0000950170-24-094716 | 10-Q | XBRL Viewer

Description of the Company and Basis of Presentation	6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Company and Basis of Presentation	Note 1 – Description of the Company and Basis of Presentation Description of the Company We are a global biometric platform company that uses data science, machine learning, and artificial intelligence to tackle everyday business and identity challenges through biometric solutions. Our portfolio enables government agencies and commercial entities to enroll, identify, authenticate and enable using biometrics, which comprise physiological characteristics, such as fingerprints, faces, irises and voices. • Enroll: Register biometric identities into an organization’s secure database • Identify: Utilize an organization’s secure database to accurately identify individuals using biometric data • Authenticate: Provide frictionless multi-factor, passwordless access to secured accounts and databases with biometric verification • Enable: Manage the lifecycle of secure identities through optimized biometric interchanges We have been engaged in this business since 1993. Our comprehensive portfolio of biometric solutions is based on innovative, robust products designed explicitly for ease of integration, including customer-managed and integration ready biometric frameworks, platforms, software development kits (SDKs) and services. Principal government applications of biometrics systems include border control, visa applicant screening, law enforcement, national defense, intelligence, secure credentialing, access control, and background checks. Principal commercial applications include mobile enrollment, user authentication, identity proofing, and secure transaction enablement. Our products span multiple biometric modalities including fingerprint, face, iris and voice, and provide interoperable, standards-compliant, field-proven biometric functionality. Our products are used to capture, verify, format, compress and decompress biometric images as well as aggregate, analyze, process, match and transport those images and templates within biometric systems. For large deployments, we may provide project management and software engineering services. We sell our biometrics software products and services globally through a multifaceted distribution strategy using systems integrators, original equipment manufacturers (OEMs), value added resellers (VARs), partners, and directly to end user customers. Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2023 in conjunction with our 2023 Annual Report on Form 10-K. This Form 10-Q should be read in conjunction with that Form 10-K. The accompanying unaudited consolidated balance sheets, statements of operations and comprehensive loss, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at June 30, 2024, and of operations and cash flows for the interim periods ended June 30, 2024 and 2023. The results of operations for the interim periods ended June 30, 2024 are not necessarily indicative of the results to be expected for the year. Principles of Consolidation The consolidated financial statements include the accounts of Aware, Inc. and its subsidiaries, Aware Security Corporation and Fortr3ss, Inc. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates included in the financial statements pertain to revenue recognition, reserves for credit losses, valuation of the investment in the note receivable, goodwill and long-lived asset impairment and valuation allowance for deferred income tax assets. Actual results could differ from those estimates. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires retrospective disclosure of significant segment expenses and other segment items on an annual and interim basis. Additionally, it requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”). This ASU will be effective for our fiscal year ending on December 31, 2024 and interim periods beginning in fiscal 2025, with early adoption permitted. We are assessing the impact of the standard on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an annual tabular effective tax rate reconciliation disclosure including information for specified categories and jurisdiction levels, as well as, disclosure of income taxes paid, net of refunds received, disaggregated by federal, state/local, and significant foreign jurisdiction. This ASU will be effective for our fiscal year ending on December 31, 2025, with early adoption permitted. We are assessing the impact of the standard on our consolidated financial statements.

Description of the Company and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Company and Basis of Presentation

Note 1 – Description of the Company and Basis of Presentation

Description of the Company

We are a global biometric platform company that uses data science, machine learning, and artificial intelligence to tackle everyday business and identity challenges through biometric solutions. Our portfolio enables government agencies and commercial entities to enroll, identify, authenticate and enable using biometrics, which comprise physiological characteristics, such as fingerprints, faces, irises and voices.

•

Enroll: Register biometric identities into an organization’s secure database

•

Identify: Utilize an organization’s secure database to accurately identify individuals using biometric data

•

Authenticate: Provide frictionless multi-factor, passwordless access to secured accounts and databases with biometric verification

•

Enable: Manage the lifecycle of secure identities through optimized biometric interchanges

We have been engaged in this business since 1993. Our comprehensive portfolio of biometric solutions is based on innovative, robust products designed explicitly for ease of integration, including customer-managed and integration ready biometric frameworks, platforms, software development kits (SDKs) and services. Principal government applications of biometrics systems include border control, visa applicant screening, law enforcement, national defense, intelligence, secure credentialing, access control, and background checks. Principal commercial applications include mobile enrollment, user authentication, identity proofing, and secure transaction enablement.

