Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Summary of Fair Value Assumptions
The principal assumptions used in applying the model were as follows:
 
Upon 2018 Expiration
 
December 31, 2017
Assumptions:
 
 
 
Risk-free interest rate
2.3% - 2.5%
 
1.5% - 2.0%
Expected life
1.8 - 2.2 Years
 
2.5 - 3 Years
Expected volatility
65% - 70%
 
50% - 60%
Dividends
0%
 
0%
Schedule of Earnings Per Share, Basic and Diluted
 
Years Ended
December 31,
 
2018
 
2017
 
2016
 
(In thousands, except share and per share data)
Numerator:
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
19,813

 
$
17,929

 
$
(6,439
)
 
 
 
 
 
 
Denominator:
 
 
 
 
 
Weighted-average common shares, basic
27,484,655

 
25,353,966

 
22,837,263

Weighted-average common shares, diluted*
28,416,512

 
26,269,727

 
22,837,263

Net income (loss) per common share:
 
 
 
 
 
Basic:
$
0.72

 
$
0.71

 
$
(0.28
)
Diluted:
$
0.70

 
$
0.68

 
$
(0.28
)
 
 
 
 
 
 
* The diluted earnings per common share included the weighted average effect of 215,196 unvested Restricted Stock Units and 716,661 stock options that are potentially dilutive to earnings per share for the twelve months ended December 31, 2018, since the exercise price of such securities was less than the average market price during the period.
Summary of Components Excluded from Computation of Diluted Net Loss Per Share
Potentially dilutive common shares from employee equity plans and warrants are determined by applying the treasury stock method to the assumed exercise of warrants and share options and were excluded from the computation of diluted net income (loss) per share because their inclusion would be anti-dilutive and consist of the following: 
 
December 31,

2018
 
2017
 
2016
Stock options
822,269

 
1,864,292

 
1,607,347

Restricted stock units
13,333

 

 
185,260

Warrants
2,355,506

 
2,355,506

 

Total
3,191,108

 
4,219,798

 
1,792,607

Schedule of Cumulative Effect of ASU 2014-09
The cumulative effect of the changes made to the condensed consolidated balance sheet as of January 1, 2018 under current assets for the adoption ASU 2014-09, Revenue - Revenue from Contracts with Customers were as follows (in thousands):
Balance Sheet
Balance at December 31, 2017
 
Adjustments due to ASU 2014-09
 
Balance at January 1, 2018
 
 
 
 
 
 
Current Assets
 
 
 
 
 
Accounts Receivable
$
2,606

 
$
2,550

 
$
5,156

 
 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
Retained Earnings
$
5,555

 
$
2,550

 
$
8,105



In accordance with the new revenue recognition standards, the impact of adoption of ASC-606 to the consolidated statement of operations and balance sheet for the period ended December 31, 2018 was as follows (in thousands):
Income Statement
 
Year ended December 31, 2018
 
 
As reported
 
Balance without adoption - ASC606
 
Effect of change
Revenue
 
$
82,300

 
$
82,300

 
$

 
 
 
 
 
 
 
Provision for income taxes
 
8,052

 
8,052

 

 
 
 
 
 
 
 
Net income (loss)
 
20,738

 
20,738

 


Balance Sheet
December 31, 2018
 
As reported
 
Balance without ASC-606
 
Effect of Change
 
 
 
 
 
 
Current Assets
 
 
 
 
 
Accounts Receivable
$
2,550

 
$

 
$
(2,550
)
Other long-term assets(1)
678

 

 
$
(678
)
Prepaid tax
5,429

 
5,429

 
$

 
 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
Retained Earnings
$
26,142

 
$
22,914

 
$
3,228

(1) Deferred tax assets related to the adoption of ASC606
 
 
 
 
 
The Company also adopted the following standards during 2018, none of which had a material impact on the Company's consolidated financial statements:

STANDARD
 
DESCRIPTION
 
EFFECTIVE DATE
 
 
 
 
 
2016-09
 
Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-
Based Payment Accounting
 
January 1, 2018
 
 
 
 
 
2016-15
 
Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash
Payments
 
January 1, 2018
 
 
 
 
 
2018-07
 
Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share
Based Payment Accounting
 
June 1, 2018