Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'hopTo Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 114,032,303 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001021435 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | $4,288,000 | $2,430,700 |
Accounts receivable, net | 617,300 | 811,700 |
Prepaid expenses | 120,100 | 43,100 |
Total Current Assets | 5,025,400 | 3,285,500 |
Capitalized software development costs, net | 551,400 | 619,400 |
Property and equipment, net | 375,900 | 302,100 |
Other assets | 139,900 | 139,900 |
Total Assets | 6,092,600 | 4,346,900 |
Current Liabilities: | ' | ' |
Accounts payable and accrued expenses | 797,600 | 844,100 |
Deferred revenue | 2,544,200 | 2,772,900 |
Severance liability | 16,700 | 62,900 |
Deferred rent | 34,000 | 31,200 |
Total Current Liabilities | 3,392,500 | 3,711,100 |
Warrants liability | 1,152,300 | 979,800 |
Deferred revenue | 447,700 | 476,200 |
Deferred rent | 190,100 | 84,600 |
Total Liabilities | 5,182,600 | 5,251,700 |
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value, 195,000,000 shares authorized, 114,473,019 and 98,510,622 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 11,100 | 9,800 |
Additional paid-in capital | 74,183,300 | 71,697,300 |
Accumulated deficit | -73,284,400 | -72,611,900 |
Total Stockholders' Equity (Deficit) | 910,000 | -904,800 |
Total Liabilities and Stockholders' Equity (Deficit) | $6,092,600 | $4,346,900 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 195,000,000 | 195,000,000 |
Common stock, shares issued | 114,473,019 | 98,510,622 |
Common stock, shares outstanding | 114,473,019 | 98,510,622 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenue | $1,340,200 | $1,617,000 |
Costs of revenue | 194,600 | 111,800 |
Gross profit | 1,145,600 | 1,505,200 |
Operating expenses: | ' | ' |
Selling and marketing | 650,500 | 499,000 |
General and administrative | 993,900 | 746,000 |
Research and development | 1,305,900 | 713,200 |
Total operating expenses | 2,950,300 | 1,958,200 |
Loss from operations | -1,804,700 | -453,000 |
Other income (expense) - change in fair value of warrants liability | 1,133,700 | -3,448,700 |
Other expense, net | -200 | -100 |
Loss before provision for income tax | -671,200 | -3,901,800 |
Provision for income tax | 1,300 | 1,100 |
Net loss | ($672,500) | ($3,902,900) |
Loss per share – basic and diluted (in Dollars per share) | ($0.01) | ($0.05) |
Average weighted common shares outstanding – basic and diluted (in Shares) | 110,283,363 | 83,139,078 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net Loss | ($672,500) | ($3,902,900) |
Depreciation and amortization | 121,300 | 66,700 |
Stock-based compensation expense | 169,700 | 185,800 |
Change in fair value of derivative instruments – warrants | -1,133,700 | 3,448,700 |
Accretion of warrants liability for consulting services | -49,800 | 73,500 |
Revenue deferred to future periods | 841,400 | 794,900 |
Recognition of deferred revenue | -1,098,600 | -1,075,800 |
Changes in severance liability | -46,200 | -77,100 |
Changes in deferred rent | 4,900 | -6,200 |
Changes to allowance for doubtful accounts | -18,900 | -18,300 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 213,300 | 282,300 |
Prepaid expenses | -77,000 | 16,800 |
Accounts payable and accrued expenses | -46,500 | 91,100 |
Net Cash Used in Operating Activities | -1,792,600 | -120,500 |
Cash Flows Used In Investing Activities: | ' | ' |
Capital expenditures | -23,700 | -20,000 |
Capitalized software development costs | ' | -427,800 |
Net Cash Used In Investing Activities | -23,700 | -447,800 |
Cash Flows Provided By Financing Activities: | ' | ' |
Proceeds from exercise of warrants | 260,000 | 120,200 |
Proceeds from exercise of employee stock options | 43,600 | 63,200 |
Proceeds from private placement of stock and warrants, net of issuance costs | 3,370,000 | ' |
Net Cash Provided By Financing Activities | 3,673,600 | 183,400 |
Net Increase (Decrease) in Cash | 1,857,300 | -384,900 |
Cash - Beginning of Period | 2,430,700 | 3,960,600 |
Cash - End of Period | $4,288,000 | $3,575,700 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
1. Basis of Presentation | |
The unaudited condensed consolidated financial statements include the accounts of hopTo Inc. and its subsidiaries (collectively, “we”, “us” or “our”); significant intercompany accounts and transactions are eliminated upon consolidation. The unaudited condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, such unaudited condensed consolidated financial statements do not include all information and footnote disclosures required in annual financial statements. | |
The unaudited condensed consolidated financial statements included herein reflect all adjustments, which include only normal, recurring adjustments, that are, in our opinion, necessary to state fairly the results for the periods presented. This Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on March 31, 2014 (“2013 10-K Report”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2014 or any future period. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||||||
2. Significant Accounting Policies | |||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with GAAP 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 amounts of revenues and expenses during the reporting period. These estimates include: the amount of stock-based compensation expense; the allowance for doubtful accounts; the estimated lives, valuation, and amortization of intangible assets (including capitalized software); depreciation of long-lived assets; valuation of warrants; post-employment benefits, and accruals for liabilities. While we believe that such estimates are fair, actual results could differ materially from those estimates. | |||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
We market and license our products indirectly through channel distributors, independent software vendors (“ISVs”), value-added resellers (“VARs”) (collectively, “resellers”) and directly to corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. | |||||||||||||||||||||
Software license revenues are recognized when: | |||||||||||||||||||||
● | Persuasive evidence of an arrangement exists, (i.e., when we sign a non-cancellable license agreement wherein the customer acknowledges an unconditional obligation to pay, or upon receipt of the customer’s purchase order), and | ||||||||||||||||||||
● | Delivery has occurred or services have been rendered and there are no uncertainties surrounding product acceptance (i.e., when title and risk of loss have been transferred to the customer, which occurs when the media containing the licensed program(s) is provided to a common carrier or, in the case of electronic delivery, when the customer is given access to the licensed program(s)), and | ||||||||||||||||||||
● | The price to the customer is fixed or determinable, as typically evidenced in a signed non-cancellable contract, or a customer’s purchase order, and | ||||||||||||||||||||
● | Collectability is probable. If collectability is not considered probable, revenue is recognized when the fee is collected. | ||||||||||||||||||||
Revenue recognized on software arrangements involving multiple deliverables is allocated to each deliverable based on vendor-specific objective evidence (“VSOE”) or third party evidence of the fair values of each deliverable; such deliverables include licenses for software products, maintenance, private labeling fees, and customer training. We limit our assessment of VSOE for each deliverable to either the price charged when the same deliverable is sold separately or the price established by management having the relevant authority to do so, for a deliverable not yet sold separately. | |||||||||||||||||||||
If sufficient VSOE of the fair value does not exist so as to permit the allocation of revenue to the various elements of the arrangement, all revenue from the arrangement is deferred until such evidence exists or until all elements are delivered. If VSOE of the fair value does not exist, and the only undelivered element is maintenance, then we recognize revenue on a ratable basis. If VSOE of the fair value of all undelivered elements exists but does not exist for one or more delivered elements, then revenue is recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. | |||||||||||||||||||||
Certain resellers (“stocking resellers”) purchase product licenses that they hold in inventory until they are resold to the ultimate end user (an “inventory stocking order”). At the time that a stocking reseller places an inventory stocking order, no product licenses are shipped by us to the stocking reseller; rather, the stocking reseller’s inventory is credited with the number of licenses purchased and the stocking reseller can resell (issue) any number of licenses from their inventory at any time. Upon receipt of an order to issue a license(s) from a stocking reseller’s inventory (a “draw down order”), we will ship the license(s) in accordance with the draw down order’s instructions. We defer recognition of revenue from inventory stocking orders until the underlying licenses are sold and shipped to the end user, as evidenced by the receipt and fulfillment of the stocking reseller’s draw down order, assuming all other revenue recognition criteria have been met. | |||||||||||||||||||||
There are no rights of return granted to resellers or other purchasers of our software products. | |||||||||||||||||||||
Revenue from maintenance contracts is recognized ratably over the related contract period, which generally ranges from one to five years. | |||||||||||||||||||||
All of our software licenses are denominated in U.S. dollars. | |||||||||||||||||||||
Deferred Rent | |||||||||||||||||||||
The lease for our office in Campbell, California, as amended, (See Note 6) contains free rent and predetermined fixed escalations in our minimum rent payments. We recognize rent expense related to this lease on a straight-line basis over the term of the lease. We record any difference between the straight-line rent amounts and amounts payable under the lease as part of deferred rent in current or long-term liabilities, as appropriate. | |||||||||||||||||||||
Incentives that we received upon entering into the lease agreement are recognized on a straight-line basis as a reduction to rent over the term of the lease. We record the unamortized portion of these incentives as a part of deferred rent in current or long-term liabilities, as appropriate. | |||||||||||||||||||||
Postemployment Benefits (Severance Liability) | |||||||||||||||||||||
Nonretirement postemployment benefits, including salary continuation, supplemental unemployment benefits, severance benefits, disability-related benefits and continuation of benefits such as health care benefits, are recognized as a liability and a loss when it is probable that the employee(s) will be entitled to such benefits and the amount can be reasonably estimated. The cost of termination benefits recognized as a liability and an expense includes the amount of any lump-sum payments and the present value of any expected future payments. During 2012, we recorded $721,800 of severance expense, including stock compensation expense. Such expense was recorded as a result of a separation agreement and a release with Robert Dilworth in connection with Mr. Dilworth’s resignation as our Chief Executive Officer and as a member of our board of directors. In addition, during 2013 we recorded an additional $75,700 of severance expense as a result of a separation and release agreement we entered into with a former vice president-level employee (as further discussed in Note 5 to Unaudited Condensed Consolidated Financial Statements). An aggregate of $16,700 and $62,900 is reported as a severance liability, at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
Software Development Costs | |||||||||||||||||||||
We capitalize software development costs incurred from the time technological feasibility of the software is established until the software is available for general release, in accordance with GAAP. Such capitalized costs are subsequently amortized as costs of revenue over the shorter of three years or the remaining estimated useful life of the product. | |||||||||||||||||||||
Research and development costs and other computer software maintenance costs related to the software development are expensed as incurred. | |||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
Long-lived assets are assessed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, whenever we have committed to a plan to dispose of the assets or, at a minimum, annually. Typically, for long-lived assets to be held and used, measurement of an impairment loss is based on the fair value of such assets, with fair value being determined based on appraisals, current market value, comparable sales value, and discounted future cash flows, among other variables, as appropriate. Assets to be held and used (which assets are affected by an impairment loss) are depreciated or amortized at their new carrying amount over their remaining estimated life; assets to be sold or otherwise disposed of are not subject to further depreciation or amortization. No such impairment charge was recorded during either of the three-month periods ended March 31, 2014 or 2013. | |||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||