Our products span multiple biometric modalities including fingerprint, face, iris and voice, and provide interoperable, standards-compliant, field-proven biometric functionality. Our products are used to capture, verify, format, compress and decompress biometric images as well as aggregate, analyze, process, match and transport those images and templates within biometric systems. For large deployments, we may provide project management and software engineering services. We sell our biometrics software products and services globally through a multifaceted distribution strategy using systems integrators, original equipment manufacturers (OEMs), value added resellers (VARs), partners, and directly to end user customers.

Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2023 in conjunction with our 2023 Annual Report on Form 10-K. This Form 10-Q should be read in conjunction with that Form 10-K.

The accompanying unaudited consolidated balance sheets, statements of operations and comprehensive loss, statements of cash flows, and statements of stockholders’ equity reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at June 30, 2024, and of operations and cash flows for the interim periods ended June 30, 2024 and 2023.

The results of operations for the interim periods ended June 30, 2024 are not necessarily indicative of the results to be expected for the year.

Principles of Consolidation

The consolidated financial statements include the accounts of Aware, Inc. and its subsidiaries, Aware Security Corporation and Fortr3ss, Inc. Intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates included in the financial statements pertain to revenue recognition, reserves for credit losses, valuation of the investment in the note receivable, goodwill and long-lived asset impairment and valuation allowance for deferred income tax assets. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires retrospective disclosure of significant segment expenses and other segment items on an annual and interim basis. Additionally, it requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”). This ASU will be effective for our fiscal year ending on December 31, 2024 and interim periods beginning in fiscal 2025, with early adoption permitted. We are assessing the impact of the standard on our consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an annual tabular effective tax rate reconciliation disclosure including information for specified categories and jurisdiction levels, as well as, disclosure of income taxes paid, net of refunds received, disaggregated by federal, state/local, and significant foreign jurisdiction. This ASU will be effective for our fiscal year ending on December 31, 2025, with early adoption permitted. We are assessing the impact of the standard on our consolidated financial statements.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities that are measured at fair value on a recurring basis included the following (in thousands):


	Fair Value Measurement at June 30, 2024 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
	(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds (included in cash and cash equivalents)	$	10,382	$	—	$	—	$	10,382
Marketable securities		15,911		—		—		15,911
Total assets	$	26,293	$	—	$	—	$	26,293


	Fair Value Measurement at December 31, 2023 Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
	(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds (included in cash and cash equivalents)	$	7,848	$	—	$	—	$	7,848
Marketable securities		20,913		—		—		20,913
Note receivable		—		—		—		—
Total assets	$	28,761	$	—	$	—	$	28,761

Summary of Marketable Securities by Security Type

Marketable securities by security type consisted of the following (in thousands):


	June 30, 2024:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury notes and bonds	$	15,788	$	162	$	(39	)	$	15,911
	$	15,788	$	162	$	(39	)	$	15,911


	December 31, 2023:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury notes and bonds	$	15,331	$	177	$	(19	)	$	15,489
Corporate bonds		5,386		39		(1	)		5,424
	$	20,717	$	216	$	(20	)	$	20,913

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 11,511	$ 10,002
Marketable securities	15,911	20,913
Accounts receivable, net	3,657	2,454
Unbilled receivables, net	1,299	1,401
Prepaid expenses and other current assets	753	1,054
Total current assets	33,131	35,824
Property and equipment, net	553	579
Intangible assets, net	2,184	2,391
Goodwill	3,120	3,120
Right of use asset	4,115	4,260
Other long-term assets	122	122
Total assets	43,225	46,296
Current liabilities:
Accounts payable	603	280
Accrued expenses	1,211	1,706
Current portion of operating lease liabilities	646	637
Deferred revenue	4,025	4,926
Total current liabilities	6,485	7,549
Long-term deferred revenue	419	611
Long-term operating lease liabilities	3,719	3,838
Total long-term liabilities	4,138	4,449
Stockholders’ equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding of 21,113,202 as of June 30, 2024 and 21,017,892 as of December 31, 2023	212	210
Additional paid-in capital	99,850	99,405
Accumulated deficit	(67,583)	(65,512)
Accumulated other comprehensive income	123	195
Total stockholders’ equity	32,602	34,298
Total liabilities and stockholders’ equity	$ 43,225	$ 46,296

