Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SOFO | |
Entity Registrant Name | SONIC FOUNDRY INC | |
Entity Central Index Key | 1,029,744 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,363,740 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 2,561 | $ 4,344 |
Accounts receivable, net of allowances of $120 and $150 | 9,845 | 8,449 |
Inventories, net | 1,718 | 1,721 |
Prepaid expenses and other current assets | 1,471 | 1,544 |
Total current assets | 15,595 | 16,058 |
Property and equipment: | ||
Leasehold improvements | 901 | 911 |
Computer equipment | 6,278 | 5,440 |
Furniture and fixtures | 741 | 720 |
Total property and equipment | 7,920 | 7,071 |
Less accumulated depreciation | 4,869 | 3,675 |
Property and equipment, net | 3,051 | 3,396 |
Other assets: | ||
Goodwill | 10,782 | 11,185 |
Customer relationships, net of amortization of $391 and $191 | 1,887 | 2,471 |
Software development costs, net of amortization of $385 and $252 | 148 | 281 |
Product rights, net of amortization of $134 and $41 | 539 | 631 |
Other intangibles, net of amortization of $172 and $162 | 130 | 37 |
Other long-term assets | 498 | 564 |
Total assets | 32,630 | 34,623 |
Current liabilities: | ||
Revolving line of credit | 1,250 | |
Accounts payable | 1,573 | 1,183 |
Accrued liabilities | 1,647 | 2,512 |
Unearned revenue | 9,289 | 9,079 |
Current portion of capital lease obligation | 232 | 196 |
Current portion of notes payable and warrant debt, net of discounts | 1,230 | 974 |
Current portion of subordinated notes payable | 138 | 2,096 |
Total current liabilities | 15,359 | 16,040 |
Long-term portion of unearned revenue | 1,252 | 929 |
Long-term portion of capital lease obligations | 240 | 173 |
Long-term portion of notes payable and warrant debt, net of discounts | 2,364 | 1,139 |
Long-term portion of subordinated note payable | 137 | 314 |
Derivative liability, estimated at fair value | 58 | |
Other liabilities | 331 | 401 |
Deferred tax liability | 4,281 | 4,312 |
Total liabilities | $ 24,022 | $ 23,308 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock, $.01 par value, authorized 10,000,000 shares; 4,368,169 and 4,276,470 shares issued and 4,355,453 and 4,263,754 shares outstanding | $ 44 | $ 43 |
Additional paid-in capital | 195,708 | 194,260 |
Accumulated deficit | (185,675) | (182,372) |
Accumulated other comprehensive loss | (1,274) | (421) |
Receivable for common stock issued | (26) | (26) |
Treasury stock, at cost, 12,716 shares | (169) | (169) |
Total stockholders' equity | 8,608 | 11,315 |
Total liabilities and stockholders' equity | $ 32,630 | $ 34,623 |
5% Preferred Stock, Series B, Voting, Cumulative, Convertible [Member] | ||
Stockholders' equity: | ||
Preferred stock |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Accounts receivable, allowances | $ 120 | $ 150 |
Customer relationships, amortization | 391 | 191 |
Software development costs, amortization | 385 | 252 |
Product rights, amortization | 134 | 41 |
Other intangibles, amortization | $ 172 | $ 162 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,368,169 | 4,276,470 |
Common stock, shares outstanding | 4,355,453 | 4,263,754 |
Treasury stock, shares | 12,716 | 12,716 |
5% Preferred Stock, Series B, Voting, Cumulative, Convertible [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Product | $ 5,441 | $ 6,016 | $ 12,030 | $ 12,883 |
Services | 4,957 | 5,096 | 15,006 | 14,160 |
Other | 158 | 155 | 367 | 308 |
Total revenue | 10,556 | 11,267 | 27,403 | 27,351 |
Cost of revenue: | ||||
Product | 2,656 | 2,651 | 5,296 | 5,489 |
Services | 812 | 827 | 2,733 | 2,178 |
Total cost of revenue | 3,468 | 3,478 | 8,029 | 7,667 |
Gross margin | 7,088 | 7,789 | 19,374 | 19,684 |
Operating expenses: | ||||
Selling and marketing | 4,798 | 4,719 | 13,503 | 12,165 |
General and administrative | 1,530 | 1,670 | 4,333 | 4,248 |
Product development | 1,645 | 1,449 | 4,722 | 4,078 |
Patent settlement | 28 | 428 | ||
Acquisition costs | 490 | |||
Total operating expenses | 7,973 | 7,866 | 22,558 | 21,409 |
Loss from operations | (885) | (77) | (3,184) | (1,725) |
Non-operating income (expenses): | ||||
Gain on investment in Mediasite KK | 1,391 | |||
Equity in earnings of investment in Mediasite KK | 38 | |||
Interest expense, net | (100) | (79) | (229) | (170) |
Other income (expense), net | (21) | 20 | 143 | 10 |
Loss before income taxes | (1,006) | (136) | (3,270) | (456) |
Benefit (provision) for income taxes | 85 | 169 | (33) | (1,072) |
Net income (loss) | $ (921) | $ 33 | $ (3,303) | $ (1,528) |
Net income (loss) per common share: | ||||
- basic | $ (0.21) | $ 0.01 | $ (0.76) | $ (0.36) |
- diluted | $ (0.21) | $ 0.01 | $ (0.76) | $ (0.36) |
Weighted average common shares | ||||
- basic | 4,355,049 | 4,246,265 | 4,324,868 | 4,147,938 |
- diluted | 4,355,049 | 4,393,022 | 4,324,868 | 4,147,938 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (921) | $ 33 | $ (3,303) | $ (1,528) |
Foreign currency translation adjustment | (116) | 78 | (853) | 94 |
Comprehensive income (loss) | $ (1,037) | $ 111 | $ (4,156) | $ (1,434) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net loss | $ (3,303) | $ (1,528) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain and equity in earnings on investment in Mediasite KK | (1,429) | |
Amortization of other intangibles | 259 | 150 |
Amortization of software development costs | 133 | 133 |
Amortization of product rights | 92 | 10 |
Amortization of debt discount | 9 | |
Depreciation of property and equipment | 1,199 | 919 |
Provision for doubtful accounts | 27 | 30 |
Deferred taxes | 36 | 1,118 |
Stock-based compensation expense related to stock options | 745 | 679 |
Remeasurement gain on subordinated debt | (205) | |
Remeasurement gain on derivative liability | (62) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,597) | (2,401) |
Inventories | (32) | (382) |
Prepaid expenses and other current assets | 54 | (330) |
Accounts payable and accrued liabilities | (333) | 92 |
Other long-term liabilities | (65) | (66) |
Unearned revenue | 680 | 1,652 |
Net cash used in operating activities | (2,363) | (1,353) |
Investing activities | ||
Purchases of property and equipment | (611) | (562) |
Cash received in Mediasite KK acquisition, net of cash paid | 1,281 | |
Cash paid for MediaMission acquisition, net of cash acquired | (119) | |
Net cash (used in) provided by investing activities | (611) | 600 |
Financing activities | ||
Proceeds from notes payable | 2,336 | 1,974 |
Proceeds from line of credit | 6,927 | |
Payments on notes payable | (2,661) | (923) |
Payments on line of credit | (5,677) | |
Payment of debt issuance costs | (122) | (49) |
Proceeds from issuance of common stock and warrants | 663 | 32 |
Proceeds from exercise of common stock options | 41 | 243 |
Payments on capital lease obligations | (187) | (179) |
Net cash provided by financing activities | 1,320 | 1,098 |
Changes in cash and cash equivalents due to changes in foreign currency | (129) | 106 |
Net increase (decrease) in cash and cash equivalents | (1,783) | 451 |
Cash and cash equivalents at beginning of period | 4,344 | 3,482 |
Cash and cash equivalents at end of period | 2,561 | 3,933 |
Supplemental cash flow information: | ||
Interest paid | 310 | 94 |
Income taxes paid, foreign | 31 | 171 |
Non-cash transactions: | ||
Property and equipment financed by capital lease | 292 | 207 |
Debt discount and warrant | $ 179 | |
Acquired product rights | 672 | |
Subordinated note payable issuance for purchase of MediaMission | 2,567 | |
Common stock issued for purchase of MediaMission and MSKK | $ 2,306 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1. Basis of Presentation and Significant Accounting Policies Financial Statements In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. Operating results for the nine month period ended June 30, 2015 are not necessarily indicative of the results that might be expected for the year ending September 30, 2015. Inventory Valuation Inventory consists of raw materials and supplies used in the assembly of Mediasite recorders and finished units. Inventory of completed units and spare parts are carried at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory consists of the following (in thousands): June 30, 2015 September 30, Raw materials and supplies $ 484 $ 549 Finished goods 1,234 1,172 $ 1,718 $ 1,721 Capitalized Software Development Costs Software development costs incurred in conjunction with product development are charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the net realizable value of the related product. Typically the period between achieving technological feasibility of the Company’s products and the general availability of the products has been short. Consequently, software development costs qualifying for capitalization are typically immaterial and are generally expensed to research and development costs, as incurred. Upon product release, the amortization of software development costs is determined annually as the greater of the amount computed using the ratio of current gross revenues for the products to their total of current and anticipated future gross revenues, or the straight-line method over the estimated economic life of the products, expected to be three years. Amortization expense of software development costs of $133 thousand is included in Cost of Revenue – Product for the