We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. | |||||||||||||||||||||
The following table sets forth the details of the Allowance for Doubtful Accounts for the three-month periods ended March 31, 2014 and 2013: | |||||||||||||||||||||
Beginning | Charge | Recoveries | Provision | Ending | |||||||||||||||||
Balance | Offs | Balance | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | $ | 42,000 | $ | — | $ | — | $ | (18,900 | ) | $ | 23,100 | ||||||||||
2013 | 33,900 | — | — | (18,300 | ) | 15,600 | |||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||
For the three-month periods ended March 31, 2014 and 2013, respectively, we considered the customers listed in the following table to be our most significant customers. The table sets forth the percentage of sales attributable to each customer during the periods presented, and the respective customer’s ending accounts receivable balance as a percentage of reported accounts receivable, net, as of March 31, 2014 and 2013. | |||||||||||||||||||||
Three Months | As of March 31, | Three Months | As of March 31, | ||||||||||||||||||
Ended | 2014 | Ended | 2013 | ||||||||||||||||||
31-Mar-14 | March 31, 2013 | ||||||||||||||||||||
Customer | Sales | Accounts | Sales | Accounts Receivable | |||||||||||||||||
Receivable | |||||||||||||||||||||
Alcatel-Lucent | 8 | % | 26 | % | 10 | % | 21.8 | % | |||||||||||||
Centric | 6 | % | 9 | % | 3.9 | % | 0 | % | |||||||||||||
Elosoft | 6 | % | 9 | % | 6.5 | % | 10.8 | % | |||||||||||||
Ericsson | 4.1 | % | 8 | % | 12.8 | % | 27.8 | % | |||||||||||||
GE | 13 | % | 22 | % | 2.2 | % | 0 | % | |||||||||||||
IDS | 8 | % | 0 | % | 8.4 | % | 0 | % | |||||||||||||
Total | 45.1 | % | 74 | % | 43.8 | % | 60.4 | % | |||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||
We currently do not have a material exposure to either commodity prices or interest rates; accordingly, we do not currently use derivative instruments to manage such risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. All derivative financial instruments are recognized in the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or in other comprehensive income if they qualify for cash flow hedge accounting. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The fair value of our accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relative short maturities of these items. | |||||||||||||||||||||
The fair value of warrants at issuance and for those recorded as a liability at each reporting date are determined in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement,” which establishes a fair value hierarchy that prioritizes the assumptions (inputs) to valuation techniques used to price assets or liabilities that are measured at fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The guidance for fair value measurements requires that assets, liabilities and certain equity instruments measured at fair value be classified and disclosed in one of the following categories: | |||||||||||||||||||||
● | Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. | ||||||||||||||||||||
● | Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||
● | Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. | ||||||||||||||||||||
As of March 31, 2014, all of our $1,152,300 Warrants Liability reported at fair value was categorized as Level 3 inputs (See Note 4). | |||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||
In July 2013, FASB issued ASU No. 2013-11 “Income Taxes (Topic 740)” (ASU 2013-11). The objective of ASU 2013-11 is to provide explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. FASB recognized that there was inconsistency in how previous guidance in this topic was applied in practice, thus; the objective of ASU 2013-11 is to eliminate the diversity of how previous guidance was applied. As the amendments in ASU 2013-11 do not require new recurring disclosures, rather, they are aimed at creating consistency in how previous guidance is applied, adoption of ASU 2013-11, which became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013, did not have a material impact on our results of operations, cash flows or financial position. | |||||||||||||||||||||
Reclassifications | |||||||||||||||||||||
As a result of internal cost restructurings, certain amounts previously allocated to our GO-Global segment prior to 2014 are now allocated to our hopTo segment, including costs associated with being a publicly-held entity and other corporate-level expense. The presentation of 2013 segment income (loss) from operations in Note 15 has been conformed to be consistent with the current year’s presentation. |
Note_3_Property_and_Equipment
Note 3 - Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
3. Property and Equipment | |||||||||
Property and equipment was: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Equipment | $ | 1,256,400 | $ | 1,243,500 | |||||
Furniture | 443,200 | 432,400 | |||||||
Leasehold improvements | 250,900 | 147,500 | |||||||
1,950,500 | 1,823,400 | ||||||||
Less: accumulated depreciation and amortization | 1,574,600 | 1,521,300 | |||||||
$ | 375,900 | $ | 302,100 | ||||||
Aggregate property and equipment depreciation and amortization expense was $53,300 and $25,200 during the three-month periods ended March 31, 2014 and 2013, respectively. |
Note_4_Liability_Attributable_
Note 4 - Liability Attributable to Warrants | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Warrants Liability [Abstract] | ' | ||||||||||||||||||||||||
Warrants Liability [Text Block] | ' | ||||||||||||||||||||||||
4. Liability Attributable to Warrants | |||||||||||||||||||||||||
On January 7, 2014, we entered into a securities purchase agreement (the “SPA”) with a limited number of institutional investors, pursuant to which we issued and sold for cash an aggregate 11,299,999 shares of our common stock at a purchase price of $0.30 per share (See Note 11). We also issued warrants to the investors for no additional consideration to purchase an aggregate 5,650,001 shares of our common stock at an exercise price of $0.40 per share from January 7, 2014 through January 7, 2019. | |||||||||||||||||||||||||
Under certain conditions of the SPA that will expire no later than January 7, 2015, we could be required to issue a variable number of additional warrants to the investors at a below-market value exercise price. Accordingly, we have concluded that the warrants issued to the investors are not indexed to our common stock; therefore, the fair value of these warrants has been recorded as a liability. | |||||||||||||||||||||||||
Using a binomial pricing model, we calculated the fair value of the warrants issued to the investors on January 7, 2014 to be $1,356,000. We used the following assumptions in the binomial pricing model to derive the fair value: estimated volatility 158%; annualized forfeiture rate 0%; expected term 5 years; estimated exercise factor 3.5; risk free interest rate 1.71; and dividends 0. | |||||||||||||||||||||||||
On June 17, 2013, we entered into, and subsequently consummated, an Exercise Agreement (the “Exercise Agreement”) with five of the largest investors in our September 1, 2011 private placement of common stock and warrants (the “2011 Transaction”), providing for the exercise for cash by such investors of warrants to purchase an aggregate of 9 million shares of our common stock, out of the approximately 17 million shares of common stock subject to warrants issued to the investors in the 2011 Transaction that remained outstanding as of such date. The approximately 5 million shares of common stock subject to warrants issued to the placement agent in the 2011 Transaction that remained outstanding as of such date were not part of the Exercise Agreement. We agreed under the Exercise Agreement to subsequently commence a tender offer (the “Offer to Exercise”) to provide these holders of other warrants that remained outstanding from the 2011 Transaction with the same opportunity to exercise as provided under the Exercise Agreement. | |||||||||||||||||||||||||
The warrants exercised had a remaining term of approximately 38 months, and had an exercise price of $0.26 per warrant, which was the original exercise price. We received cash proceeds of $2.34 million as a result of the warrants exercised. In consideration for the early exercise of these warrants, we issued to the five investors an aggregate of 4.5 million warrants to purchase common stock at an exercise price of $1.00 per warrant, with a term of five years from issuance (the “New Warrants”). The New Warrants were issued on June 18, 2013, are substantially similar to the investor warrants that were exercised, and, after giving effect to the amendments to such warrants described below, such warrants have been recorded as a component of equity (additional paid-in capital “APIC”) at Level 3 fair value. | |||||||||||||||||||||||||
Using a binomial pricing model, we calculated the fair value of the New Warrants issued at the time of the Exercise Agreement to be $514,800. We used the following assumptions in the binomial pricing model: estimated volatility 185%; annualized forfeiture rate 0%; expected term 5 years; estimated exercise factor 1.5, risk free interest rate 1.07%; and dividends 0. The New Warrants were accounted for as a cost of the exercise of the warrants issued pursuant to the Exercise Agreement; as a result a $514,800 reduction of APIC was also recorded. Accordingly, there was no net effect on equity because of the issuance of the new warrants. | |||||||||||||||||||||||||
Immediately prior to the exercise for cash, the five investors, who held a majority of the outstanding warrants issued in the 2011 Transaction to investors (“Investor Warrants”), agreed to amend the entire series of such warrants to delete the following provisions: (1) the price-based anti-dilution clause; (2) our right to lower the exercise price in our discretion; and (3) a clause that mandated that we buy the warrants for cash at their Black-Scholes value in the event of certain extraordinary transactions. By virtue of a majority-rule clause in the warrants, the elimination of these provisions from the Investor Warrants issued in the 2011 Transaction eliminated the warrant derivative liability classification related to all of the Investor Warrants issued in the 2011 Transaction including those held by investors who did not exercise their warrants at the date of the amendment. The tables below show the calculation of the reduction of the warrants derivative liability. | |||||||||||||||||||||||||
The warrants issued to the placement agent and to an intellectual property consulting firm (ipCapital Group, Inc.) were not included in the Exercise Agreement or affected by the amendment described above. The exercise price of such warrants could, in certain circumstances, be reset to below-market value. Accordingly, unlike the amended investor warrants, we have concluded that the warrants issued to the placement agent and ipCapital Group, Inc. are not indexed to our common stock; therefore, the fair value of these warrants were, and continue to be, recorded as a liability. | |||||||||||||||||||||||||
On August 9, 2013, we consummated an offer to exercise warrants (the “Offer to Exercise”) made to holders of warrants in the 2011 Transaction who were not parties to the Exercise Agreement. We were obligated to conduct the Offer to Exercise under the terms of the Exercise Agreement entered into in connection with the June 17, 2013 transaction. In connection with the Offer to Exercise, warrants to purchase an aggregate of 305,000 shares of our common stock were exercised for which we received cash proceeds of $64,000. In consideration for the early exercise of these warrants, we issued an aggregate of 152,500 New Warrants at an exercise price of $1.00 per warrant, with a term of five years from issuance. | |||||||||||||||||||||||||
Using a binomial pricing model, we calculated the fair value of the New Warrants issued at the end of the Offer to Exercise to be $45,600. We used the following assumptions in the binomial pricing model: estimated volatility 171%; annualized forfeiture rate 0%; expected term 4.875 years; estimated exercise factor 4, risk free interest rate 1.31%; and dividends 0. The New Warrants were accounted for as a cost of the exercise of the warrants issued pursuant to the Exercise Agreement; as a result a $45,600 reduction of APIC was also recorded. Accordingly, there was no net effect on equity because of the issuance of the new warrants. | |||||||||||||||||||||||||
Under ASC 820, “Fair Value Measurement,” we re-measure the fair value of the warrants classified as a liability at every balance sheet date. As an integral part of the re-measurement process, we reevaluate each of the assumptions used, and when circumstances change or we become aware of new information affecting any of our assumptions, we adjust those assumptions accordingly. During the three months ended March 31, 2013, two investors in the 2011 private placement exercised an aggregate of 462,500 warrants. While closing our books for the three months ended March 31, 2013, we reevaluated our internal assumptions based on historic and recent exercise patterns and analysis of our stock performance. Based on the work performed, we concluded that a lowering of our estimated exercise factor for the warrants issued in conjunction with the 2011 transaction from 10 to 4 was appropriate (see the assumptions used, as set forth in the tables, below). | |||||||||||||||||||||||||
