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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 30, 2019
Document And Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	OneSpan Inc.
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,335,271
Entity Central Index Key	0001044777
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets
Cash and equivalents	$ 49,126	$ 76,708
Short term investments	26,296	22,789
Accounts receivable, net of allowances of $1,857 in 2019 and $1,152 in 2018	68,185	59,631
Inventories, net	20,220	14,428
Prepaid expenses	7,016	4,733
Contract assets	5,167	7,962
Other current assets	7,516	5,705
Total current assets	183,526	191,956
Property and equipment:
Furniture and fixtures	7,769	7,613
Office equipment	11,862	11,059
Total Property and equipment:	19,631	18,672
Accumulated depreciation	(13,397)	(12,422)
Property and equipment, net	6,234	6,250
Operating lease right-of-use assets	8,278
Goodwill	92,903	91,841
Intangible assets, net of accumulated amortization	40,571	45,462
Deferred income taxes	5,594	5,601
Contract assets - non-current	1,987	3,316
Other assets	8,080	8,400
Total assets	347,173	352,826
Current liabilities
Accounts payable	11,643	7,202
Deferred revenue	28,322	33,633
Accrued wages and payroll taxes	12,997	13,932
Short-term income taxes payable	1,341	6,905
Other accrued expenses	8,366	9,323
Deferred compensation	1,029	1,362
Total current liabilities	63,698	72,357
Long-term deferred revenue	14,173	10,672
Lease liability long term	7,474
Other long-term liabilities	5,885	7,075
Long-term income taxes payable	7,111	7,620
Deferred income taxes	4,017	2,661
Total liabilities	102,358	100,385
Stockholders' equity
Common stock: $.001 par value per share, 75,000 shares authorized; 40,342 and 40,225 issued and outstanding at June 30, 2019 and December 31, 2018, respectively	40	40
Additional paid-in capital	94,272	93,310
Accumulated income	164,246	172,378
Accumulated other comprehensive loss	(13,743)	(13,287)
Total stockholders' equity	244,815	252,441
Total liabilities and stockholders' equity	$ 347,173	$ 352,826

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 1,857	$ 1,152
Preferred stock, shares authorized	500	500
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	40,342	40,225
Common stock, shares outstanding	40,342	40,225

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue
Total revenue	$ 56,234	$ 49,554	$ 103,842	$ 94,986
Cost of goods sold
Total cost of goods sold	17,880	13,573	33,919	24,308
Gross profit	38,354	35,981	69,923	70,678
Operating costs
Sales and marketing	16,040	16,622	30,423	30,899
Research and development	11,977	8,016	22,472	13,813
General and administrative	10,180	11,210	20,050	21,984
Amortization / impairment of intangible assets	2,368	2,744	4,716	4,945
Total operating costs	40,565	38,592	77,661	71,641
Operating loss	(2,211)	(2,611)	(7,738)	(963)
Interest income, net	69	340	204	733
Other income (expense), net	451	1,399	(100)	1,779
Income (loss) before income taxes	(1,691)	(872)	(7,634)	1,549
Provision for income taxes	770	130	499	759
Net income (loss)	$ (2,461)	$ (1,002)	$ (8,133)	$ 790
Net income (loss) per share
Basic (in dollars per share)	$ (0.06)	$ (0.03)	$ (0.20)	$ 0.02
Diluted (in dollars per share)	$ (0.06)	$ (0.03)	$ (0.20)	$ 0.02
Weighted average common shares outstanding
Basic (in shares)	40,038	39,908	40,037	39,902
Diluted (in shares)	40,038	39,908	40,037	40,015
Product and license
Revenue
Total revenue	$ 40,117	$ 34,986	$ 71,978	$ 68,480
Cost of goods sold
Total cost of goods sold	13,451	10,391	24,767	18,576
Services and other
Revenue
Total revenue	16,117	14,568	31,864	26,506
Cost of goods sold
Total cost of goods sold	$ 4,429	$ 3,182	$ 9,152	$ 5,732

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (2,461)	$ (1,002)	$ (8,133)	$ 790
Other comprehensive income (loss)
Cumulative translation adjustment, net	(1,298)	(3,339)	(428)	(2,021)
Pension adjustment, net	(12)	22	(28)	34
Comprehensive income (loss)	$ (3,771)	$ (4,319)	$ (8,589)	$ (1,197)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Income	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2017	$ 40	$ 90,307	$ 156,151	$ (8,568)	$ 237,930
Balance (in shares) at Dec. 31, 2017	40,086
Change in Stockholders' Equity
Net income (loss)			1,792		1,792
Foreign currency translation adjustment, net of tax				1,318	1,318
Restricted stock awards		799			799
Restricted stock awards, Shares	226
Pension adjustment, net of tax				12	12
Balance at Mar. 31, 2018	$ 40	91,106	170,319	(7,239)	254,226
Balance (in shares) at Mar. 31, 2018	40,312
Balance at Dec. 31, 2017	$ 40	90,307	156,151	(8,568)	237,930
Balance (in shares) at Dec. 31, 2017	40,086
Change in Stockholders' Equity
Net income (loss)					790
Balance at Jun. 30, 2018	$ 40	92,115	169,317	(10,556)	250,916
Balance (in shares) at Jun. 30, 2018	40,233
Change in Stockholders' Equity
Cumulative impact of change in accounting principles, net of tax			12,376		12,376
Balance at Mar. 31, 2018	$ 40	91,106	170,319	(7,239)	254,226
Balance (in shares) at Mar. 31, 2018	40,312
Change in Stockholders' Equity
Net income (loss)			(1,002)		(1,002)
Foreign currency translation adjustment, net of tax				(3,339)	(3,339)
Restricted stock awards		1,009			1,009
Restricted stock awards, Shares	(79)
Pension adjustment, net of tax				22	22
Balance at Jun. 30, 2018	$ 40	92,115	169,317	(10,556)	250,916
Balance (in shares) at Jun. 30, 2018	40,233
Balance at Dec. 31, 2018	$ 40	93,310	172,378	(13,287)	252,441
Balance (in shares) at Dec. 31, 2018	40,225
Change in Stockholders' Equity
Net income (loss)			(5,671)		(5,671)
Foreign currency translation adjustment, net of tax				870	870
Restricted stock awards		552			552
Restricted stock awards, Shares	(10)
Tax payments for stock issuances		(218)			(218)
Pension adjustment, net of tax				(16)	(16)
Balance at Mar. 31, 2019	$ 40	93,644	166,707	(12,433)	247,958
Balance (in shares) at Mar. 31, 2019	40,215
Balance at Dec. 31, 2018	$ 40	93,310	172,378	(13,287)	252,441
Balance (in shares) at Dec. 31, 2018	40,225
Change in Stockholders' Equity
Net income (loss)					(8,133)
Balance at Jun. 30, 2019	$ 40	94,272	164,246	(13,743)	244,815
Balance (in shares) at Jun. 30, 2019	40,328
Balance at Mar. 31, 2019	$ 40	93,644	166,707	(12,433)	247,958
Balance (in shares) at Mar. 31, 2019	40,215
Change in Stockholders' Equity
Net income (loss)			(2,461)		(2,461)
Foreign currency translation adjustment, net of tax				(1,298)	(1,298)
Restricted stock awards		677			677
Restricted stock awards, Shares	117
Tax payments for stock issuances		(49)			(49)
Tax payments for stock issuances, Shares	(4)
Pension adjustment, net of tax				(12)	(12)
Balance at Jun. 30, 2019	$ 40	$ 94,272	$ 164,246	$ (13,743)	$ 244,815
Balance (in shares) at Jun. 30, 2019	40,328