nine months ending June 30, 2015 and 2014, respectively. The gross amount of capitalized external and internal development costs is $533 thousand at June 30, 2015 and September 30, 2014. There were no software development efforts that qualified for capitalization for the nine months ended June 30, 2015. Legal Contingencies In June 2014, the Company entered into a settlement agreement with Astute Technology, LLC (“Astute”). The key terms of the agreement were: 1) a grant of a non-revocable license of Astute patents to the Company; 2) a grant of a fully paid, non-refundable license of certain Sonic Foundry patents to Astute; 3) both Astute and our customer agreed to identify three meetings they currently capture that the other party will not seek or respond to any request for proposal; and 4) a payment of $1.35 million to Astute. Pursuant to the settlement agreement, the payments were made in three equal amounts with the first paid in June 2014, the second paid in October 2014 and the final installment paid in March 2015. The Company contributed $1.1 million of the $1.35 million payable to Astute. Of the $1.1 million, $428 thousand related to prior use and was recorded as a charge to income during fiscal 2014. The remaining $672 thousand was recorded as a product right asset, which is being amortized, on a straight-line basis, over the remaining life of the patents, through 2020. Future amounts due to Astute were accrued for as of the time of settlement. Except as reported above, no legal contingencies were recorded for the nine months ended June 30, 2015 and 2014, respectively. Stock Based Compensation The Company uses a lattice valuation model to account for all employee stock options granted. The lattice valuation model is a more flexible analysis to value options because of its ability to incorporate inputs that change over time, such as actual exercise behavior of option holders. The Company uses historical data to estimate the option exercise and employee departure behavior in the lattice valuation model. Expected volatility is based on historical volatility of the Company’s stock. The Company considers all employees to have similar exercise behavior and therefore has not identified separate homogenous groups for valuation. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods the options are expected to be outstanding is based on the U.S. Treasury yields in effect at the time of grant. Forfeitures are based on actual behavior patterns. The fair value of each option grant is estimated using the assumptions in the following table: Nine months ended June 30, 2015 2014 Expected life 4.8-5.0 years 4.8-4.9 years Risk-free interest rate 0.96%-1.04% 0.60%-0.82% Expected volatility 45.46%-49.47% 47.11%-47.18% Expected forfeiture rate 10.72%-11.99% 11.6%-12.2% Expected exercise factor 1.40-1.43 1.39-1.41 Expected dividend yield 0% 0% A summary of option activity as of June 30, 2015 and changes during the nine months then ended is presented below: Options Weighted- Weighted- Outstanding at October 1, 2014 1,240,941 $ 10.31 6.9 Granted 313,954 9.26 9.8 Exercised (11,117 ) 7.28 6.9 Forfeited (74,051 ) 11.90 4.2 Outstanding at June 30, 2015 1,469,727 10.03 6.8 Exercisable at June 30, 2015 865,629 10.52 5.6 A summary of the status of the Company’s non-vested shares and changes during the nine month period ended June 30, 2015 is presented below: 2015 Non-vested Shares Shares Weighted-Average Grant Date Fair Non-vested at October 1, 2014 539,519 $ 3.29 Granted 313,954 3.19 Vested (227,629 ) 2.98 Forfeited (21,746 ) 1.95 Non-vested at June 30, 2015 604,098 $ 3.35 The weighted average grant date fair value of options granted during the nine months ended June 30, 2015 was $3.19. As of June 30, 2015, there was $880 thousand of total unrecognized compensation cost related to non-vested stock-based compensation, including $144 thousand of estimated forfeitures. The cost is expected to be recognized over a weighted-average remaining life of 2.0 years. Stock-based compensation recorded in the three month period ended June 30, 2015 of $207 thousand was allocated $129 thousand to selling and marketing expenses, $22 thousand to general and administrative expenses, and $56 thousand to product development expenses. Stock-based compensation recorded in the nine month period ended June 30, 2015 of $745 thousand was allocated $467 thousand to selling and marketing expenses, $198 thousand to general and administrative expenses, and $80 thousand to product development expenses. Stock-based compensation recorded in the three month period ended June 30, 2014 of $204 thousand was allocated $135 thousand to selling and marketing expenses, $12 thousand to general and administrative expenses, and $57 thousand to product development expenses. Stock-based compensation recorded in the nine month period ended June 30, 2014 of $679 thousand was allocated $449 thousand to selling and marketing expenses, $40 thousand to general and administrative expenses, and $190 thousand to product development expenses. Cash received from exercises under all stock option plans and warrants for the three and nine month periods ended June 30, 2015 was $33 thousand and $41 thousand, respectively. Cash received from exercises under all stock option plans and warrants for the three and nine month periods ended June 30, 2014 was $61 thousand and $243 thousand, respectively. There were no tax benefits realized for tax deductions from option exercises in either of the nine month periods ended June 30, 2015 or 2014. The Company currently expects to satisfy share-based awards with registered shares available to be issued. The Company also has an Employee Stock Purchase Plan (Purchase Plan) under which an aggregate of 150,000 common shares may be issued. A total of 46,703 shares are available to be issued under the plan. The Company recorded stock compensation expense under this plan for the three month and nine month periods ended June 30, 2015 of $5 thousand and $18 thousand, respectively. The Company recorded stock compensation expense under this plan for the three and nine month periods ended June 30, 2014 of $8 thousand and $19 thousand, respectively. Common Stock Warrants On December 22, 2014, the company issued 74,802 warrants to two individuals in combination with the sale of a like number of shares of common stock, one of which is the Chairman of the Company’s Board of Directors. These warrants were immediately exercisable, expire five years after the date of issuance and have an exercise and weighted average price of $14.00. The remaining contractual life of these outstanding warrants as of June 30, 2015 was 4.48 years. The fair value of the warrants was determined using the lattice model and the same inputs as those used for valuing the Company’s stock option fair value. The fair value of the warrants was $133 thousand at the date of issuance. The Company determined that the warrants are freestanding and do not fall within the scope of ASC 480 or ASC 815. The warrants were recorded in conjunction with the stock issued. Per share computation Basic earnings (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period, less shares that may be repurchased, and excludes any dilutive effects of options and warrants. In periods where the Company reports net income, diluted net income per share is computed using common equivalent shares related to outstanding options and warrants to purchase common stock. The numerator for the calculation of basic and diluted earnings per share is net income (loss). The following table sets forth the computation of basic and diluted weighted average shares used in the earnings per share calculations: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Denominator for basic earnings per share - weighted average common shares 4,355,049 4,246,265 4,324,868 4,147,938 Effect of dilutive options (treasury method) — 146,757 — — Denominator for diluted earnings per share - adjusted weighted average common shares 4,355,049 4,393,022 4,324,868 4,147,938 Options and warrants outstanding during each period, but not included in the computation of diluted earnings per share because they are antidilutive 1,581,529 1,197,980 1,581,529 1,197,980 Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The guidance substantially converges final standards on revenue recognition between the FASB and the International Accounting Standards Board providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all exiting revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The FASB subsequently issued a one-year deferral of the effective date for the new revenue reporting standard for entities reporting under U.S. GAAP. In accordance with the deferral, the guidance is effective for annual reporting periods beginning after December 15, 2017. We are currently evaluating the impact of adopting ASU 2014-09 to determine the impact, if any, it may have on our financial statements. In November 2014, the FASB issued Accounting Standards Update No. 2014-17, “Business Combinations (Topic 805) – Pushdown Accounting” (“ASU 2014-17”). ASU 2014-17 is intended to provide guidance on whether and at what threshold an acquired entity that is a business or nonprofit activity can apply pushdown accounting in its separate financial statement. The amendments should reduce diversity in the timing and content of footnote disclosure. ASU 2014-17 is effective after November 18, 2014. The Company has adopted this guidance, but it does not have an impact on previous acquisitions. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which amends the current presentation of debt issuance costs in the financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The amendments are to be applied retrospectively and are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, but early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendments in ASU 2015-05 are effective for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption is permitted. The guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company does not believe the implementation of this standard will result in a material impact to its financial statements. In May 2015, the FASB issued ASU 2015-08, “Business Combinations (Topic 805) – Pushdown Accounting” (“ASU 2015-08”). ASU 215-08 amends various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 115. The Company does not believe the implementation of this standard will result in a material impact to its financial statements. Accounting standards that have been issued but are not yet effective by the FASB or other standards-setting bodies that do not require adoption until a future date, which are not discussed above, are not expected to have a material impact on the Company’s financial statements upon adoption. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 2. Related Party Transactions During the three and nine month periods ended June 30, 2015, the Company incurred fees of $23 and $99 thousand, respectively, to a law firm, a partner of which is a director and stockholder of the Company. The Company incurred similar fees of $39 thousand and $184 thousand, respectively, during the three and nine month periods ended June 30, 2014. The Company had accrued liabilities for unbilled services of $25 thousand at June 30, 2015 and $15 thousand at September 30, 2014 to the same law firm. As of June 30, 2015 and September 30, 2014, the Company had a loan outstanding from an executive totaling $26 thousand. The loan is collateralized by Company stock. As of June 30, 2015, and September 30, 2014 the Company had outstanding amounts due for management fees and dividends payable to the sellers of and current employees of its wholly-owned subsidiary, MediaMission B.V. totaling $144 thousand and $370 thousand, respectively. On December 22, 2014, Sonic Foundry, Inc. issued 35,905 and 38,897 shares of common stock to the Chairman of the Board of Directors and a major shareholder of the Company, respectively. The shares were issued at a price of approximately $8.36 per share, representing the twenty-day average closing price on the period ending December 18, 2014. On December 22, 2014, the closing price of the Company’s common stock was $7.68 per share. The shares are restricted from any sale, distribution or pledge of any kind for a two-year period ending December 22, 2016. The two individuals also received warrants to purchase 35,905 and 38,897 shares at $14.00 per share, respectively, which expire on December 22, 2019. This transaction was approved by a committee of disinterested directors of the Company. |
Commitments
Commitments | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 3. Commitments Inventory Purchase Commitments The Company enters into unconditional purchase commitments on a regular basis for the supply of Mediasite product. At June 30, 2015, the Company has an obligation to purchase $1.6 million of Mediasite product, which is not recorded on the Company’s Condensed Consolidated Balance Sheet. Operating Leases In November 2011, the Company occupied office space related to a lease agreement entered into on June 28, 2011. The lease term is from November 2011 through December 2018. The lease includes a tenant improvement allowance of $613 thousand that was recorded as a leasehold improvement liability and is being amortized as a credit to rent expense on a straight-line basis over the lease term. At June 30, 2015, the unamortized balance was $292 thousand. |
Credit Arrangements
Credit Arrangements | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | 4. Credit Arrangements Silicon Valley Bank The Company and its wholly owned subsidiary, Sonic Foundry Media Systems, Inc. (the “Companies”) entered into that certain Second Amended and Restated Loan and Security Agreement with Silicon Valley Bank, dated as of June 27, 2011, as amended by that certain First Amendment, dated as of May 31, 2013, as further amended by that certain Second Amendment, dated as of January 10, 2014, and as further amended by that certain Third Amendment, dated as of March 31, 2014 (the Second Amended and Restated Loan Agreement, as amended by the First, Second and Third Amendments, collectively, the “Second Amended and Restated Loan Agreement”). The Second Amended and Restated Loan Agreement provides for a revolving line of credit in the maximum principal amount of $3,000,000. Interest accrues on the revolving line of credit at the per annum rate of three quarters of one percent (0.75%) above the Prime Rate (as defined), provided that Sonic Foundry maintains an Adjusted Quick Ratio (as defined) of greater than 2.0 to 1.0, or one-and-one quarter percent (1.25%) above the Prime Rate, if Sonic Foundry does not maintain an Adjusted Quick Ratio of greater than 2.0 to 1.0. The Second Amended and Restated Loan Agreement does not provide for a minimum interest rate on the revolving loan. The Second Amended and Restated Loan Agreement provides for an advance rate on domestic receivables of 80%. The maturity date of the revolving credit facility is October 1, 2015. Under the Second Amended and Restated Loan Agreement, a term loan was entered into on January 14, 2014 in the original principal amount of $2,500,000 which accrues interest at the per annum rate equal to the Prime Rate (as defined) plus two and one-quarter percent (which equated to an interest rate of 5.5%), and is to be repaid in 36 equal monthly principal payments. The Second Amended and Restated Loan Agreement also requires Sonic Foundry to continue to comply with certain financial covenants, including covenants to maintain an Adjusted Quick Ratio (as defined) of at least 1.50 to 1.00 (except for each of the months ended February 28, 2014, April 30, 2014, May 31, 2014, July 31, 2014, August 31, 2014, October 31, 2014, and November 30, 2014, the minimum required Adjusted Quick ratio was reduced to 1:25 to 1:00), and a quarterly Debt Service Coverage Ratio of at least 1.25 to 1.00, the latter of which would be waived if certain funds were reserved against the availability under the revolving line of credit. On January 27, 2015, the Companies entered into a Fourth Amendment to Second Amended and Restated Loan and Security Agreement (the “Fourth Amendment”) with Silicon Valley Bank. Under the Fourth Amendment: (i) the balance of the term loan payable to Silicon Valley of approximately $1,665,000 was repaid and replaced by a new term loan of $2,500,000 to be repaid in 36 equal principal payments, with interest at the Prime Rate (as defined) plus two and one quarter percent (5.5%), (ii) the limit of the revolving line of credit was increased from $3.0 million to $4.0 million and the maturity date was extended to January 31, 2017, (iii) the annual commitment fee on the revolving line of credit was increased from $20,000 to $26,667, and there was also payable a term loan commitment fee of $20,000 and an amendment fee of $5,000, (iv) the covenant that requires the Minimum Adjusted Quick ratio be at or greater than 1.25:1.0 on an intra-quarter basis and 1.5:1 at quarter end was reduced to 1.1:1 on an intra-quarter basis and 1.25:1 at quarter end, (v) the covenant that requires the Debt Service Coverage ratio to be at or greater than 1.25:1 was changed to include the change in deferred revenue in the numerator of the ratio, and the ratio was reduced to 1.0:1 for the quarters ending December 31, 2014 and March 31, 2015, to 1.25:1 for the quarter ending June 30, 2015 and to 1.5:1 for the quarter ending September 30, 2015 and thereafter, (vi) the definition of Permitted Liens was amended to include no more than $800,000 in the aggregate amount of outstanding obligations for purchases of equipment, which was increased from the then-current limit of $400,000. On May 13, 2015, the Companies entered into a Fifth Amendment to the Second Amended and Restated Loan and Security Agreement (the “Fifth Amendment”), with Silicon Valley Bank. Under the Fifth Amendment: (i) interest will accrue on the revolving line of credit at the per annum rate of one and one-quarter percent (1.25%) above the Prime Rate (as defined); (ii) interest will accrue on the term loan at the per annum rate of two and three-quarters percent (2.75%) above the Prime Rate; (iii) the Adjusted Quick Ratio financial covenant was eliminated and replaced by a Liquidity financial covenant, which requires, commencing with the monthly compliance period ended March 31, 2015, and thereafter, minimum Liquidity (as defined), tested with respect to Sonic Foundry only, of at least (x) 1:35:1.00 for each month-end that is not the last day of a fiscal quarter, and (y) 1.50:1.00 for each month-end that is the last day of a fiscal quarter; (iv) provides for an