Changes in fair value of the warrants liability are recognized in other income (expense), except for changes in the fair value of the warrants issued to ipCapital, which are recognized as a component of general and administrative expense in the condensed consolidated statement of operations. | |||||||||||||||||||||||||
We used the exercise price of the warrants, as well as the fair market value of our common stock, to determine the fair value of our warrants. The exercise price for warrants issued in conjunction with the 2011 Transaction, including those issued to the placement agent, was either $0.20 or $0.26 per share, and was $0.26 per share for the warrants issued to ipCapital. | |||||||||||||||||||||||||
The fair market value of our common stock was $0.20 and $0.37 per share as of March 31, 2014 and 2013, respectively. We used a binomial pricing model to determine the fair value of our warrants liability as of March 31, 2014 and December 31, 2013, the balance sheet dates, using the following assumptions: | |||||||||||||||||||||||||
Estimated | Annualized Forfeiture | Expected | Estimated | Risk-Free | Dividends | ||||||||||||||||||||
Volatility | Rate | Term | Exercise | Interest Rate | |||||||||||||||||||||
(Years) | Factor | ||||||||||||||||||||||||
2011 Transaction | |||||||||||||||||||||||||
31-Mar-14 | 91 | % | — | 2.42 | 3.5 | 0.53 | % | — | |||||||||||||||||
31-Dec-13 | 102 | % | — | 2.67 | 3.5 | 0.51 | % | — | |||||||||||||||||
2014 Transaction | |||||||||||||||||||||||||
31-Mar-14 | 140 | % | — | 4.77 | 3.5 | 1.43 | % | — | |||||||||||||||||
31-Dec-13 | — | — | — | — | — | — | |||||||||||||||||||
ipCapital | |||||||||||||||||||||||||
31-Mar-14 | 93 | % | — | 3.54 | 4 | 0.56 | % | — | |||||||||||||||||
31-Dec-13 | 108 | % | — | 3.79 | 4 | 0.53 | % | — | |||||||||||||||||
The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2014: | |||||||||||||||||||||||||
Warrants liability – December 31, 2013 fair value | $ | 979,800 | |||||||||||||||||||||||
Change in fair value of warrant liability recorded in other income | (1,133,700 | ) | |||||||||||||||||||||||
Change in fair value of warrant liability recorded in general and administrative expense | (49,800 | ) | |||||||||||||||||||||||
Aggregate fair value of the warrants liability associated with the 2014 transaction warrants at issuance | 1,356,000 | ||||||||||||||||||||||||
Warrants liability – March 31, 2014 fair value | $ | 1,152,300 | |||||||||||||||||||||||
The following tables reconcile the total number of warrants outstanding for the periods indicated: | |||||||||||||||||||||||||
For the Three-Month Period Ended March 31, 2014 | |||||||||||||||||||||||||
Beginning Outstanding | Issued | Exercised | Ending | ||||||||||||||||||||||
Outstanding | |||||||||||||||||||||||||
2011 Transaction | 11,302,500 | — | 1,000,000 | 10,302,500 | |||||||||||||||||||||
2014 Transaction | — | 5,650,001 | — | 5,650,001 | |||||||||||||||||||||
Exercise Agreement | 4,500,000 | — | — | 4,500,000 | |||||||||||||||||||||
ipCapital | 400,000 | — | — | 400,000 | |||||||||||||||||||||
Consultant Warrant (1) | 312,500 | — | — | 312,500 | |||||||||||||||||||||
Offer to Exercise | 152,500 | — | — | 152,500 | |||||||||||||||||||||
Total | 16,667,500 | 5,650,001 | 1,000,000 | 21,317,501 | |||||||||||||||||||||
For the Three-Month Period Ended March 31, 2013 | |||||||||||||||||||||||||
Beginning Outstanding | Issued | Exercised | Ending | ||||||||||||||||||||||
Outstanding | |||||||||||||||||||||||||
2011 Transaction | 23,075,000 | — | 462,500 | 22,612,500 | |||||||||||||||||||||
ipCapital | 400,000 | — | — | 400,000 | |||||||||||||||||||||
Total | 23,475,000 | — | 462,500 | 23,012,500 | |||||||||||||||||||||
-1 | On February 11, 2014, we served notice to a former investors relations firm that we were cancelling our consulting agreement with them, with such cancellation to be effective April 11, 2014. Under the terms of the agreement, 169,273 of the warrants that had been issued to such firm will have vested as of the effective cancellation date, and 143,227 will ultimately be forfeited. | ||||||||||||||||||||||||
Note_5_Severance_Liability
Note 5 - Severance Liability | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||
5. Severance Liability | |||||||||||||
During 2012, we entered into a separation agreement and a release with our former Chief Executive Officer and member of our board of directors, and in 2013 we entered into a separation agreement and a release with a former vice president level employee. Under the terms of these agreements and releases, we agreed to provide each individual with salary continuation and medical coverage payments for predetermined lengths of time. In addition, we agreed to provide the former Chief Executive Officer with certain stock option benefits including the grant of an additional stock option, accelerated vesting of all then-outstanding options previously granted to him, and an extension of the post-employment exercise period for all of his options, including the newly granted one. All costs associated with the modification of his options and the costs of the new option grant were immediately recognized upon his separation. | |||||||||||||
The following table summarizes the salary continuation and medical coverage payments during the three-month period ended March 31, 2014. | |||||||||||||
Compensation | Medical Coverage | Total | |||||||||||
Balance at December 31, 2013 | $ | 62,900 | $ | — | $ | 62,900 | |||||||
Accrued interest | 1,500 | — | 1,500 | ||||||||||
Payments | (47,700 | ) | — | (47,700 | ) | ||||||||
Balance at March 31, 2014 | $ | 16,700 | $ | — | $ | 16,700 | |||||||
Note_6_Deferred_Rent
Note 6 - Deferred Rent | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||||||
Deferred Revenue Disclosure [Text Block] | ' | ||||||||||||
6. Deferred Rent | |||||||||||||
We amended our office lease during 2013. On February 1, 2014, we moved our corporate offices to a different building within the same office complex owned and operated by our landlord in Campbell, California, where our corporate offices had been located prior to February 1, 2014. Since the new space is controlled by the same landlord, we considered the lease amendment to be a modification to our preexisting lease; accordingly, we are amortizing the remaining balance in deferred rent immediately prior to February 1, 2014 over the remaining term of the modified amended lease. Additionally, our landlord provided us with $103,400 of leasehold improvements on the new space that we are amortizing over the reaming term of the amended lease. All of the prior leasehold improvements that had not been previously amortized were accelerated and recognized in their entirety from the time of the amendment through January 2014, prior to the move. | |||||||||||||
As of March 31, 2014 deferred rent was: | |||||||||||||
Component | Current | Long-Term | Total | ||||||||||
Liabilities | Liabilities | ||||||||||||
Deferred rent expense | $ | (5,000 | ) | $ | 50,200 | $ | 45,200 | ||||||
Deferred rent benefit | 39,000 | 139,900 | 178,900 | ||||||||||
$ | 34,000 | $ | 190,100 | $ | 224,100 | ||||||||
As of December 31, 2013 deferred rent was: | |||||||||||||
Component | Current Liabilities | Long-Term Liabilities | Total | ||||||||||
Deferred rent expense | $ | 7,200 | $ | 24,600 | $ | 31,800 | |||||||
Deferred rent benefit | 24,000 | 60,000 | 84,000 | ||||||||||
$ | 31,200 | $ | 84,600 | $ | 115,800 | ||||||||
Deferred rent expense represents the remaining balance of the aggregate free rent we received from our landlord and escalations that are being recognized over the life of the lease as a component of rent expense. Deferred rent benefit relates to the unamortized portion of the leasehold improvements provided to us by our landlord (i.e., incentives) that we are recognizing on a straight-line basis as a reduction to rent expense over the term of the lease. |
Note_7_StockBased_Compensation
Note 7 - Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
7. Stock-Based Compensation | |||||||||||||||||
The following table summarizes the stock-based compensation expense, net of amounts capitalized, we recorded in our Unaudited Condensed Consolidated Statements of Operations for the three-month periods ended March 31, 2014 and 2013, respectively, by classification: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Statement of Operations Classification | 2014 | 2013 | |||||||||||||||
Costs of revenue | $ | (600 | ) | $ | 2,100 | ||||||||||||
Selling and marketing expense | 5,900 | 40,500 | |||||||||||||||
General and administrative expense | 137,200 | 94,900 | |||||||||||||||
Research and development expense | 27,200 | 48,300 | |||||||||||||||
$ | 169,700 | $ | 185,800 | ||||||||||||||
The following table presents summaries of the status and activity of our stock option awards for the three-month period ended March 31, 2014. | |||||||||||||||||
Number of | Weighted | Weighted Average Remaining Contractual | Aggregate | ||||||||||||||
Shares | Average | Terms (Years) | Intrinsic | ||||||||||||||
Exercise | Value | ||||||||||||||||
Price | |||||||||||||||||
Outstanding – December 31, 2013 | 12,019,328 | $ | 0.21 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (215,757 | ) | 0.2 | ||||||||||||||
Forfeited or expired | (241,516 | ) | 0.2 | ||||||||||||||
Outstanding – March 31, 2013 | 11,562,055 | $ | 0.2 | 5.37 | $ | 246,800 | |||||||||||
Of the options outstanding as of March 31, 2014, 8,752,638 were vested, 2,696,533 were estimated to vest in future periods and 112,884 were estimated to be forfeited prior to their vesting. As of March 31, 2014, there was approximately $255,100 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options. Such cost is expected to be recognized over a weighted-average period of approximately ten months. | |||||||||||||||||
All options are exercisable immediately upon grant. Options vest ratably, generally over a 33-month period commencing in the fourth month after the grant date. We have the right to repurchase common stock issued upon the exercise of an option upon an optionee’s termination of service to us prior to full vesting at the option’s exercise price. | |||||||||||||||||
The following table presents summaries of the status and activity of our restricted stock awards for the three-month period ended March 31, 2014. We include the common stock underlying the restricted stock award in shares outstanding once such common stock has vested and the restriction has been removed (“releases” or “released”). The common stock vests ratably, generally over a 33-month period commencing in the fourth month after the award date. | |||||||||||||||||
Number of | Weighted | Weighted Average Remaining Recognition | Unrecognized Compensation | ||||||||||||||
Shares | Average | Period (Years) | Cost | ||||||||||||||
Grant Date | Remaining | ||||||||||||||||
Fair Value | |||||||||||||||||
Unreleased – December 31, 2013 | 3,938,426 | $ | 0.28 | ||||||||||||||
Awarded | 385,000 | 0.3 | |||||||||||||||
Released | (476,259 | ) | 0.28 | ||||||||||||||
Forfeited | (1,169,347 | ) | 0.22 | ||||||||||||||
Unreleased – March 31, 2014 | 2,677,820 | $ | 0.31 | 2.03 | $ | 674,400 | |||||||||||
As of March 31, 2014, there was approximately $674,400 of total unrecognized compensation cost, net of estimated forfeitures, related to unreleased restricted stock awards. That cost is expected to be recognized over a weighted-average period of approximately twenty-six months. |
Note_8_Revenue
Note 8 - Revenue | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Revenue [Abstract] | ' | ||||||||||||||||
Revenue [Text Block] | ' | ||||||||||||||||
8. Revenue | |||||||||||||||||
Revenue for the three-month periods ended March 31, 2014 and 2013 was: | |||||||||||||||||
2014 Over (Under) 2013 | |||||||||||||||||
Revenue | 2014 | 2013 | Dollars | Percent | |||||||||||||
Software Licenses | |||||||||||||||||
Windows | $ | 510,100 | 640,100 | $ | (130,000 | ) | -20.3 | % | |||||||||
UNIX/Linux | 104,000 | 270,800 | (166,800 | ) | -61.6 | % | |||||||||||
614,100 | 910,900 | (296,800 | ) | -32.6 | % | ||||||||||||
Software Service Fees | |||||||||||||||||
Windows | 511,800 | 461,200 | 50,600 | 11 | % | ||||||||||||
UNIX/Linux | 198,200 | 227,300 | (29,100 | ) | -12.8 | % | |||||||||||
710,000 | 688,500 | 21,500 | 3.1 | % | |||||||||||||
Other | 16,100 | 17,600 | (1,500 | ) | -8.5 | % | |||||||||||
Total Revenue | $ | 1,340,200 | $ | 1,617,000 | $ | (276,800 | ) | -17.1 | % | ||||||||
Note_9_Cost_of_Revenue
Note 9 - Cost of Revenue | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Cost Of Revenue [Abstract] | ' | ||||||||||||||||
Cost Of Revenue [Text Block] | ' | ||||||||||||||||
9. Cost of Revenue | |||||||||||||||||
Cost of revenue for the three-month periods ended March 31, 2014 and 2013 was: | |||||||||||||||||
2013 Over (Under) 2012 | |||||||||||||||||
2014 | 2013 | Dollars | Percent | ||||||||||||||
Software service costs | $ | 94,600 | $ | 63,600 | $ | 31,000 | 48.7 | % | |||||||||
Software product costs | 100,000 | 48,200 | 51,800 | 107.5 | % | ||||||||||||
$ | 194,600 | $ | 111,800 | $ | 82,800 | 74.1 | % | ||||||||||