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Pension adjustment, tax amount	$ 53

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ (8,133)	$ 790
Adjustments to reconcile net income (loss) from operations to net cash provided by (used in) operations:
Depreciation, amortization, and impairment of intangible assets	5,734	6,020
Loss (gain) on disposal of assets		(49)
Deferred tax expense (benefit)	(349)	(13)
Stock-based compensation	1,229	1,809
Accounts receivable, net	(8,788)	7,181
Inventories, net	(5,792)	(2,414)
Contract assets	4,123	(4,282)
Accounts payable	4,448	(2,195)
Income taxes payable	(5,993)	(5,946)
Accrued expenses	(4,269)	(347)
Deferred compensation	(332)	(1,069)
Deferred revenue	(1,758)	3,468
Other assets and liabilities	(2,913)	(3,599)
Net cash used in operating activities	(22,793)	(646)
Cash flows from investing activities:
Purchase of short term investments	(12,829)
Maturities of short term investments	9,500	80,000
Purchase of Dealflo, net of cash acquired		(53,065)
Additions to property and equipment	(989)	(3,016)
Net cash provided by (used in) investing activities	(4,318)	23,919
Cash flows from financing activities:
Tax payments for restricted stock issuances	(266)	(233)
Net cash used in financing activities	(266)	(233)
Effect of exchange rate changes on cash	(205)	(269)
Net increase (decrease) in cash	(27,582)	22,771
Cash, cash equivalents, and restricted cash, beginning of period	77,555	78,661
Cash, cash equivalents, and restricted cash, end of period	$ 49,973	$ 101,432

Description of the Company and Basis of Presentation	6 Months Ended
Description of the Company and Basis of Presentation	Jun. 30, 2019
Description of the Company and Basis of Presentation
Description of the Company and Basis of Presentation	Note 1 – Description of the Company and Basis of Presentation Description of the Company OneSpan Inc. and its wholly owned subsidiaries design, develop and market digital solutions for identity, security, and business productivity that protect and facilitate electronic transactions via mobile and connected devices. OneSpan has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K.), and the United States (U.S.). Our operations are reported as a single operating segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of OneSpan and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and 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. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All significant intercompany accounts and transactions have been eliminated. The operating results for the interim periods presented are not necessarily indicative of the results expected for a full year. Principles of Consolidation The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management 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 amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Translation and Transactions The financial position and results of the operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net. Foreign exchange transaction gains aggregated $0.2 million for the three months ended June 30, 2019, compared to losses of $0.3 million for the three months ended June 30, 2018. During the six months ended June 30, 2019, foreign exchange transaction losses aggregated $0.7 million, compared to losses aggregated of less than $0.1 million during the six months ended June 30, 2018. The financial position and results of our operations in Singapore, Switzerland, and Canada are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Except for the accounting policies related to lease accounting that were updated as a result of the adoption of Accounting Standards Update (“ASU”) No. 2016-02, Leases (Accounting Standards Codification (“ASC”) Topic 842) issued by the Financial Accounting Standards Board (the “FASB”), there have been no changes to significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 15, 2019 that have had a material impact on the Company’s condensed consolidated financial statements and related notes. See Note 8 - Leases, for updated policies related to lease accounting.

Cash and Cash Equivalents

During the year ended December 31, 2018, we entered into a new lease agreement that required a letter of credit in the amount of $0.8 million to secure the obligation. The restricted cash related to this letter of credit is recorded in other non-current assets on the Consolidated Balance Sheet at June 30, 2019 and December 31, 2018.

Short Term Investments

Short term investments consist of U.S. treasury bills and notes, U.S. government agency notes, corporate notes, and high quality commercial paper with maturities at acquisition of more than three months and less than twelve months. Fair value is determined using Level 2 inputs as defined by ASC 820, Fair Value Measurements.

The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial investment.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Property and Equipment

Depreciation was $0.5 million and $1.0 million for the three and six months ended June 30, 2019, respectively, compared to $0.5 million and $1.1 million for the three and six months ended June 30, 2018, respectively.

Leases

The Company adopted ASU 2016-02 as of January 1, 2019, using the modified retrospective approach. Prior period amounts have not been adjusted. In addition, the Company elected the following practical expedients:

The package of practical expedients permitted under the transition guidance within the new standard. The practical expedient package applies to leases commenced prior to adoption of the new standard and permits companies not to reassess whether existing or expired contracts contain a lease, the lease classification, and any initial direct costs for existing leases.

The short-term lease practical expedient, which allowed the Company to exclude short-term leases from recognition in the unaudited consolidated balance sheets;

We have lease agreements that contain lease and non-lease components. For automobile leases, we account for lease and non-lease components together. For office leases, we account for these components separately using a relative standalone selling price basis; and

We apply the portfolio approach to automobile leases with similar characteristics that commence in the same period.

The adoption of this accounting standard resulted in the recording of Operating lease right-of-use (“ROU”) assets and Operating lease liabilities of $9.2 million and $11.0 million, respectively, as of January 1, 2019. The difference between the asset and liability is a result of lease incentives, such as tenant improvement allowances, and deferred rent on the balance sheet at transition. The adoption of ASU 2016-02 had no impact on Retained earnings. See Note 8 - Leases for additional information.

Long Term Investments

Included in Other Assets is a minority equity investment in a company we believe may be beneficial in executing our strategy. At June 30, 2019 and December 31, 2018, investments were $4.1 million and $4.1 million, respectively.

