 additional positions. An involuntary termination benefit plan was done in order to reduce go-forward operating costs and re-align our go-forward business model to support future business initiatives. The costs associated with these actions consist primarily of charges for restructuring costs related to severance and benefits, and a non-cash impairment charge related to certain software development cost assets. We incurred aggregate restructuring charges of approximately $2.3 million associated with these actions. During the twelve months of 2019 and 2018, we incurred $2.3 million and none, respectively, in charges for restructuring costs under this plan. For the twelve months ended December 31, 2019, $1.5 million in restructuring costs were paid. The ending balance for accrued restructuring charges is $0.5 million as of December 31, 2019 and is included as part of accrued compensation on the consolidated balance sheets. Summary of Restructuring Costs The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in thousand): Year Ended December 31, 2019 2018 Balance as of December 31, 2018 $ - $ — Restructuring costs 2,343 — Non-cash asset impairment charge (375 ) — Cash payments (1,507 ) — Balance as of December 31, 2019 $ 461 $ — As of December 31, Estimated timing of future payments: 2019 2018 Expected to be paid in 2020 $ 461 $ — |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 1 8 . Quarterly Financial Information (Unaudited) Condensed Consolidated Statements of Operations 2019 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 15,096 $ 14,180 $ 14,641 $ 15,366 Gross profit 2,391 2,423 2,632 2,650 Loss from operations (2,879 ) (3,929 ) (1,129 ) (1,377 ) Net loss (2,846 ) (3,868 ) (1,107 ) (1,360 ) Basic loss per share (0.22 ) (0.30 ) (0.09 ) (0.10 ) Diluted loss per share $ (0.22 ) $ (0.30 ) $ (0.09 ) $ (0.10 ) Shares used in per share calculations: Basic 12,795 12,855 12,934 12,997 Diluted 12,795 12,855 12,934 12,997 2018 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 20,678 $ 19,203 $ 16,694 $ 16,839 Gross profit 5,200 3,261 3,359 3,690 Loss from operations (2,478 ) (3,718 ) (2,132 ) (5,603 ) Net loss (2,434 ) (3,683 ) (2,087 ) (5,533 ) Basic loss per share (0.19 ) (0.29 ) (0.16 ) (0.43 ) Diluted loss per share $ (0.19 ) $ (0.29 ) $ (0.16 ) $ (0.43 ) Shares used in per share calculations: Basic 12,673 12,697 12,721 12,755 Diluted 12,673 12,697 12,721 12,755 Condensed Consolidated Balance Sheets 2019 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents, restricted cash and short-term investments $ 15,000 $ 12,560 $ 11,610 $ 10,561 Total current assets 26,428 22,897 21,442 20,515 Total assets 29,673 24,967 23,056 23,055 Total current liabilities 12,464 11,882 11,226 11,200 Total shareholders' equity $ 15,673 $ 11,835 $ 10,888 $ 9,696 2018 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents, restricted cash and short-term investments $ 21,435 $ 17,861 $ 17,271 $ 16,940 Total current assets 39,913 35,514 32,102 29,996 Total assets 45,110 41,000 37,648 31,994 Total current liabilities 15,289 14,189 12,744 12,466 Total shareholders' equity $ 29,340 $ 25,635 $ 23,858 $ 18,341 |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of business | Description of business BSQUARE Corporation (“BSQUARE,” “we,” “us” and “our”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Bsquare builds technology that is powering the next generation of intelligent systems. We help companies realize the promise of IoT through the development of devices and systems that are cloud-enabled, share data seamlessly, facilitate distributed learning and control, and operate at securely scale. We believe that IoT-enabled systems can not only deliver value to our customers but can also help people make better use of the resources of our planet. Bsquare's suite of services and software components create new revenue streams and operating models for our customers while providing opportunities for lowering costs and improving operations. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of BSQUARE and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Recently adopted accounting standards | Recently adopted accounting standards We adopted Accounting Standard Update (ASU) No. 2016-02, Leases (ASU 2016-02) on January 1, 2019. See Note 9, “Leases.” In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) by removing certain exceptions permitted under ASC 740, Accounting for Income Taxes, and clarifying existing guidance to facilitate consistent application. We are planning to early adopt this ASU as of January 1, 2020. Since we maintain a full valuation allowance on our net deferred tax assets, the adoption is not expected to have a material impact on our financial condition, results of operations and cash flows, or financial statement disclosures. |
Standards issued and not yet implemented | Standards issued and not yet implemented In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We plan to adopt the new credit loss standard effective January 1, 2020. We do not expect the new credit loss standard to have a material impact on our financial condition, results of operations and cash flows, or financial statement disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force), (ASU 2018-15). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). We do not expect the new standard to have a material effect on our financial condition, results of operations and cash flows, or financial statement disclosures. |
Use of estimates | Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of share-based awards, and assumptions used to determine the net present value of operating lease liabilities, among other estimates. Actual results may differ from these estimates. |
Income (loss) per share | Income (loss) per share We compute basic per share amounts using the weighted average number of common shares outstanding during the period and exclude any dilutive effects of common stock equivalent shares, such as options and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income or loss per share only when vested. We compute diluted per share amounts using the weighted average number of common shares outstanding plus common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. Unvested but outstanding RSUs are included in the diluted per share calculation. In a period where we are in a net loss position, the diluted loss per share is computed using the basic share count. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2019 2018 Weighted average common shares outstanding, basic 12,896 12,712 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,896 12,712 Common stock equivalent shares of approximately 1,570,000 |
Cash, cash equivalents and investments | Cash, cash equivalents and investments We invest our excess cash primarily in highly liquid debt instruments of U.S. government agencies and municipalities, debt instruments issued by foreign governments, corporate commercial paper, money market funds, and corporate debt securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months and not longer than 12 months as short-term investments. Short-term investments consist entirely of marketable securities, which are all classified as available-for-sale securities and are recorded at their estimated fair value. We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation at each balance sheet date. We may or may not hold securities with stated maturities greater than 12 months until maturity. As we view these securities as available to support current operations, we classify securities with maturities less than 12 months as short-term investments. We carry these securities at fair value and report the unrealized gains and losses, net of taxes, as a component of shareholders’ equity, except for unrealized losses determined to be other than temporary, which are recorded in other expense. |