Note_10_Capitalized_Software_D
Note 10 - Capitalized Software Development Costs | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Research and Development [Abstract] | ' | ||||||||
Research, Development, and Computer Software Disclosure [Text Block] | ' | ||||||||
10. Capitalized Software Development Costs | |||||||||
Capitalized software development costs consisted of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Software development costs | $ | 1,119,400 | $ | 1,119,400 | |||||
Accumulated amortization | (568,000 | ) | (500,000 | ) | |||||
$ | 551,400 | $ | 619,400 | ||||||
Amortization of capitalized software development costs is a component of costs of revenue. Capitalized software development costs amortization aggregated $68,000 and $41,500 during the three-month periods ended March 31, 2014, and 2013, respectively. | |||||||||
We recorded $0 and $464,500 of capitalized software development costs during the three-month periods ended March 31, 2014 and 2013, respectively. Such costs capitalized during the three-month period ended March 31, 2013 were associated with the development of hopTo. Had these costs not met the criteria for capitalization, they would have been expensed. |
Note_11_Stockholders_Equity
Note 11 - Stockholders' Equity | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Stockholders' Equity Note [Abstract] | ' | ||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||
11. Stockholders’ Equity | |||||
2014 Private Placement | |||||
During the three-month period ended March 31, 2014, we issued and sold for cash an aggregate 11,299,999 shares of our common stock at a purchase price of $0.30 per share in the 2014 private placement that resulted in gross proceeds of $3,390,000 (See Note 4). | |||||
The 2014 private placement was recorded into the financial statements as follows: | |||||
Gross cash proceeds | $ | 3,390,000 | |||
Less: gross proceeds allocated to warrants liability – investors | (1,356,000 | ) | |||
Gross proceeds allocated to additional paid-in capital and common stock | 2,034,000 | ||||
Less: cash issuance costs – legal fees | (20,000 | ) | |||
Recorded in additional paid-in capital and common stock | $ | 2,014,000 | |||
In conjunction with the 2014 private placement, we recorded a warrants liability of $1,356,000 as of January 7, 2014 on our Balance Sheet (Note 4). | |||||
Prior to the consummation of the 2014 private placement, we had entered into negotiations with potential investors in which we had discussed various investment scenarios that ultimately were not pursued. We incurred an aggregate $41,200 of legal fees associated with these plans that we charged to operating expense during 2013. | |||||
Accounting fees associated with the 2014 private placement, which aggregated approximately $9,600, were deemed immaterial and were charged to operating expense during the three-month period ended March 31, 2014. | |||||
Stock Repurchase Program | |||||
During each of the three-month periods ended March 31, 2014 and 2013, we did not repurchase any of our common stock under the terms of our Board-approved $1,000,000 stock repurchase program (“stock repurchase program”). As of March 31, 2014, approximately $782,600 remained available for future purchases under this program. We are not obligated to repurchase any specific number of shares and the stock repurchase program may be suspended or terminated at our discretion. |
Note_12_Commitments_and_Contin
Note 12 - Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
12. Commitments and Contingencies | |||||
On February 1, 2014, we relocated our corporate offices to a larger suite within our landlord’s office complex in Campbell, California. We are currently leasing 10,659 square feet under a five-year lease that, unless renewed, will expire in October 2018. The following table sets forth the minimum lease payments we will be required to make throughout the remainder of the lease: | |||||
Year | Amount | ||||
Remainder of 2014 | $ | 328,900 | |||
2015 | 450,600 | ||||
2016 | 464,200 | ||||
2017 | 478,100 | ||||
2018 | 366,600 | ||||
$ | 2,088,400 | ||||
Note_13_Supplemental_Disclosur
Note 13 - Supplemental Disclosure of Cash Flow Information | 3 Months Ended |
Mar. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow, Supplemental Disclosures [Text Block] | ' |
13. Supplemental Disclosure of Cash Flow Information | |
We did not disburse any cash for the payment of interest expense during the three-month periods ended March 31, 2014 or 2013. We did not disburse any cash for the payment of income taxes during the three-month period ended March 31, 2014. We disbursed $1,100 for the payment of income taxes during the three-month period ended March 31, 2013. Such disbursement was made for the payment of foreign income taxes related to the operation of our Israeli subsidiary, GraphOn Research Labs, Ltd. | |
During the three-month period ended March 31, 2014 we reduced our warrants liability by $1,183,500, which was recorded in the Condensed Consolidated Statement of Operations. Such reduction reflected the aggregate fair value adjustments we recorded during such period, which was partially offset by the recording of the fair value of warrants issued in conjunction with the 2014 transaction. No cash was disbursed in conjunction with these items (See Note 4). | |
During the three-month period ended March 31, 2014, we capitalized $103,400 of leasehold improvements for which no cash was disbursed. We recorded $81,600 of such amount to long-term liabilities – deferred rent, and $21,800 to current liabilities – deferred rent. |
Note_14_Earnings_Loss_Per_Shar
Note 14 - Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share [Text Block] | ' |
14. Earnings (Loss) Per Share | |
Earnings or loss per share is calculated by dividing the net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share (“Diluted EPS”) is calculated by dividing the net income or loss for the period by the total of the weighted average number of shares of common stock outstanding during the period plus the effects of any dilutive securities. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of such potential shares of common stock would have an anti-dilutive effect. During all periods presented in our Condensed Consolidated Statements of Operations, potentially dilutive securities included shares of common stock potentially issuable upon exercise of stock options, release of unvested restricted stock awards and exercise of warrants. Diluted EPS excludes the impact of potential issuance of shares of common stock related to our stock options in periods in which the exercise price of the stock option is greater than the average market price of our common stock during such periods. | |
For the three-month periods ended March 31, 2014 and 2013, 35,557,372 and 40,421,088 shares of common stock equivalents, respectively, were excluded from the computation of dilutive loss per share since their effect would be anti-dilutive. |
Note_15_Segment_Information
Note 15 - Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
15. Segment Information | |||||||||||||||||
FASB has established guidance for reporting information about operating segments that require segmentation based on our internal organization and reporting of revenue and operating income, based on internal accounting methods. Our financial reporting systems present various data for management to operate the business prepared in methods consistent with such guidance. | |||||||||||||||||
We currently operate our business in two segments; namely GO-Global and hopTo. Currently, GO-Global is the only segment that generates revenue. | |||||||||||||||||
Segment revenue for the three-month periods ended March 31, 2014 and 2013 was as follows: | |||||||||||||||||
Increase (Decrease) | |||||||||||||||||
2014 | 2013 | Dollars | Percentage | ||||||||||||||
GO-Global | $ | 1,340,200 | $ | 1,617,000 | $ | (276,800 | ) | -17.1 | % | ||||||||
hopTo | — | — | — | n/a | |||||||||||||
Consolidated Total | $ | 1,340,200 | $ | 1,617,000 | $ | (276,800 | ) | -17.1 | % | ||||||||
Segment income (loss) from operations for the three-month periods ended March 31, 2014 and 2013 was as follows: | |||||||||||||||||
Increase (Decrease) | |||||||||||||||||
2014 | 2013 | Dollars | Percentage | ||||||||||||||
GO-Global | $ | 644,200 | $ | 700,400 | $ | (56,200 | ) | -8 | % | ||||||||
hopTo | (2,448,900 | ) | (1,153,400 | ) | (1,295,500 | ) | -112.3 | % | |||||||||
Total | $ | (1,804,700 | ) | $ | (453,000 | ) | $ | (1,351,700 | ) | -298.4 | % | ||||||
We do not allocate interest, other income, other expense, or income tax to our segments. | |||||||||||||||||
As of March 31, 2014 segment long-lived assets were as follows: | |||||||||||||||||
Cost Basis | Accumulated | Net | |||||||||||||||
Depreciation | |||||||||||||||||
/Amortization | |||||||||||||||||
GO-Global | $ | 1,916,200 | $ | (1,829,100 | ) | $ | 87,100 | ||||||||||
hopTo | 3,989,100 | (3,148,900 | ) | 840,200 | |||||||||||||
Unallocated | 139,900 | — | 139,900 | ||||||||||||||
Total | $ | 6,045,200 | $ | (4,978,000 | ) | $ | 1,067,200 | ||||||||||
We do not maintain any significant long-lived assets outside of the United States. | |||||||||||||||||
Products and services provided by the GO-Global segment include all currently available versions of the GO-Global family of products, OEM private labeling kits, software developer’s kits, maintenance contracts, and product training and support. The hopTo segment, which is under development, will provide mobile end users with a productivity workspace for their mobile devices that will allow users to manage, share, view, and edit their documents, regardless of where they are stored. We launched the commercial release of hopTo through Apple’s App Store in November 2013. The two segments do not engage in cross-segment transactions. | |||||||||||||||||
Go-Global software revenue by country for the three-month periods ended March 31, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Revenue by Country | 2014 | 2013 | |||||||||||||||
United States | $ | 551,000 | $ | 643,600 | |||||||||||||
Germany | 96,400 | 188,300 | |||||||||||||||
Brazil | 157,000 | 133,000 | |||||||||||||||
Other Countries | 535,800 | 652,100 | |||||||||||||||
Total | $ | 1,340,200 | $ | 1,617,000 | |||||||||||||
Note_16_Related_Party_Transact
Note 16 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
16. Related Party Transactions | |
Tamalpais Partners LLC | |
Steven Ledger, former Chairman of our Board of Directors, is the founder and managing partner of Tamalpais Partners LLC, (“Tamalpais”) a business consulting firm. On March 17, 2014, contemporaneous with Mr. Ledger’s resignation from our board, we mutually agreed with Mr. Ledger to terminate our consulting agreement with Tamalpais. We paid Tamalpais $12,000 and $18,000 for the three-month periods ended March 31, 2014 and 2013, respectively, for services rendered to us under the terms of this consulting agreement. No amounts were due Tamalpais at either March 31, 2014 or 2013. | |
When he resigned as our Chairman, we entered into a short-term consulting agreement with Mr. Ledger that was separate from the terminated agreement with Tamalpais. Under that exclusive consulting agreement, Mr. Ledger began providing consulting services to our Board of Directors for a term that commenced upon his resignation, which will end on August 15, 2014. The consulting agreement also provides that Mr. Ledger’s then currently unvested options to purchase our common stock granted during his term as a director will continue to vest during the term of the consulting agreement in accordance with their original terms. In addition, the agreement provides that the period in which to exercise such options will be extended through the end of 2014. Mr. Ledger will also be reimbursed for his reasonable expenses incurred in connection with rendering services to our Board of Directors in accordance with our expense reimbursement policies. The consulting agreement also contains confidentiality, mutual non-disparagement and independent contractor-related provisions. | |
ipCapital Group, Inc. | |
On October 11, 2011, we engaged ipCapital Group, Inc. (“ipCapital”), an affiliate of John Cronin, who is one of our directors, to assist us in the execution of our strategic decision to significantly strengthen, grow and commercially exploit our intellectual property assets. Our engagement agreement with ipCapital, which has been amended three times, affords us the right to request ipCapital to perform a number of diverse services, employing its proprietary processes and methodologies, to facilitate our ability to identify and extract from our current intellectual property base new inventions, potential patent applications, and marketing and licensing opportunities. | |
For the three-month periods ended March 31, 2014 and 2013, we paid ipCapital an aggregate of $0 and $5,000, respectively, for services performed under the engagement agreement, as amended. For the three-month periods ended March 31, 2014 and 2013, we had incurred additional charges from ipCaptial for work performed during such periods of $0 and $10,000, respectively. Such amounts were reported in accounts payable. | |