Fair Value of Financial Instruments

At June 30, 2019 and December 31, 2018, our financial instruments were cash and equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities. The estimated fair value of our financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements. The fair values of the financial instruments were not materially different from their carrying amounts at June 30, 2019 and December 31, 2018.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases. Since that date, the FASB has issued additional ASU’s clarifying certain aspects of ASU 2016-02. The new guidance supersedes the lease guidance under FASB Accounting Standards Codification (“ASC”) Topic 840, Leases, resulting in the creation of FASB ASC Topic 842, Leases. The guidance requires a lessee to recognize on the Balance Sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases. Subsequent guidance issued after February 2016 did not change the core principle of ASU 2016-02. The Company adopted the new guidance effective January 1, 2019, using the modified retrospective method, which did not require the Company to adjust comparative periods. See the Adoption of ASU 2016-02 section in Note 2 – Summary of Significant Accounting Policies for additional information.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The new guidance provides financial statement users with improved information about the expected credit losses on trade receivables and other financial instruments held by a reporting entity at each reporting date. The amendments in this update replace the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-13 on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. This standard eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (i.e. Step 2 of the current guidance), instead measuring the impairment charge as the excess of the reporting unit's carrying amount over its fair value (i.e. Step 1 of the current guidance). The guidance is effective for us beginning in the first quarter of 2020, and should be applied prospectively. Early adoption is permitted for impairment testing dates after January 1, 2017. We are currently evaluating the effect, if any, that the ASU will have on our consolidated financial statements and related disclosures.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee share-based payment accounting, which is intended to reduce the cost and complexity of accounting for, and improve financial reporting for share-based payments to nonemployees for goods and services. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. The guidance should be applied prospectively and early adoption is permitted. We adopted this standard on January 1, 2019 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted for removed or modified disclosures, and delayed adoption of the additional disclosures until their effective date. We are currently evaluating the effect that the ASU will have on our consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14), which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, and earlier adoption is permitted. We are currently evaluating the effect that the ASU will have on our consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (CCA) by providing guidance for determining when an arrangement includes a software license and when an arrangement is solely a hosted CCA service. Under ASU 2018-15, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. The new standard is effective for us on January 1, 2020. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued. Entities can choose to adopt the new guidance prospectively to eligible costs incurred on or after the date this guidance is first applied or retrospectively. We are currently evaluating the effect that the ASU will have on our consolidated financial statements and related disclosures.

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, our management believes that the issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.

Business Acquisitions

6 Months Ended

Jun. 30, 2019

Business Acquisitions

Business Acquisitions

Note 3 – Business Acquisitions

On May 30, 2018, OneSpan acquired the remaining interest in Dealflo Limited and its subsidiaries (“Dealflo”), increasing our ownership percentage to 100% from 1%. Dealflo, formerly a privately-held company based in the United Kingdom, provides identity verification and end-to-end financial agreement solutions. Upon acquisition, Dealflo became a wholly-owned subsidiary of OneSpan.

Dealflo’s total purchase price consideration was $53.9 million, net of $5.7 million of cash acquired. The total purchase price consideration includes $53.1 million of cash paid to acquire the remaining 99% interest in Dealflo, as well as $0.8 million of fair value of our previous 1% ownership interest.

The acquisition is accounted for as a business combination using the acquisition method of accounting, which requires the net assets acquired and liabilities assumed to be recognized at their fair values on the acquisition date. During the three months ended June 30, 2019, we recorded certain measurement period adjustments to amounts previously reported, comprised primarily of a $1.8 million increase to the deferred tax liability and a $0.6 million increase to other current assets. The effect of the measurement period adjustments recorded during the three months ended June 30, 2019 have been determined as if such adjustments had been accounted for at the acquisition date. The net effect of the measurement period adjustments increased goodwill by $1.1 million. The measurement period adjustments did not result in material income statement effects for the three and six months ended June 30, 2019. The measurement period closed on May 30, 2019.

The following table summarizes our final allocation of the purchase price consideration based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition (net of cash acquired):


		Total
		(in thousands)
Acquired tangible assets	$	2,700
Acquired identifiable intangible assets		17,900
Liabilities assumed		(6,041)
Goodwill		39,295
Total purchase price consideration	$	53,854

The excess of purchase consideration over net assets assumed was recorded as goodwill, which represents the strategic value assigned to Dealflo, including expected benefits from synergies resulting from the acquisition, as well as the knowledge and experience of the workforce in place. In accordance with applicable accounting standards, goodwill is not amortized and will be tested for impairment at least annually, or more frequently, if certain indicators are present. Goodwill and intangible assets related to this acquisition are not deductible for foreign tax purposes.

Based on the final results of the acquisition valuation, $17.9 million of the purchase price consideration has been allocated to identifiable intangible assets. The following table summarizes the major classes of identifiable intangible assets, as well as the estimated weighted-average amortization periods:


		Estimated Fair Value	Weighted Average Amortization Period
Identifiable Intangible Assets		(in thousands)	(Years)
Customer relationships	$	11,800	7
Technology		5,900	4
Trademarks		200	3
	$	17,900

The results of operations of Dealflo subsequent to the acquisition date have been included in the consolidated statement of operations for the three and six months ended June 30, 2019 and June 30, 2018. Revenue generated by Dealflo for the three and six months ended June 30, 2019 was $2.0 million and $3.9 million, respectively, compared to $0.6 million and $0.6 million generated during the three and six months ended June 30, 2018, respectively. Dealflo net losses included in the results of operations for the three and six months ended June 30, 2019 was $1.6 million and $3.0 million, respectively, compared to net losses of $0.8 million and $0.8 million for the three and six months ended June 30, 2018, respectively.

Unaudited Pro Forma Financial Information

The following presents the unaudited pro forma combined results of operations of the Company with Dealflo for the six months ended June 30, 2018, assuming Dealflo was acquired at the beginning of 2017, and after giving effect to certain pro forma adjustments. Pro forma adjustments for the six months ended June 30, 2018 reflect estimated amortization expense for intangible assets purchased of $1.5 million, the elimination of $0.3 million of revenue related to intercompany transactions, and the elimination of $1.1 million of non-recurring acquisition related costs.

These unaudited pro forma results are not necessarily indicative of the actual consolidated results of operations had the acquisition actually occurred on January 1, 2017 or of the future results of operations of the consolidated entities (in thousands except per share data):



	2018

Revenue	$	98,922
Net loss		(3,335)
Basic net loss per share		(0.08)
Diluted net loss per share		(0.08)
Shares used in computing basic and diluted net loss per share		39,902

Revenue

6 Months Ended

Jun. 30, 2019

Revenue

Revenue

Note 4 – Revenue

We recognize revenue in accordance with ASC 606 “Revenue from Contracts with Customers” (“Topic 606”), as described below.

Disaggregation of Revenues

The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition.

Revenue by major products (in thousands)


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Hardware products	$	29,039	$	24,576	$	53,329	$	42,067
Software licenses		11,078		10,410		18,649		26,413
Subscription		5,338		3,818		10,589		6,788
Professional services		848		1,157		1,657		2,121
Maintenance, support and other		9,931		9,593		19,618		17,597
Total Revenue	$	56,234	$	49,554	$	103,842	$	94,986

Revenue by location of customer for the three months ended June 30, 2019 and 2018 (in thousands)


	EMEA			Americas			APAC			Total
Total Revenue:
2019	$	33,841		$	14,426		$	7,967		$	56,234
2018	$	21,481		$	13,270		$	14,803		$	49,554

Percent of Total:
2019		60	%		26	%		14	%		100	%
2018		43	%		27	%		30	%		100	%

Revenue by location of customer for the six months ended June 30, 2019 and 2018 (in thousands)



	EMEA			Americas			APAC			Total
Total Revenue:
2019	$	59,440		$	27,157		$	17,245		$	103,842
2018	$	39,867		$	29,191		$	25,928		$	94,986

Percent of Total:
2019		57	%		26	%		17	%		100	%
2018		42	%		31	%		27	%		100	%

Timing of revenue recognition (in thousands)


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Products, Licenses transferred at a point in time	$	40,117	$	34,986	$	71,978	$	68,480
Services transferred over time		16,117		14,568		31,864		26,506
Total Revenue	$	56,234	$	49,554	$	103,842	$	94,986

Contract balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.


