Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DMRC | |
Entity Registrant Name | Digimarc CORP | |
Entity Central Index Key | 0001438231 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-34108 | |
Entity Tax Identification Number | 26-2828185 | |
Entity Address, Address Line One | 9405 SW Gemini Drive | |
Entity Address, City or Town | Beaverton | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97008 | |
City Area Code | 503 | |
Local Phone Number | 469-4800 | |
Entity Common Stock, Shares Outstanding | 12,428,028 | |
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | OR | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 16,414 | $ 27,278 |
Marketable securities | 24,921 | 16,378 |
Trade accounts receivable, net | 3,570 | 3,888 |
Other current assets | 2,882 | 2,100 |
Total current assets | 47,787 | 49,644 |
Marketable securities | 1,497 | 0 |
Property and equipment, net | 3,594 | 3,955 |
Intangibles, net | 6,723 | 6,649 |
Goodwill | 1,114 | 1,114 |
Other assets | 2,871 | 425 |
Total assets | 63,586 | 61,787 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 2,615 | 1,092 |
Deferred revenue | 2,391 | 3,226 |
Total current liabilities | 5,006 | 4,318 |
Lease liability and other long-term liabilities | 2,739 | 854 |
Total liabilities | 7,745 | 5,172 |
Commitments and contingencies (Note 13) | ||
Shareholders’ equity: | ||
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at September 30, 2019 and December 31, 2018) | 50 | 50 |
Common stock (par value $0.001 per share, 50,000 authorized, 12,429 and 11,891 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively) | 12 | 12 |
Additional paid-in capital | 185,811 | 162,428 |
Accumulated deficit | (130,032) | (105,875) |
Total shareholders’ equity | 55,841 | 56,615 |
Total liabilities and shareholders’ equity | $ 63,586 | $ 61,787 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,500 | 2,500 |
Preferred stock, shares issued | 10 | 10 |
Preferred stock, shares outstanding | 10 | 10 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 12,429 | 11,891 |
Common stock, shares outstanding | 12,429 | 11,891 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 5,828 | $ 4,914 | $ 17,668 | $ 15,965 |
Cost of revenue: | ||||
Total cost of revenue | 1,918 | 1,935 | 6,237 | 6,325 |
Gross profit | 3,910 | 2,979 | 11,431 | 9,640 |
Operating expenses: | ||||
Sales and marketing | 4,839 | 4,741 | 14,876 | 14,385 |
Research, development and engineering | 4,105 | 4,069 | 12,124 | 12,074 |
General and administrative | 2,656 | 2,447 | 8,194 | 7,495 |
Intellectual property | 342 | 328 | 1,093 | 948 |
Total operating expenses | 11,942 | 11,585 | 36,287 | 34,902 |
Operating loss | (8,032) | (8,606) | (24,856) | (25,262) |
Other income, net | 259 | 273 | 727 | 799 |
Loss before income taxes | (7,773) | (8,333) | (24,129) | (24,463) |
Benefit (provision) for income taxes | 12 | (9) | (28) | (29) |
Net loss | $ (7,761) | $ (8,342) | $ (24,157) | $ (24,492) |
Earnings (loss) per common share: | ||||
Loss per common share — basic | $ (0.65) | $ (0.73) | $ (2.07) | $ (2.16) |
Loss per common share — diluted | $ (0.65) | $ (0.73) | $ (2.07) | $ (2.16) |
Weighted average common shares outstanding — basic | 11,924 | 11,394 | 11,693 | 11,333 |
Weighted average common shares outstanding — diluted | 11,924 | 11,394 | 11,693 | 11,333 |
Service [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,003 | $ 2,787 | $ 10,167 | $ 9,630 |
Cost of revenue: | ||||
Total cost of revenue | 1,287 | 1,301 | 4,371 | 4,412 |
Subscription [Member] | ||||
Revenue: | ||||
Total revenue | 2,273 | 1,532 | 5,924 | 4,554 |
Cost of revenue: | ||||
Total cost of revenue | 459 | 480 | 1,369 | 1,470 |
License [Member] | ||||
Revenue: | ||||
Total revenue | 552 | 595 | 1,577 | 1,781 |
Cost of revenue: | ||||
Total cost of revenue | $ 172 | $ 154 | $ 497 | $ 443 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2017 | $ 82,347 | $ 50 | $ 12 | $ 155,793 | $ (73,508) |
Balance, shares at Dec. 31, 2017 | 10 | 11,651 | |||
Exercise of stock options | 1,064 | $ 0 | $ 0 | 1,064 | 0 |
Exercise of stock options, shares | 0 | 82 | |||
Issuance of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 233 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (20) | |||
Purchase and retirement of common stock | (1,689) | $ 0 | $ 0 | (1,689) | 0 |
Purchase and retirement of common stock, shares | 0 | (58) | |||
Stock-based compensation | 5,475 | $ 0 | $ 0 | 5,475 | 0 |
Cumulative effect of the adoption of the new revenue standard, net of tax | 139 | 0 | 0 | 0 | 139 |
Net loss | (24,492) | 0 | 0 | 0 | (24,492) |
Balance at Sep. 30, 2018 | 62,844 | $ 50 | $ 12 | 160,643 | (97,861) |
Balance, shares at Sep. 30, 2018 | 10 | 11,888 | |||
Balance at Jun. 30, 2018 | 69,703 | $ 50 | $ 12 | 159,160 | (89,519) |
Balance, shares at Jun. 30, 2018 | 10 | 11,876 | |||
Exercise of stock options | 150 | $ 0 | $ 0 | 150 | 0 |
Exercise of stock options, shares | 0 | 10 | |||
Issuance of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 23 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (1) | |||
Purchase and retirement of common stock | (569) | $ 0 | $ 0 | (569) | 0 |
Purchase and retirement of common stock, shares | 0 | (20) | |||
Stock-based compensation | 1,902 | $ 0 | $ 0 | 1,902 | 0 |
Net loss | (8,342) | 0 | 0 | 0 | (8,342) |
Balance at Sep. 30, 2018 | 62,844 | $ 50 | $ 12 | 160,643 | (97,861) |
Balance, shares at Sep. 30, 2018 | 10 | 11,888 | |||
Balance at Dec. 31, 2018 | 56,615 | $ 50 | $ 12 | 162,428 | (105,875) |
Balance, shares at Dec. 31, 2018 | 10 | 11,891 | |||
Issuance of common stock, net of issuance costs | 19,615 | $ 0 | $ 0 | 19,615 | 0 |
Issuance of common stock, net of issuance costs, shares | 0 | 336 | |||
Exercise of stock options | $ 293 | $ 0 | $ 0 | 293 | 0 |
Exercise of stock options, shares | 23 | 0 | 23 | ||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 292 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (47) | |||
Purchase and retirement of common stock | (2,753) | $ 0 | $ 0 | (2,753) | 0 |
Purchase and retirement of common stock, shares | 0 | (66) | |||
Stock-based compensation | 6,228 | $ 0 | $ 0 | 6,228 | 0 |
Net loss | (24,157) | 0 | 0 | 0 | (24,157) |
Balance at Sep. 30, 2019 | 55,841 | $ 50 | $ 12 | 185,811 | (130,032) |
Balance, shares at Sep. 30, 2019 | 10 | 12,429 | |||
Balance at Jun. 30, 2019 | $ 62,402 | $ 50 | $ 12 | 184,611 | (122,271) |
Balance, shares at Jun. 30, 2019 | 10 | 12,433 | |||
Exercise of stock options, shares | 0 | ||||
Issuance of restricted common stock | $ 0 | $ 0 | $ 0 | 0 | 0 |
Issuance of restricted common stock, shares | 0 | 19 | |||
Forfeiture of restricted common stock | 0 | $ 0 | $ 0 | 0 | 0 |
Forfeiture of restricted common stock, shares | 0 | (1) | |||