In addition to the fees we agreed to pay ipCapital for its services, we issued ipCapital a five-year warrant to purchase up to 400,000 shares of our common stock at an initial price of $0.26 per share. Half of the warrant (200,000 shares) has a time-based vesting condition, with such vesting to occur in three equal annual installments. The first two vesting installments occurred on October 11, 2012 and October 11, 2013, respectively, with the remaining vesting installment to occur on October 11, 2014. The remaining 200,000 shares became fully vested upon the completion to our satisfaction of all services that we requested from ipCapital under the engagement agreement, prior to the signing of the amendments. Such performance was deemed satisfactory during 2012. We believe that these fees, together with the issuance of the warrant, constitute no greater compensation than we would be required to pay an unaffiliated person for performing substantially similar services. | |
The exercise price of the warrant issued to ipCapital could be reset to below-market value. Consequently, we have concluded that such warrant is not indexed to our common stock and should be recorded as a liability. We recognize the warrants liability over their vesting period, and in accordance with the liability method of accounting, we re-measure the fair value of the accrued warrants at each balance sheet date and recognize the change in fair value as general and administrative compensation expense. (See Note 4). We recognized $49,800 and $73,500 as a component of general and administrative expense during the three-month periods ended March 31, 2014 and 2013, respectively, resulting from the change in fair value. | |
ipCapital Licensing Company I, LLC | |
On February 4, 2013, we entered into an IP Brokerage agreement with ipCapital Licensing Company I, LLC (“ipCLC”). John Cronin is a partner at ipCLC. Pursuant to the agreement, we have engaged ipCLC, on a no-retainer basis, to identify and present us with candidates who may be seeking to acquire a certain limited group of our patents unrelated to our current business strategy. If during the applicable term we enter into an agreement with any candidate presented by ipCLC to acquire or otherwise exploit the covered patents, we will pay ipCLC a fee of ten percent (10%) of the royalties, fees, and other consideration paid over the life of the agreement. | |
The agreement is effective as of February 4, 2013, and will end 18 months after we or ipCLC serve 60 days written notice of termination to the other party (with earlier termination possible in the event of a material breach). The agreement provides for customary confidentiality undertakings, limitations on ipCLC’s total liability and mutual indemnification provisions. | |
We believe the terms of the agreement are fair and reasonable to us and are at least as favorable as those that could be obtained on an arms’ length basis. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with GAAP 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 amounts of revenues and expenses during the reporting period. These estimates include: the amount of stock-based compensation expense; the allowance for doubtful accounts; the estimated lives, valuation, and amortization of intangible assets (including capitalized software); depreciation of long-lived assets; valuation of warrants; post-employment benefits, and accruals for liabilities. While we believe that such estimates are fair, actual results could differ materially from those estimates. | |||||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
We market and license our products indirectly through channel distributors, independent software vendors (“ISVs”), value-added resellers (“VARs”) (collectively, “resellers”) and directly to corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. | |||||||||||||||||||||
Software license revenues are recognized when: | |||||||||||||||||||||
● | Persuasive evidence of an arrangement exists, (i.e., when we sign a non-cancellable license agreement wherein the customer acknowledges an unconditional obligation to pay, or upon receipt of the customer’s purchase order), and | ||||||||||||||||||||
● | Delivery has occurred or services have been rendered and there are no uncertainties surrounding product acceptance (i.e., when title and risk of loss have been transferred to the customer, which occurs when the media containing the licensed program(s) is provided to a common carrier or, in the case of electronic delivery, when the customer is given access to the licensed program(s)), and | ||||||||||||||||||||
● | The price to the customer is fixed or determinable, as typically evidenced in a signed non-cancellable contract, or a customer’s purchase order, and | ||||||||||||||||||||
● | Collectability is probable. If collectability is not considered probable, revenue is recognized when the fee is collected. | ||||||||||||||||||||
Revenue recognized on software arrangements involving multiple deliverables is allocated to each deliverable based on vendor-specific objective evidence (“VSOE”) or third party evidence of the fair values of each deliverable; such deliverables include licenses for software products, maintenance, private labeling fees, and customer training. We limit our assessment of VSOE for each deliverable to either the price charged when the same deliverable is sold separately or the price established by management having the relevant authority to do so, for a deliverable not yet sold separately. | |||||||||||||||||||||
If sufficient VSOE of the fair value does not exist so as to permit the allocation of revenue to the various elements of the arrangement, all revenue from the arrangement is deferred until such evidence exists or until all elements are delivered. If VSOE of the fair value does not exist, and the only undelivered element is maintenance, then we recognize revenue on a ratable basis. If VSOE of the fair value of all undelivered elements exists but does not exist for one or more delivered elements, then revenue is recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. | |||||||||||||||||||||
Certain resellers (“stocking resellers”) purchase product licenses that they hold in inventory until they are resold to the ultimate end user (an “inventory stocking order”). At the time that a stocking reseller places an inventory stocking order, no product licenses are shipped by us to the stocking reseller; rather, the stocking reseller’s inventory is credited with the number of licenses purchased and the stocking reseller can resell (issue) any number of licenses from their inventory at any time. Upon receipt of an order to issue a license(s) from a stocking reseller’s inventory (a “draw down order”), we will ship the license(s) in accordance with the draw down order’s instructions. We defer recognition of revenue from inventory stocking orders until the underlying licenses are sold and shipped to the end user, as evidenced by the receipt and fulfillment of the stocking reseller’s draw down order, assuming all other revenue recognition criteria have been met. | |||||||||||||||||||||
There are no rights of return granted to resellers or other purchasers of our software products. | |||||||||||||||||||||
Revenue from maintenance contracts is recognized ratably over the related contract period, which generally ranges from one to five years. | |||||||||||||||||||||
All of our software licenses are denominated in U.S. dollars. | |||||||||||||||||||||
Deferred Rent [Policy Text Block] | ' | ||||||||||||||||||||
Deferred Rent | |||||||||||||||||||||
The lease for our office in Campbell, California, as amended, (See Note 6) contains free rent and predetermined fixed escalations in our minimum rent payments. We recognize rent expense related to this lease on a straight-line basis over the term of the lease. We record any difference between the straight-line rent amounts and amounts payable under the lease as part of deferred rent in current or long-term liabilities, as appropriate. | |||||||||||||||||||||
Incentives that we received upon entering into the lease agreement are recognized on a straight-line basis as a reduction to rent over the term of the lease. We record the unamortized portion of these incentives as a part of deferred rent in current or long-term liabilities, as appropriate. | |||||||||||||||||||||
Postemployment Benefit Plans, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Postemployment Benefits (Severance Liability) | |||||||||||||||||||||
Nonretirement postemployment benefits, including salary continuation, supplemental unemployment benefits, severance benefits, disability-related benefits and continuation of benefits such as health care benefits, are recognized as a liability and a loss when it is probable that the employee(s) will be entitled to such benefits and the amount can be reasonably estimated. The cost of termination benefits recognized as a liability and an expense includes the amount of any lump-sum payments and the present value of any expected future payments. During 2012, we recorded $721,800 of severance expense, including stock compensation expense. Such expense was recorded as a result of a separation agreement and a release with Robert Dilworth in connection with Mr. Dilworth’s resignation as our Chief Executive Officer and as a member of our board of directors. In addition, during 2013 we recorded an additional $75,700 of severance expense as a result of a separation and release agreement we entered into with a former vice president-level employee (as further discussed in Note 5 to Unaudited Condensed Consolidated Financial Statements). An aggregate of $16,700 and $62,900 is reported as a severance liability, at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Software Development Costs | |||||||||||||||||||||
We capitalize software development costs incurred from the time technological feasibility of the software is established until the software is available for general release, in accordance with GAAP. Such capitalized costs are subsequently amortized as costs of revenue over the shorter of three years or the remaining estimated useful life of the product. | |||||||||||||||||||||
Research and development costs and other computer software maintenance costs related to the software development are expensed as incurred. | |||||||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
Long-lived assets are assessed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, whenever we have committed to a plan to dispose of the assets or, at a minimum, annually. Typically, for long-lived assets to be held and used, measurement of an impairment loss is based on the fair value of such assets, with fair value being determined based on appraisals, current market value, comparable sales value, and discounted future cash flows, among other variables, as appropriate. Assets to be held and used (which assets are affected by an impairment loss) are depreciated or amortized at their new carrying amount over their remaining estimated life; assets to be sold or otherwise disposed of are not subject to further depreciation or amortization. No such impairment charge was recorded during either of the three-month periods ended March 31, 2014 or 2013. | |||||||||||||||||||||
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||
We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. | |||||||||||||||||||||
The following table sets forth the details of the Allowance for Doubtful Accounts for the three-month periods ended March 31, 2014 and 2013: | |||||||||||||||||||||
Beginning | Charge | Recoveries | Provision | Ending | |||||||||||||||||
Balance | Offs | Balance | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | $ | 42,000 | $ | — | $ | — | $ | (18,900 | ) | $ | 23,100 | ||||||||||
2013 | 33,900 | — | — | (18,300 | ) | 15,600 | |||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||
For the three-month periods ended March 31, 2014 and 2013, respectively, we considered the customers listed in the following table to be our most significant customers. The table sets forth the percentage of sales attributable to each customer during the periods presented, and the respective customer’s ending accounts receivable balance as a percentage of reported accounts receivable, net, as of March 31, 2014 and 2013. | |||||||||||||||||||||
Three Months | As of March 31, | Three Months | As of March 31, | ||||||||||||||||||
Ended | 2014 | Ended | 2013 | ||||||||||||||||||
31-Mar-14 | March 31, 2013 | ||||||||||||||||||||
Customer | Sales | Accounts | Sales | Accounts Receivable | |||||||||||||||||
Receivable | |||||||||||||||||||||
Alcatel-Lucent | 8 | % | 26 | % | 10 | % | 21.8 | % | |||||||||||||
Centric | 6 | % | 9 | % | 3.9 | % | 0 | % | |||||||||||||
Elosoft | 6 | % | 9 | % | 6.5 | % | 10.8 | % | |||||||||||||
Ericsson | 4.1 | % | 8 | % | 12.8 | % | 27.8 | % | |||||||||||||
GE | 13 | % | 22 | % | 2.2 | % | 0 | % | |||||||||||||
IDS | 8 | % | 0 | % | 8.4 | % | 0 | % | |||||||||||||
Total | 45.1 | % | 74 | % | 43.8 | % | 60.4 | % | |||||||||||||
Derivatives, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||
We currently do not have a material exposure to either commodity prices or interest rates; accordingly, we do not currently use derivative instruments to manage such risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. All derivative financial instruments are recognized in the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or in other comprehensive income if they qualify for cash flow hedge accounting. | |||||||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The fair value of our accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relative short maturities of these items. | |||||||||||||||||||||