Equity and Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expenses Included in Unaudited Consolidated Statements of Operations and Comprehensive Loss

The following table presents stock-based compensation expenses included in our unaudited consolidated statements of operations and comprehensive loss (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of services and other revenue	$	—	$	4	$	2	$	12
Research and development		11		59		20		176
Selling and marketing		14		25		29		79
General and administrative		218		315		356		541
Stock-based compensation expense	$	243	$	403	$	407	$	808

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 – Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, we apply the following five step model:

1. Identify the contract with the customer;

2. Identify the performance obligations in the contract;

3. Determine the transaction price;

4. Allocate the transaction price to the performance obligations in the contract; and

5. Recognize revenue when (or as) each performance obligation is satisfied.

We categorize revenue as software licenses, software maintenance, or services and other. Revenue from software licenses is recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. We recognize software maintenance revenue over time on a straight-line basis over the contract period. Services revenue is recognized over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted), provided all other revenue recognition criteria are met. Other revenue includes hardware sales that may be included in a software license, is recognized at a point in time upon delivery provided all other revenue recognition criteria are met.

In addition to selling software licenses, software maintenance and software services on a standalone basis, a significant portion of our contracts include multiple performance obligations, which require an allocation

of the transaction price to each distinct performance obligation based on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised good or service separately to a customer. The best estimate of SSP is the observable price of a good or service when we sell that good or service separately. A contractually stated price or a list price for a good or service may be the SSP of that good or service. We use a range of selling prices to estimate SSP when we sell each of the goods and services separately and need to determine whether there is a discount that needs to be allocated based on the relative SSP of the various goods and services within multiple performance obligation arrangements. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we typically determine the SSP using an adjusted market assessment approach using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual goods and services due to the stratification of those goods and services by customer. In these instances, we may use information such as the nature of the customer and distribution channel in determining the SSP.

When software licenses and significant customization engineering services are sold together, they are accounted for as a combined performance obligation, as the software licenses are generally highly dependent on, and interrelated with, the associated customization services and therefore are not distinct performance obligations. Revenue for the combined performance obligation is recognized over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted).

When subscription-based software is sold, the subscription-based software and software maintenance are generally considered distinct performance obligations. The transaction price is allocated to subscription-based software and the software maintenance based on the relative SSP of each performance obligation. We sell subscription-based software for a fixed fee and/or a usage-based royalty fee, sometimes subject to a minimum guarantee. When the amount is in the form of a fixed fee, including the guaranteed minimum in subscription-based royalties, revenue is allocated to the subscription-based software and recognized at a point in time upon delivery, provided all other revenue recognition criteria are met. Revenue allocated to the software maintenance is recognized over the contract term on a straight-line basis. Any subscription-based software fees earned not subject to the guaranteed minimum or earned in excess of the minimum amount are recognized as revenue when the subsequent usage occurs.

Our contracts can include variable fees, such as the option to purchase additional usage of a previously delivered software license. We may also provide pricing concessions to clients, a business practice that also gives rise to variable fees in contracts. We include variable fees in the determination of total transaction price if it is not probable that a future significant reversal of revenue will occur. We use the expected value or most likely value amount, whichever is more appropriate for specific circumstances, to estimate variable consideration, and the estimates are based on the level of historical price concessions offered to clients.

The amount of consideration is not adjusted for a significant financing component if the time between payment and the transfer of the related good or service is expected to be one year or less under the practical expedient in the guidance. Our revenue arrangements are typically accounted for under such expedient, as payment is typically due within 30 to 60 days. During the three and six month periods ended June 30, 2024 and 2023, none of our contracts contained a significant financing component.

Also, to the extent relevant in future periods with the adoption of our current products to be delivered in a hosted environment with AwareID, we expect to recognize revenue from our SaaS offerings in future periods. SaaS offerings will be recognized ratably over the subscription period. For the three and six months ended June 30, 2024 and 2023, we generated a de minimis amount of revenue from SaaS contracts.