advance rate on foreign receivables of the lesser of (x) 75% of Eligible Foreign Accounts (as defined) or (y) $1,000,000; (v) allows for certain subordinated debt to be issued to Partners for Growth IV, L.P.; (vi) waives existing defaults under the Second Amended and Restated Loan Agreement by virtue of the Company’s failure to comply with (x) the Adjusted Quick Ratio financial covenant for the compliance periods ended February 28, 2015 and March 31, 2015, and (y) the Debt Service Coverage Ratio financial covenant for the compliance period ended March 31, 2015; and (vii) the Debt Service Coverage ratio was reduced to 1.0:1 for the quarter ending June 30, 2015, to 1.25:1 for the quarter ending September 30, 2015 and remains at 1.50:1 for the quarter ending December 31, 2015 and thereafter. At June 30, 2015, the prime rate was three and one-quarter percent (3.25%). At June 30, 2015, a balance of $2.2 million was outstanding on the term loans with Silicon Valley Bank, with an effective interest rate of six percent (6.0%), and a balance of $1.25 million was outstanding on the revolving line of credit. At September 30, 2014, a balance of $1.9 million was outstanding on the term loans with Silicon Valley Bank and no balance was outstanding on the revolving line of credit. At June 30, 2015, there was a remaining amount of $2.75 million available under the line of credit facility for advances. At June 30, 2015, the Company was not in compliance with the Debt Service Coverage Ratio financial covenant in the Second Amended and Restated Loan Agreement, as amended. Silicon Valley Bank subsequently waived the covenant default. Partners for Growth IV, L.P. On May 13, 2015, Sonic Foundry, Inc., entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Partners for Growth IV, L.P. (“PFG”), (the “Loan and Security Agreement”). The Loan and Security Agreement provides for a Term Loan in the amount of $2,000,000, which can be disbursed in two (2) Tranches as follows: Tranche 1 was drawn in the amount of $1,500,000 shortly after execution thereof; and Tranche 2 in the amount of $500,000, and can be disbursed at any time, at Sonic Foundry’s discretion, following disbursement of Tranche 1 and on or before December 31, 2015, so long as at no Default or Event of Default (as defined) shall have occurred and be continuing. Each tranche of the Term Loan bears interest at 10.75% per annum. Tranche 1 of the Term Loan is payable interest only until November 30, 2015. Thereafter, principal is due in 30 equal monthly principal installments, plus accrued interest, beginning December 1, 2015 and continuing until May 1, 2018, when the principal balance is to be paid in full. Tranche 2 of the Term Loan is payable using the same repayment schedule as Tranche 1. The principal of the Term Loan may be prepaid at any time, provided that Sonic Foundry pays to PFG a prepayment fee equal to 1% of the principal amount prepaid, if the prepayment occurs in the first year from disbursement of Tranche 1. Coincident with execution of the Loan and Security Agreement, the Company entered into a Warrant Agreement (“Warrant”) with PFG. Pursuant to the terms of the Warrant, the Company issued to PFG a warrant to purchase up to 50,000 shares of common stock of the Company at an exercise price of $9.66 per share, subject to certain adjustments, of which 37,500 were exercisable with the disbursement of Tranche 1 and 12,500 become exercisable upon a disbursement under Tranche 2. Pursuant to the Warrant, PFG is also entitled, under certain conditions, to require the Company to exchange the Warrant for the sum of $200,000 (or $150,000, if the Company does not draw on Tranche 2 of the Term Loan). Each warrant issued has an exercise term of 5 years from the date of issuance. The warrants could be settled for cash in the event of acquisition of the company, any liquidation of the company, or expiration of the warrant. The Company has determined the cash payment date to be the expiration date (May 14, 2020). Due to the fixed payment amount on the expiration date, the warrant structure is in substance a debt arrangement (the “Warrant Debt”) with a zero interest rate, a fixed maturity date and a feature that makes the debt convertible to common stock. The Warrant Debt had a fair value of $58 thousand. The derivative had a fair value of $120 thousand. The conversion feature is an embedded derivative; thus, for accounting purposes, the conversion feature is bifurcated and accounted for separately from the PFG Debt and Warrant Debt as a derivative liability measured at fair value at each reporting period. As of June 30, 2015, the estimated fair value of the derivative liability associated with the warrants issued in connection with the Loan and Security Agreement, was $58 thousand. The change in the fair value of the derivative liability between the issuance date and June 30, 2015, was recorded as a gain of $62 thousand included in the other income (expense). The proceeds from the Loan and Security Agreement were allocated between the PFG Debt and the Warrant Debt (inclusive of its conversion feature) based on their relative fair value on the date of issuance which resulted in initial carrying values of $1.322 million and $178 thousand, respectively. The conversion feature of $178 thousand is treated together as a debt discount on the PFG Debt and will be accreted to interest expense under the effective interest method over the three-year term of the PFG Debt and the five-year term of the Warrant Debt. For the third quarter of fiscal 2015, the Company recorded accretion of discount expense associated with the warrants issued with the PFG loan of $2 thousand as well as $7 thousand related to amortization of the debt discount. There was no accretion of discount expense or related amortization expense recorded in the third quarter of fiscal 2014 as the loan was funded in fiscal 2015. The fair values of term debt and warrant debt are based on the present value of expected future cash flows and assumptions about current interest rates and the creditworthiness of the Company (Level 3). At May 13, 2015, the carrying amounts of the Company’s term debt and warrant debt totaled $1.322 million and $178 thousand, respectively. At May 13, 2015, the Company’s term debt and warrant debt were recorded at fair value. At June 30, 2015, the derivative liability was remeasured at fair value. The fair value of the bifurcated conversion feature represented by the warrant derivative liability is based on a Black Scholes option pricing model with assumptions for stock price, exercise price, volatility, expected term, risk free interest rate and dividend yield similar to those described previously for share-based compensation which were generally observable (Level 2). The Term Loan is collateralized by substantially all the Company’s assets, including intellectual property, subject to a first lien held by Silicon Valley Bank, The Term Loan requires compliance with the same financial covenants as set forth in the loan from Silicon Valley Bank. At June 30, 2015, the Company was not in compliance with the Debt Service Coverage Ratio financial covenant in the Loan and Security Agreement. On August 12, 2015, the Company and PFG entered into a waiver agreement to waive the existing covenant default and to change the exercise price of the aforementioned warrants from $9.66 per share to $6.80 per share. The non-cash financial statement impact of this transaction will be recorded during the quarter ending September 30, 2015. Other Indebtedness At June 30, 2015, a balance of $49 thousand was outstanding on the notes payable to Mitsui Sumitomo Bank. At September 30, 2014 the outstanding balance on the notes was $170 thousand. At June 30, 2015, no balance was outstanding on the line of credit with Mitsui Sumitomo Bank. The notes and credit facility are both related to Mediasite K.K., and both accrue interest at an annual rate of approximately one-and-one half percent (1.575%). At June 30, 2015, a balance of $275 thousand was outstanding on the subordinated note payable related to the acquisition of MediaMission, with an annual interest rate of six-and-one half percent (6.5%). At September 30, 2014, the outstanding balance was $628 thousand. At June 30, 2015, no balance was outstanding on the subordinated payable related to the acquisition of Mediasite KK after paying off the outstanding balance in January 2015. At September 30, 2014, the outstanding balance was $1.8 million. In the three and nine months ended June 30, 2015, a foreign currency loss of $6 and a foreign currency gain of $206 thousand was realized related to re-measurement of the subordinated notes payable related to the Company’s foreign subsidiaries. In the three and nine months ended June 30, 2014, a foreign currency loss of $20 thousand was recorded related to the remeasurement, for both periods, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accruals for interest and penalties on the Company’s Condensed Consolidated Balance Sheets at June 30, 2015 or September 30, 2014, and has not recognized any interest or penalties in the Condensed Consolidated Statements of Operations for either of the three or nine month periods ended June 30, 2015 or 2014, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the nine months ended June 30, 2015 are as follows: Balance as of September 30, 2014 $ 11,185 Foreign currency translation adjustment (403 ) Balance as of June 30, 2015 $ 10,782 |