The fair value of warrants at issuance and for those recorded as a liability at each reporting date are determined in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement,” which establishes a fair value hierarchy that prioritizes the assumptions (inputs) to valuation techniques used to price assets or liabilities that are measured at fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The guidance for fair value measurements requires that assets, liabilities and certain equity instruments measured at fair value be classified and disclosed in one of the following categories: | |||||||||||||||||||||
● | Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. | ||||||||||||||||||||
● | Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||
● | Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. | ||||||||||||||||||||
As of March 31, 2014, all of our $1,152,300 Warrants Liability reported at fair value was categorized as Level 3 inputs (See Note 4). | |||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||
In July 2013, FASB issued ASU No. 2013-11 “Income Taxes (Topic 740)” (ASU 2013-11). The objective of ASU 2013-11 is to provide explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. FASB recognized that there was inconsistency in how previous guidance in this topic was applied in practice, thus; the objective of ASU 2013-11 is to eliminate the diversity of how previous guidance was applied. As the amendments in ASU 2013-11 do not require new recurring disclosures, rather, they are aimed at creating consistency in how previous guidance is applied, adoption of ASU 2013-11, which became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013, did not have a material impact on our results of operations, cash flows or financial position. | |||||||||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||||||||||||
Reclassifications | |||||||||||||||||||||
As a result of internal cost restructurings, certain amounts previously allocated to our GO-Global segment prior to 2014 are now allocated to our hopTo segment, including costs associated with being a publicly-held entity and other corporate-level expense. The presentation of 2013 segment income (loss) from operations in Note 15 has been conformed to be consistent with the current year’s presentation. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||
Beginning | Charge | Recoveries | Provision | Ending | |||||||||||||||||
Balance | Offs | Balance | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||
2014 | $ | 42,000 | $ | — | $ | — | $ | (18,900 | ) | $ | 23,100 | ||||||||||
2013 | 33,900 | — | — | (18,300 | ) | 15,600 | |||||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||||||||||
Three Months | As of March 31, | Three Months | As of March 31, | ||||||||||||||||||
Ended | 2014 | Ended | 2013 | ||||||||||||||||||
31-Mar-14 | March 31, 2013 | ||||||||||||||||||||
Customer | Sales | Accounts | Sales | Accounts Receivable | |||||||||||||||||
Receivable | |||||||||||||||||||||
Alcatel-Lucent | 8 | % | 26 | % | 10 | % | 21.8 | % | |||||||||||||
Centric | 6 | % | 9 | % | 3.9 | % | 0 | % | |||||||||||||
Elosoft | 6 | % | 9 | % | 6.5 | % | 10.8 | % | |||||||||||||
Ericsson | 4.1 | % | 8 | % | 12.8 | % | 27.8 | % | |||||||||||||
GE | 13 | % | 22 | % | 2.2 | % | 0 | % | |||||||||||||
IDS | 8 | % | 0 | % | 8.4 | % | 0 | % | |||||||||||||
Total | 45.1 | % | 74 | % | 43.8 | % | 60.4 | % |
Note_3_Property_and_Equipment_
Note 3 - Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Equipment | $ | 1,256,400 | $ | 1,243,500 | |||||
Furniture | 443,200 | 432,400 | |||||||
Leasehold improvements | 250,900 | 147,500 | |||||||
1,950,500 | 1,823,400 | ||||||||
Less: accumulated depreciation and amortization | 1,574,600 | 1,521,300 | |||||||
$ | 375,900 | $ | 302,100 |
Note_4_Liability_Attributable_1
Note 4 - Liability Attributable to Warrants (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Note 4 - Liability Attributable to Warrants (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | ' | ||||||||||||||||||||||||
Estimated | Annualized Forfeiture | Expected | Estimated | Risk-Free | Dividends | ||||||||||||||||||||
Volatility | Rate | Term | Exercise | Interest Rate | |||||||||||||||||||||
(Years) | Factor | ||||||||||||||||||||||||
2011 Transaction | |||||||||||||||||||||||||
31-Mar-14 | 91 | % | — | 2.42 | 3.5 | 0.53 | % | — | |||||||||||||||||
31-Dec-13 | 102 | % | — | 2.67 | 3.5 | 0.51 | % | — | |||||||||||||||||
2014 Transaction | |||||||||||||||||||||||||
31-Mar-14 | 140 | % | — | 4.77 | 3.5 | 1.43 | % | — | |||||||||||||||||
31-Dec-13 | — | — | — | — | — | — | |||||||||||||||||||
ipCapital | |||||||||||||||||||||||||
31-Mar-14 | 93 | % | — | 3.54 | 4 | 0.56 | % | — | |||||||||||||||||
31-Dec-13 | 108 | % | — | 3.79 | 4 | 0.53 | % | — | |||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||||||||||
Warrants liability – December 31, 2013 fair value | $ | 979,800 | |||||||||||||||||||||||
Change in fair value of warrant liability recorded in other income | (1,133,700 | ) | |||||||||||||||||||||||
Change in fair value of warrant liability recorded in general and administrative expense | (49,800 | ) | |||||||||||||||||||||||
Aggregate fair value of the warrants liability associated with the 2014 transaction warrants at issuance | 1,356,000 | ||||||||||||||||||||||||
Warrants liability – March 31, 2014 fair value | $ | 1,152,300 | |||||||||||||||||||||||
Warrant [Member] | ' | ||||||||||||||||||||||||
Note 4 - Liability Attributable to Warrants (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||||||||||||||||
For the Three-Month Period Ended March 31, 2014 | |||||||||||||||||||||||||
Beginning Outstanding | Issued | Exercised | Ending | ||||||||||||||||||||||
Outstanding | |||||||||||||||||||||||||
2011 Transaction | 11,302,500 | — | 1,000,000 | 10,302,500 | |||||||||||||||||||||
2014 Transaction | — | 5,650,001 | — | 5,650,001 | |||||||||||||||||||||
Exercise Agreement | 4,500,000 | — | — | 4,500,000 | |||||||||||||||||||||
ipCapital | 400,000 | — | — | 400,000 | |||||||||||||||||||||
Consultant Warrant (1) | 312,500 | — | — | 312,500 | |||||||||||||||||||||
Offer to Exercise | 152,500 | — | — | 152,500 | |||||||||||||||||||||
Total | 16,667,500 | 5,650,001 | 1,000,000 | 21,317,501 | |||||||||||||||||||||
For the Three-Month Period Ended March 31, 2013 | |||||||||||||||||||||||||
Beginning Outstanding | Issued | Exercised | Ending | ||||||||||||||||||||||
Outstanding | |||||||||||||||||||||||||
2011 Transaction | 23,075,000 | — | 462,500 | 22,612,500 | |||||||||||||||||||||
ipCapital | 400,000 | — | — | 400,000 | |||||||||||||||||||||
Total | 23,475,000 | — | 462,500 | 23,012,500 |
Note_5_Severance_Liability_Tab
Note 5 - Severance Liability (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | ||||||||||||
Compensation | Medical Coverage | Total | |||||||||||
Balance at December 31, 2013 | $ | 62,900 | $ | — | $ | 62,900 | |||||||
Accrued interest | 1,500 | — | 1,500 | ||||||||||
Payments | (47,700 | ) | — | (47,700 | ) | ||||||||
Balance at March 31, 2014 | $ | 16,700 | $ | — | $ | 16,700 |
Note_6_Deferred_Rent_Tables
Note 6 - Deferred Rent (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | ' | ||||||||||||
Component | Current | Long-Term | Total | ||||||||||
Liabilities | Liabilities | ||||||||||||
Deferred rent expense | $ | (5,000 | ) | $ | 50,200 | $ | 45,200 | ||||||
Deferred rent benefit | 39,000 | 139,900 | 178,900 | ||||||||||
$ | 34,000 | $ | 190,100 | $ | 224,100 | ||||||||
Component | Current Liabilities | Long-Term Liabilities | Total | ||||||||||
Deferred rent expense | $ | 7,200 | $ | 24,600 | $ | 31,800 | |||||||
Deferred rent benefit | 24,000 | 60,000 | 84,000 | ||||||||||
$ | 31,200 | $ | 84,600 | $ | 115,800 |
Note_7_StockBased_Compensation1
Note 7 - Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Statement of Operations Classification | 2014 | 2013 | |||||||||||||||
Costs of revenue | $ | (600 | ) | $ | 2,100 | ||||||||||||
Selling and marketing expense | 5,900 | 40,500 | |||||||||||||||
General and administrative expense | 137,200 | 94,900 | |||||||||||||||
Research and development expense | 27,200 | 48,300 | |||||||||||||||
$ | 169,700 | $ | 185,800 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Number of | Weighted | Weighted Average Remaining Contractual | Aggregate | ||||||||||||||
Shares | Average | Terms (Years) | Intrinsic | ||||||||||||||
Exercise | Value | ||||||||||||||||
Price | |||||||||||||||||
Outstanding – December 31, 2013 | 12,019,328 | $ | 0.21 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (215,757 | ) | 0.2 | ||||||||||||||
Forfeited or expired | (241,516 | ) | 0.2 | ||||||||||||||
Outstanding – March 31, 2013 | 11,562,055 | $ | 0.2 | 5.37 | $ | 246,800 | |||||||||||
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block] | ' | ||||||||||||||||
Number of | Weighted | Weighted Average Remaining Recognition | Unrecognized Compensation | ||||||||||||||
Shares | Average | Period (Years) | Cost | ||||||||||||||
Grant Date | Remaining | ||||||||||||||||
Fair Value | |||||||||||||||||
Unreleased – December 31, 2013 | 3,938,426 | $ | 0.28 | ||||||||||||||
Awarded | 385,000 | 0.3 | |||||||||||||||
Released | (476,259 | ) | 0.28 | ||||||||||||||
Forfeited | (1,169,347 | ) | 0.22 | ||||||||||||||
Unreleased – March 31, 2014 | 2,677,820 | $ | 0.31 | 2.03 | $ | 674,400 |
Note_8_Revenue_Tables
Note 8 - Revenue (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Revenue [Abstract] | ' | ||||||||||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Table Text Block] | ' | ||||||||||||||||
2014 Over (Under) 2013 | |||||||||||||||||
Revenue | 2014 | 2013 | Dollars | Percent | |||||||||||||
Software Licenses | |||||||||||||||||
Windows | $ | 510,100 | 640,100 | $ | (130,000 | ) | -20.3 | % | |||||||||
UNIX/Linux | 104,000 | 270,800 | (166,800 | ) | -61.6 | % | |||||||||||
614,100 | 910,900 | (296,800 | ) | -32.6 | % | ||||||||||||
Software Service Fees | |||||||||||||||||
Windows | 511,800 | 461,200 | 50,600 | 11 | % | ||||||||||||
UNIX/Linux | 198,200 | 227,300 | (29,100 | ) | -12.8 | % | |||||||||||
710,000 | 688,500 | 21,500 | 3.1 | % | |||||||||||||
Other | 16,100 | 17,600 | (1,500 | ) | -8.5 | % | |||||||||||
Total Revenue | $ | 1,340,200 | $ | 1,617,000 | $ | (276,800 | ) | -17.1 | % |
Note_9_Cost_of_Revenue_Tables
Note 9 - Cost of Revenue (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Cost Of Revenue [Abstract] | ' | ||||||||||||||||
Scheudle of Cost of Revenue [Table Text Block] | ' | ||||||||||||||||
2013 Over (Under) 2012 | |||||||||||||||||
2014 | 2013 | Dollars | Percent | ||||||||||||||
Software service costs | $ | 94,600 | $ | 63,600 | $ | 31,000 | 48.7 | % | |||||||||
Software product costs | 100,000 | 48,200 | 51,800 | 107.5 | % | ||||||||||||
$ | 194,600 | $ | 111,800 | $ | 82,800 | 74.1 | % |
Note_10_Capitalized_Software_D1
Note 10 - Capitalized Software Development Costs (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Research and Development [Abstract] | ' | ||||||||
Schedule Of Capitalized Software [Table Text Block] | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Software development costs | $ | 1,119,400 | $ | 1,119,400 | |||||
Accumulated amortization | (568,000 | ) | (500,000 | ) | |||||
$ | 551,400 | $ | 619,400 |
Note_11_Stockholders_Equity_Ta
Note 11 - Stockholders' Equity (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Stockholders' Equity Note [Abstract] | ' | ||||
Schedule of Stockholders Equity [Table Text Block] | ' | ||||
Gross cash proceeds | $ | 3,390,000 | |||
Less: gross proceeds allocated to warrants liability – investors | (1,356,000 | ) | |||
Gross proceeds allocated to additional paid-in capital and common stock | 2,034,000 | ||||
Less: cash issuance costs – legal fees | (20,000 | ) | |||
Recorded in additional paid-in capital and common stock | $ | 2,014,000 |
Note_12_Commitments_and_Contin1
Note 12 - Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Year | Amount | ||||
Remainder of 2014 | $ | 328,900 | |||
2015 | 450,600 | ||||
2016 | 464,200 | ||||
2017 | 478,100 | ||||
2018 | 366,600 | ||||
$ | 2,088,400 |
Note_15_Segment_Information_Ta
Note 15 - Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Increase (Decrease) | |||||||||||||||||
2014 | 2013 | Dollars | Percentage | ||||||||||||||
GO-Global | $ | 1,340,200 | $ | 1,617,000 | $ | (276,800 | ) | -17.1 | % | ||||||||
hopTo | — | — | — | n/a | |||||||||||||
Consolidated Total | $ | 1,340,200 | $ | 1,617,000 | $ | (276,800 | ) | -17.1 | % | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Increase (Decrease) | |||||||||||||||||
2014 | 2013 | Dollars | Percentage | ||||||||||||||
GO-Global | $ | 644,200 | $ | 700,400 | $ | (56,200 | ) | -8 | % | ||||||||
hopTo | (2,448,900 | ) | (1,153,400 | ) | (1,295,500 | ) | -112.3 | % | |||||||||
Total | $ | (1,804,700 | ) | $ | (453,000 | ) | $ | (1,351,700 | ) | -298.4 | % | ||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||||||||||
Cost Basis | Accumulated | Net | |||||||||||||||
Depreciation | |||||||||||||||||
/Amortization | |||||||||||||||||