Disaggregation of Revenues

We organize ourselves into a single segment that reports to the Chief Executive Officer who is our chief operating decision maker. We conduct our operations in the United States and sell our products and

services to domestic and international customers. Revenue generated from the following geographic regions was (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	$	1,735	$	2,064	$	3,379	$	4,118
United Kingdom		1,307		251		2,493		667
Rest of World		1,280		869		2,871		2,705
	$	4,322	$	3,184	$	8,743	$	7,490

Revenue by timing of transfer of goods or services was (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Goods or services transferred at a point in time	$	1,369	$	733	$	2,640	$	2,502
Goods or services transferred over time		2,953		2,451		6,103		4,988
	$	4,322	$	3,184	$	8,743	$	7,490

Revenue by product group was (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
License and service contracts	$	3,631	$	2,748	$	6,861	$	5,605
Subscription-based contracts		691		436		1,882		1,885
	$	4,322	$	3,184	$	8,743	$	7,490

Revenue from subscription-based contracts include revenue that may be recognized at a point in time or over time and be part of a fixed fee and or minimum guarantee as well as fees earned and allocated to software maintenance.

Contract Balances

When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by the deferred revenue below until the performance obligation is satisfied.

Our contract assets consist of unbilled receivables. Our contract liabilities consist of deferred (unearned) revenue, which is generally related to software maintenance contracts. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue.

The following tables present changes in our contract assets and liabilities during the three and six months ended June 30, 2024 and 2023 (in thousands):


	Balance at Beginning of Period		Revenue Recognized In Advance of Billings		Billings			Balance at End of Period
Three months ended June 30, 2024
Contract assets:
Unbilled receivables	$	1,568	$	411	$	(680	)	$	1,299

Three months ended June 30, 2023
Contract assets:
Unbilled receivables	$	3,483	$	620	$	(1,283	)	$	2,820

	Balance at Beginning of Period		Billings		Revenue Recognized			Balance at End of Period
Three months ended June 30, 2024
Contract liabilities:
Deferred revenue	$	5,433	$	1,165	$	(2,154	)	$	4,444

Three months ended June 30, 2023
Contract liabilities:
Deferred revenue	$	3,796	$	2,330	$	(1,767	)	$	4,359


	Balance at Beginning of Period		Revenue Recognized In Advance of Billings		Billings			Balance at End of Period
Six months ended June 30, 2024
Contract assets:
Unbilled receivables	$	1,401	$	2,136	$	(2,238	)	$	1,299

Six months ended June 30, 2023
Contract assets:
Unbilled receivables	$	2,929	$	2,960	$	(3,069	)	$	2,820

	Balance at Beginning of Period		Billings		Revenue Recognized			Balance at End of Period
Six months ended June 30, 2024
Contract liabilities:
Deferred revenue	$	5,537	$	3,221	$	(4,314	)	$	4,444

Six months ended June 30, 2023
Contract liabilities:
Deferred revenue	$	3,733	$	4,228	$	(3,602	)	$	4,359

Remaining Performance Obligations

Remaining performance obligations represent the transaction prices from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 96% of the remaining deferred revenue over the next 12 months, with the remainder recognized thereafter. As of June 30, 2024, the aggregate amount of the transaction prices allocated to remaining performance obligations for contracts with a duration greater than one year was $3.6 million.

Revenue Recognition - Revenue Generated Following Geographic Regions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,322	$ 3,184	$ 8,743	$ 7,490
Operating Segments
Disaggregation of Revenue [Line Items]
Total revenue	4,322	3,184	8,743	7,490
Operating Segments \| United States
Disaggregation of Revenue [Line Items]
Total revenue	1,735	2,064	3,379	4,118
Operating Segments \| United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	1,307	251	2,493	667
Operating Segments \| Rest of World
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,280	$ 869	$ 2,871	$ 2,705

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (1,089)	$ (982)	$ (2,652)	$ (1,568)	$ (2,071)	$ (4,220)