	June 30,		December 31,
	2019		2018
Receivables, inclusive of trade and unbilled	$	68,185	$	59,631
Contract Assets (current and non-current)	$	7,154	$	11,278
Contract Liabilities (Deferred Revenue current and non-current)	$	42,495	$	44,305

Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs, which is normally over 3-5 years. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time.

As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. We do not typically include extended payment terms in our contracts with customers.

Revenue recognized during the three and six months ended June 30, 2019 included $6.6 million and $15.3 million, respectively, that was included on the December 31, 2018 balance sheet in contract liabilities. During the six months ended June 30, 2019, the Company’s contract asset balances decreased approximately $4.1 million, primarily due to billings exceeding new term contracts during the period. Deferred revenue decreased in the same period due to timing of annual renewals.

Transaction price allocated to the remaining performance obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.


in thousands	2019		2020		2021		Beyond 2021		Total
Future revenue related to current unsatisfied performance obligations	$	6,961	$	9,327	$	5,183	$	11,443	$	32,914

The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced.

Costs of obtaining a contract

The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of benefit based on the transfer of goods or services that we have determined to be up to seven years. The Amortization is reflected in Sales and Marketing in the Statements of Operations. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors, including customer attrition. Commissions are earned upon receipt of payment by the customer and requires the employee to be a current employee. For contracts with multiple year payment terms, as the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred. Commissions and amortization expense are included in Sales and Marketing expenses on the consolidated statements of operations.

Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in Sales and Marketing expense in the consolidated statements of operations.

The following tables provide information related to the capitalized costs and amortization recognized in the current and prior periods:



in thousands		June 30, 2019		December 31, 2018
Capitalized costs to obtain contracts, current	$	533	$	413
Capitalized costs to obtain contracts, non-current	$	2,402	$	2,150


		Three months ended June 30,				Six months ended June 30,
in thousands		2019		2018		2019		2018
Amortization of capitalized costs to obtain contracts	$	113	$	60	$	222	$	125
Impairments of capitalized costs to obtain contracts	$	-	$	-	$	-	$	-

Inventories, net

6 Months Ended

Jun. 30, 2019

Inventories, net

Inventories, net

Note 5 – Inventories, net

Inventories, net, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the FIFO method.

Inventories, net are comprised of the following:


	June 30,		December 31,
	2019		2018
	(in thousands)
Component parts	$	6,123	$	5,445
Work-in-process and finished goods		14,097		8,983
Total	$	20,220	$	14,428

Goodwill

6 Months Ended

Jun. 30, 2019

Goodwill

Goodwill

Note 6 – Goodwill

Goodwill activity for the six months ended June 30, 2019 consisted of the following:


in thousands
Net balance at December 31, 2018	$	91,841
Adjustment to provisional estimate of acquisition date fair values		1,128
Net foreign currency translation		(66)
Net balance at June 30, 2019	$	92,903

Revenue recognized during the three and six months ended June 30, 2019 included $6.6 million and $15.3. During the six months ended June 30, 2019, we recorded $1.1 million of measurement period adjustments related to the Dealflo acquisition. See note 4 – Business Acquisitions for additional detail. No impairment of goodwill was recorded during the six months ended June 30, 2019 or June 30, 2018.

Intangible Assets

6 Months Ended

Jun. 30, 2019

Intangible Assets

Intangible Assets

Note 7 – Intangible Assets

Intangible asset activity for the six months ended June 30, 2019 is detailed in the following table.



in thousands	Acquired Technology		Customer Relationships		Other		Total Intangible Assets
Net balance at December 31, 2018	$	8,795	$	30,408	$	6,259	$	45,462
Net foreign currency translation		2		(163)		(14)		(175)
Amortization expense		(1,765)		(1,788)		(1,163)		(4,716)
Net balance at June 30, 2019	$	7,032	$	28,457	$	5,082	$	40,571

June 30, 2019 balance at cost	$	42,457	$	39,042	$	13,699	$	95,198
Accumulated amortization		(35,425)		(10,585)		(8,617)		(54,627)
Net balance at June 30, 2019	$	7,032	$	28,457	$	5,082	$	40,571

Certain intangible assets are denominated in local currencies and are subject to currency fluctuations. As a result of the Company rebranding, the value of certain intangible assets was written down, and impairment charges of $0.5 million were recorded for the three and six months ended June 30, 2018.

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Note 8 – Leases

As mentioned in Note 2 – Summary of Significant Accounting Policies, the Company adopted ASU 2016-02, Leases on January 1, 2019, using the modified retrospective approach. The adoption of this accounting standard resulted in the recording of operating lease right-of-use (“ROU”) assets of $9.2 million in Operating lease right-of use assets, and operating lease liabilities of $2.5 million and $8.5 million in Other accrued expenses and Long-term lease liabilities, respectively, as of January 1, 2019, to capture the cumulative effect of the standard. The difference between the asset and liability is a result of lease incentives, such as tenant improvement allowances, and deferred rent on the balance sheet at transition.

The Company leases certain real estate and automobiles. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the unaudited consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. All of our leases are operating leases.

Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company uses its imputed collateralized rate based on the information available at the commencement date in determining the present value of lease payments. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives or deferred rents. The Company has lease agreements with non-lease components which are not bifurcated.

Some of our leases include one or more options to renew, with renewal terms that can extend the lease from one to five years. The exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property at fair value. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. Certain of the Company’s lease agreements include payments adjusted periodically for inflation based on the consumer price index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease cost details for the three and six months ended June 30, 2019 and 2018 are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)				(in thousands)
Building rent	$	857	$	1,199	$	1,721	$	1,961
Automobile rentals		233		329		510		661
Total net operating lease costs	$	1,090	$	1,528	$	2,231	$	2,622

Short term lease costs and variable lease costs recognized during the three and six months ended June 30, 2019 are immaterial.

Supplemental unaudited consolidated balance sheet information related to leases is as follows:


	June 30, 2019
in thousands
Leases
Assets		8,278
Operating lease assets	$	8,278

Liabilities
Current
Operating lease liabilities	$	2,624

Noncurrent
Operating lease liabilities		7,474
Total lease liabilities	$	10,098

The weighted average remaining lease term for our operating leases is 5.8 years. The weighted-average discount rate for our operating leases is 4.9%.