GO-Global | $ | 1,916,200 | $ | (1,829,100 | ) | $ | 87,100 | ||||||||||
hopTo | 3,989,100 | (3,148,900 | ) | 840,200 | |||||||||||||
Unallocated | 139,900 | — | 139,900 | ||||||||||||||
Total | $ | 6,045,200 | $ | (4,978,000 | ) | $ | 1,067,200 | ||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Revenue by Country | 2014 | 2013 | |||||||||||||||
United States | $ | 551,000 | $ | 643,600 | |||||||||||||
Germany | 96,400 | 188,300 | |||||||||||||||
Brazil | 157,000 | 133,000 | |||||||||||||||
Other Countries | 535,800 | 652,100 | |||||||||||||||
Total | $ | 1,340,200 | $ | 1,617,000 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Minimum Number Of Delivered Elements For Which Evidence Does Not Exists | 1 | ' | ' | ' |
Severance Costs | ' | ' | $75,700 | $721,800 |
Other Employee Related Liabilities | 16,700 | ' | 62,900 | ' |
Useful Life Software Development Cost Maximum | '3 years | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | ' | ' |
Warrants and Rights Outstanding | $1,152,300 | ' | $979,800 | ' |
Minimum [Member] | ' | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Maintenance Contract Period | '1 year | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Maintenance Contract Period | '5 years | ' | ' | ' |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies (Details) - Allowance for Doubtful Accounts (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Allowance for Doubtful Accounts [Abstract] | ' | ' |
Beginning Balance | $42,000 | $33,900 |
Provision | -18,900 | -18,300 |
Ending Balance | $23,100 | $15,600 |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies (Details) - Concentration of Credit Risk (Customer Concentration Risk [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Alcatel [Member] | Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 8.00% | 10.00% |
Alcatel [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 26.00% | 21.80% |
Centric [Member] | Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 6.00% | 3.90% |
Centric [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 9.00% | 0.00% |
Elosoft [Member] | Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 6.00% | 6.50% |
Elosoft [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 9.00% | 10.80% |
Ericsson [Member] | Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 4.10% | 12.80% |
Ericsson [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 8.00% | 27.80% |
GE [Member] | Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 13.00% | 2.20% |
GE [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 22.00% | 0.00% |
IDS LLC [Member] | Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 8.00% | 8.40% |
IDS LLC [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 0.00% | 0.00% |
Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 45.10% | 43.80% |
Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risks by customer | 74.00% | 60.40% |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $53,300 | $25,200 |
Note_3_Property_and_Equipment_2
Note 3 - Property and Equipment (Details) - Property and Equipment (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment type | $1,950,500 | $1,823,400 |
Less: accumulated depreciation and amortization | 1,574,600 | 1,521,300 |
375,900 | 302,100 | |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment type | 1,256,400 | 1,243,500 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment type | 443,200 | 432,400 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment type | $250,900 | $147,500 |
Note_4_Liability_Attributable_2
Note 4 - Liability Attributable to Warrants (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Feb. 11, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | Jun. 17, 2013 | Jun. 18, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 09, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | ||
Effective April 11, 2014 [Member] | Securities Purchase Agreement [Member] | Securities Purchase Agreement [Member] | Securities Purchase Agreement [Member] | Exercise Agreement [Member] | Exercise Agreement [Member] | Exercise Agreement [Member] | 2011 Transaction [Member] | 2011 Transaction [Member] | 2011 Transaction [Member] | 2011 Transaction [Member] | 2011 Transaction [Member] | 2011 Transaction [Member] | Offer to Exercise [Member] | Offer to Exercise [Member] | 2011 Private Placement [Member] | 2011 Private Placement [Member] | ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | Genesis Select Consulting Agreement [Member] | ||||
Genesis Select Consulting Agreement [Member] | Common Stock [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||
Note 4 - Liability Attributable to Warrants (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | 11,299,999 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share Price (in Dollars per share) | $0.20 | $0.37 | ' | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | 5,650,001 | 17,000,000 | 4,500,000 | ' | ' | ' | ' | 5,000,000 | ' | ' | 152,500 | ' | ' | ' | ' | ' | ' | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | ' | ' | 0.4 | 0.26 | 1 | ' | ' | ' | ' | ' | 0.2 | 0.26 | 1 | ' | ' | ' | ' | 0.26 | ' | |
Class of Warrant or Right, Fair Value (in Dollars) | ' | ' | ' | ' | ' | $1,356,000 | ' | ' | $514,800 | ' | ' | ' | ' | ' | ' | ' | $45,600 | ' | ' | ' | ' | ' | |
Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | 158.00% | ' | ' | ' | 185.00% | 91.00% | ' | 102.00% | ' | ' | ' | ' | 171.00% | ' | ' | 93.00% | 108.00% | ' | |
Fair Value Assumptions, Annualized Forfeiture Rate | ' | ' | ' | ' | 0.00% | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | |
Fair Value Assumptions, Expected Term | ' | ' | ' | ' | '5 years | ' | ' | ' | '5 years | '2 years 153 days | ' | '2 years 244 days | ' | ' | ' | ' | '4 years 319 days | ' | ' | '3 years 197 days | '3 years 288 days | ' | |
Fair Value Assumption, Exercise Factor | ' | ' | ' | ' | 3.5 | ' | ' | ' | 1.5 | 3.5 | ' | 3.5 | ' | ' | ' | ' | 4 | 10 | 4 | 4 | 4 | ' | |
Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | 1.71% | ' | ' | ' | 1.07% | 0.53% | ' | 0.51% | ' | ' | ' | ' | 1.31% | ' | ' | 0.56% | 0.53% | ' | |
Fair Value Assumptions, Weighted Average Expected Dividend (in Dollars per share) | ' | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | |
Number of Investors | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | |
Class of Warrant or Right, Shares Exercised (in Shares) | 1,000,000 | 462,500 | ' | ' | ' | ' | 9,000,000 | ' | ' | 1,000,000 | 462,500 | ' | ' | ' | ' | 305,000 | ' | 462,500 | ' | ' | ' | ' | [1] |
Term Of Warrants | ' | ' | ' | ' | ' | ' | '38 months | '5 years | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | |
Proceeds from Warrant Exercises (in Dollars) | 260,000 | 120,200 | ' | ' | ' | ' | 2,340,000 | ' | ' | ' | ' | ' | ' | ' | ' | 64,000 | ' | ' | ' | ' | ' | ' | |
Adjustments to Additional Paid in Capital, Warrant Issued (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ($514,800) | ' | ' | ' | ' | ' | ' | ' | $45,600 | ' | ' | ' | ' | ' | |
Number Of Warrants To Vest (in Shares) | ' | ' | 169,273 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Class of Warrant or Right, Forfeitures (in Shares) | ' | ' | 143,227 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | On February 11, 2014, we served notice to a former investors relations firm that we were cancelling our consulting agreement with them, with such cancellation to be effective April 11, 2014. Under the terms of the agreement, 169,273 of the warrants that had been issued to such firm will have vested as of the effective cancellation date, and 143,227 will ultimately be forfeited. |
Note_4_Liability_Attributable_3
Note 4 - Liability Attributable to Warrants (Details) - Fair Value of Warrants Liability | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
2011 Transaction [Member] | ' | ' |
2011 Transaction | ' | ' |
Estimated Volatility | 91.00% | 102.00% |
Expected Term (Years) | '2 years 153 days | '2 years 244 days |
Estimated Exercise Factor | 3.5 | 3.5 |
Risk-Free Interest Rate | 0.53% | 0.51% |
2014 Transaction [Member] | ' | ' |
2011 Transaction | ' | ' |
Estimated Volatility | 140.00% | ' |
Expected Term (Years) | '4 years 281 days | ' |
Estimated Exercise Factor | 3.5 | ' |
Risk-Free Interest Rate | 1.43% | ' |
ipCapital Group Inc [Member] | ' | ' |
2011 Transaction | ' | ' |
Estimated Volatility | 93.00% | 108.00% |
Expected Term (Years) | '3 years 197 days | '3 years 288 days |
Estimated Exercise Factor | 4 | 4 |
Risk-Free Interest Rate | 0.56% | 0.53% |
Note_4_Liability_Attributable_4
Note 4 - Liability Attributable to Warrants (Details) - Reconciliation of Warrants Liability Measured at Fair Value (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Warrants liability b December 31, 2013 fair value | $979,800 |
Change in fair value of warrant liability recorded in other income | -1,133,700 |
Aggregate fair value of the warrants liability associated with the 2014 transaction warrants at issuance | 1,356,000 |
Warrants liability b March 31, 2014 fair value | 1,152,300 |
General and Administrative Expense [Member] | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Change in fair value of warrant liability recorded in general and administrative expense | ($49,800) |
Note_4_Liability_Attributable_5
Note 4 - Liability Attributable to Warrants (Details) - Reconciliation of Warrants Outstanding by Period | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 17, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Aug. 09, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||
2011 Transaction [Member] | 2011 Transaction [Member] | 2014 Transaction [Member] | Exercise Agreement [Member] | Exercise Agreement [Member] | Exercise Agreement [Member] | ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | Genesis Select Consulting Agreement [Member] | Offer to Exercise [Member] | Offer to Exercise [Member] | Offer to Exercise [Member] | ||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning Outstanding Balance | 16,667,500 | 23,475,000 | 11,302,500 | 23,075,000 | ' | ' | 4,500,000 | 4,500,000 | 400,000 | 400,000 | 400,000 | 400,000 | 312,500 | [1] | ' | 152,500 | 152,500 |
Issued | 5,650,001 | ' | ' | ' | 5,650,001 | ' | ' | ' | ' | ' | ' | ' | ' | [1] | ' | ' | ' |
Exercised | 1,000,000 | 462,500 | 1,000,000 | 462,500 | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | [1] | 305,000 | ' | ' |
Ending Outstanding Balance | 21,317,501 | 23,012,500 | 10,302,500 | 22,612,500 | 5,650,001 | ' | 4,500,000 | 4,500,000 | 400,000 | 400,000 | 400,000 | 400,000 | 312,500 | [1] | ' | 152,500 | 152,500 |
[1] | On February 11, 2014, we served notice to a former investors relations firm that we were cancelling our consulting agreement with them, with such cancellation to be effective April 11, 2014. Under the terms of the agreement, 169,273 of the warrants that had been issued to such firm will have vested as of the effective cancellation date, and 143,227 will ultimately be forfeited. |
Note_5_Severance_Liability_Det
Note 5 - Severance Liability (Details) - Salary Continuation and Medical Coverage Payments (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2012 |
Compensation [Member] | Compensation [Member] | Employee Severance [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Balance | $16,700 | $62,900 | ' | $62,900 | ' | $62,900 |
Accrued interest | ' | ' | 1,500 | ' | 1,500 | ' |
Payments | ' | ' | -47,700 | ' | -47,700 | ' |
Balance | $16,700 | $62,900 | $16,700 | $62,900 | $16,700 | $62,900 |
Note_6_Deferred_Rent_Details
Note 6 - Deferred Rent (Details) (USD $) | Feb. 28, 2014 |
Deferred Revenue Disclosure [Abstract] | ' |
Leasehold Improvements, Gross | $103,400 |
Note_6_Deferred_Rent_Details_D
Note 6 - Deferred Rent (Details) - Deferred Rent (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current Liabilities (Assets) | $34,000 | $31,200 |
Long Term Liabilities | 190,100 | 84,600 |
Total | 224,100 | 115,800 |
Deferred rent expense [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current Liabilities (Assets) | -5,000 | 7,200 |
Long Term Liabilities | 50,200 | 24,600 |
Total | 45,200 | 31,800 |
Deferred rent benefit [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Current Liabilities (Assets) | 39,000 | 24,000 |
Long Term Liabilities | 139,900 | 60,000 |
Total | $178,900 | $84,000 |
Note_7_StockBased_Compensation2
Note 7 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Note 7 - Stock-Based Compensation (Details) [Line Items] | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Outstanding Number | 8,752,638 |
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number | 2,696,533 |
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Be Forfeited | 112,884 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '33 months |
Employee Stock Option [Member] | ' |
Note 7 - Stock-Based Compensation (Details) [Line Items] | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 255,100 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '10 months |
Restricted Stock [Member] | ' |
Note 7 - Stock-Based Compensation (Details) [Line Items] | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '26 months |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 674,400 |
Note_7_StockBased_Compensation3
Note 7 - Stock-Based Compensation (Details) - Non-Cash Stock-Based Compensation Expense (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation Expense | $169,700 | $185,800 |