Acquisition
Acquisition | 9 Months Ended |
Jun. 30, 2015 | |
MediaMission Holding B.V. [Member] | |
Acquisition | 7. MediaMission Holding B.V. MediaMission contributed revenue of $167 thousand and net loss of $142 thousand for the three months ended June 30, 2015. MediaMission contributed revenue of $559 thousand and net loss of $340 thousand for the nine months ended June 30, 2015. MediaMission revenue contributions and net loss for the three months ended June 30, 2014 were $353 thousand and $24 thousand, respectively. MediaMission contributed revenue of $580 thousand and a net loss of $221 thousand for the period from the date of acquisition to June 30, 2014. |
Mediasite KK [Member] | |
Acquisition | 8. Mediasite KK Mediasite KK contributed revenue of $1.1 million and net loss of $285 thousand for the three months ended June 30, 2015. Mediasite KK contributed revenue of $3.8 million and net loss of $185 thousand for the nine months ended June 30, 2015. Mediasite KK revenue contributions and net loss for the three months ended June 30, 2014 were $880 thousand and $187 thousand, respectively. Mediasite KK contributed revenue of $3.1 million and net income of approximately $113 thousand for the period from the date of acquisition to June 30, 2014. |
Pro Forma Financial Information
Pro Forma Financial Information | 9 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Pro Forma Financial Information | 9. Pro Forma Financial Information The following table represents the net loss (in thousands) for the Company on a pro forma basis, assuming the acquisitions of MediaMission and Mediasite KK had each occurred as of October 1, 2013. The table sets forth unaudited pro forma results for the three and nine months ended June 30, 2015 and 2014, respectively and has been compiled from historical financial statements and other information, but is not necessarily indicative of the results that actually would have been achieved had the transaction occurred on the dates indicated or that may be achieved in the future. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Revenue $ 10,556 $ 11,267 $ 27,403 $ 29,215 Net loss (921 ) 33 (3,303 ) (1,540 ) Basic loss per share $ (0.21 ) $ 0.01 $ (0.76 ) $ (0.35 ) |
Basis of Presentation and Sig15
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Inventory Valuation | Inventory Valuation Inventory consists of raw materials and supplies used in the assembly of Mediasite recorders and finished units. Inventory of completed units and spare parts are carried at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory consists of the following (in thousands): June 30, 2015 September 30, Raw materials and supplies $ 484 $ 549 Finished goods 1,234 1,172 $ 1,718 $ 1,721 |
Capitalized Software Development Costs | Capitalized Software Development Costs Software development costs incurred in conjunction with product development are charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs are capitalized and reported at the net realizable value of the related product. Typically the period between achieving technological feasibility of the Company’s products and the general availability of the products has been short. Consequently, software development costs qualifying for capitalization are typically immaterial and are generally expensed to research and development costs, as incurred. Upon product release, the amortization of software development costs is determined annually as the greater of the amount computed using the ratio of current gross revenues for the products to their total of current and anticipated future gross revenues, or the straight-line method over the estimated economic life of the products, expected to be three years. Amortization expense of software development costs of $133 thousand is included in Cost of Revenue – Product for the nine months ending June 30, 2015 and 2014, respectively. The gross amount of capitalized external and internal development costs is $533 thousand at June 30, 2015 and September 30, 2014. There were no software development efforts that qualified for capitalization for the nine months ended June 30, 2015. |
Legal Contingencies | Legal Contingencies In June 2014, the Company entered into a settlement agreement with Astute Technology, LLC (“Astute”). The key terms of the agreement were: 1) a grant of a non-revocable license of Astute patents to the Company; 2) a grant of a fully paid, non-refundable license of certain Sonic Foundry patents to Astute; 3) both Astute and our customer agreed to identify three meetings they currently capture that the other party will not seek or respond to any request for proposal; and 4) a payment of $1.35 million to Astute. Pursuant to the settlement agreement, the payments were made in three equal amounts with the first paid in June 2014, the second paid in October 2014 and the final installment paid in March 2015. The Company contributed $1.1 million of the $1.35 million payable to Astute. Of the $1.1 million, $428 thousand related to prior use and was recorded as a charge to income during fiscal 2014. The remaining $672 thousand was recorded as a product right asset, which is being amortized, on a straight-line basis, over the remaining life of the patents, through 2020. Future amounts due to Astute were accrued for as of the time of settlement. Except as reported above, no legal contingencies were recorded for the nine months ended June 30, 2015 and 2014, respectively. |
Stock Based Compensation | Stock Based Compensation The Company uses a lattice valuation model to account for all employee stock options granted. The lattice valuation model is a more flexible analysis to value options because of its ability to incorporate inputs that change over time, such as actual exercise behavior of option holders. The Company uses historical data to estimate the option exercise and employee departure behavior in the lattice valuation model. Expected volatility is based on historical volatility of the Company’s stock. The Company considers all employees to have similar exercise behavior and therefore has not identified separate homogenous groups for valuation. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods the options are expected to be outstanding is based on the U.S. Treasury yields in effect at the time of grant. Forfeitures are based on actual behavior patterns. The fair value of each option grant is estimated using the assumptions in the following table: Nine months ended June 30, 2015 2014 Expected life 4.8-5.0 years 4.8-4.9 years Risk-free interest rate 0.96%-1.04% 0.60%-0.82% Expected volatility 45.46%-49.47% 47.11%-47.18% Expected forfeiture rate 10.72%-11.99% 11.6%-12.2% Expected exercise factor 1.40-1.43 1.39-1.41 Expected dividend yield 0% 0% A summary of option activity as of June 30, 2015 and changes during the nine months then ended is presented below: Options Weighted- Weighted- Outstanding at October 1, 2014 1,240,941 $ 10.31 6.9 Granted 313,954 9.26 9.8 Exercised (11,117 ) 7.28 6.9 Forfeited (74,051 ) 11.90 4.2 Outstanding at June 30, 2015 1,469,727 10.03 6.8 Exercisable at June 30, 2015 865,629 10.52 5.6 A summary of the status of the Company’s non-vested shares and changes during the nine month period ended June 30, 2015 is presented below: 2015 Non-vested Shares Shares Weighted-Average Grant Date Fair Non-vested at October 1, 2014 539,519 $ 3.29 Granted 313,954 3.19 Vested (227,629 ) 2.98 Forfeited (21,746 ) 1.95 Non-vested at June 30, 2015 604,098 $ 3.35 The weighted average grant date fair value of options granted during the nine months ended June 30, 2015 was $3.19. As of June 30, 2015, there was $880 thousand of total unrecognized compensation cost related to non-vested stock-based compensation, including $144 thousand of estimated forfeitures. The cost is expected to be recognized over a weighted-average remaining life of 2.0 years. Stock-based compensation recorded in the three month period ended June 30, 2015 of $207 thousand was allocated $129 thousand to selling and marketing expenses, $22 thousand to general and administrative expenses, and $56 thousand to product development expenses. Stock-based compensation recorded in the nine month period ended June 30, 2015 of $745 thousand was allocated $467 thousand to selling and marketing expenses, $198 thousand to general and administrative expenses, and $80 thousand to product development expenses. Stock-based compensation recorded in the three month period ended June 30, 2014 of $204 thousand was allocated $135 thousand to selling and marketing expenses, $12 thousand to general and administrative expenses, and $57 thousand to product development expenses. Stock-based compensation recorded in the nine month period ended June 30, 2014 of $679 thousand was allocated $449 thousand to selling and marketing expenses, $40 thousand to general and administrative expenses, and $190 thousand to product development expenses. Cash received from exercises under all stock option plans and warrants for the three and nine month periods ended June 30, 2015 was $33 thousand and $41 thousand, respectively. Cash received from exercises under all stock option plans and warrants for the three and nine month periods ended June 30, 2014 was $61 thousand and $243 thousand, respectively. There were no tax benefits realized for tax deductions from option exercises in either of the nine month periods ended June 30, 2015 or 2014. The Company currently expects to satisfy share-based awards with registered shares available to be issued. The Company also has an Employee Stock Purchase Plan (Purchase Plan) under which an aggregate of 150,000 common shares may be issued. A total of 46,703 shares are available to be issued under the plan. The Company recorded stock compensation expense under this plan for the three month and nine month periods ended June 30, 2015 of $5 thousand and $18 thousand, respectively. The Company recorded stock compensation expense under this plan for the three and nine month periods ended June 30, 2014 of $8 thousand and $19 thousand, respectively. |