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Entity Registrant Name	AWARE, INC.
Entity Central Index Key	0001015739
Trading Symbol	AWRE
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		21,183,608
Document Type	10-Q
Document Period End Date	Jun. 30, 2024
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.01 par value per share
Security Exchange Name	NASDAQ
Entity File Number	000-21129
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2911026
Entity Address, Address Line One	76 Blanchard Road in Burlington
Entity Address, City or Town	Burlington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01803
City Area Code	781
Local Phone Number	276-4000
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (2,071)	$ (4,220)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	279	298
Stock-based compensation	407	738
Interest on note receivable		(62)
Allowance for credit losses	8	(33)
Non-cash lease expense	35	195
Changes in assets and liabilities:
Accounts receivable	(1,210)	(699)
Unbilled receivables	101	141
Prepaid expenses and other current assets	192	(107)
Tax receivable		(136)
Accounts payable	323	(44)
Accrued expenses	(49)	(396)
Deferred revenue	(1,094)	626
Net cash used in operating activities	(3,079)	(3,699)
Cash flows from investing activities:
Purchases of property and equipment	(45)	(16)
Purchase of marketable securities	(3,933)	(7,917)
Sale of marketable securities	8,974	3,500
Net cash provided by (used in) investing activities	4,996	(4,433)
Cash flows from financing activities:
Proceeds from issuance of common stock	38	52
Payments made for taxes of employees who surrendered shares related to unrestricted stock		(15)
Repurchase of common stock		(341)
Net cash provided by (used in) financing activities	38	(304)
Increase (decrease) in cash and cash equivalents	1,955	(8,436)
Cash and cash equivalents, beginning of period	10,002	11,749
Cash and cash equivalents, end of period	11,957	3,313
Supplemental disclosure: Cash paid for income taxes	$ 13	$ 136

Intangible Assets - Summary of Intangible Assets and Estimated Useful Lives (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 3,420
Accumulated Amortization	(1,236)
Net Book Value	2,184
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Amount	2,680
Accumulated Amortization	(860)
Net Book Value	$ 1,820
Customer Relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	8 years
Customer Relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	10 years
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 710
Accumulated Amortization	(356)
Net Book Value	$ 354
Developed Technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years
Developed Technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	7 years
Trade Name Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 30
Accumulated Amortization	(20)
Net Book Value	$ 10
Trade Name Trademarks \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	3 years
Trade Name Trademarks \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	7 years

Fair Value Measurements - Additional information (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Available-for-sale Securities
Cash and cash equivalents	$ 11,511	$ 10,002
Marketable securities	15,911	20,913
U.S. Treasuries and Corporate Bonds [Member]
Schedule of Available-for-sale Securities
Marketable securities	$ 15,900	20,900
Fair Value, Measurements, Recurring [Member]
Schedule of Available-for-sale Securities
Total fair value of the instrument		$ 0

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income tax provision	$ 39	$ 39

Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract]
2024	$ 207
2025	405
2026	356
2027	345
2028	338
Thereafter	533
Net Book Value	$ 2,184

Equity and Stock-based Compensation - Stock Option Grants Restricted Stock Units and Unrestricted Stock Grants (Details)			3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 20, 2024 USD ($) Employee $ / shares shares	Jul. 01, 2023 shares	Jun. 30, 2024 shares	Jun. 30, 2023 shares	Jun. 30, 2024 Installment shares	Jun. 30, 2023 shares	Dec. 31, 2023 shares
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of stock options granted			0	0	0	0
Number of stock options exercised			0	0	0	0
Unrestricted Stock \| 2023 Plan \| 2023 Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted (in shares)				0		134,211
Number of shares issued		67,104	0	0	67,107	61,462	67,107
Exchange Offer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of employees elected to exchange eligible options \| Employee	9
Number of shares purchased under option exchange program	2,180,000
Exchange offer, percentage of total shares outstanding	96.00%
New Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares purchased under option exchange program	933,073
Exchange offer, percentage of total shares outstanding	50.00%
Granted exercise price per share \| $ / shares	$ 2.21
Incremental expense \| $	$ 0
Restricted Stock Units \| 2023 Plan \| 2024 Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted (in shares)			84,000		284,814
Number of shares vested					140,814
Restricted Stock Units \| 2023 Plan \| 2024 Grant \| October 2024, and April 2025, 2026 and 2027
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares issued					60,000
Number of shares issued in increments forfeited					15,000
Restricted Stock Units \| 2023 Plan \| 2024 Grant \| December 2024 and June 2025, 2026 and 2027
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares issued					24,000
Number of shares issued in increments forfeited					6,000
Restricted Stock Units \| 2023 Plan \| 2024 Grant \| July 2024 and January 2025, 2026 and 2027
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares issued					60,000
Number of shares issued in increments forfeited					15,000
Restricted Stock Units \| 2023 Plan \| 2024 Grant \| Directors, officers and employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of installment \| Installment					2

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	21,113,202	21,017,892
Common stock, shares outstanding	21,113,202	21,017,892