Costs of Revenue [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation Expense | -600 | 2,100 |
Selling and Marketing Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation Expense | 5,900 | 40,500 |
General and Administrative Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation Expense | 137,200 | 94,900 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share Based Compensation Expense | $27,200 | $48,300 |
Note_7_StockBased_Compensation4
Note 7 - Stock-Based Compensation (Details) - Summary of Status of All Stock Option Plans (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Status of All Stock Option Plans [Abstract] | ' |
Outstanding b December 31, 2013 | 12,019,328 |
Outstanding b December 31, 2013 | $0.21 |
Exercised | -215,757 |
Exercised | $0.20 |
Forfeited or expired | -241,516 |
Forfeited or expired | $0.20 |
Outstanding b March 31, 2013 | 11,562,055 |
Outstanding b March 31, 2013 | $0.20 |
Outstanding b March 31, 2013 | '5 years 135 days |
Outstanding b March 31, 2013 | $246,800 |
Note_7_StockBased_Compensation5
Note 7 - Stock-Based Compensation (Details) - Unreleased Restricted Stock Awards (Restricted Stock [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock [Member] | ' |
Note 7 - Stock-Based Compensation (Details) - Unreleased Restricted Stock Awards [Line Items] | ' |
Unreleased b December 31, 2013 | 3,938,426 |
Unreleased b December 31, 2013 | $0.28 |
Awarded | 385,000 |
Awarded | $0.30 |
Released | -476,259 |
Released | $0.28 |
Forfeited | -1,169,347 |
Forfeited | $0.22 |
Unreleased b March 31, 2014 | 2,677,820 |
Unreleased b March 31, 2014 | $0.31 |
Unreleased b March 31, 2014 | '2 years 10 days |
Unreleased b March 31, 2014 | $674,400 |
Note_8_Revenue_Details_Summary
Note 8 - Revenue (Details) - Summary of Revenues (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Software Service Fees | ' | ' |
Other | $16,100 | $17,600 |
Other | -1,500 | ' |
Other | -8.50% | ' |
Total Revenue | 1,340,200 | 1,617,000 |
Total Revenue | -276,800 | ' |
Total Revenue | -17.10% | ' |
Windows [Member] | Software Licenses [Member] | ' | ' |
Software Licenses | ' | ' |
Software licenses | 510,100 | 640,100 |
Software licenses, Increase (decrease) by dollars | -130,000 | ' |
Software licenses, Increase (decrease) by percentage | -20.30% | ' |
Windows [Member] | Software Service Fees [Member] | ' | ' |
Software Service Fees | ' | ' |
Software service fees | 511,800 | 461,200 |
Software service fees, Increase (decrease) by dollars | 50,600 | ' |
Software service fees, Increase (decrease) by percentage | 11.00% | ' |
Unix / Linux [Member] | Software Licenses [Member] | ' | ' |
Software Licenses | ' | ' |
Software licenses | 104,000 | 270,800 |
Software licenses, Increase (decrease) by dollars | -166,800 | ' |
Software licenses, Increase (decrease) by percentage | -61.60% | ' |
Unix / Linux [Member] | Software Service Fees [Member] | ' | ' |
Software Service Fees | ' | ' |
Software service fees | 198,200 | 227,300 |
Software service fees, Increase (decrease) by dollars | -29,100 | ' |
Software service fees, Increase (decrease) by percentage | -12.80% | ' |
Software Licenses [Member] | ' | ' |
Software Licenses | ' | ' |
Software licenses | 614,100 | 910,900 |
Software licenses, Increase (decrease) by dollars | -296,800 | ' |
Software licenses, Increase (decrease) by percentage | -32.60% | ' |
Software Service Fees [Member] | ' | ' |
Software Service Fees | ' | ' |
Software service fees | 710,000 | 688,500 |
Software service fees, Increase (decrease) by dollars | $21,500 | ' |
Software service fees, Increase (decrease) by percentage | 3.10% | ' |
Note_9_Cost_of_Revenue_Details
Note 9 - Cost of Revenue (Details) - Summary of the Cost of Revenues (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 9 - Cost of Revenue (Details) - Summary of the Cost of Revenues [Line Items] | ' | ' |
Cost of Revenue by year | $194,600 | $111,800 |
Cost of Revenue increase (decrease) by dollars | 82,800 | ' |
Cost of Revenue increase (decrease) by percentage | 74.10% | ' |
Software Service Costs [Member] | ' | ' |
Note 9 - Cost of Revenue (Details) - Summary of the Cost of Revenues [Line Items] | ' | ' |
Cost of Revenue by year | 94,600 | 63,600 |
Cost of Revenue increase (decrease) by dollars | 31,000 | ' |
Cost of Revenue increase (decrease) by percentage | 48.70% | ' |
Software Product Costs [Member] | ' | ' |
Note 9 - Cost of Revenue (Details) - Summary of the Cost of Revenues [Line Items] | ' | ' |
Cost of Revenue by year | 100,000 | 48,200 |
Cost of Revenue increase (decrease) by dollars | $51,800 | ' |
Cost of Revenue increase (decrease) by percentage | 107.50% | ' |
Note_10_Capitalized_Software_D2
Note 10 - Capitalized Software Development Costs (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 10 - Capitalized Software Development Costs (Details) [Line Items] | ' | ' |
Capitalized Computer Software, Amortization | $68,000 | $41,500 |
Computer Software, Intangible Asset [Member] | ' | ' |
Note 10 - Capitalized Software Development Costs (Details) [Line Items] | ' | ' |
Capitalized Computer Software, Additions | $0 | $464,500 |
Note_10_Capitalized_Software_D3
Note 10 - Capitalized Software Development Costs (Details) - Summary of Capitalized Software (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Summary of Capitalized Software [Abstract] | ' | ' |
Software development costs | $1,119,400 | $1,119,400 |
Accumulated amortization | -568,000 | -500,000 |
$551,400 | $619,400 |
Note_11_Stockholders_Equity_De
Note 11 - Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2014 | |
2014 Private Placement [Member] | 2014 Private Placement [Member] | ||||
Note 11 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | 11,299,999 | ' |
Share Price (in Dollars per share) | $0.20 | $0.37 | ' | $0.30 | ' |
Proceeds from Issuance of Private Placement | $3,370,000 | ' | ' | $3,390,000 | ' |
Warrants and Rights Outstanding | 1,152,300 | ' | 979,800 | ' | 1,356,000 |
Legal Fees | ' | ' | 41,200 | ' | ' |
Professional Fees | ' | ' | ' | 9,600 | ' |
Stock Repurchased During Period, Shares (in Shares) | 0 | 0 | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | 1,000,000 | ' | ' | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $782,600 | ' | ' | ' | ' |
Note_11_Stockholders_Equity_De1
Note 11 - Stockholders' Equity (Details) - The 2014 Private Placement (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Note 11 - Stockholders' Equity (Details) - The 2014 Private Placement [Line Items] | ' |
Gross proceeds from private placement | $3,370,000 |
2014 Private Placement [Member] | Common Stock Including Additional Paid in Capital [Member] | ' |
Note 11 - Stockholders' Equity (Details) - The 2014 Private Placement [Line Items] | ' |
Gross proceeds from private placement | 2,034,000 |
2014 Private Placement [Member] | ' |
Note 11 - Stockholders' Equity (Details) - The 2014 Private Placement [Line Items] | ' |
Gross proceeds from private placement | 3,390,000 |
Less: cash issuance costs b legal fees | -20,000 |
Recorded in additional paid-in capital and common stock | 2,014,000 |
Less: gross proceeds allocated to warrants liability b investors | ($1,356,000) |
Note_12_Commitments_and_Contin2
Note 12 - Commitments and Contingencies (Details) (Campbell Facility [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
sqft | |
Campbell Facility [Member] | ' |
Note 12 - Commitments and Contingencies (Details) [Line Items] | ' |
Area of Real Estate Property | 10,659 |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | '5 years |
Lease Expiration Date | 31-Oct-18 |
Note_12_Commitments_and_Contin3
Note 12 - Commitments and Contingencies (Details) - Future Minimum Lease Payments for Operating Leases (USD $) | Mar. 31, 2014 |
Future Minimum Lease Payments for Operating Leases [Abstract] | ' |
Remainder of 2014 | $328,900 |
2015 | 450,600 |
2016 | 464,200 |
2017 | 478,100 |
2018 | 366,600 |
$2,088,400 |
Note_13_Supplemental_Disclosur1
Note 13 - Supplemental Disclosure of Cash Flow Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Interest Paid | $0 | $0 |
Income Taxes Paid | 0 | 1,100 |
Warrants Liability, Period Increase (Decrease) | -1,183,500 | ' |
Capitalized Cost Of Property And Equipment | 103,400 | ' |
Accrued Rent, Noncurrent | 81,600 | ' |
Accrued Rent, Current | $21,800 | ' |
Note_14_Earnings_Loss_Per_Shar1
Note 14 - Earnings (Loss) Per Share (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 35,557,372 | 40,421,088 |
Note_15_Segment_Information_De
Note 15 - Segment Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_15_Segment_Information_De1
Note 15 - Segment Information (Details) - Segment Revenue (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Segment by year | $1,340,200 | $1,617,000 |
Segment increase (decrease) by dollars | -276,800 | ' |
Segment incrsase (decrease) by percentage | -17.10% | ' |
GO Global Cloud [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Segment by year | 1,340,200 | 1,617,000 |
Segment increase (decrease) by dollars | ($276,800) | ' |
Segment incrsase (decrease) by percentage | -17.10% | ' |
Hop To [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Segment incrsase (decrease) by percentage | ' | ' |
Note_15_Segment_Information_De2
Note 15 - Segment Information (Details) - Segment Income (Loss) from Operations (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment by year | ($1,804,700) | ($453,000) |
Segment increase (decrease) by dollar | -1,351,700 | ' |
Segment increase (decrease) by percentage | -298.40% | ' |
GO Global Cloud [Member] | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment by year | 644,200 | 700,400 |
Segment increase (decrease) by dollar | -56,200 | ' |
Segment increase (decrease) by percentage | -8.00% | ' |
Hop To [Member] | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment by year | -2,448,900 | -1,153,400 |
Segment increase (decrease) by dollar | ($1,295,500) | ' |
Segment increase (decrease) by percentage | -112.30% | ' |
Note_15_Segment_Information_De3
Note 15 - Segment Information (Details) - Segment Fixed Assets (USD $) | Mar. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ' |
Cost basis for segment assets | $6,045,200 |
Accumulated depreciation/amortization for segment assets | -4,978,000 |
Net segment assets | 1,067,200 |
GO Global Cloud [Member] | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' |
Cost basis for segment assets | 1,916,200 |
Accumulated depreciation/amortization for segment assets | -1,829,100 |
Net segment assets | 87,100 |
Hop To [Member] | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' |
Cost basis for segment assets | 3,989,100 |
Accumulated depreciation/amortization for segment assets | -3,148,900 |
Net segment assets | 840,200 |
Unallocated [Member] | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' |
Cost basis for segment assets | 139,900 |
Net segment assets | $139,900 |
Note_15_Segment_Information_De4
Note 15 - Segment Information (Details) - Revenue by Country (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 15 - Segment Information (Details) - Revenue by Country [Line Items] | ' | ' |
Revenue by location | $1,340,200 | $1,617,000 |
UNITED STATES | ' | ' |
Note 15 - Segment Information (Details) - Revenue by Country [Line Items] | ' | ' |
Revenue by location | 551,000 | 643,600 |
GERMANY | ' | ' |
Note 15 - Segment Information (Details) - Revenue by Country [Line Items] | ' | ' |
Revenue by location | 96,400 | 188,300 |
BRAZIL | ' | ' |
Note 15 - Segment Information (Details) - Revenue by Country [Line Items] | ' | ' |
Revenue by location | 157,000 | 133,000 |
Other Countries [Member] | ' | ' |
Note 15 - Segment Information (Details) - Revenue by Country [Line Items] | ' | ' |
Revenue by location | $535,800 | $652,100 |
Note_16_Related_Party_Transact1
Note 16 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 11, 2011 | Feb. 04, 2013 | |
ipCapital Group Inc [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Tamalpais Partners LLC [Member] | Tamalpais Partners LLC [Member] | ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | ipCapital Licensing Company I, LLC [Member] | |||
ipCapital Group Inc [Member] | ipCapital Group Inc [Member] | ||||||||||
Note 16 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | ' | ' | ' | ' | ' | $12,000 | $18,000 | $0 | $5,000 | ' | ' |
Due to Related Parties | ' | ' | ' | ' | ' | 0 | 0 | 10,000 | 0 | ' | ' |
Number Of Directors Provide Assistance In Execution Of Entity Strategic Decision | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Term Of Warrants | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Warrants, Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.26 | ' | ' | ' |
Number Of Warrants To Vest (in Shares) | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' |
Number Of Vesting Installments | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Remaining Warrants To Vest (in Shares) | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' |
Fair Value Adjustment of Warrants | ($1,133,700) | $3,448,700 | ' | $49,800 | $73,500 | ' | ' | ' | ' | ' | ' |
Percentage Of Royalty Fees And Other Consideration Paid As Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Period Of Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months |
Number Of Days Of Written Notice Of Termination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days |