Restricted cash | Restricted cash Restricted cash represents two deposits at a financial institution; one held as security on a letter of credit expiring during 2020 on our headquarters lease obligation, the other held as security on our corporate credit card line. |
Financial instruments and concentrations of risk | Financial instruments and concentrations of risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, and accounts receivable. |
Allowance for doubtful accounts | Allowance for doubtful accounts We record accounts receivable at the invoiced amount net of an estimated allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review customers that have past due invoices to identify specific customers with known disputes or collectability issues. In determining the amount of the allowance, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. |
Equipment, furniture and leasehold improvements | Equipment, furniture and leasehold improvements We account for equipment, furniture and leasehold improvements at cost less accumulated depreciation and amortization. We compute depreciation of equipment and furniture using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives, ranging from two to ten years. We expense maintenance and repair costs as incurred. When assets are retired or otherwise disposed of, gains or losses are included in the consolidated statements of operations. When facts and circumstances indicate that the value of long-lived assets may be impaired, we perform an evaluation of recoverability comparing the carrying value of the asset to projected undiscounted future cash flows. Upon indication that the carrying value of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations based on the difference between the carrying value of the asset and its fair value. |
Leases | Leases We lease office facilities, primarily under operating leases, which expire at various dates through 2027. These leases generally contain a renewal options for a defined number of years at the then-fair market rental rate or rate stipulated in the lease agreement; which the Company has an option to exercise at the end of the initial lease term. We determine if an arrangement is a lease at inception. On our balance sheet, our office facility leases, with a lease term greater than 12-months, are included in Right-of-Use (“ROU”) assets and related lease liabilities are included in the Operating leases and Operating leases, long-term statement line items. ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do not provide an implicit rate, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. We will use the implicit rate in the lease when readily determinable. The Company accounts for its lease expense with free rent periods and step-rent provisions on a straight-line basis over the original term of the lease and any extension options that the Company more likely than not expects to exercise, from the date the Company has control of the property. Certain leases provide for periodic rental increases based on price indices. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Intangible assets | Intangible assets Intangible assets were recorded in connection with business acquisitions and are stated at estimated fair value at the time of acquisition less accumulated amortization. We amortize our acquired intangible assets using the straight-line method using lives ranging from one to ten years. We review intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If intangible assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. |
Goodwill | Goodwill We evaluate goodwill for impairment annually during the fourth quarter or more frequently when an event occurs, or circumstances change that indicate that the carrying value may not be recoverable. We have two reporting units for the purpose of evaluating goodwill for impairment—Partner Solutions and Edge to Cloud. See Note 15, “Information about Operating Segments and Geographic Areas.” For reporting units that carry goodwill, we test for impairment by performing an optional qualitative assessment to determine whether the fair value of the reporting unit is more likely than not less than the carrying amount. If we determine that the fair value of the reporting unit is more likely greater than its carrying amount, we test for impairment by comparing the fair value of the reporting unit to the carrying value, including goodwill, recording an impairment charge for the excess. Alternatively, at our option, we can forego performing the qualitative assessment and proceed directly to perform the impairment test by comparing the fair value of the reporting unit with its carrying amount, including goodwill, and recording an impairment charge for the excess. |
Third-party software fees payable | Third-party software fees payable We record all fees payable and accrued liabilities related to the sale of embedded operating system software, such as Microsoft Windows IoT and Windows Mobile operating systems, as third-party software fees payable. |
Research and development | Research and development Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs would be capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this would be reached after all high-risk development issues have been resolved through coding and testing and would occur shortly before the product is released. Research and development expense was $5.8 |
Internally-developed software | Internally developed software We capitalize payroll and benefits costs incurred internally during the application development stage of developing a computer software product for general release to customers. Amortization of costs incurred after this point is included in cost of revenue over the estimated life of the products. |
Advertising costs | Advertising costs All costs of advertising, including cooperative marketing arrangements, are expensed as incurred. Advertising expense was $154,000 and $171,000 in 2019 and 2018, respectively. |
Share-based compensation | Share-based compensation The estimated fair value of share-based awards is recognized as compensation expense over the requisite service period, net of estimated forfeitures. We estimate forfeitures of share-based awards based on historical experience and expected future activity. The fair value of RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock options is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. |
Comprehensive loss | Comprehensive loss Comprehensive loss refers to net loss and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net loss. |
Income taxes | Income taxes We are subject to income taxes in the U.S. and certain foreign jurisdictions. Significant judgment is required in determining our provision for income taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for on the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Our deferred tax amounts are measured using currently enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We apply judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2019, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. |
Foreign currency | Foreign currency The functional currency of foreign subsidiaries is their local currency. Accordingly, assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Resulting translation adjustments are included in other comprehensive loss and accumulated other comprehensive loss, a separate component of shareholders’ equity. The net gains and losses resulting from foreign currency transactions are recorded in the period incurred and were not significant for any of the periods presented. |