Common Stock Warrants | Common Stock Warrants On December 22, 2014, the company issued 74,802 warrants to two individuals in combination with the sale of a like number of shares of common stock, one of which is the Chairman of the Company’s Board of Directors. These warrants were immediately exercisable, expire five years after the date of issuance and have an exercise and weighted average price of $14.00. The remaining contractual life of these outstanding warrants as of June 30, 2015 was 4.48 years. The fair value of the warrants was determined using the lattice model and the same inputs as those used for valuing the Company’s stock option fair value. The fair value of the warrants was $133 thousand at the date of issuance. The Company determined that the warrants are freestanding and do not fall within the scope of ASC 480 or ASC 815. The warrants were recorded in conjunction with the stock issued. |
Per share computation | Per share computation Basic earnings (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period, less shares that may be repurchased, and excludes any dilutive effects of options and warrants. In periods where the Company reports net income, diluted net income per share is computed using common equivalent shares related to outstanding options and warrants to purchase common stock. The numerator for the calculation of basic and diluted earnings per share is net income (loss). The following table sets forth the computation of basic and diluted weighted average shares used in the earnings per share calculations: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Denominator for basic earnings per share - weighted average common shares 4,355,049 4,246,265 4,324,868 4,147,938 Effect of dilutive options (treasury method) — 146,757 — — Denominator for diluted earnings per share - adjusted weighted average common shares 4,355,049 4,393,022 4,324,868 4,147,938 Options and warrants outstanding during each period, but not included in the computation of diluted earnings per share because they are antidilutive 1,581,529 1,197,980 1,581,529 1,197,980 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The guidance substantially converges final standards on revenue recognition between the FASB and the International Accounting Standards Board providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all exiting revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The FASB subsequently issued a one-year deferral of the effective date for the new revenue reporting standard for entities reporting under U.S. GAAP. In accordance with the deferral, the guidance is effective for annual reporting periods beginning after December 15, 2017. We are currently evaluating the impact of adopting ASU 2014-09 to determine the impact, if any, it may have on our financial statements. In November 2014, the FASB issued Accounting Standards Update No. 2014-17, “Business Combinations (Topic 805) – Pushdown Accounting” (“ASU 2014-17”). ASU 2014-17 is intended to provide guidance on whether and at what threshold an acquired entity that is a business or nonprofit activity can apply pushdown accounting in its separate financial statement. The amendments should reduce diversity in the timing and content of footnote disclosure. ASU 2014-17 is effective after November 18, 2014. The Company has adopted this guidance, but it does not have an impact on previous acquisitions. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which amends the current presentation of debt issuance costs in the financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The amendments are to be applied retrospectively and are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, but early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendments in ASU 2015-05 are effective for fiscal years beginning after December 15, 2015, and interim periods within those years. Early adoption is permitted. The guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company does not believe the implementation of this standard will result in a material impact to its financial statements. In May 2015, the FASB issued ASU 2015-08, “Business Combinations (Topic 805) – Pushdown Accounting” (“ASU 2015-08”). ASU 215-08 amends various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 115. The Company does not believe the implementation of this standard will result in a material impact to its financial statements. Accounting standards that have been issued but are not yet effective by the FASB or other standards-setting bodies that do not require adoption until a future date, which are not discussed above, are not expected to have a material impact on the Company’s financial statements upon adoption. |
Basis of Presentation and Sig16
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Inventory | Inventory consists of the following (in thousands): June 30, 2015 September 30, Raw materials and supplies $ 484 $ 549 Finished goods 1,234 1,172 $ 1,718 $ 1,721 |
Fair Value Assumptions for Stock Options Granted | The fair value of each option grant is estimated using the assumptions in the following table: Nine months ended June 30, 2015 2014 Expected life 4.8-5.0 years 4.8-4.9 years Risk-free interest rate 0.96%-1.04% 0.60%-0.82% Expected volatility 45.46%-49.47% 47.11%-47.18% Expected forfeiture rate 10.72%-11.99% 11.6%-12.2% Expected exercise factor 1.40-1.43 1.39-1.41 Expected dividend yield 0% 0% |
Summary of Option Activity | A summary of option activity as of June 30, 2015 and changes during the nine months then ended is presented below: Options Weighted- Weighted- Outstanding at October 1, 2014 1,240,941 $ 10.31 6.9 Granted 313,954 9.26 9.8 Exercised (11,117 ) 7.28 6.9 Forfeited (74,051 ) 11.90 4.2 Outstanding at June 30, 2015 1,469,727 10.03 6.8 Exercisable at June 30, 2015 865,629 10.52 5.6 |
Summary of Status of Company's Non-vested Shares | A summary of the status of the Company’s non-vested shares and changes during the nine month period ended June 30, 2015 is presented below: 2015 Non-vested Shares Shares Weighted-Average Grant Date Fair Non-vested at October 1, 2014 539,519 $ 3.29 Granted 313,954 3.19 Vested (227,629 ) 2.98 Forfeited (21,746 ) 1.95 Non-vested at June 30, 2015 604,098 $ 3.35 |
Computation of Basic and Diluted Weighted Average Shares Used in Earnings Per Share Calculations | The following table sets forth the computation of basic and diluted weighted average shares used in the earnings per share calculations: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Denominator for basic earnings per share - weighted average common shares 4,355,049 4,246,265 4,324,868 4,147,938 Effect of dilutive options (treasury method) — 146,757 — — Denominator for diluted earnings per share - adjusted weighted average common shares 4,355,049 4,393,022 4,324,868 4,147,938 Options and warrants outstanding during each period, but not included in the computation of diluted earnings per share because they are antidilutive 1,581,529 1,197,980 1,581,529 1,197,980 |
Goodwill and Other Intangible17
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended June 30, 2015 are as follows: Balance as of September 30, 2014 $ 11,185 Foreign currency translation adjustment (403 ) Balance as of June 30, 2015 $ 10,782 |
Pro Forma Financial Informati18
Pro Forma Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Summary of Pro Forma Financial Information | The following table represents the net loss (in thousands) for the Company on a pro forma basis, assuming the acquisitions of MediaMission and Mediasite KK had each occurred as of October 1, 2013. The table sets forth unaudited pro forma results for the three and nine months ended June 30, 2015 and 2014, respectively and has been compiled from historical financial statements and other information, but is not necessarily indicative of the results that actually would have been achieved had the transaction occurred on the dates indicated or that may be achieved in the future. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Revenue $ 10,556 $ 11,267 $ 27,403 $ 29,215 Net loss (921 ) 33 (3,303 ) (1,540 ) Basic loss per share $ (0.21 ) $ 0.01 $ (0.76 ) $ (0.35 ) |
Basis of Presentation and Sig19
Basis of Presentation and Significant Accounting Policies - Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 484 | $ 549 |
Finished goods | 1,234 | 1,172 |
Inventory, Net | $ 1,718 | $ 1,721 |
Basis of Presentation and Sig20