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2022	$ 40,209	$ 211	$ 98,306	$ (58,198)	$ (110)
Balance (in shares) at Dec. 31, 2022		21,093,000
Issuance of unrestricted stock		$ 1	(1)
Issuance of unrestricted stock (in shares)		62,000
Shares surrendered by employees to pay taxes related to unrestricted stock	(15)		(15)
Shares surrendered by employees to pay taxes related to unrestricted stock (in shares)		(9,000)
Repurchase of common stock	(341)	$ (2)	(339)
Repurchase of common stock (in shares)		(191,000)
Stock-based compensation expense	335		335
Other comprehensive income (loss)	147				147
Net Income (Loss)	(1,568)			(1,568)
Balance at Mar. 31, 2023	38,767	$ 210	98,286	(59,766)	37
Balance (in shares) at Mar. 31, 2023		20,955,000
Balance at Dec. 31, 2022	40,209	$ 211	98,306	(58,198)	(110)
Balance (in shares) at Dec. 31, 2022		21,093,000
Net Income (Loss)	(4,220)
Balance at Jun. 30, 2023	36,442	$ 211	98,740	(62,418)	(91)
Balance (in shares) at Jun. 30, 2023		20,993,000
Balance at Mar. 31, 2023	38,767	$ 210	98,286	(59,766)	37
Balance (in shares) at Mar. 31, 2023		20,955,000
Issuance of common stock under employee stock purchase plan	52	$ 1	51
Issuance of common stock under employee stock purchase plan (in shares)		38,000
Stock-based compensation expense	403		403
Other comprehensive income (loss)	(128)				(128)
Net Income (Loss)	(2,652)			(2,652)
Balance at Jun. 30, 2023	36,442	$ 211	98,740	(62,418)	(91)
Balance (in shares) at Jun. 30, 2023		20,993,000
Balance at Dec. 31, 2023	$ 34,298	$ 210	99,405	(65,512)	195
Balance (in shares) at Dec. 31, 2023	21,017,892	21,018,000
Issuance of unrestricted stock		$ 2	(2)
Issuance of unrestricted stock (in shares)		67,000
Stock-based compensation expense	$ 164		164
Other comprehensive income (loss)	(56)				(56)
Net Income (Loss)	(982)			(982)
Balance at Mar. 31, 2024	33,424	$ 212	99,567	(66,494)	139
Balance (in shares) at Mar. 31, 2024		21,085,000
Balance at Dec. 31, 2023	$ 34,298	$ 210	99,405	(65,512)	195
Balance (in shares) at Dec. 31, 2023	21,017,892	21,018,000
Net Income (Loss)	$ (2,071)
Balance at Jun. 30, 2024	$ 32,602	$ 212	99,850	(67,583)	123
Balance (in shares) at Jun. 30, 2024	21,113,202	21,113,000
Balance at Mar. 31, 2024	$ 33,424	$ 212	99,567	(66,494)	139
Balance (in shares) at Mar. 31, 2024		21,085,000
Issuance of common stock under employee stock purchase plan	40		40
Issuance of common stock under employee stock purchase plan (in shares)		28,000
Stock-based compensation expense	243		243
Other comprehensive income (loss)	(16)				(16)
Net Income (Loss)	(1,089)			(1,089)
Balance at Jun. 30, 2024	$ 32,602	$ 212	$ 99,850	$ (67,583)	$ 123
Balance (in shares) at Jun. 30, 2024	21,113,202	21,113,000

Revenue Recognition - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Practical expedient for financing components	true
Percentage of remaining performance obligations	96.00%
Minimum period of payment of transaction price in contract with customer	30 days
Maximum period of payment of transaction price in contract with customer	60 days
remaining deferred revenue	12 months
Revenue recognition performance obligation transaction price	$ 3.6
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true

Fair Value Measurements - Summary of Marketable Securities by Security Type (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 15,788	$ 20,717
Gross Unrealized Gains	162	216
Gross Unrealized Losses	(39)	(20)
Fair Value	15,911	20,913
U.S. Treasury Notes and Bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	15,788	15,331
Gross Unrealized Gains	162	177
Gross Unrealized Losses	(39)	(19)
Fair Value	$ 15,911	15,489
Corporate Bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost		5,386
Gross Unrealized Gains		39
Gross Unrealized Losses		(1)
Fair Value		$ 5,424

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false