Supplemental unaudited interim consolidated cash flow information related to leases is as follows:


	Six Months Ended
	June 30, 2019
		(in $ thousands)
Supplemental cash flow and other information related to leases was as follows:

Operating cash payments from operating leases	$	1,754

ROU assets obtained in exchange for new operating lease liabilities	$	555

Maturities of our operating leases are as follows:


	As of June 30, 2019
		(in $ thousands)
2019 (remaining six months)	$	1,603
2020		2,510
2021		1,996
2022		1,575
2023		1,243
Later years		2,955
Less imputed interest		(1,784)
Total lease obligations	$	10,098

Disclosures related to periods prior to adoption of ASU 2016-02

Operating lease rent expense was $4.9 million for the year ended December 31, 2018. Future minimum lease payments under non-cancelable rental and lease agreements which had initial or remaining terms in excess of one year are as follows:


	As of December 31, 2018
		(in $ thousands)
2019	$	3,817
2020		3,081
2021		2,671
2022		2,244
2023		1,941
Later years		8,870
Minimum lease commitments	$	22,624

During the year ended December 31, 2018, we entered into a new lease agreement which will commence during the three months ended September 30, 2019. We estimate that the undiscounted future minimum obligations related to this lease will be approximately $7.4 million. This obligation is disclosed as part of our future minimum lease obligations table above.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2019
Income Taxes
Income Taxes	Note 9 – Income Taxes Our estimated annual tax rate for 2019 before discrete items is expected to be approximately 93%. Our global effective tax rate is higher than the U.S. statutory tax rate of 21% primarily due to forecasted losses in jurisdictions for which a valuation allowance will be required. Our ultimate tax expense will depend on the mix of earnings in various jurisdictions. Income taxes paid during the three and six months ended June 30, 2019 was $3.9 million and $2.9 million, respectively. At December 31, 2018, we had deferred tax assets of $24.6 million resulting from foreign and state NOL carryforwards of $132.2 million and other foreign deductible carryforwards of $37.0 million. At December 31, 2018, we had a valuation allowance of $15.2 million against deferred tax assets related to certain carryforwards. Certain of our non-U.S. operations have incurred net operating losses (NOLs), which may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period.

Long-Term Compensation Plan and Stock Based Compensation

6 Months Ended

Jun. 30, 2019

Long-Term Compensation Plan and Stock Based Compensation

Stock Compensation Plans

Note 10 – Long-Term Compensation Plan and Stock Based Compensation (share counts in thousands)

The OneSpan Inc. 2019 Omnibus Incentive Plan (“2019 Plan”) was adopted by the Board of Directors on February 1, 2019, and was approved by the stockholders on June 12, 2019. Awards were previously granted under the OneSpan Inc. 2009 Equity Incentive Plan (“2009 Plan”). The 2009 Plan terminated on December 19, 2018, and no additional securities remained for issuance.

Under the 2019 Plan, we awarded 277 shares of restricted stock in the second quarter consisting of 140 unissued shares subject to future performance criteria and 137 issued time-based shares. The market value of the 137 issued restricted shares was $2.0 million at the date of grant, and is being amortized over the vesting period of one to four years. The market value of the 140 unissued shares subject performance criteria was $2.0 million at the date of grant and is being amortized over the vesting period of three years. No shares were issued during the second quarter of 2018 and the first quarter of 2019.

The following table details long-term compensation plan and stock-based compensation expense for the three and six months ended June 30, 2019 and 2018:


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
in thousands	(in thousands)				(in thousands)
Restricted stock	$	677	$	1,009	$	1,229	$	1,809
Long-term compensation plan		755		389		1,258		941
Total compensation	$	1,432	$	1,398	$	2,487	$	2,750

Earnings per Share

6 Months Ended

Jun. 30, 2019

Earnings per Common Share

Earnings per Common Share

Note 11 – Earnings per Share (share counts in thousands)

Basic earnings per share is based on the weighted average number of shares outstanding and excludes the dilutive effect of common stock equivalents. Diluted earnings per share is based on the weighted average number of shares outstanding and includes the dilutive effect of common stock equivalents to the extent they are not anti-dilutive. Because the Company is in a net loss position for the three months ended June 30, 2018, and the three and six months ended June 30, 2019, diluted net loss per share for these periods exclude the effects of common stock equivalents, which are anti-dilutive.

The details of the earnings per share calculations for the three and six months ended June 30, 2019 and 2018 are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
in thousands, except per share data	2019		2018		2019		2018
Net income (loss)	$	(2,461)	$	(1,002)	$	(8,133)	$	790
Weighted average common shares outstanding:
Basic		40,038		39,908		40,037		39,902
Incremental shares with dilutive effect:
Restricted stock awards		—		—		—		113
Diluted		40,038		39,908		40,037		40,015

Net income (loss) per share:
Basic	$	(0.06)	$	(0.03)	$	(0.20)	$	0.02
Diluted	$	(0.06)	$	(0.03)	$	(0.20)	$	0.02

Legal Proceedings and Contingencies	6 Months Ended
Legal Proceedings and Contingencies	Jun. 30, 2019
Legal Proceedings and Contingencies
Legal Proceedings and Contingencies	Note 12 – Legal Proceedings and Contingencies We are a party to or have intellectual property subject to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our financial results in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, U.S. GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. We include various types of indemnification clauses in our agreements. These indemnifications may include, but are not limited to, infringement claims related to our intellectual property, direct damages and consequential damages. The type and amount of such indemnifications vary substantially based on our assessment of risk and reward associated with each agreement. We believe the estimated fair value of these indemnification clauses is minimal, and we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. We have no liabilities recorded for these clauses as of June 30, 2019. On March 14, 2017, a complaint was filed in the United States District Court for the District of Massachusetts, captioned StrikeForce Technologies, Inc. v. Vasco Data Security International, Inc., et al., claiming the Company infringed on certain patent rights of the plaintiff. On May 8, 2017, the Company answered the complaint denying the allegations of patent infringement. The parties then engaged in motion practice and discovery in the case. The plaintiff has also brought suit against various other companies in the cybersecurity industry. In one such suit in the federal district court for the Central District of California, on December 1, 2017, the court granted defendant’s motion to dismiss, finding that the StrikeForce asserted claims are invalid. StrikeForce appealed such decision. In light of such ruling, on December 20, 2017, the court in the Company’s case granted a stay of the proceedings pending the appeal in the related case. On April 16, 2019, the Court dismissed the claims of StrikeForce against us with prejudice. We consider this case to be closed. From time to time, we have been involved in the litigation incidental to the conduct of our business. Excluding matters disclosed above, we are not a party to any lawsuit or proceeding that, in management’s opinion, is likely to have a material adverse effect on its business, financial condition or results of operations.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies

Description of the Company

OneSpan Inc. and its wholly owned subsidiaries design, develop and market digital solutions for identity, security, and business productivity that protect and facilitate electronic transactions via mobile and connected devices. OneSpan has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K.), and the United States (U.S.).

Our operations are reported as a single operating segment.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of OneSpan and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and 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.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All significant intercompany accounts and transactions have been eliminated. The operating results for the interim periods presented are not necessarily indicative of the results expected for a full year.

Principles of Consolidation

The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.

Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management 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 amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation and Transactions

The financial position and results of the operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net. Foreign exchange transaction gains aggregated $0.2 million for the three months ended June 30, 2019, compared to losses of $0.3 million for the three months ended June 30, 2018. During the six months ended June 30, 2019, foreign exchange transaction losses aggregated $0.7 million, compared to losses aggregated of less than $0.1 million during the six months ended June 30, 2018.

The financial position and results of our operations in Singapore, Switzerland, and Canada are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net.

Cash and Cash Equivalents

Short Term Investments

The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Property and Equipment

Leases

The short-term lease practical expedient, which allowed the Company to exclude short-term leases from recognition in the unaudited consolidated balance sheets;

We apply the portfolio approach to automobile leases with similar characteristics that commence in the same period.

Long Term Investments

Fair Value of Financial Instruments

Recently Issued Accounting Pronouncements

Business Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Business Acquisitions

Schedule allocation of the total purchase consideration for the acquisition


		Total
		(in thousands)
Acquired tangible assets	$	2,700
Acquired identifiable intangible assets		17,900
Liabilities assumed		(6,041)
Goodwill		39,295
Total purchase price consideration	$	53,854

Summary of Acquired Intangible Assets as well as Respective Amortization Periods


		Estimated Fair Value	Weighted Average Amortization Period
Identifiable Intangible Assets		(in thousands)	(Years)
Customer relationships	$	11,800	7
Technology		5,900	4
Trademarks		200	3
	$	17,900

Summary of Unaudited Pro Forma Amounts



	2018

Revenue	$	98,922
Net loss		(3,335)
Basic net loss per share		(0.08)
Diluted net loss per share		(0.08)
Shares used in computing basic and diluted net loss per share		39,902

Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Revenue

Revenues disaggregated by geography, major product line and timing of revenue recognition

The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition.

Revenue by major products (in thousands)


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Hardware products	$	29,039	$	24,576	$	53,329	$	42,067
Software licenses		11,078		10,410		18,649		26,413
Subscription		5,338		3,818		10,589		6,788
Professional services		848		1,157		1,657		2,121
Maintenance, support and other		9,931		9,593		19,618		17,597
Total Revenue	$	56,234	$	49,554	$	103,842	$	94,986

Revenue by location of customer for the three months ended June 30, 2019 and 2018 (in thousands)


	EMEA			Americas			APAC			Total
Total Revenue:
2019	$	33,841		$	14,426		$	7,967		$	56,234
2018	$	21,481		$	13,270		$	14,803		$	49,554

Percent of Total:
2019		60	%		26	%		14	%		100	%
2018		43	%		27	%		30	%		100	%

Revenue by location of customer for the six months ended June 30, 2019 and 2018 (in thousands)



	EMEA			Americas			APAC			Total
Total Revenue:
2019	$	59,440		$	27,157		$	17,245		$	103,842
2018	$	39,867		$	29,191		$	25,928		$	94,986

Percent of Total:
2019		57	%		26	%		17	%		100	%
2018		42	%		31	%		27	%		100	%

Timing of revenue recognition (in thousands)


	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Products, Licenses transferred at a point in time	$	40,117	$	34,986	$	71,978	$	68,480
Services transferred over time		16,117		14,568		31,864		26,506
Total Revenue	$	56,234	$	49,554	$	103,842	$	94,986

Schedule of changes in contract assets and contract liabilities


	June 30,		December 31,
	2019		2018
Receivables, inclusive of trade and unbilled	$	68,185	$	59,631
Contract Assets (current and non-current)	$	7,154	$	11,278
Contract Liabilities (Deferred Revenue current and non-current)	$	42,495	$	44,305

Schedule of estimated revenue expected to be recognized in the future


in thousands	2019		2020		2021		Beyond 2021		Total
Future revenue related to current unsatisfied performance obligations	$	6,961	$	9,327	$	5,183	$	11,443	$	32,914



in thousands		June 30, 2019		December 31, 2018
Capitalized costs to obtain contracts, current	$	533	$	413
Capitalized costs to obtain contracts, non-current	$	2,402	$	2,150


		Three months ended June 30,				Six months ended June 30,
in thousands		2019		2018		2019		2018
Amortization of capitalized costs to obtain contracts	$	113	$	60	$	222	$	125
Impairments of capitalized costs to obtain contracts	$	-	$	-	$	-	$	-

Inventories, net (Tables)

6 Months Ended

Jun. 30, 2019

Inventories, net

Summary of Inventories, net


	June 30,		December 31,
	2019		2018
	(in thousands)
Component parts	$	6,123	$	5,445
Work-in-process and finished goods		14,097		8,983
Total	$	20,220	$	14,428

Goodwill (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill

Schedule of Goodwill Activity


in thousands
Net balance at December 31, 2018	$	91,841
Adjustment to provisional estimate of acquisition date fair values		1,128
Net foreign currency translation		(66)
Net balance at June 30, 2019	$	92,903

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Intangible Assets

Schedule of intangible asset activity



in thousands	Acquired Technology		Customer Relationships		Other		Total Intangible Assets
Net balance at December 31, 2018	$	8,795	$	30,408	$	6,259	$	45,462
Net foreign currency translation		2		(163)		(14)		(175)
Amortization expense		(1,765)		(1,788)		(1,163)		(4,716)
Net balance at June 30, 2019	$	7,032	$	28,457	$	5,082	$	40,571

June 30, 2019 balance at cost	$	42,457	$	39,042	$	13,699	$	95,198
Accumulated amortization		(35,425)		(10,585)		(8,617)		(54,627)
Net balance at June 30, 2019	$	7,032	$	28,457	$	5,082	$	40,571

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of Operating Lease Costs


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)				(in thousands)
Building rent	$	857	$	1,199	$	1,721	$	1,961
Automobile rentals		233		329		510		661
Total net operating lease costs	$	1,090	$	1,528	$	2,231	$	2,622

Schedule of supplemental lease costs

Supplemental unaudited consolidated balance sheet information related to leases is as follows:


	June 30, 2019
in thousands
Leases
Assets		8,278
Operating lease assets	$	8,278

Liabilities
Current
Operating lease liabilities	$	2,624

Noncurrent
Operating lease liabilities		7,474
Total lease liabilities	$	10,098

Supplemental unaudited interim consolidated cash flow information related to leases is as follows:


	Six Months Ended
	June 30, 2019
		(in $ thousands)
Supplemental cash flow and other information related to leases was as follows:

Operating cash payments from operating leases	$	1,754

Schedule of maturities of operating leases

Maturities of our operating leases are as follows:


	As of June 30, 2019
		(in $ thousands)
2019 (remaining six months)	$	1,603
2020		2,510
2021		1,996
2022		1,575
2023		1,243
Later years		2,955
Less imputed interest		(1,784)
Total lease obligations	$	10,098


	As of December 31, 2018
		(in $ thousands)
2019	$	3,817
2020		3,081
2021		2,671
2022		2,244
2023		1,941
Later years		8,870
Minimum lease commitments	$	22,624