Revenue recognition | Revenue recognition We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. Embedded operating system software We sell embedded operating system software licenses based upon a customer purchase order, shipping a certificate of authenticity (“COA”) to satisfy this single performance obligation. These shipments are also subject to limited return rights; historically, returns have averaged less than one-quarter of one percent. In accordance with ASC Topic 606, Revenue from Contracts with Customers, (“Topic 606”), we recognize revenue from third-party products at the time of shipment when the customer accepts control of the COA. Proprietary software We sell our proprietary software products to customers under a contract or by purchase order. Our DataV software contracts generally include professional services, a perpetual or term license and support and maintenance. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined. Contracts that include software customization may result in the combination of the customization services with the software license as one distinct performance obligation. The transaction price is generally in the form of a fixed fee at contract inception. Certain DataV contracts also include variable consideration in the form of royalties earned when customers meet contractual volume thresholds. We allocate the transaction price to each distinct performance obligation based on the estimated standalone selling price for each performance obligation. We then look to how control of the software transfers to the customer in order to determine the timing of revenue recognition. In contracts that include customer acceptance, we recognize revenue when we have delivered the software and received customer acceptance. We recognize revenue from support and maintenance over the service delivery period. We recognize revenue from royalties in the period of usage. Our software products, other than for DataV products, generally do not include customization or modification services and are sold in the form of term licenses. These software licenses represent one distinct performance obligation. Revenue is recognized when the software is delivered to the customer. Professional services We enter into contracts for professional services, including for our IoT-related service offerings, that include software development and customization. We identify each performance obligation in our professional services contracts at contract inception. The contracts generally include project deliverables specified by each customer. The performance obligations in the contracts are generally combined into one deliverable. The contract pricing is either at stated billing rates per service hour and material costs or at a fixed amount. Services provided under professional engineering contracts generally result in the transfer of control of the applicable deliverable over time. We recognize revenue on service contracts based on time and materials as we have the right to invoice. We recognize revenue on fixed fee contracts on the proportion of labor hours expended (under Topic 606, the ‘input method’) to the total hours expected to complete the contract performance obligation. Certain professional service contracts include substantive customer acceptance provisions; in which case we recognize revenue upon customer acceptance. The determination of the total labor hours expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. In certain situations, when it is impractical for us to reasonably measure the outcome of a performance obligation, and where we anticipate that we will not incur a loss, an adjusted cost-based input method is used for revenue recognition. Equal amounts of revenue and cost are recognized during the contract period, and profit is recognized when the project is completed and accepted. |
Description of Business and A_3
Description of Business and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Per Share Amounts | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2019 2018 Weighted average common shares outstanding, basic 12,896 12,712 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,896 12,712 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 Partner Solutions Edge to Cloud Total Partner Solutions Edge to Cloud Total Primary geographical markets: North America $ 42,443 $ 7,667 $ 50,110 $ 58,523 $ 10,565 $ 69,088 Europe 1,273 750 2,023 2,239 816 3,055 Asia 6,912 238 7,150 397 874 1,271 Total $ 50,628 $ 8,655 $ 59,283 $ 61,159 $ 12,255 $ 73,414 Major products/services lines: Partner Solutions $ 50,628 $ - $ 50,628 $ 61,159 $ - $ 61,159 Edge to Cloud - 8,655 8,655 - 12,255 12,255 Total $ 50,628 $ 8,655 $ 59,283 $ 61,159 $ 12,255 $ 73,414 |
Schedule of Contract Balances and Changes in Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 31, 2019 December 31, 2018 Receivables $ 9,216 $ 11,581 Short-term contract assets 494 1,053 Long-term contract assets 237 528 Short-term contract liabilities (deferred revenue) 1,559 1,652 Long-term contract liabilities (deferred revenue) 903 1,037 Significant changes in contract assets and liabilities balances were as follows (in thousands): December 31, 2019 December 31, 2018 Contract Assets Contract Liabilities (1) Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability at beginning of the period $ - $ 2,033 $ - $ 3,663 Transferred to receivables from contract assets recognized at beginning of the period $ 302 $ - $ 263 $ - (1) Comprised of deferred revenue |
Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period, in thousands. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that were unexercised as of December 31, 2019. 2020 2021 2022 2023 2024 Thereafter Partner Solutions $ 14 $ - $ - $ - $ - $ - Edge to Cloud 1,581 2,232 274 - - - |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments | Cash, cash equivalents, restricted cash, and short-term investments consisted of the following (in thousands): December 31, 2019 2018 Cash $ 4,092 $ 6,780 Cash equivalents (see detail in Note 4) 3,620 3,225 Restricted cash 600 263 Restricted cash, long-term (see detail in Note 4) - 263 Total cash, cash equivalents and restricted cash as presented in the statement of cash flows 8,312 10,531 Short-term investments (see detail in Note 4) 2,249 6,409 Total cash, cash equivalents, restricted cash and short-term investments $ 10,561 $ 16,940 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 1,871 $ - $ 1,871 Corporate commercial paper - 999 999 Corporate debt - 750 750 Total cash equivalents 1,871 1,749 3,620 Restricted cash: Money market funds 600 - 600 Short-term investments: Corporate commercial paper - 748 748 Corporate debt - 1,501 1,501 Total short-term investments - 2,249 2,249 Total assets measured at fair value $ 2,471 $ 3,998 $ 6,469 December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 1,277 $ - $ 1,277 Corporate commercial paper - 1,198 1,198 Corporate debt - 750 750 Total cash equivalents 1,277 1,948 3,225 Restricted cash: Money market funds 526 - 526 Short-term investments: Corporate commercial paper - 3,874 3,874 Corporate debt - 2,535 2,535 Total short-term investments - 6,409 6,409 Total assets measured at fair value $ 1,803 $ 8,357 $ 10,160 |
Equipment, Furniture and Leas_2