Purchase and retirement of common stock | (885) | $ 0 | $ 0 | (885) | 0 |
Purchase and retirement of common stock, shares | 0 | (22) | |||
Stock-based compensation | 2,085 | $ 0 | $ 0 | 2,085 | 0 |
Net loss | (7,761) | 0 | 0 | 0 | (7,761) |
Balance at Sep. 30, 2019 | $ 55,841 | $ 50 | $ 12 | $ 185,811 | $ (130,032) |
Balance, shares at Sep. 30, 2019 | 10 | 12,429 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (24,157) | $ (24,492) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and write-off of property and equipment | 1,098 | 1,167 |
Amortization and write-off of intangibles | 533 | 437 |
Stock-based compensation | 6,094 | 5,345 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 318 | 3,447 |
Other current assets | (782) | (261) |
Other assets | 263 | (148) |
Accounts payable and other accrued liabilities | 1,086 | (299) |
Deferred revenue | (735) | (1,225) |
Lease liability and other long-term liabilities | (481) | (75) |
Net cash used in operating activities | (16,763) | (16,104) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (692) | (1,023) |
Capitalized patent costs | (524) | (571) |
Maturity of marketable securities | 27,997 | 30,179 |
Purchase of marketable securities | (38,037) | (18,904) |
Net cash provided by (used in) investing activities | (11,256) | 9,681 |
Cash flows from financing activities: | ||
Issuance of common stock, net of issuance costs | 19,615 | 0 |
Exercise of stock options | 293 | 1,064 |
Purchase of common stock | (2,753) | (1,689) |
Net cash provided by (used in) financing activities | 17,155 | (625) |
Net decrease in cash and cash equivalents | (10,864) | (7,048) |
Cash and cash equivalents at beginning of period | 27,278 | 40,823 |
Cash and cash equivalents at end of period | 16,414 | 33,775 |
Supplemental disclosure of cash flow information: | ||
Cash received for income taxes, net | 89 | 92 |
Supplemental schedule of non-cash activities: | ||
Property and equipment and patent costs in accounts payable | (6) | (39) |
Stock-based compensation capitalized to software and patent costs | 134 | 130 |
Right of use assets obtained in exchange for lease obligations | $ 2,709 | $ 0 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments, banks, retailers, consumer brands and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has developed the Digimarc Platform, a comprehensive set of technologies for identifying, discovering and interacting with digitally-enhanced media. The platform includes Digimarc Barcode, a proprietary method for imperceptibly enhancing packaging, print, images, thermal labels, audio and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners and machine-vision equipment. Digimarc Discover software enables an ecosystem of connected devices to easily identify content or materials and deliver information. Interim Consolidated Financial Statements Our significant accounting policies are detailed in “Note 1: Description of Business and Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2018. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on February 22, 2019. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) , Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities, approximate their carrying values due to the short-term nature of these instruments. The Company’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows: September 30, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 1,001 $ — $ — $ 1,001 Commercial paper — 29,776 — 29,776 Corporate notes — 7,318 — 7,318 U.S. treasuries — 4,020 — 4,020 Total $ 1,001 $ 41,114 $ — $ 42,115 December 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,472 $ — $ — $ 1,472 Commercial paper — 28,343 — 28,343 Corporate notes — 12,106 — 12,106 Total $ 1,472 $ 40,449 $ — $ 41,921 The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2019, are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 42,115 $ 40,618 $ 1,497 $ — $ — The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include commercial paper and money market funds totaling $15,697 and $25,543 at September 30, 2019 and December 31, 2018, respectively. Cash equivalents are carried at either cost or amortized cost depending on the type of security, which approximates fair value. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition The Company derives its revenue primarily from professional services, subscriptions and licensing of its intellectual property. Applicable revenue recognition criteria are considered separately for each performance obligation as follows: • Service revenue consists primarily of revenue received from software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. Revenue for development and consulting services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. • Subscription revenue includes revenue derived from the sale of Digimarc Discover, Digimarc Barcode and Digimarc Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years. • License revenue includes revenue from licensing the Company’s intellectual property where the Company receives license fees and/or royalties. License fees are typically paid in advance and recognized when the customer has the right to the intellectual property and the license period has begun, and royalties are typically billed in arrears and recognized in the quarter in which the royalty was earned. Some customer arrangements contain multiple performance obligations such as professional services, software licenses, and maintenance and support fees. The Company accounts for individual products and services separately if they are distinct. To determine the transaction price, the Company considers the terms of the contract and the Company’s customary business practices. Some contracts may contain variable consideration. In those cases, the Company estimates the amount of variable consideration based on the sum of probability-weighted amounts in a range of possible consideration amounts. As part of this assessment, the Company will evaluate whether any of the variable consideration is constrained, and if it is the Company will not include it in the transaction price. The consideration is allocated between distinct products and services based on their stand-alone selling prices. For items that are not sold separately, the Company estimates the stand-alone selling price based on reasonably available information, including market conditions, specific factors affecting the Company and information about the customer. For distinct products and services, the Company typically recognizes the revenue associated with these performance obligations as they are delivered to the customer. For performance obligations that are not considered distinct, the Company typically recognizes revenue over the term of the contract as the customer simultaneously receives and consumes the goods and services as the Company performs them. All revenue recognized in the Consolidated Statements of Operations is considered to be revenue from contracts with customers. The following table provides information about disaggregated revenue by major product line in the Company’s single reporting segment: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Service $ 3,003 $ 2,787 $ 10,167 $ 9,630 Subscription Digimarc Guardian 784 904 2,489 2,781 Digimarc Discover and Digimarc Barcode 1,489 628 3,435 1,773 License 552 595 1,577 1,781 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 The Company has contract assets from contracts with customers that are classified as “trade accounts receivable.” Financial information about trade accounts receivable is included in Note 8. The Company has contract liabilities from contracts with customers that are classified as “deferred revenue.” Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which the performance obligation has not been satisfied. The following table provides information about contract liabilities from contracts with customers: September 30, December 31, 2019 2018 Deferred revenue, current $ 2,391 $ 3,226 Deferred revenue, long term 146 46 Total $ 2,537 $ 3,272 The aggregate amount of transaction prices from contractual obligations that are unsatisfied or partially unsatisfied was $15,770 and $17,496 as of September 30, 2019 and December 31, 2018, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through development services, subscriptions and licensing of intellectual property. The Company markets its products in the U.S. and in non-U.S. countries through its sales and licensing personnel and channel partners. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Domestic $ 2,136 $ 1,387 $ 5,225 $ 4,127 International (1) 3,692 3,527 12,443 11,838 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. Major Customers The following customers accounted for 10% or more of revenue: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Central Banks 57 % 62 % 62 % 65 % Walmart Inc. 14 % * * * * Less than 10% Long-Lived Assets by Geographical Area The Company’s long-lived assets are all domiciled in the U.S. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 5. Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include stock option grants and restricted stock awards. Stock-based compensation expense related to internal labor is capitalized to software and patent costs based on direct labor hours charged to capitalized software and patent costs. Determining Fair Value Stock Options Valuation and Amortization Method. The Company estimates the fair value of stock options on the date of grant (measurement date) using the Black-Scholes option valuation model. The Company amortizes the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods. Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms and vesting schedules of the awards. Stock options granted generally vest over three years and have contractual terms of ten years. Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock based on historical prices over the most recent period commensurate with the expected life of the award. Risk-Free Interest Rate. The Company determines the risk-free interest rate using current U.S. treasury yields for bonds with a maturity commensurate with the expected life of the award. Expected Dividend Yield. The expected dividend yield is derived by the Company’s expected annual dividend rate over the expected term divided by the fair value of the Company’s common stock at the grant date. Stock options valuation assumptions: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Expected life (years) 3.20 4.50 3.20 4.50 Expected volatility 58.68 % 57.11 % 58.68 % 57.11 % Risk-free interest rate 1.51 % 2.77 % 1.51 % 2.77 % Expected dividend yield 0 % 0 % 0 % 0 % Restricted Stock The fair value of restricted stock awarded is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized over the vesting period of the award using the straight-line method. Restricted stock awards granted generally vest over three to four years for employee grants and one to three years for director grants. Stock-Based Compensation Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Stock-based compensation: Cost of revenue $ 163 $ 134 $ 524 $ 456 Sales and marketing 459 442 1,467 1,198 Research, development and engineering 366 367 1,077 1,015 General and administrative 984 846 2,823 2,461 Intellectual property 69 76 203 215 Stock-based compensation expense 2,041 1,865 6,094 5,345 Capitalized to software and patent costs 44 37 134 130 Total stock-based compensation $ 2,085 $ 1,902 $ 6,228 $ 5,475 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: As of As of September 30, December 31, 2019 2018 Total unrecognized compensation costs $ 15,473 $ 14,055 Total unrecognized compensation costs will be adjusted for any future forfeitures if and when they occur. The Company expects to recognize the total unrecognized compensation costs as of September 30, 2019 for stock options and restricted stock over weighted average periods through September 30, 2023 as follows: Stock Restricted Options Stock Weighted average period 1.20 years 1.45 years As of September 30, 2019, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,276 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. Stock Option Activity The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended September 30, 2019: Options Price Fair Value Value Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 Granted 100 39.54 16.40 Exercised — — — Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Nine months ended September 30, 2019: Options Price Fair Value Value Outstanding at December 31, 2018 513 $ 28.52 $ 13.10 Granted 100 39.54 16.40 Exercised (23 ) 12.77 6.81 Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Exercisable at September 30, 2019 357 $ 28.97 $ 3,608 Unvested at September 30, 2019 233 $ 34.10 $ 1,209 The aggregate intrinsic value is based on the closing price of $39.09 per share of Digimarc common stock on September 30, 2019, the last trading day before the end of the third fiscal quarter, which would have been received by the optionees had all of the options with exercise prices less than $39.09 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended September 30, 2019: Shares Fair Value Unvested balance, June 30, 2019 525 $ 26.61 Granted 19 $ 40.29 Vested (55 ) $ 27.27 Forfeited (1 ) $ 26.68 Unvested balance, September 30, 2019 488 $ 27.06 Weighted Average Number of Grant Date Nine months ended September 30, 2019: Shares Fair Value Unvested balance, December 31, 2018 426 $ 28.85 Granted 292 $ 24.96 Vested (183 ) $ 27.87 Forfeited (47 ) $ 27.12 Unvested balance, September 30, 2019 488 $ 27.06 The following table indicates the fair value of all restricted stock awards that vested: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Fair value of restricted stock awards vested $ 2,195 $ 1,432 $ 7,427 $ 4,704 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 6 . Shareholders’ Equity In May 2019, the Company entered into an Equity Distribution Agreement, whereby the Company may sell from time to time through Wells Fargo Securities, LLC, as its sales agent, the Company’s common stock having an aggregate offering price of up to $30,000. For the nine months ended September 30, 2019, the Company sold 336 shares at an average price of $60.61 under this Equity Distribution Agreement totaling $20,349 of cash proceeds, less $483 of commissions and $251 of stock issuance costs, for net cash proceeds of $19,615. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 7 . Earnings Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The dilutive effect of stock options is determined using the treasury stock method. The following table reconciles earnings (loss) per common share: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (7,761 ) (8,342 ) (24,157 ) (24,492 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (7,761 ) (8,342 ) (24,157 ) (24,492 ) Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Basic earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares — diluted $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Dilutive effect of stock options — — — — Weighted average common shares outstanding — diluted 11,924 11,394 11,693 11,333 Diluted earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) The following table indicates the common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Anti-dilutive shares due to: Exercise prices higher than the average market price — 375 100 375 Net loss 95 — 39 — |
Trade Accounts Receivable
Trade Accounts Receivable | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Trade Accounts Receivable | 8 . Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. September 30, December 31, 2019 2018 Trade accounts receivable $ 3,585 $ 3,903 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,570 $ 3,888 Unpaid deferred revenue included in trade accounts receivable $ 857 $ 2,030 Allowance for Doubtful Accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing trade accounts receivable. The Company determines the allowance based on historical write-off experience and current information. The Company reviews its allowance for doubtful accounts each reporting period. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Unpaid Deferred Revenue The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Major Customers The following customers accounted for 10% or more of trade accounts receivable, net: September 30, December 31, 2019 2018 Central Banks 52 % 48 % Customer B 11 % * * Less than 10% |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 9 . Property and Equipment Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. September 30, December 31, 2019 2018 Office furniture and fixtures $ 1,636 $ 1,626 Software 4,098 3,686 Equipment 4,939 4,814 Leasehold improvements 1,721 1,721 Gross property and equipment 12,394 11,847 Less accumulated depreciation and amortization (8,800 ) (7,892 ) Property and equipment, net $ 3,594 $ 3,955 |
Intangibles
Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles | 10 . Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges were recorded for the nine months ended September 30, 2019 and 2018. Costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating 17 years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life September 30, December 31, (years) 2019 2018 Capitalized patent costs 17-20 $ 9,254 $ 8,757 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 12,524 12,027 Accumulated amortization (5,801 ) (5,378 ) Intangibles, net $ 6,723 $ 6,649 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 11 . Leases The Company adopted ASC 842, “ Leases The Company leases office spaces in Beaverton, Oregon and San Mateo, California. In July 2015, the Company entered into an amendment with the landlord of its corporate offices in Beaverton, Oregon to extend the lease term through March 2024 with remaining rent payments as of September 30, 2019 totaling $4,054, payable in monthly installments. In February 2015, the Company entered into a new facilities lease agreement in San Mateo, California with a lease term through March 2020, with remaining rent payments as of September 30, 2019 totaling $234, payable in monthly installments. The Company currently subleases this facility to a third party with a lease term through March 2020. All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the balance sheets: September 30, 2019 Right of use assets $ 2,376 Lease liabilities, current $ 678 Lease liabilities, long-term $ 2,593 Weighted-average remaining life 4.5 years Weighted-average discount rate 8.20 % The carrying value of the right of use assets is included in “Other assets” and the current and long-term lease liabilities are included in “Accounts payable and other accrued liabilities” and “Lease liability and other long-term liabilities,” respectively, in the consolidated balance sheets. Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Nine Months Months Ended Ended September 30, September 30, 2019 2019 Operating lease expense $ 251 $ 772 Cash paid for operating leases $ 322 $ 1,014 The table below reconciles the undiscounted cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of September 30, 2019: Cash Payment Year ending December 31: Obligations 2019 (remaining) $ 259 2020 870 2021 838 2022 862 2023 867 Thereafter 218 Total lease payments 3,914 Imputed interest (643 ) Total minimum lease payments $ 3,271 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12 . Income Taxes The provision for income taxes for the nine months ended September 30, 2019 and 2018 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for each of the nine months ended September 30, 2019 and 2018 was 0%. The valuation allowance against net deferred tax assets as of September 30, 2019 was $50,072, an increase of $7,723 from $42,349 as of December 31, 2018. Excess tax benefits of $707 and $2,751 were recognized in the provision for income taxes for the three and nine months ended September 30, 2019, respectively, which were offset by $707 and $2,751 of valuation allowance, respectively. Excess tax benefits of $51 and $762 were recognized in the provision for income taxes for the three and nine months ended September 30, 2018, respectively, which were offset by $51 and $762 of valuation allowance, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13 . Commitments and Contingencies Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies The Company is subject from time to time to legal proceedings and claims arising in the ordinary course of business. At this time, the Company does not believe that the resolution of any such matters will have a material adverse effect on its financial position, results of operations or cash flows. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments, banks, retailers, consumer brands and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has developed the Digimarc Platform, a comprehensive set of technologies for identifying, discovering and interacting with digitally-enhanced media. The platform includes Digimarc Barcode, a proprietary method for imperceptibly enhancing packaging, print, images, thermal labels, audio and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners and machine-vision equipment. Digimarc Discover software enables an ecosystem of connected devices to easily identify content or materials and deliver information. |
Interim Consolidated Financial Statements | Interim Consolidated Financial Statements Our significant accounting policies are detailed in “Note 1: Description of Business and Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2018. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on February 22, 2019. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. |
Reclassifications | Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. |
Accounting Pronouncements | Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) , Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements |
Earnings Per Share | The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy for Financial Assets | The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows: September 30, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 1,001 $ — $ — $ 1,001 Commercial paper — 29,776 — 29,776 Corporate notes — 7,318 — 7,318 U.S. treasuries — 4,020 — 4,020 Total $ 1,001 $ 41,114 $ — $ 42,115 December 31, 2018 Level 1 Level 2 Level 3 Total Money market securities $ 1,472 $ — $ — $ 1,472 Commercial paper — 28,343 — 28,343 Corporate notes — 12,106 — 12,106 Total $ 1,472 $ 40,449 $ — $ 41,921 |
Summary of Fair Value Maturities for Financial Asset | The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2019, are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 42,115 $ 40,618 $ 1,497 $ — $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment | The following table provides information about disaggregated revenue by major product line in the Company’s single reporting segment: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Service $ 3,003 $ 2,787 $ 10,167 $ 9,630 Subscription Digimarc Guardian 784 904 2,489 2,781 Digimarc Discover and Digimarc Barcode 1,489 628 3,435 1,773 License 552 595 1,577 1,781 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 |
Schedule of Contract Liabilities from Contracts with Customers | The following table provides information about contract liabilities from contracts with customers: September 30, December 31, 2019 2018 Deferred revenue, current $ 2,391 $ 3,226 Deferred revenue, long term 146 46 Total $ 2,537 $ 3,272 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Geographical Segment Revenue | Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Domestic $ 2,136 $ 1,387 $ 5,225 $ 4,127 International (1) 3,692 3,527 12,443 11,838 Total $ 5,828 $ 4,914 $ 17,668 $ 15,965 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. |
Customers Accounted for 10% or More of Revenue | The following customers accounted for 10% or more of revenue: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Central Banks 57 % 62 % 62 % 65 % Walmart Inc. 14 % * * * * Less than 10% |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Valuation Assumptions | Stock options valuation assumptions: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Expected life (years) 3.20 4.50 3.20 4.50 Expected volatility 58.68 % 57.11 % 58.68 % 57.11 % Risk-free interest rate 1.51 % 2.77 % 1.51 % 2.77 % Expected dividend yield 0 % 0 % 0 % 0 % |
Allocation of Stock-Based Compensation | Stock-Based Compensation Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Stock-based compensation: Cost of revenue $ 163 $ 134 $ 524 $ 456 Sales and marketing 459 442 1,467 1,198 Research, development and engineering 366 367 1,077 1,015 General and administrative 984 846 2,823 2,461 Intellectual property 69 76 203 215 Stock-based compensation expense 2,041 1,865 6,094 5,345 Capitalized to software and patent costs 44 37 134 130 Total stock-based compensation $ 2,085 $ 1,902 $ 6,228 $ 5,475 |
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted | The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: As of As of September 30, December 31, 2019 2018 Total unrecognized compensation costs $ 15,473 $ 14,055 |
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock | The Company expects to recognize the total unrecognized compensation costs as of September 30, 2019 for stock options and restricted stock over weighted average periods through September 30, 2023 as follows: Stock Restricted Options Stock Weighted average period 1.20 years 1.45 years |
Reconciliation of Outstanding Balance of Stock Options | The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended September 30, 2019: Options Price Fair Value Value Outstanding at June 30, 2019 490 $ 29.26 $ 13.40 Granted 100 39.54 16.40 Exercised — — — Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Nine months ended September 30, 2019: Options Price Fair Value Value Outstanding at December 31, 2018 513 $ 28.52 $ 13.10 Granted 100 39.54 16.40 Exercised (23 ) 12.77 6.81 Forfeited or expired — — — Outstanding at September 30, 2019 590 $ 31.00 $ 13.91 $ 4,817 Exercisable at September 30, 2019 357 $ 28.97 $ 3,608 Unvested at September 30, 2019 233 $ 34.10 $ 1,209 |
Reconciliation of Unvested Balance of Restricted Stock | The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended September 30, 2019: Shares Fair Value Unvested balance, June 30, 2019 525 $ 26.61 Granted 19 $ 40.29 Vested (55 ) $ 27.27 Forfeited (1 ) $ 26.68 Unvested balance, September 30, 2019 488 $ 27.06 Weighted Average Number of Grant Date Nine months ended September 30, 2019: Shares Fair Value Unvested balance, December 31, 2018 426 $ 28.85 Granted 292 $ 24.96 Vested (183 ) $ 27.87 Forfeited (47 ) $ 27.12 Unvested balance, September 30, 2019 488 $ 27.06 |