Long-Term Compensation Plan and Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Long-Term Compensation Plan and Stock Based Compensation

Summary of compensation expense


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
in thousands	(in thousands)				(in thousands)
Restricted stock	$	677	$	1,009	$	1,229	$	1,809
Long-term compensation plan		755		389		1,258		941
Total compensation	$	1,432	$	1,398	$	2,487	$	2,750

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings per Common Share

Details of Earnings Per Share Calculations


	Three months ended				Six months ended
	June 30,				June 30,
in thousands, except per share data	2019		2018		2019		2018
Net income (loss)	$	(2,461)	$	(1,002)	$	(8,133)	$	790
Weighted average common shares outstanding:
Basic		40,038		39,908		40,037		39,902
Incremental shares with dilutive effect:
Restricted stock awards		—		—		—		113
Diluted		40,038		39,908		40,037		40,015

Net income (loss) per share:
Basic	$	(0.06)	$	(0.03)	$	(0.20)	$	0.02
Diluted	$	(0.06)	$	(0.03)	$	(0.20)	$	0.02

Description of the Company and Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Description of the Company and Basis of Presentation
Gain (loss) from foreign currency transactions	$ 0.2	$ (0.3)	$ (0.7)	$ (0.1)

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) $ in Millions	Dec. 31, 2018 USD ($)
Letter of Credit
Restricted cash	$ 0.8

Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Summary of Significant Accounting Policies
Depreciation	$ 0.5	$ 0.5	$ 1.0	$ 1.1

Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jan. 01, 2019
Summary of Significant Accounting Policies
Operating lease right-of-use assets	$ 8,278	$ 9,200
Operating lease liabilities	$ 10,098	$ 11,000
Lease, Practical Expedients, Package [true false]	true

Summary of Significant Accounting Policies - Long Term Investments (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Other Assets
Long Term Investments
Long Term Investments	$ 4.1	$ 4.1

Business Acquisitions - Dealflo Limited (Details) - USD ($) $ in Thousands		3 Months Ended				6 Months Ended
	May 30, 2018	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	May 29, 2018
Acquired Finite-Lived Intangible Assets
Acquired identifiable intangible assets, Estimated Fair Value	$ 17,900
Goodwill.		$ 92,903				$ 92,903		$ 91,841
Net losses		2,461	$ 5,671	$ 1,002	$ (1,792)	8,133	$ (790)
Dealflo Limited
Acquired Finite-Lived Intangible Assets
Ownership percentage	100.00%
Cash	$ 5,700
Cash paid to acquire remaining interest	$ 53,100
Remaining ownership percentage acquired	99.00%
Fair value of previous ownership interest	$ 800
Previous ownership percentage									1.00%
Increase in deferred tax liability		1,800
Increase in other current assets		600
Increase in goodwill		1,100
Acquired tangible assets	2,700
Acquired identifiable intangible assets, Estimated Fair Value	17,900
Liabilities assumed	(6,041)
Goodwill.	39,295
Total purchase price consideration	53,854
Revenues		2,000		600		3,900	600
Net losses		$ 1,600		$ 800		$ 3,000	$ 800
Customer relationships
Acquired Finite-Lived Intangible Assets
Acquired identifiable intangible assets, Estimated Fair Value	$ 11,800
Identifiable Intangible Assets, Estimated Weighted Average Amortization Period	7 years
Technology
Acquired Finite-Lived Intangible Assets
Acquired identifiable intangible assets, Estimated Fair Value	$ 5,900
Identifiable Intangible Assets, Estimated Weighted Average Amortization Period	4 years
Trademarks
Acquired Finite-Lived Intangible Assets
Acquired identifiable intangible assets, Estimated Fair Value	$ 200
Identifiable Intangible Assets, Estimated Weighted Average Amortization Period	3 years

Business Acquisitions - Proforma Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Amortization of intangible assets			$ 4,716
Dealflo Limited
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Amortization of intangible assets				$ 1,500
Revenue	$ 2,000	$ 600	$ 3,900	600
Dealflo Limited \| Intercompany elimination
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue				300
Acquisition related costs				$ 1,100

Business Acquisitions - Proforma Financial Information (Details) - Dealflo Limited $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Acquisition of Dealflo
Revenue \| $	$ 98,922
Net loss \| $	$ (3,335)
Basic net loss per share \| $ / shares	$ (0.08)
Diluted net loss per share \| $ / shares	$ (0.08)
Shares used in computing basic and diluted net loss per share \| shares	39,902

Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue
Revenue	$ 56,234	$ 49,554	$ 103,842	$ 94,986
Percent of Total	100.00%	100.00%	100.00%	100.00%
Transferred at a point in time
Revenue
Revenue	$ 40,117	$ 34,986	$ 71,978	$ 68,480
Transferred over time
Revenue
Revenue	16,117	14,568	31,864	26,506
EMEA
Revenue
Revenue	$ 33,841	$ 21,481	$ 59,440	$ 39,867
Percent of Total	60.00%	43.00%	57.00%	42.00%
Americas
Revenue
Revenue	$ 14,426	$ 13,270	$ 27,157	$ 29,191
Percent of Total	26.00%	27.00%	26.00%	31.00%
APAC
Revenue
Revenue	$ 7,967	$ 14,803	$ 17,245	$ 25,928
Percent of Total	14.00%	30.00%	17.00%	27.00%
Hardware products
Revenue
Revenue	$ 29,039	$ 24,576	$ 53,329	$ 42,067
Software licenses
Revenue
Revenue	11,078	10,410	18,649	26,413
Subscription
Revenue
Revenue	5,338	3,818	10,589	6,788
Professional services
Revenue
Revenue	848	1,157	1,657	2,121
Maintenance, support and other
Revenue
Revenue	$ 9,931	$ 9,593	$ 19,618	$ 17,597

Revenue - Contract balances (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Contract balances
Receivables, inclusive of trade and unbilled	$ 68,185	$ 68,185	$ 59,631
Contract Assets (current and non-current)	7,154	7,154	11,278
Contract Liabilities (Deferred Revenue current and non-current)	42,495	$ 42,495	$ 44,305
Revenue, Practical Expedient, Financing Component [true/false]		true
Revenue recognized that was included in the balance sheet at the beginning of the period	$ 6,600	$ 15,300
Contract liabilities increase (decrease) due to annual renewals		$ 4,100
Minimum
Contract balances
The amount of time contract assets are transferred to receivables		3 years
Maximum
Contract balances
The amount of time contract assets are transferred to receivables		5 years

Revenue - Performance Obligations (Details) $ in Thousands	6 Months Ended
Revenue - Performance Obligations (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Revenue
Future revenue related to current unsatisfied performance obligations	$ 32,914
Remaining performance obligations	true
Original expected durations	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Future revenue related to current unsatisfied performance obligations	$ 6,961
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Future revenue related to current unsatisfied performance obligations	$ 9,327
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Future revenue related to current unsatisfied performance obligations	$ 5,183
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Future revenue related to current unsatisfied performance obligations	$ 11,443