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | Dec. 22, 2014USD ($)Individual$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Sep. 30, 2014USD ($) |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Estimated economic life of the product | 3 years | ||||||
Capitalized internal and external development costs, gross | $ 533,000 | $ 533,000 | |||||
Total amortization expense of software development costs | $ 133,000 | $ 133,000 | |||||
Legal contingency settlement terms | The key terms of the agreement were 1) a grant of a non-revocable license of Astute patents to the Company; 2) a grant of a fully paid, non-refundable license of certain Sonic Foundry patents to Astute; 3) both Astute and our customer agreed to identify three meetings they currently capture that the other party will not seek or respond to any request for proposal; and 4) a payment of $1.35 million to Astute. | ||||||
Legal contingencies expense | 428,000 | ||||||
Product right asset related to legal settlement | $ 672,000 | $ 672,000 | |||||
Legal contingencies amount | $ 0 | $ 0 | |||||
Weighted average grant date fair value of options granted | $ / shares | $ 3.19 | ||||||
Unrecognized non vested stock based compensation | 880,000 | $ 880,000 | |||||
Estimated forfeitures for unrecognized non vested stock based compensation | 144,000 | $ 144,000 | |||||
Expected weighted average life of forfeited cost | 2 years | ||||||
Stock-based compensation | 207,000 | $ 204,000 | $ 745,000 | 679,000 | |||
Cash received from exercises under all stock option plans and warrants | $ 33,000 | 61,000 | 41,000 | 243,000 | |||
Tax benefits realized for tax deductions from option exercises | $ 0 | 0 | |||||
Expected shares issued | shares | 150,000 | 150,000 | |||||
Shares available to issue | shares | 46,703 | 46,703 | |||||
Stock-based compensation | $ 5,000 | 8,000 | $ 18,000 | 19,000 | |||
Selling and Marketing Expenses [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Stock-based compensation | 129,000 | 135,000 | 467,000 | 449,000 | |||
General and Administrative Expenses [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Stock-based compensation | 22,000 | 12,000 | 198,000 | 40,000 | |||
Product Development Expenses [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Stock-based compensation | $ 56,000 | $ 57,000 | $ 80,000 | $ 190,000 | |||
The Company [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Payment for legal settlements | $ 1,100,000 | ||||||
Customer Related Litigation [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Payment for legal settlements | $ 1,350,000 | ||||||
Warrant [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Warrants issued to individuals | shares | 74,802 | ||||||
Number of individual issued warrants | Individual | 2 | ||||||
Warrants expiration period | 5 years | ||||||
Exercise price of warrant | $ / shares | $ 14 | ||||||
Remaining contractual life of warrants outstanding | 4 years 5 months 23 days | ||||||
Fair value of warrants | $ 133,000 |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies - Fair Value Assumptions for Stock Options Granted (Detail) | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 4 years 9 months 18 days | 4 years 9 months 18 days |
Risk-free interest rate | 0.96% | 0.60% |
Expected volatility | 45.46% | 47.11% |
Expected forfeiture rate | 10.72% | 11.60% |
Expected exercise factor | 1.40 | 1.39 |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 5 years | 4 years 10 months 24 days |
Risk-free interest rate | 1.04% | 0.82% |
Expected volatility | 49.47% | 47.18% |
Expected forfeiture rate | 11.99% | 12.20% |
Expected exercise factor | 1.43 | 1.41 |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies - Summary of Option Activity (Detail) - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options, Outstanding Beginning Balance | 1,240,941 | |
Options, Granted | 313,954 | |
Options, Exercised | (11,117) | |
Options, Forfeited | (74,051) | |
Options, Outstanding Ending Balance | 1,469,727 | 1,240,941 |
Options, Exercisable Ending Balance | 865,629 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 10.31 | |
Weighted Average Exercise Price, Granted | 9.26 | |
Weighted Average Exercise Price, Exercised | 7.28 | |
Weighted Average Exercise Price, Forfeited | 11.90 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 10.03 | $ 10.31 |
Weighted Average Exercise Price, Exercisable Ending Balance | $ 10.52 | |
Weighted Average Remaining Contractual Period in Years, Granted | 9 years 9 months 18 days | |
Weighted Average Remaining Contractual Period in Years, Exercised | 6 years 10 months 24 days | |
Weighted Average Remaining Contractual Period in Years, Forfeited | 4 years 2 months 12 days | |
Weighted Average Remaining Contractual Period in Years, Outstanding Ending Balance | 6 years 9 months 18 days | 6 years 10 months 24 days |
Weighted Average Remaining Contractual Period in Years, Exercisable Ending Balance | 5 years 7 months 6 days |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies - Summary of Status of Company's Non-Vested Shares (Detail) - 9 months ended Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding Beginning Balance | 1,240,941 |
Shares, Granted | 313,954 |
Options, Forfeited | (74,051) |
Options, Outstanding Ending Balance | 1,469,727 |
Weighted-Average Grant Date Fair Value, Granted | $ 3.19 |
Non-Vested Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding Beginning Balance | 539,519 |
Shares, Granted | 313,954 |
Shares, Vested | (227,629) |
Options, Forfeited | (21,746) |
Options, Outstanding Ending Balance | 604,098 |
Weighted-Average Grant Date Fair Value, Non-vested Beginning Balance | $ 3.29 |
Weighted-Average Grant Date Fair Value, Granted | 3.19 |
Weighted-Average Grant Date Fair Value, Vested | 2.98 |
Weighted-Average Grant Date Fair Value, Forfeited | 1.95 |
Weighted-Average Grant Date Fair Value, Non-vested Ending Balance | $ 3.35 |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies - Computation of Basic and Diluted Weighted Average Shares Used in Earnings per Share Calculations (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Denominator for basic earnings per share - weighted average common shares | 4,355,049 | 4,246,265 | 4,324,868 | 4,147,938 |
Effect of dilutive options (treasury method) | 146,757 | |||
Denominator for diluted earnings per share - adjusted weighted average common shares | 4,355,049 | 4,393,022 | 4,324,868 | 4,147,938 |
Options and warrants outstanding during each period, but not included in the computation of diluted earnings per share because they are antidilutive | 1,581,529 | 1,197,980 | 1,581,529 | 1,197,980 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 22, 2014Individual$ / sharesshares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Dec. 18, 2014$ / shares | Sep. 30, 2014USD ($)shares |
Related Party Transaction [Line Items] | |||||||
Fees incurred to law firm | $ | $ 23 | $ 39 | $ 99 | $ 184 | |||
Accrued liabilities for unbilled services | $ | 25 | 25 | $ 15 | ||||
Outstanding loan amount | $ | $ 26 | $ 26 | $ 26 | ||||
Common stock, shares issued | 4,368,169 | 4,368,169 | 4,276,470 | ||||
Common stock restriction period | 2 years | ||||||
Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock price per share | $ / shares | $ 7.68 | $ 8.36 | |||||
Number of days to calculate average price of common stock | 20 days | ||||||
Warrant [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of individual issued warrants | Individual | 2 | ||||||
Warrants issued to individuals | 74,802 | ||||||
Exercise price of warrant | $ / shares | $ 14 | ||||||
Warrants expiration date | Dec. 22, 2019 | ||||||
Board of Directors Chairman [Member] | Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares issued | 35,905 | ||||||
Board of Directors Chairman [Member] | Warrant [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Warrants issued to individuals | 35,905 | ||||||
Majority Shareholder [Member] | Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares issued | 38,897 | ||||||
Majority Shareholder [Member] | Warrant [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Warrants issued to individuals | 38,897 | ||||||
MediaMission Holding B.V. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Amount payable, total | $ | $ 144 | $ 144 | $ 370 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 28, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase which is not recorded on Company's Balance Sheet | $ 1,600 | |
Lease Term | November 2011 through December 2018 | |
Leasehold improvement liability | $ 613 | |
Unamortized balance of lease | $ 292 |
Credit Arrangements - Additiona
Credit Arrangements - Additional Information (Detail) | May. 13, 2015USD ($)$ / sharesshares | Jan. 27, 2015USD ($) | Mar. 24, 2014 | Jan. 10, 2014 | Jun. 27, 2011USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Installment | Jun. 30, 2014USD ($) | Aug. 12, 2015$ / shares | May. 12, 2015USD ($) | Sep. 30, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||||||||||
Warrant debt expiration date | May 14, 2020 | |||||||||||
Derivative fair value | $ 120,000 | $ 120,000 | ||||||||||
Fair value of the derivative liability | $ 58,000 | 58,000 | ||||||||||
Change in the fair value of the derivative liability, Gain recorded | 62,000 | |||||||||||
Amortization of debt discount | $ 9,000 | |||||||||||
Silicon Valley Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Adjusted quick ratio as above Silicon Valley Bank's prime rate | 0.75% | 0.75% | ||||||||||