Fair Value of Restricted Stock Awards Vested | The following table indicates the fair value of all restricted stock awards that vested: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Fair value of restricted stock awards vested $ 2,195 $ 1,432 $ 7,427 $ 4,704 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Earnings (Loss) Per Common Share | The following table reconciles earnings (loss) per common share: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Distributed earnings to common shares — — — — Distributed earnings to participating securities — — — — Total distributed earnings — — — — Undistributed loss allocable to common shares (7,761 ) (8,342 ) (24,157 ) (24,492 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (7,761 ) (8,342 ) (24,157 ) (24,492 ) Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Basic earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares — basic $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares — diluted $ (7,761 ) $ (8,342 ) $ (24,157 ) $ (24,492 ) Denominator Weighted average common shares outstanding — basic 11,924 11,394 11,693 11,333 Dilutive effect of stock options — — — — Weighted average common shares outstanding — diluted 11,924 11,394 11,693 11,333 Diluted earnings (loss) per common share $ (0.65 ) $ (0.73 ) $ (2.07 ) $ (2.16 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Anti-dilutive shares due to: Exercise prices higher than the average market price — 375 100 375 Net loss 95 — 39 — |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Summary of Trade Accounts Receivable | Trade accounts receivable are recorded at the invoiced amount. September 30, December 31, 2019 2018 Trade accounts receivable $ 3,585 $ 3,903 Allowance for doubtful accounts (15 ) (15 ) Trade accounts receivable, net $ 3,570 $ 3,888 Unpaid deferred revenue included in trade accounts receivable $ 857 $ 2,030 |
Customers Accounted for 10% or More of Trade Accounts Receivable, Net | The following customers accounted for 10% or more of trade accounts receivable, net: September 30, December 31, 2019 2018 Central Banks 52 % 48 % Customer B 11 % * * Less than 10% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Depreciation and Amortization on Property and Equipment Using the Straight-Line Method | Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. September 30, December 31, 2019 2018 Office furniture and fixtures $ 1,636 $ 1,626 Software 4,098 3,686 Equipment 4,939 4,814 Leasehold improvements 1,721 1,721 Gross property and equipment 12,394 11,847 Less accumulated depreciation and amortization (8,800 ) (7,892 ) Property and equipment, net $ 3,594 $ 3,955 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization of Intangible Assets Acquired | Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life September 30, December 31, (years) 2019 2018 Capitalized patent costs 17-20 $ 9,254 $ 8,757 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 12,524 12,027 Accumulated amortization (5,801 ) (5,378 ) Intangibles, net $ 6,723 $ 6,649 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Additional Details of Leases Presented in Balance Sheets | All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the balance sheets: September 30, 2019 Right of use assets $ 2,376 Lease liabilities, current $ 678 Lease liabilities, long-term $ 2,593 Weighted-average remaining life 4.5 years Weighted-average discount rate 8.20 % |
Additional Details of Operating Lease Expense | Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Nine Months Months Ended Ended September 30, September 30, 2019 2019 Operating lease expense $ 251 $ 772 Cash paid for operating leases $ 322 $ 1,014 |
Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability | The table below reconciles the undiscounted cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of September 30, 2019: Cash Payment Year ending December 31: Obligations 2019 (remaining) $ 259 2020 870 2021 838 2022 862 2023 867 Thereafter 218 Total lease payments 3,914 Imputed interest (643 ) Total minimum lease payments $ 3,271 |
Description of Business and S_3
Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
Estimated right of use assets | $ 2,376 | $ 2,709 |
Estimated lease liabilities | $ 3,271 | 3,792 |
Deferred rent liability | $ 1,083 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 42,115 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 42,115 | $ 41,921 |
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,001 | 1,472 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 29,776 | 28,343 |
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,318 | 12,106 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,020 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,001 | 1,472 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,001 | 1,472 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 41,114 | 40,449 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 29,776 | 28,343 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,318 | 12,106 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,020 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | $ 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Cash equivalents and marketable securities, Maturities by Period, Total | $ 42,115 |
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year | 40,618 |
Cash equivalents and marketable securities, Maturities by Period, 1-5 years | 1,497 |
Cash equivalents and marketable securities, Maturities by Period, 5-10 years | 0 |
Cash equivalents and marketable securities, Maturities by Period, More than 10 years | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Highly liquid marketable securities with original maturities | 90 days or less | |
Cash equivalents include commercial paper and money market funds | $ 15,697 | $ 25,543 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | ||
Period of revenue from services | 1 month | |
Subscription revenue term, minimum | 1 year | |
Subscription revenue term, maximum | 3 years | |
Aggregate amount of transaction price from contractual obligations | $ 15,770 | $ 17,496 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total | $ 5,828 | $ 4,914 | $ 17,668 | $ 15,965 |
Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 3,003 | 2,787 | 10,167 | 9,630 |
Subscription Digimarc Guardian [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 784 | 904 | 2,489 | 2,781 |
Subscription Digimarc Discover And Digimarc Barcode [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | 1,489 | 628 | 3,435 | 1,773 |
License [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total | $ 552 | $ 595 | $ 1,577 | $ 1,781 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue Recognition [Abstract] | ||
Deferred revenue, current | $ 2,391 | $ 3,226 |
Deferred revenue, long term | 146 | 46 |