Revenue - Capitalized Costs and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenue
Amortization period	7 years		7 years
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false]			true
Capitalized costs to obtain contracts, current	$ 533		$ 533		$ 413
Capitalized costs to obtain contracts, non-current	2,402		2,402		$ 2,150
Amortization of capitalized costs to obtain contracts	$ 113	$ 60	$ 222	$ 125

Inventories, net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventories, net
Component parts	$ 6,123	$ 5,445
Work-in-process and finished goods	14,097	8,983
Total	$ 20,220	$ 14,428

Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Goodwill
Net balance at beginning of period	$ 91,841
Adjustment to provisional estimate of acquisition date fair values	1,128
Net foreign currency translation	(66)
Net balance at end of period	92,903
Goodwill impairment	$ 0	$ 0

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019
Intangible asset activity
Net balance		$ 45,462
Impairment	$ 500		$ 500
Net foreign currency translation		(175)
Amortization expense		(4,716)
Net balance		40,571
Intangible assets, net
Balance at cost				$ 95,198
Accumulated amortization				(54,627)
Ending Balance		45,462		40,571
Capitalized Technology
Intangible asset activity
Net balance		8,795
Net foreign currency translation		2
Amortization expense		(1,765)
Net balance		7,032
Intangible assets, net
Balance at cost				42,457
Accumulated amortization				(35,425)
Ending Balance		8,795		7,032
Customer relationships
Intangible asset activity
Net balance		30,408
Net foreign currency translation		(163)
Amortization expense		(1,788)
Net balance		28,457
Intangible assets, net
Balance at cost				39,042
Accumulated amortization				(10,585)
Ending Balance		30,408		28,457
Other
Intangible asset activity
Net balance		6,259
Net foreign currency translation		(14)
Amortization expense		(1,163)
Net balance		5,082
Intangible assets, net
Balance at cost				13,699
Accumulated amortization				(8,617)
Ending Balance		$ 6,259		$ 5,082

Leases (Details) $ in Thousands	3 Months Ended		6 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2019 USD ($) Option	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) Option	Jun. 30, 2018 USD ($)	Jan. 01, 2019 USD ($)
Operating lease right-of-use assets	$ 8,278		$ 8,278		$ 9,200
Operating lease liabilities	10,098		$ 10,098		11,000
Initial term of lease			12 months
Operating lease cost	$ 1,090	$ 1,528	$ 2,231	$ 2,622
Number of options to renew lease \| Option	1		1
Minimum
Renewal terms to extend the lease	1 year		1 year
Maximum
Renewal terms to extend the lease	5 years		5 years
Building
Operating lease cost	$ 857	1,199	$ 1,721	1,961
Automobile
Operating lease cost	$ 233	$ 329	$ 510	$ 661
Accounting Standards Update 2016-02 \| Adjustment
Operating lease right-of-use assets					9,200
Accounting Standards Update 2016-02 \| Adjustment \| Other Accrued Expenses
Operating lease liabilities					2,500
Accounting Standards Update 2016-02 \| Adjustment \| Long Term Lease Liabilities
Operating lease liabilities					$ 8,500

Leases - Supplemental unaudited consolidated balance sheet information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jan. 01, 2019
Supplemental unaudited consolidated balance sheet information
Operating lease right-of-use assets	$ 8,278	$ 9,200
Operating lease liabilities current	2,624
Operating lease liabilities noncurrent	7,474
Operating lease liabilities	$ 10,098	$ 11,000
Weighted average remaining lease term	5 years 9 months 18 days
Weighted-average discount rate	4.90%
Supplemental unaudited interim consolidated cash flow information
Operating cash flows from operating leases	$ 1,754
ROU assets obtained in exchange for new operating lease liabilities	$ 555

Leases - Maturities of our operating leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2019	Jan. 01, 2019
Maturities of operating leases
2019	$ 3,817	$ 1,603
2020	3,081	2,510
2021	2,671	1,996
2022	2,244	1,575
2023	1,941	1,243
Later years	8,870	2,955
Minimum lease commitments	22,624
Less imputed interest		(1,784)
Operating lease liabilities		$ 10,098	$ 11,000
Operating lease rent expense	4,900
Undiscounted future minimum obligations related to this lease	$ 7,400

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Deferred tax assets:
Statutory tax rate		93.00%
Income Taxes Paid	$ 3.9	$ 2.9
Deferred tax assets, foreign and state NOL			$ 24.6
Net operating loss (NOL) carryforwards			132.2
Deferred Tax Assets, Valuation Allowance			15.2
US
Deferred tax assets:
Statutory tax rate		21.00%
Foreign tax credit carryforwards
Deferred tax assets:
Other deductible carryforwards			$ 37.0

Long-Term Compensation Plan and Stock Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Plan information
Restricted stock awards	$ 677	$ 552	$ 1,009	$ 799
Restricted Stock, subject to performance criteria
Plan information
Unissued shares	140
Restricted Stock, subject to time-based criteria
Plan information
Stock based compensation awards issued shares	137
2019 Omnibus Incentive Plan \| Restricted Stock [Member]
Plan information
Stock based compensation Awards	277
Stock issues during the period		0	0
2019 Omnibus Incentive Plan \| Restricted Stock, subject to performance criteria
Plan information
Stock based compensation awards issued shares	140
Restricted stock awards	$ 2,000
Vesting period (in years)	3 years
2019 Omnibus Incentive Plan \| Restricted Stock, subject to time-based criteria
Plan information
Stock based compensation awards issued shares	137
Restricted stock awards	$ 2,000
2019 Omnibus Incentive Plan \| Restricted Stock, subject to time-based criteria \| Minimum
Plan information
Vesting period (in years)	1 year
2019 Omnibus Incentive Plan \| Restricted Stock, subject to time-based criteria \| Maximum
Plan information
Vesting period (in years)	4 years

Long-Term Compensation Plan and Stock Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Compensation expense
Restricted stock	$ 677	$ 1,009	$ 1,229	$ 1,809
Long-term compensation plan	755	389	1,258	941
Total Compensation	$ 1,432	$ 1,398	$ 2,487	$ 2,750

Earnings per Share - Details of Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per Common Share
Net income (loss)	$ (2,461)	$ (5,671)	$ (1,002)	$ 1,792	$ (8,133)	$ 790
Weighted average common shares outstanding:
Basic (in shares)	40,038		39,908		40,037	39,902
Incremental shares with dilutive effect:
Restricted stock awards (in shares)						113
Diluted (in shares)	40,038		39,908		40,037	40,015
Basic (in dollars per share)	$ (0.06)		$ (0.03)		$ (0.20)	$ 0.02
Diluted (in dollars per share)	$ (0.06)		$ (0.03)		$ (0.20)	$ 0.02

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Legal Proceedings and Contingencies - Indemnification and loss contingencies (Details)	Jun. 30, 2019 USD ($)
Indemnification clauses
Contingencies
Liabilities accrued	$ 0