Equipment, Furniture and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Equipment, Furniture and Leasehold Improvements | Equipment, furniture, and leasehold improvements consisted of the following (in thousands): December 31, 2019 2018 Computer equipment and software $ 1,290 $ 1,637 Office furniture and equipment 262 302 Leasehold improvements 1,165 1,163 Software development costs 45 329 Total 2,762 3,431 Less: accumulated depreciation and amortization (2,510 ) (2,520 ) Equipment, furniture and leasehold improvements, net $ 252 $ 911 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Value of Goodwill | The carrying value of goodwill consisted of the following (in thousands): Cost Impairment Loss Net Carrying Value Reconciliation of Goodwill carrying amount: Balance as of December 31, 2019 $ - $ - $ - Balance as of December 31, 2018 $ 3,738 $ (3,738 ) $ - |
Intangible Assets Relate to Customer Relationships | Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011 and were as follows (in thousands): Gross Carrying Accumulated Net Carrying Amount Amortization Value Customer relationships: Balance as of December 31, 2019 $ 1,275 $ (1,106 ) $ 169 Balance as of December 31, 2018 $ 1,275 $ (1,008 ) $ 267 |
Expected Amortization Expense for Future Period | Amortization expense in future periods is expected to be as follows (in thousands): 2020 $ 98 2021 71 Total $ 169 |
Other Income and Loss (Tables)
Other Income and Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Loss [Abstract] | |
Components of Other Income and Loss | Other income and loss consisted of the following (in thousands): Year Ended December 31, 2019 2018 Interest income $ 179 $ 207 Other income (loss) (30 ) - Total $ 149 $ 207 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pre-Tax Loss | Pre-tax loss consisted of the following (in thousands): Year Ended December 31, 2019 2018 U.S. $ (8,225 ) $ (13,081 ) Foreign (940 ) (643 ) Total $ (9,165 ) $ (13,724 ) |
Income Tax Expense | Income tax expense consisted of the following (in thousands): Year Ended December 31, 2019 2018 Current taxes: Federal $ - $ - State and local 16 13 Foreign - - Current taxes 16 13 Deferred taxes: Federal - - State and local - - Foreign - - Deferred taxes - - Total $ 16 $ 13 |
Components of Net Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2019 2018 Net operating loss carryforwards $ 18,677 $ 17,443 Research and development credit carryforwards 3,576 3,337 Share-based compensation 645 1,006 Accrued expenses and reserves 127 47 Depreciation and amortization 17 48 Deferred revenue 275 (63 ) Other 14 19 Gross deferred tax assets 23,331 21,837 Less: valuation allowance (23,324 ) (21,830 ) Net deferred tax assets $ 7 $ 7 |
Net Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities were recorded as follows (in thousands): December 31, 2019 2018 Deferred tax assets, non-current $ 7 $ 7 Deferred tax liability, non-current - - Net deferred tax assets $ 7 $ 7 |
Schedule of Provision for Income Taxes | The provision for income taxes differed from the amount of expected income tax expense determined by applying the applicable U.S. statutory federal income tax rate to pre-tax loss as follows (in thousands, except percentages): Year Ended December 31, 2019 2018 U.S. Federal tax benefit at statutory rates $ (1,925 ) 21.0 % $ (2,889 ) 21.0 % Impact of: Tax credits (715 ) 7.8 (517 ) 3.8 State income tax (108 ) 1.2 10 (0.1 ) International operations 409 (4.5 ) 30 (0.2 ) Share-based compensation 348 (3.8 ) 2 - Valuation allowance 1,471 (16.0 ) 2,280 (16.6 ) Expiration of tax attributes 475 (5.2 ) 217 (1.6 ) Goodwill impairment - - 784 (5.7 ) Other, net 61 (0.7 ) 96 (0.7 ) Tax expense and effective tax rate $ 16 (0.2 )% $ 13 (0.1 )% |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Component of Lease Expense, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Related to Leases | Twelve months ended Total component lease expense was as follows (in thousands): December 31, 2019 Operating leases $ 992 Supplemental cash flow information related to leases was as follows (in thousands): Cash paid for amounts included in the measurement of lease liabilities $ 1,359 Supplemental balance sheet information related to leases was as follows (dollars in thousands): December 31, 2019 Operating leases: Right of use $ 1,828 Current portion of operating leases liability $ 702 Operating leases liability, net of current portion 1,256 Total operating leases liabilities $ 1,958 Weighted Average Remaining Lease Term 5.25 years Weighted Average Discount Rate 8.0 % |
Schedule of Future Operating Lease Commitments | Future operating lease commitments are as follows (in thousands): As of December 31, 2019, maturities of lease liabilities were as follows: Operating leases Years Ended December 31, 2020 $ 727 2021 304 2022 249 2023 255 2024 262 Thereafter 709 Total minimum lease payments 2,506 Less: amount representing imputed interest (548 ) Present value of lease liabilities $ 1,958 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions | The fair values of our stock option grants were estimated with the following weighted average assumptions: Year Ended December 31, 2019 2018 Dividend yield 0 % 0 % Expected life 4.9 years 6.1 years Expected volatility 59 % 56 % Risk-free interest rate 1.6 % 2.6 % |
Share-Based Compensation Expense | The impact on our results of operations from share-based compensation expense was as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 Cost of revenue— professional engineering service $ 1 $ 28 Selling, general and administrative 546 460 Research and development (28 ) 190 Total share-based compensation expense $ 519 $ 678 Per basic share $ 0.04 $ 0.05 Per diluted share $ 0.04 $ 0.05 |
Summary of Stock Option Activity | The following table summarizes stock option activity: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2017 1,912,161 $ 4.88 7.61 Granted 316,393 3.63 Exercised (2,422 ) 3.59 Forfeited (434,374 ) 4.88 Expired (401,746 ) 4.27 Balance at December 31, 2018 1,390,012 4.77 6.83 Granted 958,798 1.69 Exercised — - Forfeited (251,213 ) 4.81 Expired (552,771 ) 5.07 Balance at December 31, 2019 1,544,826 2.74 7.47 $ 46,582 Vested and expected to vest at December 31, 2019 1,278,079 2.95 7.04 32,307 Exercisable at December 31, 2019 525,289 $ 4.52 3.92 $ 31 |
Summary of Certain Additional Information about Stock Options | The following table summarizes certain additional information about stock options: Year Ended December 31, 2019 2018 Weighted average grant-date fair value for options granted during the year $ 1.33 $ 1.81 Vested options in-the-money 344 — Aggregate intrinsic value of options exercised during the year $ — $ 1,853 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity : Number of Weighted Average Shares Award Price Unvested at December 31, 2017 116,968 $ 5.33 Granted 251,371 2.72 Vested (113,535 ) 4.19 Forfeited (68,288 ) 4.30 Unvested at December 31, 2018 186,516 2.87 Granted 225,693 1.44 Vested (264,720 ) 2.03 Forfeited (34,643 ) 4.68 Unvested at December 31, 2019 112,846 1.44 Expected to vest after December 31, 2019 106,295 $ 1.44 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table summarizes our shares of common stock reserved for future issuance under the Plans as of December 31, 2019: Stock options outstanding 1,544,826 Restricted stock units outstanding 112,846 Stock options available for future grant 1,730,036 Common stock reserved for future issuance 3,387,708 |
Significant Concentrations (Tab
Significant Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Summary of Revenue and Accounts Receivable | Honeywell International, Inc. and affiliated entities (“Honeywell”) accounted for revenue and accounts receivable as follows (in thousands, except percentages): Year Ended December 31, 2019 2018 Honeywell revenue $ 1,737 $ 7,013 As a percentage of total revenue 3 % 10 % December 31, 2019 2018 Honeywell accounts receivable $ 1,223 $ 2,758 As a percentage of total accounts receivable 13 % 24 % |