Total | $ 2,537 | $ 3,272 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019Segment | |
Revenue, Major Customer [Line Items] | |
Number of reporting segment | 1 |
Customer Concentration Risk [Member] | Minimum [Member] | Sales [Member] | |
Revenue, Major Customer [Line Items] | |
Percentage of revenue from major customers | 10.00% |
Segment Information - Geographi
Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 5,828 | $ 4,914 | $ 17,668 | $ 15,965 |
Domestic [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 2,136 | 1,387 | 5,225 | 4,127 |
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 3,692 | $ 3,527 | $ 12,443 | $ 11,838 |
Segment Information - Customers
Segment Information - Customers Accounted for 10% or More of Revenue (Detail) - Customer Concentration Risk [Member] - Sales [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Central Banks [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 57.00% | 62.00% | 62.00% | 65.00% |
Walmart Inc. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 14.00% |
Segment Information - Custome_2
Segment Information - Customers Accounted for 10% or More of Revenue (Parenthetical) (Detail) - Customer Concentration Risk [Member] - Sales [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Minimum [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 10.00% | |||
Walmart Inc. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 14.00% | |||
Walmart Inc. [Member] | Maximum [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customers percentage | 10.00% | 10.00% | 10.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) shares in Thousands | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for stock options and restricted stock | 3 years |
Contractual terms | 10 years |
Stock-based compensation plans, number of additional shares authorized for future grants | shares | 1,276 |
Closing price per share of Digimarc common stock | $ / shares | $ 39.09 |
Restricted Stock [Member] | Minimum [Member] | Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for stock options and restricted stock | 3 years |
Restricted Stock [Member] | Minimum [Member] | Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for stock options and restricted stock | 1 year |
Restricted Stock [Member] | Maximum [Member] | Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for stock options and restricted stock | 4 years |
Restricted Stock [Member] | Maximum [Member] | Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for stock options and restricted stock | 3 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Valuation Assumptions (Detail) - Stock Options [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (years) | 3 years 2 months 12 days | 4 years 6 months | 3 years 2 months 12 days | 4 years 6 months |
Expected volatility | 58.68% | 57.11% | 58.68% | 57.11% |
Risk-free interest rate | 1.51% | 2.77% | 1.51% | 2.77% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 2,041 | $ 1,865 | $ 6,094 | $ 5,345 |
Capitalized to software and patent costs | 44 | 37 | 134 | 130 |
Total stock-based compensation | 2,085 | 1,902 | 6,228 | 5,475 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 163 | 134 | 524 | 456 |
Sales and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 459 | 442 | 1,467 | 1,198 |
Research, Development and Engineering [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 366 | 367 | 1,077 | 1,015 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 984 | 846 | 2,823 | 2,461 |
Intellectual Property [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 69 | $ 76 | $ 203 | $ 215 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Total unrecognized compensation costs | $ 15,473 | $ 14,055 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 1 year 2 months 12 days |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 1 year 5 months 12 days |
Stock-Based Compensation - Reco
Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options, Outstanding at beginning | shares | 490 | 513 |
Options, Granted | shares | 100 | 100 |
Options, Exercised | shares | 0 | (23) |
Options, Forfeited or expired | shares | 0 | 0 |
Options, Outstanding at ending | shares | 590 | 590 |
Options, Exercisable at ending | shares | 357 | 357 |
Options, Unvested at ending | shares | 233 | 233 |
Weighted Average Exercise Price, Outstanding at beginning | $ 29.26 | $ 28.52 |
Weighted Average Exercise Price, Granted | 39.54 | 39.54 |
Weighted Average Exercise Price, Exercised | 0 | 12.77 |
Weighted Average Exercise Price, Forfeited or expired | 0 | 0 |
Weighted Average Exercise Price, Outstanding at ending | 31 | 31 |
Weighted Average Exercise Price, Exercisable at ending | 28.97 | 28.97 |
Weighted Average Exercise Price, Unvested at ending | 34.10 | 34.10 |
Weighted Average Grant Date Fair Value, Outstanding at beginning | 13.40 | 13.10 |
Weighted Average Grant Date Fair Value, Granted | 16.40 | 16.40 |
Weighted Average Grant Date Fair Value, Exercised | 0 | 6.81 |
Weighted Average Grant Date Fair Value, Forfeited or expired | 0 | 0 |
Weighted Average Grant Date Fair Value, Outstanding at ending | $ 13.91 | $ 13.91 |
Aggregate Intrinsic Value, Outstanding | $ | $ 4,817 | $ 4,817 |
Aggregate Intrinsic Value, Exercisable | $ | 3,608 | 3,608 |
Aggregate Intrinsic Value, Unvested | $ | $ 1,209 | $ 1,209 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Number of Shares | ||
Unvested, beginning balance | 525 | 426 |
Granted | 19 | 292 |
Vested | (55) | (183) |
Forfeited | (1) | (47) |
Unvested, ending balance | 488 | 488 |
Weighted Average Grant Date Fair Value | ||
Unvested, beginning balance | $ 26.61 | $ 28.85 |
Granted | 40.29 | 24.96 |
Vested | 27.27 | 27.87 |
Forfeited | 26.68 | 27.12 |
Unvested, ending balance | $ 27.06 | $ 27.06 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of restricted stock awards vested | $ 2,195 | $ 1,432 | $ 7,427 | $ 4,704 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - Common Stock [Member] - USD ($) $ / shares in Units, shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | May 31, 2019 | |
Issuance of common stock | 336 | |
Common stock price per share | $ 60.61 | |
Cash proceeds from sale of common stock | $ 20,349,000 | |
Sale of common stock, sales agent commissions | 483,000 | |
Stock issuance cost | 251,000 | |
Net cash proceeds from sale of common stock | $ 19,615,000 | |
Maximum [Member] | ||
Aggregate offering price of common stock | $ 30,000,000 |
Earnings Per Common Share - Sum
Earnings Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic Earnings (Loss) per Common Share: | ||||
Net loss | $ (7,761) | $ (8,342) | $ (24,157) | $ (24,492) |
Distributed earnings to common shares | 0 | 0 | 0 | 0 |
Distributed earnings to participating securities | 0 | 0 | 0 | 0 |
