Revenue from Contracts with Customers (ASC 606) - Impact of New Revenue Guidance on Financial Statement Line Items (Tables)

9 Months Ended

Sep. 30, 2018

Impact of New Revenue Guidance on Financial Statement Line Items [Abstract]

Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block]

The adoption of ASC 606 had no impact on the Company’s cash flows from operations. The aforementioned impacts resulted in offsetting shifts in cash flows throughout net loss and various changes in working capital balances.

	Contract Assets				Contract Liabilities
	Current		Non-Current		Current		Non-Current
Balance at January 1, 2018	$	3,205	$	5,963	$	11,039	$	7,998
Balance at September 30, 2018	$	3,460	$	6,626	$	10,770	$	8,771

	Nine Months Ended September 30, 2018
Statement of Cash Flows	As reported			Pro forma as if the previous accounting guidance had been in effect
Net loss	$	(6,410	)	$	(6,282	)
Non cash adjustments to reconcile net loss to net cash used in operating activities	12,111			12,063
Changes in operating assets and liabilities:
Accounts receivable and inventories	(3,124		)	(3,124		)
Prepaid expenses, other assets, and contract assets	(1,879		)	(961		)
Deferred revenue, contract liabilities, and long-term contract liabilities	701			(297		)
Accounts payable, accrued compensation, warranty, other, and other long-term liabilities	362			362
Net cash used in operating activities	$	1,761		$	1,761

The Company adopted ASC 606 using the modified retrospective method. The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2018:

	As Reported			Adjustments			Adjusted
	December 31, 2017			mini-VSAT Product			January 1, 2018
Cash, cash equivalent and marketable securities	$	42,915		$	—		$	42,915
Accounts receivable, net	28,316			—			28,316
Inventories	22,732			—			22,732
Contract assets	—			3,205			3,205
Prepaid expenses and other current assets	3,816			—			3,816
Long-lived assets	92,513			—			92,513
Other non-current assets	5,927			—			5,927
Contract assets, long-term	—			5,963			5,963
Non-current deferred income tax asset	20			202			222
Total assets	$	196,239		$	9,370		$	205,609
Accounts payable, accrued expenses, and other current liabilities	$	36,430		—			$	36,430
Deferred revenue, current	6,919			(6,919		)	—
Contract liabilities	—			11,039			11,039
Long-term contract liabilities	—			7,998			7,998
Other long-term liabilities	2,653			—			2,653
Long-term debt, excluding current portion	44,572			—			44,572
Total liabilities	$	90,574		$	12,118		$	102,692
Accumulated deficit	(4,417		)	(2,748		)	(7,165		)
Common stock, additional paid-in capital, and accumulated other comprehensive loss	110,082			—			110,082
Total stockholders’ equity	$	105,665		$	(2,748	)	$	102,917
Total liabilities and stockholders’ equity	$	196,239		$	9,370		$	205,609

The following tables compare the reported consolidated balance sheet, statement of operations and cash flows, as of and for the three months ended September 30, 2018, to the pro forma amounts that would have been reported if the previous guidance had been in effect:

	As of September 30, 2018
Balance Sheet	As reported			Pro forma as if the previous accounting guidance had been in effect
Cash, cash equivalent and marketable securities	$	33,236		$	33,236
Accounts receivable, net	28,971			28,971
Inventories	24,676			24,676
Contract assets	3,460			—
Prepaid expenses and other current assets	3,741			3,741
Long-lived assets	96,860			96,860
Other non-current assets	6,701			6,701
Contract assets, long-term	6,626			—
Non-current deferred income tax asset	201			46
Total assets	$	204,472		$	194,231
Accounts payable, accrued expenses, and other current liabilities	$	58,342		$	58,342
Deferred revenue, current	—			6,424
Contract liabilities	10,770			—
Long-term contract liabilities	8,771			—
Other long-term liabilities	4,607			4,607
Long-term debt, excluding current portion	20,252			20,252
Total liabilities	$	102,742		$	89,625
Accumulated deficit	(13,575		)	(10,699		)
Common stock, additional paid-in capital, and accumulated other comprehensive loss	115,305			115,305
Total stockholders’ equity	$	101,730		$	104,606
Total liabilities and stockholders’ equity	$	204,472		$	194,231

	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
Consolidated Statement of Operations	As reported			Pro forma as if the previous accounting guidance had been in effect			As reported			Pro forma as if the previous accounting guidance had been in effect
Sales:
Product	$	16,367		$	16,775		$	46,521		$	47,519
Service	27,150			27,150			80,489			80,489
Net Sales	43,517			43,925			127,010			128,008
Costs and expenses:
Costs of product sales	9,767			10,177			28,784			29,670
Costs of service sales	15,376			15,376			44,690			44,690
Research and development	3,789			3,789			11,288			11,288
Sales, marketing and support	8,421			8,412			25,856			25,888
General and administrative	7,084			7,084			21,679			21,679
Total operating expenses	44,437			44,838			132,297			133,215
Loss from operations	(920		)	(913		)	(5,287		)	(5,207		)
Other income (expense), net	(93		)	(93		)	(455		)	(455		)
Loss before income tax expense	(1,013		)	(1,006		)	(5,742		)	(5,662		)
Income tax expense	161			138			668			620
Net loss	$	(1,174	)	$	(1,144	)	$	(6,410	)	$	(6,282	)
Net loss per common share:
Basic and diluted	$	(0.07	)	$	(0.07	)	$	(0.38	)	$	(0.37	)