Summary of Rebate Program Recorded Under Rebate Credits | Under this rebate program, we recorded rebate credits as follows (in thousands): Year Ended December 31, 2019 2018 Reductions to cost of revenue $ 314 $ 718 Reductions to marketing expense $ 1,217 $ 682 |
Information about Operating S_2
Information about Operating Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table sets forth profit and loss information about our segments (in thousands): Year Ended December 31, 2019 2018 Partner Solutions: Revenue $ 50,628 $ 61,159 Cost of revenue 43,198 51,408 Gross profit 7,430 9,751 Edge to Cloud: Revenue 8,655 12,255 Cost of revenue 5,989 6,496 Gross profit 2,666 5,759 Total gross profit 10,096 15,510 Operating expenses 19,410 29,441 Other income, net 149 207 Income tax expense (16 ) (13 ) Net loss $ (9,181 ) $ (13,737 ) |
Revenue and Long-Lived Assets by Geographic Area | Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Year Ended December 31, 2019 2018 Total revenue: North America $ 50,110 $ 69,088 Asia 7,150 1,271 Europe 2,023 3,055 Total revenue $ 59,283 $ 73,414 December 31, 2019 2018 Long-lived assets: North America $ 2,016 $ 1,578 Asia 177 91 Europe 340 322 Total long-lived assets $ 2,533 $ 1,991 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Activity and Estimated Timing of Future Payouts for Accrued Restructuring Costs | The following tables show the activity and estimated timing of future payouts for accrued restructuring costs (in thousand): Year Ended December 31, 2019 2018 Balance as of December 31, 2018 $ - $ — Restructuring costs 2,343 — Non-cash asset impairment charge (375 ) — Cash payments (1,507 ) — Balance as of December 31, 2019 $ 461 $ — As of December 31, Estimated timing of future payments: 2019 2018 Expected to be paid in 2020 $ 461 $ — |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Condensed Consolidated Statements of Operations | Condensed Consolidated Statements of Operations 2019 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 15,096 $ 14,180 $ 14,641 $ 15,366 Gross profit 2,391 2,423 2,632 2,650 Loss from operations (2,879 ) (3,929 ) (1,129 ) (1,377 ) Net loss (2,846 ) (3,868 ) (1,107 ) (1,360 ) Basic loss per share (0.22 ) (0.30 ) (0.09 ) (0.10 ) Diluted loss per share $ (0.22 ) $ (0.30 ) $ (0.09 ) $ (0.10 ) Shares used in per share calculations: Basic 12,795 12,855 12,934 12,997 Diluted 12,795 12,855 12,934 12,997 2018 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 20,678 $ 19,203 $ 16,694 $ 16,839 Gross profit 5,200 3,261 3,359 3,690 Loss from operations (2,478 ) (3,718 ) (2,132 ) (5,603 ) Net loss (2,434 ) (3,683 ) (2,087 ) (5,533 ) Basic loss per share (0.19 ) (0.29 ) (0.16 ) (0.43 ) Diluted loss per share $ (0.19 ) $ (0.29 ) $ (0.16 ) $ (0.43 ) Shares used in per share calculations: Basic 12,673 12,697 12,721 12,755 Diluted 12,673 12,697 12,721 12,755 |
Summary of Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets 2019 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents, restricted cash and short-term investments $ 15,000 $ 12,560 $ 11,610 $ 10,561 Total current assets 26,428 22,897 21,442 20,515 Total assets 29,673 24,967 23,056 23,055 Total current liabilities 12,464 11,882 11,226 11,200 Total shareholders' equity $ 15,673 $ 11,835 $ 10,888 $ 9,696 2018 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents, restricted cash and short-term investments $ 21,435 $ 17,861 $ 17,271 $ 16,940 Total current assets 39,913 35,514 32,102 29,996 Total assets 45,110 41,000 37,648 31,994 Total current liabilities 15,289 14,189 12,744 12,466 Total shareholders' equity $ 29,340 $ 25,635 $ 23,858 $ 18,341 |
Description of Business and A_4
Description of Business and Accounting Policies - Additional Information (Detail) | Jul. 01, 2019Segment | Dec. 31, 2019USD ($)DepositSegmentshares | Dec. 31, 2018USD ($)shares |
Summary Of Business And Accounting Policies [Line Items] | |||
Entity incorporation date | 1994-07 | ||
Common stock equivalent shares excluded from computation of diluted per share amounts | shares | 1,570,000 | 1,714,000 | |
Number of restricted cash deposits | 2 | ||
Number of deposit held as security on letter of credit | 1 | ||
Letter of credit expiration year | 2020 | ||
Number of deposit held as security on corporate credit card line | 1 | ||
Operating lease expiration period | We lease office facilities, primarily under operating leases, which expire at various dates through 2027 | ||
Number of reportable segment | Segment | 2 | 2 | |
Research and development expense | $ | $ 5,751,000 | $ 8,629,000 | |
Advertising expense | $ | $ 154,000 | $ 171,000 | |
Office furniture and equipment [Member] | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Leasehold improvements estimated useful life | 3 years | ||
Minimum [Member] | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Intangible assets useful life range | 1 year | ||
Minimum [Member] | Leasehold improvements [Member] | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Leasehold improvements estimated useful life | 2 years | ||
Maximum [Member] | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Intangible assets useful life range | 10 years | ||
Maximum [Member] | Leasehold improvements [Member] | |||
Summary Of Business And Accounting Policies [Line Items] | |||
Leasehold improvements estimated useful life | 10 years |
Description of Business and A_5
Description of Business and Accounting Policies - Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Per Share Amounts (Detail) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||||||||
Weighted average common shares outstanding, basic | 12,997 | 12,934 | 12,855 | 12,795 | 12,755 | 12,721 | 12,697 | 12,673 | 12,896 | 12,712 |
Weighted average common shares outstanding, diluted | 12,997 | 12,934 | 12,855 | 12,795 | 12,755 | 12,721 | 12,697 | 12,673 | 12,896 | 12,712 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | $ 15,366 | $ 14,641 | $ 14,180 | $ 15,096 | $ 16,839 | $ 16,694 | $ 19,203 | $ 20,678 | $ 59,283 | $ 73,414 |
Partner Solutions Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 50,628 | 61,159 | ||||||||
Edge to Cloud Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 8,655 | 12,255 | ||||||||
Partner Solutions [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 50,628 | 61,159 | ||||||||
Partner Solutions [Member] | Partner Solutions Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 50,628 | 61,159 | ||||||||
Edge to Cloud [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 8,655 | 12,255 | ||||||||
Edge to Cloud [Member] | Edge to Cloud Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 8,655 | 12,255 | ||||||||
North America [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 50,110 | 69,088 | ||||||||
North America [Member] | Partner Solutions Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 42,443 | 58,523 | ||||||||
North America [Member] | Edge to Cloud Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 7,667 | 10,565 | ||||||||
Europe [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 2,023 | 3,055 | ||||||||
Europe [Member] | Partner Solutions Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 1,273 | 2,239 | ||||||||
Europe [Member] | Edge to Cloud Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 750 | 816 | ||||||||
Asia [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 7,150 | 1,271 | ||||||||
Asia [Member] | Partner Solutions Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | 6,912 | 397 | ||||||||