Total distributed earnings | 0 | 0 | 0 | 0 |
Undistributed loss allocable to common shares | (7,761) | (8,342) | (24,157) | (24,492) |
Undistributed earnings allocable to participating securities | 0 | 0 | 0 | 0 |
Total undistributed loss | (7,761) | (8,342) | (24,157) | (24,492) |
Loss to common shares — basic | $ (7,761) | $ (8,342) | $ (24,157) | $ (24,492) |
Weighted average common shares outstanding — basic | 11,924 | 11,394 | 11,693 | 11,333 |
Basic earnings (loss) per common share | $ (0.65) | $ (0.73) | $ (2.07) | $ (2.16) |
Diluted Earnings (Loss) per Common Share: | ||||
Loss to common shares — basic | $ (7,761) | $ (8,342) | $ (24,157) | $ (24,492) |
Undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 |
Undistributed earnings reallocated to participating securities | 0 | 0 | 0 | 0 |
Loss to common shares — diluted | $ (7,761) | $ (8,342) | $ (24,157) | $ (24,492) |
Weighted average common shares outstanding — basic | 11,924 | 11,394 | 11,693 | 11,333 |
Dilutive effect of stock options | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding — diluted | 11,924 | 11,394 | 11,693 | 11,333 |
Diluted earnings (loss) per common share | $ (0.65) | $ (0.73) | $ (2.07) | $ (2.16) |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 95 | 0 | 39 | 0 |
Higher Than Average Market Price [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 0 | 375 | 100 | 375 |
Trade Accounts Receivable - Sum
Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable Net Current [Abstract] | ||
Trade accounts receivable | $ 3,585 | $ 3,903 |
Allowance for doubtful accounts | (15) | (15) |
Trade accounts receivable, net | 3,570 | 3,888 |
Unpaid deferred revenue included in trade accounts receivable | $ 857 | $ 2,030 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable [Member] | Minimum [Member] | Credit Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of trade accounts receivable of major customers | 10.00% |
Trade Accounts Receivable - Cus
Trade Accounts Receivable - Customers Accounted for 10% or More of Trade Accounts Receivable, Net (Detail) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Central Banks [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 52.00% | 48.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 11.00% |
Trade Accounts Receivable - C_2
Trade Accounts Receivable - Customers Accounted for 10% or More of Trade Accounts Receivable, Net (Parenthetical) (Detail) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Minimum [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 10.00% | |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 11.00% | |
Customer B [Member] | Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 10.00% |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 2 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 10 years |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Office furniture and fixtures | $ 1,636 | $ 1,626 |
Software | 4,098 | 3,686 |
Equipment | 4,939 | 4,814 |
Leasehold improvements | 1,721 | 1,721 |
Gross property and equipment | 12,394 | 11,847 |
Less accumulated depreciation and amortization | (8,800) | (7,892) |
Property and equipment, net | $ 3,594 | $ 3,955 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charges on intangible | $ 0 | $ 0 |
Capitalized Patent Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 17 years |
Intangibles - Amortization of I
Intangibles - Amortization of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized patent costs | $ 9,254 | $ 8,757 |
Intangible assets acquired: | ||
Gross intangible assets | 12,524 | 12,027 |
Accumulated amortization | (5,801) | (5,378) |
Intangibles, net | $ 6,723 | 6,649 |
Capitalized Patent Costs [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 17 years | |
Capitalized Patent Costs [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 20 years | |
Purchased Patents and Intellectual Property [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | $ 250 | 250 |
Purchased Patents and Intellectual Property [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Purchased Patents and Intellectual Property [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 10 years | |
Existing Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 5 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 1,560 | 1,560 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 7 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 290 | 290 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 2 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 760 | 760 |
Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Intangible assets acquired: | ||
Intangible assets amount | $ 290 | 290 |
Non-solicitation Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 1 year | |
Intangible assets acquired: | ||
Intangible assets amount | $ 120 | $ 120 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2015 | Feb. 28, 2015 | Sep. 30, 2019 | |
Lessee Operating Lease [Line Items] | |||
Remaining rent payments | $ 3,914 | ||
Beaverton, Oregon [Member] | |||
Lessee Operating Lease [Line Items] | |||
Existence of option to extend | true | ||
Option to extend operating lease | extend the lease term through March 2024 | ||
Option to extend operating lease, month and year | 2024-03 | ||
Remaining rent payments | $ 4,054 | ||
San Mateo, California [Member] | |||
Lessee Operating Lease [Line Items] | |||
Remaining rent payments | $ 234 | ||
Operating lease term, month and year | 2020-03 | ||
Sublease term, month and year | 2020-03 |
Leases - Additional Details of
Leases - Additional Details of Leases Presented in Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Right of use assets | $ 2,376 | $ 2,709 |
Lease liabilities, current | 678 | |
Lease liabilities, long-term | $ 2,593 | |
Weighted-average remaining life | 4 years 6 months | |
Weighted-average discount rate | 8.20% |
Leases - Additional Details o_2
Leases - Additional Details of Operating Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 251 | $ 772 |
Cash paid for operating leases | $ 322 | $ 1,014 |
Leases - Reconciliation of Undi
Leases - Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (remaining) | $ 259 | |
2020 | 870 | |
2021 | 838 | |
2022 | 862 | |
2023 | 867 | |
Thereafter | 218 | |
Total lease payments | 3,914 | |
Imputed interest | (643) | |
Total minimum lease payments | $ 3,271 | $ 3,792 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||||
Deferred tax assets, valuation allowance | $ 50,072 | $ 50,072 | $ 42,349 | ||
Effective tax rate | 0.00% | 0.00% | |||
Change in valuation allowance | $ 7,723 | ||||
ASU No. 2016-09 [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance | $ 707 | $ 51 | $ 2,751 | $ 762 |