Adjusted quick ratio | 1.35 | |||||||||||
Advance rate on foreign receivables | 75.00% | |||||||||||
Foreign receivables accounts | $ 1,000,000 | |||||||||||
Notes payable outstanding | $ 2,200,000 | $ 2,200,000 | $ 1,900,000 | |||||||||
Annual interest rate | 6.00% | 6.00% | ||||||||||
Credit facility for advances | $ 2,750,000 | $ 2,750,000 | ||||||||||
Silicon Valley Bank [Member] | For the Quarters Ending June 30, 2015 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service coverage ratio | 1 | |||||||||||
Silicon Valley Bank [Member] | For the Quarter Ending September 30, 2015 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service coverage ratio | 1.25 | |||||||||||
Silicon Valley Bank [Member] | For the Quarter Ending December 31, 2015 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service coverage ratio | 1.50 | |||||||||||
Silicon Valley Bank [Member] | Prime Rate [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Variable rate | 3.25% | 3.25% | ||||||||||
Partners for Growth IV, L.P. [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Carrying value of debt | $ 2,000,000 | |||||||||||
Warrant issued to purchase shares of common stock | shares | 50,000 | |||||||||||
Exercise price of warrant | $ / shares | $ 9.66 | |||||||||||
Exchange price of warrants | $ 200,000 | |||||||||||
Warrant exercise term | 5 years | |||||||||||
Change in the fair value of the derivative liability, Gain recorded | $ 62,000 | |||||||||||
Secured Revolving Line of Credit [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Borrowing capacity under secured revolving line of credit | $ 4,000,000 | $ 3,000,000 | ||||||||||
Adjusted quick ratio | 1.25 | 1.5 | ||||||||||
Basis spread on variable rate | 2.25% | |||||||||||
Repayment of loan | $ 1,665,000 | |||||||||||
New term loan | $ 2,500,000 | |||||||||||
Repayment terms | 36 months | |||||||||||
Interest rate payable on subordinate note | 5.50% | |||||||||||
Revolving loan maturity date | Jan. 31, 2017 | |||||||||||
Term loan commitment fee payable | $ 20,000 | |||||||||||
Amendment fee payable | $ 5,000 | |||||||||||
Adjusted quick ratio | 1.25 | |||||||||||
Adjusted quick ratio | 1.1 | |||||||||||
Notes payable outstanding | $ 1,250,000 | $ 1,250,000 | 0 | |||||||||
Secured Revolving Line of Credit [Member] | For the Quarters Ending December 31, 2014 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service ratio | 1.25 | |||||||||||
Secured Revolving Line of Credit [Member] | For the Quarters Ending March 31, 2015 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service ratio | 1 | |||||||||||
Secured Revolving Line of Credit [Member] | For the Quarters Ending June 30, 2015 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service ratio | 1.25 | |||||||||||
Secured Revolving Line of Credit [Member] | For the Quarter Ending September 30, 2015 [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt service ratio | 1.5 | |||||||||||
Secured Revolving Line of Credit [Member] | Silicon Valley Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest accrued on revolving line of credit | 1.25% | |||||||||||
Second Amended Agreement [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Description of adjusted quick ratio | Greater than 2.0 to 1.0 | |||||||||||
Adjusted quick ratio | 2 | |||||||||||
Total term loan | $ 2,500,000 | $ 2,500,000 | ||||||||||
Percentage of advance rate on domestic receivables | 80.00% | 80.00% | ||||||||||
Basis spread on variable rate | 2.25% | |||||||||||
Interest accrued on revolving line of credit | 5.50% | 5.50% | ||||||||||
Amortization period of term loan | 36 months | |||||||||||
Prior to Second Amendment [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Adjusted quick ratio as above Silicon Valley Bank's prime rate | 1.25% | 1.25% | ||||||||||
Tranche One [Member] | Partners for Growth IV, L.P. [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving loan maturity date | May 1, 2018 | |||||||||||
Carrying value of debt | $ 1,500,000 | |||||||||||
Term loan interest rate | 10.75% | |||||||||||
Number of monthly installments | Installment | 30 | |||||||||||
Term loan payment terms | 30 equal monthly principal installments, plus accrued interest, beginning December 1, 2015 and continuing until May 1, 2018 | |||||||||||
Warrant issued to purchase shares of common stock | shares | 37,500 | |||||||||||
Tranche One [Member] | Partners for Growth IV, L.P. [Member] | First Year [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Term loan prepayment fee percentage | 1.00% | |||||||||||
Tranche Two [Member] | Partners for Growth IV, L.P. [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving loan maturity date | May 1, 2018 | |||||||||||
Carrying value of debt | $ 500,000 | |||||||||||
Warrant issued to purchase shares of common stock | shares | 12,500 | |||||||||||
Exchange price of warrants | $ 150,000 | |||||||||||
Term Loan [Member] | Silicon Valley Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest accrued on revolving line of credit | 2.75% | |||||||||||
Last Day Of Fiscal Quarter [Member] | Silicon Valley Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Adjusted quick ratio | 1.50 | |||||||||||
Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Adjusted quick ratio | 1.50 | |||||||||||
Debt service coverage ratio | 1.25 | |||||||||||
Minimum [Member] | Secured Revolving Line of Credit [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Annual commitment fee on the revolving line of credit | $ 20,000 | |||||||||||
Lien limit | 400,000 | |||||||||||
Minimum [Member] | Second Amended Agreement [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Adjusted quick ratio | 1.25 | |||||||||||
Maximum [Member] | Secured Revolving Line of Credit [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Annual commitment fee on the revolving line of credit | 26,667 | |||||||||||
Lien limit | $ 800,000 | |||||||||||
Warrant [Member] | Partners for Growth IV, L.P. [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Fair value of the derivative liability | $ 58,000 | $ 58,000 | ||||||||||
PFG Debt [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Carrying value of debt | 1,322,000 | $ 1,322,000 | $ 1,322,000 | |||||||||
Debt interest expense term | 3 years | |||||||||||
Accretion of discount expense | 2,000 | $ 0 | ||||||||||
Amortization of debt discount | 7,000 | 0 | ||||||||||
Warrant Debt [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Carrying value of debt | 178,000 | $ 178,000 | $ 178,000 | |||||||||
Warrant debt fair value | 58,000 | $ 58,000 | ||||||||||
Warrant debt interest rate | 0.00% | |||||||||||
Debt discount accreted as interest expense | $ 178,000 | |||||||||||
Debt interest expense term | 5 years | |||||||||||
Subsequent Event [Member] | Partners for Growth IV, L.P. [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Exercise price of warrant | $ / shares | $ 6.80 | |||||||||||
Mitsui Sumitomo Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes payable outstanding | $ 0 | $ 0 | ||||||||||
Annual interest rate | 1.575% | 1.575% | ||||||||||
Subordinated note payable [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Gain (loss) on foreign currency | $ 6,000 | $ 20,000 | $ 206,000 | $ 20,000 | ||||||||
Subordinated note payable [Member] | MediaMission Holding B.V. [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes payable outstanding | $ 275,000 | $ 275,000 | 628,000 | |||||||||
Annual interest rate | 6.50% | 6.50% | ||||||||||
Subordinated note payable [Member] | Mediasite KK [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes payable outstanding | $ 0 | $ 0 | 1,800,000 | |||||||||
Notes Payable [Member] | Mitsui Sumitomo Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes payable outstanding | $ 49,000 | $ 49,000 | $ 170,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Accruals of interest and penalties | $ 0 | $ 0 | $ 0 | ||
Recognized interest or penalties | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 11,185 |
Foreign currency translation adjustment | (403) |
Ending balance | $ 10,782 |
MediaMission Holding B.V. - Add
MediaMission Holding B.V. - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Contributed revenue | $ 10,556 | $ 11,267 | $ 27,403 | $ 27,351 |
Net income (loss) for acquisition period | (921) | 33 | (3,303) | (1,528) |
MediaMission Holding B.V. [Member] | ||||
Business Acquisition [Line Items] | ||||
Contributed revenue | 167 | 353 | 559 | 580 |
Net income (loss) for acquisition period | $ (142) | $ (24) | $ (340) | $ (221) |
Mediasite KK - Additional Infor
Mediasite KK - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Contributed revenue | $ 10,556,000 | $ 11,267,000 | $ 27,403,000 | $ 27,351,000 |
Net income (loss) for acquisition period | (921,000) | 33,000 | (3,303,000) | (1,528,000) |
Mediasite KK [Member] | ||||
Business Acquisition [Line Items] | ||||
Contributed revenue | 1,100,000 | 880,000 | 3,800,000 | 3,100,000 |
Net income (loss) for acquisition period | $ (285,000) | $ (187,000) | $ (185,000) | $ 113,000 |
Pro Forma Financial Informati32
Pro Forma Financial Information - Summary of Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Revenue | $ 10,556 | $ 11,267 | $ 27,403 | $ 29,215 |
Net loss | $ (921) | $ 33 | $ (3,303) | $ (1,540) |
Basic loss per share | $ (0.21) | $ 0.01 | $ (0.76) | $ (0.35) |