Asia [Member] | Edge to Cloud Segment [Member] | ||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||
Disaggregated revenue | $ 238 | $ 874 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Receivables | $ 9,216 | $ 11,581 |
Short-term contract assets | 494 | 1,053 |
Long-term contract assets | 237 | 528 |
Short-term contract liabilities (deferred revenue) | 1,559 | 1,652 |
Long-term contract liabilities (deferred revenue) | $ 903 | $ 1,037 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Accounting Policies [Line Items] | ||
Asset impairment charges related to contract assets | $ 375,000 | |
Topic 606 [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Asset impairment charges related to contract assets | $ 0 | |
Revenue practical expedient, incremental cost of obtaining contract [true/false] | true | |
Amortization of capitalized contract acquisition costs | $ 108,000 | $ 128,000 |
Impairment losses recorded related to costs capitalized | 0 | 0 |
Capitalized contract acquisition costs | $ 151,000 | $ 748,000 |
Revenue, remaining performance obligation, optional exemption, performance obligation [true/false] | true |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the Contract Assets | ||
Transferred to receivables from contract assets recognized at beginning of the period | $ 302 | $ 263 |
Changes in the Contract Liabilities | ||
Revenue recognized that was included in the contract liability at beginning of the period | $ 2,033 | $ 3,663 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Partner Solutions [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 14 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 1,581 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 2,232 |
Edge to Cloud [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Estimated revenue expected to be recognized in future | $ 274 |
Cash and Investments - Cash, Ca
Cash and Investments - Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | |||||||||
Cash | $ 4,092 | $ 6,780 | |||||||
Cash equivalents | 3,620 | 3,225 | |||||||
Restricted cash | 600 | 263 | |||||||
Restricted cash, long-term | 263 | ||||||||
Total cash, cash equivalents and restricted cash as presented in the statement of cash flows | 8,312 | 10,531 | $ 12,859 | ||||||
Short-term investments | 2,249 | 6,409 | |||||||
Total cash, cash equivalents, restricted cash and short-term investments | $ 10,561 | $ 11,610 | $ 12,560 | $ 15,000 | $ 16,940 | $ 17,271 | $ 17,861 | $ 21,435 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted cash: | ||
Restricted cash | $ 600 | $ 263 |
Short-term investments: | ||
Total short-term investments | 2,249 | 6,409 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,620 | 3,225 |
Short-term investments: | ||
Total short-term investments | 2,249 | 6,409 |
Total assets measured at fair value | 6,469 | 10,160 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 999 | 1,198 |
Short-term investments: | ||
Total short-term investments | 748 | 3,874 |
Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | 750 |
Short-term investments: | ||
Total short-term investments | 1,501 | 2,535 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,871 | 1,277 |
Restricted cash: | ||
Restricted cash | 600 | 526 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,871 | 1,277 |
Short-term investments: | ||
Total assets measured at fair value | 2,471 | 1,803 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,871 | 1,277 |
Restricted cash: | ||
Restricted cash | 600 | 526 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,749 | 1,948 |
Short-term investments: | ||
Total short-term investments | 2,249 | 6,409 |
Total assets measured at fair value | 3,998 | 8,357 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 999 | 1,198 |
Short-term investments: | ||
Total short-term investments | 748 | 3,874 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate debt [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | 750 |
Short-term investments: | ||
Total short-term investments | $ 1,501 | $ 2,535 |
Equipment, Furniture and Leas_3
Equipment, Furniture and Leasehold Improvements - Equipment, Furniture and Leasehold Improvements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,762 | $ 3,431 |
Less: accumulated depreciation and amortization | (2,510) | (2,520) |
Equipment, furniture and leasehold improvements, net | 252 | 911 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,290 | 1,637 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 262 | 302 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,165 | 1,163 |
Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 45 | $ 329 |
Equipment, Furniture and Leas_4
Equipment, Furniture and Leasehold Improvements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense | $ 799,000 | $ 541,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment charge on goodwill | $ 3,738,000 | |
Change in carrying amount of goodwill | $ 0 | |
Amortization expense | $ 98,000 | $ 98,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Carrying Value of Goodwill (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Reconciliation of Goodwill carrying amount: | |
Cost | $ 3,738 |
Impairment Loss | $ (3,738) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 169 | $ 267 |
Customer relationships [Member] | TestQuest, Inc and BSQUARE EMEA, Ltd [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,275 | 1,275 |
Accumulated Amortization | (1,106) | (1,008) |
Net Carrying Value | $ 169 | $ 267 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 98 | |
2021 | 71 | |
Net Carrying Value | $ 169 | $ 267 |
Other Income and Loss - Compone
Other Income and Loss - Components of Other Income and Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income And Loss [Abstract] | ||
Interest income | $ 179 | $ 207 |
Other income (loss) | (30) | |
Total | $ 149 | $ 207 |
Income Taxes - Schedule of Pre-
Income Taxes - Schedule of Pre-Tax Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. | $ (8,225) | $ (13,081) |
Foreign | (940) | (643) |
Loss before income taxes | $ (9,165) | $ (13,724) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current taxes: | ||
State and local current taxes | $ 16 | $ 13 |
Total current taxes | 16 | 13 |
Deferred taxes: | ||
Total Income tax expense (benefit) | $ 16 | $ 13 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Net deferred income tax assets (liability): | ||
Net operating loss carryforwards | $ 18,677 | $ 17,443 |
Research and development credit carryforwards | 3,576 | 3,337 |
Share-based compensation | 645 | 1,006 |
Accrued expenses and reserves | 127 | 47 |
Depreciation and amortization | 17 | 48 |
Deferred income tax (liability), Deferred revenue | (63) | |
Deferred income tax assets, Deferred revenue | 275 | |
Other | 14 | 19 |
Gross deferred tax assets | 23,331 | 21,837 |
Less: valuation allowance | (23,324) | (21,830) |
Net deferred tax assets | $ 7 | $ 7 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Net deferred tax assets (liability): | ||
Deferred tax assets, non-current | $ 7 | $ 7 |
Net deferred tax assets | $ 7 | $ 7 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. Federal tax benefit at statutory rates | $ (1,925) | $ (2,889) |
Impact of: | ||
Tax credits | (715) | (517) |
State income tax | (108) | 10 |
International operations | 409 | 30 |
Share-based compensation | 348 | 2 |
Valuation allowance | 1,471 | 2,280 |
Expiration of tax attributes | 475 | 217 |
Goodwill impairment | 784 | |
Other, net | 61 | 96 |
Total Income tax expense (benefit) | $ 16 | $ 13 |
U.S. Federal tax benefit at statutory rates | 21.00% | 21.00% |
Impact of: | ||
Tax credits | 7.80% | 3.80% |
State income tax | 1.20% | (0.10%) |
International operations | (4.50%) | (0.20%) |
Share-based compensation | (3.80%) | |
Valuation allowance | (16.00%) | (16.60%) |
Expiration of tax attributes | (5.20%) | (1.60%) |
Goodwill impairment | (5.70%) | |
Other, net | (0.70%) | (0.70%) |
Tax expense and effective tax rate | (0.20%) | (0.10%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | $ 3,600,000 | |
Period of increase in ownership | 3 years | |
Unrealized tax benefits | $ 0 | $ 0 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 79,700,000 | |
Operating loss carryforwards expiration period | 2024 | |
Domestic Tax Authority [Member] | Expire in 2024 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 45,700,000 | |
Expired federal net operating losses indefinite | 17,000,000 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 12,400,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee Lease Description [Line Items] | |||
Net lease liabilities | $ 1,958 | $ 1,958 | |
Operating lease, right-of-use assets | $ 1,828 | 1,828 | |
Lease expiration date | May 31, 2020 | ||
Seattle, Washington [Member] | |||
Lessee Lease Description [Line Items] | |||
Net lease liabilities | $ 1,200 | 1,200 | |
Operating lease, right-of-use assets | $ 1,200 | $ 1,200 | |
Operating lease terms | 87 months | 87 months | |
Lease expiration date | Jul. 31, 2027 | ||
Operating lease rent starting date | May 1, 2020 | ||
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease terms | 1 year | 1 year | |
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease terms | 8 years | 8 years | |
ASU 2016-02 [Member] | |||
Lessee Lease Description [Line Items] | |||
Net lease liabilities | $ 1,700 | ||
Operating lease, right-of-use assets | 1,200 | ||
Deferred rent, de-recognized | $ (500) |
Leases - Component of Lease Exp
Leases - Component of Lease Expense, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Total component lease expense was as follows (in thousands): | |
Operating leases | $ 992 |
Supplemental cash flow information related to leases was as follows (in thousands): | |
Cash paid for amounts included in the measurement of lease liabilities | 1,359 |
Operating leases: | |
Right of use | 1,828 |
Current portion of operating leases liability | 702 |
Operating leases liability, net of current portion | 1,256 |
Total operating leases liabilities | $ 1,958 |
Weighted Average Remaining Lease Term | 5 years 3 months |
Weighted Average Discount Rate | 8.00% |
Leases - Schedule of Future Ope
Leases - Schedule of Future Operating Lease Commitments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Year Ending December 31, 2020 | $ 727 |
Operating Leases, Year Ending December 31, 2021 | 304 |
Operating Leases, Year Ending December 31, 2022 | 249 |
Operating Leases, Year Ending December 31, 2023 | 255 |
Operating Leases, Year Ending December 31, 2024 | 262 |
Operating Leases, Thereafter | 709 |
Operating Leases, Total minimum lease payments | 2,506 |
Operating Leases, Less: amount representing imputed interest | (548) |
Operating Leases, Present value of lease liabilities | $ 1,958 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating leases, expiration year | 2027 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term of stock options granted | 10 years |
Vesting of options granted | 4 years |
Compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures | $ 553,906 |
Amortization cost, weighted-average period | 2 years 3 months 18 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 3 months 18 days |
Compensation cost related to restricted stock units granted but not recognized, net of estimated forfeitures | $ 53,566 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 4 years 10 months 24 days | 6 years 1 month 6 days |
Expected volatility | 59.00% | 56.00% |
Risk-free interest rate | 1.60% | 2.60% |
Shareholders' Equity - Share-Ba
Shareholders' Equity - Share-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 519 | $ 678 |
Per basic share | $ 0.04 | $ 0.05 |
Per diluted share | $ 0.04 | $ 0.05 |
Cost of revenue- professional engineering service [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 1 | $ 28 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 546 | 460 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ (28) | $ 190 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Number of Shares, Beginning Balance | 1,390,012 | 1,912,161 | |
Granted, Number of Shares | 958,798 | 316,393 | |
Exercised, Number of Shares | (2,422) | ||
Forfeited, Number of Shares | (251,213) | (434,374) | |
Expired, Number of Shares | (552,771) | (401,746) | |
Number of Shares, Ending Balance | 1,544,826 | 1,390,012 | 1,912,161 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,278,079 | ||
Exercisable, Number of Shares, Ending Balance | 525,289 | ||
Weighted Average Exercise Price, Beginning Balance | $ 4.77 | $ 4.88 | |
Granted, Weighted Average Exercise Price | 1.69 | 3.63 | |
Exercised, Weighted Average Exercise Price | 3.59 | ||
Forfeited, Weighted Average Exercise Price | 4.81 | 4.88 | |
Expired, Weighted Average Exercise Price | 5.07 | 4.27 | |
Weighted Average Exercise Price, Ending Balance | 2.74 | $ 4.77 | $ 4.88 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 2.95 | ||
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.52 | ||
Weighted Average Remaining Contractual Life (in years) | 7 years 5 months 19 days | 6 years 9 months 29 days | 7 years 7 months 9 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 7 years 14 days | ||
Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 11 months 1 day | ||
Balance outstanding, Aggregate Intrinsic Value | $ 46,582 | ||
Vested and expected to vest, Aggregate Intrinsic Value | 32,307 | ||
Exercisable, Aggregate Intrinsic Value | $ 31 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant-date fair value for options granted during the year | $ 1.33 | $ 1.81 |
Vested options in-the-money | 344 | |
Aggregate intrinsic value of options exercised during the year | $ 1,853 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested, Number of Shares, Ending Balance | 112,846 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested, Number of Shares, Beginning Balance | 186,516 | 116,968 |
Granted, Number of Shares | 225,693 | 251,371 |
Vested, Number of Shares | (264,720) | (113,535) |
Forfeited, Number of Shares | (34,643) | (68,288) |
Unvested, Number of Shares, Ending Balance | 112,846 | 186,516 |
Expected to vest, Number of Shares, Ending Balance | 106,295 | |
Unvested, Weighted Average Award Price, Beginning Balance | $ 2.87 | $ 5.33 |
Granted, Weighted Average Award Price | 1.44 | 2.72 |
Vested, Weighted Average Award Price | 2.03 | 4.19 |
Forfeited, Weighted Average Award Price | 4.68 | 4.30 |
Unvested, Weighted Average Award Price, Ending Balance | 1.44 | $ 2.87 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ 1.44 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |||
Stock options outstanding | 1,544,826 | 1,390,012 | 1,912,161 |
Restricted stock units outstanding | 112,846 | ||
Stock options available for future grant | 1,730,036 | ||
Common stock reserved for future issuance | 3,387,708 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Matching contributions | $ 256,000 | $ 439,000 |
Significant Concentrations - Su
Significant Concentrations - Summary of Revenue and Accounts Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||||||||||
Revenue | $ 15,366 | $ 14,641 | $ 14,180 | $ 15,096 | $ 16,839 | $ 16,694 | $ 19,203 | $ 20,678 | $ 59,283 | $ 73,414 |
Accounts receivable | 9,216 | 11,581 | 9,216 | 11,581 | ||||||
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Revenue | 1,737 | 7,013 | ||||||||
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Accounts receivable | $ 1,223 | $ 2,758 | $ 1,223 | $ 2,758 | ||||||
Honeywell International Inc and affiliated entities [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Concentration risk, percentage | 3.00% | 10.00% | ||||||||
Honeywell International Inc and affiliated entities [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Concentration risk, percentage | 13.00% | 24.00% |
Significant Concentrations - Ad
Significant Concentrations - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | |||
Distribution partners in Europe, Turkey and Africa existing distribution agreements expiration date | Jun. 30, 2019 | ||
ODAs windows mobile operating system expiration date | Apr. 30, 2022 | ||
Rebate credits outstanding | $ 1 | ||
Cost of revenue [Member] | |||
Concentration Risk [Line Items] | |||
Allocation of rebate values, percentage | 20.00% | 30.00% | |
Reduction in marketing expense [Member] | |||
Concentration Risk [Line Items] | |||
Allocation of rebate values, percentage | 80.00% | 70.00% | |
Revenue [Member] | Supplier Concentration Risk [Member] | Windows Operating Systems [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 79.00% | 75.00% | |
Third Party Software [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of sales from existing distribution agreements on total revenues | 3.00% |
Significant Concentrations - _2
Significant Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of revenue [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 314 | $ 718 |
Reductions to marketing expense [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 1,217 | $ 682 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - Unsecured Line of Credit Agreement [Member] - USD ($) | 1 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2018 | |
Line Of Credit Facility [Line Items] | |||
Line of credit, final due month and year | 2018-09 | ||
Line of credit, amount outstanding | $ 0 | ||
JPMorgan Chase Bank, N.A. [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit, term | 2 years | ||
Line of credit, maximum borrowing capacity | $ 12,000,000 |
Information about Operating S_3
Information about Operating Segments and Geographic Areas - Additional Information (Detail) - Segment | Jul. 01, 2019 | Dec. 31, 2019 |
Segment Reporting [Abstract] | ||
Number of reportable segment | 2 | 2 |
Number of operating segment | 2 |
Information about Operating S_4
Information about Operating Segments and Geographic Areas - Profit and Loss Information of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenue | $ 15,366 | $ 14,641 | $ 14,180 | $ 15,096 | $ 16,839 | $ 16,694 | $ 19,203 | $ 20,678 | $ 59,283 | $ 73,414 |
Cost of revenue | 49,187 | 57,904 | ||||||||
Gross profit | 2,650 | 2,632 | 2,423 | 2,391 | 3,690 | 3,359 | 3,261 | 5,200 | 10,096 | 15,510 |
Operating expenses | 19,410 | 29,441 | ||||||||
Other income, net | 149 | 207 | ||||||||
Income tax expense | (16) | (13) | ||||||||
Net loss | $ (1,360) | $ (1,107) | $ (3,868) | $ (2,846) | $ (5,533) | $ (2,087) | $ (3,683) | $ (2,434) | (9,181) | (13,737) |
Partner Solutions [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 50,628 | 61,159 | ||||||||
Cost of revenue | 43,198 | 51,408 | ||||||||
Gross profit | 7,430 | 9,751 | ||||||||
Edge to Cloud [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 8,655 | 12,255 | ||||||||
Cost of revenue | 5,989 | 6,496 | ||||||||
Gross profit | $ 2,666 | $ 5,759 |
Information about Operating S_5
Information about Operating Segments and Geographic Areas - Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenue: | ||||||||||
Total revenue | $ 15,366 | $ 14,641 | $ 14,180 | $ 15,096 | $ 16,839 | $ 16,694 | $ 19,203 | $ 20,678 | $ 59,283 | $ 73,414 |
Long-lived assets: | ||||||||||
Total long-lived assets | 2,533 | 1,991 | 2,533 | 1,991 | ||||||
North America [Member] | ||||||||||
Total revenue: | ||||||||||
Total revenue | 50,110 | 69,088 | ||||||||
Long-lived assets: | ||||||||||
Total long-lived assets | 2,016 | 1,578 | 2,016 | 1,578 | ||||||
Asia [Member] | ||||||||||
Total revenue: | ||||||||||
Total revenue | 7,150 | 1,271 | ||||||||
Long-lived assets: | ||||||||||
Total long-lived assets | 177 | 91 | 177 | 91 | ||||||
Europe [Member] | ||||||||||
Total revenue: | ||||||||||
Total revenue | 2,023 | 3,055 | ||||||||
Long-lived assets: | ||||||||||
Total long-lived assets | $ 340 | $ 322 | $ 340 | $ 322 |
Impairment of Software Develo_2
Impairment of Software Development Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Asset impairment charge | $ 375,000 | ||
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charge | $ 400,000 | $ 400,000 | $ 0 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019Employee | May 31, 2019Employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 2,343,000 | |||
Restructuring costs paid | 1,507,000 | |||
Accrued restructuring charges | 461,000 | |||
Severance Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of workforce elimination | Employee | 38 | |||
Severance Plan [Member] | Taiwan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of workforce expected to be eliminated | Employee | 17 | |||
Severance and Benefits and Non-cash Impairment Charge [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Aggregate restructuring charges | 2,300,000 | |||
Restructuring costs | 2,300,000 | $ 0 | ||
Restructuring costs paid | 1,500,000 | |||
Accrued restructuring charges | $ 500,000 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Activity and Estimated Timing of Future Payouts for Accrued Restructuring Costs (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring costs | $ 2,343 |
Non-cash asset impairment charge | (375) |
Cash payments | (1,507) |
Ending Balance | 461 |
Estimated timing of future payments: | |
Expected to be paid in 2020 | $ 461 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Summary of Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||||||||
Revenue | $ 15,366 | $ 14,641 | $ 14,180 | $ 15,096 | $ 16,839 | $ 16,694 | $ 19,203 | $ 20,678 | $ 59,283 | $ 73,414 |
Gross profit | 2,650 | 2,632 | 2,423 | 2,391 | 3,690 | 3,359 | 3,261 | 5,200 | 10,096 | 15,510 |
Income (loss) from operations | (1,377) | (1,129) | (3,929) | (2,879) | (5,603) | (2,132) | (3,718) | (2,478) | (9,314) | (13,931) |
Net income (loss) | $ (1,360) | $ (1,107) | $ (3,868) | $ (2,846) | $ (5,533) | $ (2,087) | $ (3,683) | $ (2,434) | $ (9,181) | $ (13,737) |
Basic income (loss) per share | $ (0.10) | $ (0.09) | $ (0.30) | $ (0.22) | $ (0.43) | $ (0.16) | $ (0.29) | $ (0.19) | $ (0.71) | $ (1.08) |
Diluted income (loss) per share | $ (0.10) | $ (0.09) | $ (0.30) | $ (0.22) | $ (0.43) | $ (0.16) | $ (0.29) | $ (0.19) | $ (0.71) | $ (1.08) |
Shares used in per share calculations: | ||||||||||
Basic | 12,997 | 12,934 | 12,855 | 12,795 | 12,755 | 12,721 | 12,697 | 12,673 | 12,896 | 12,712 |
Diluted | 12,997 | 12,934 | 12,855 | 12,795 | 12,755 | 12,721 | 12,697 | 12,673 | 12,896 | 12,712 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Summary of Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | |||||||||
Cash, cash equivalents, restricted cash and short-term investments | $ 10,561 | $ 11,610 | $ 12,560 | $ 15,000 | $ 16,940 | $ 17,271 | $ 17,861 | $ 21,435 | |
Total current assets | 20,515 | 21,442 | 22,897 | 26,428 | 29,996 | 32,102 | 35,514 | 39,913 | |
Total assets | 23,055 | 23,056 | 24,967 | 29,673 | 31,994 | 37,648 | 41,000 | 45,110 | |
Total current liabilities | 11,200 | 11,226 | 11,882 | 12,464 | 12,466 | 12,744 | 14,189 | 15,289 | |
Total shareholders' equity | $ 9,696 | $ 10,888 | $ 11,835 | $ 15,673 | $ 18,341 | $ 23,858 | $ 25,635 | $ 29,340 | $ 31,430 |