Ipass (IPAS) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 01, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	IPASS INC
Entity Central Index Key	1,053,374
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		83,978,957

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 8,165	$ 5,159
Accounts receivable, net of allowance for doubtful accounts of $96 and $151, respectively	8,181	8,717
Prepaid expenses	1,454	1,641
Other current assets	521	712
Total current assets	18,321	16,229
Property and equipment, net	1,000	1,334
Other assets	879	840
Total assets	20,200	18,403
Current liabilities:
Accounts payable	6,010	9,044
Accrued liabilities	3,680	3,734
Deferred revenue, short-term	4,827	3,723
Total current liabilities	14,517	16,501
Debt, long-term	6,844	0
Deferred revenue, long-term	26	102
Other long-term liabilities	1,033	1,009
Total liabilities	22,420	17,612
Stockholders’ equity (deficit):
Common stock	82	71
Additional paid-in capital	231,830	226,490
Accumulated deficit	(234,132)	(225,770)
Total stockholders’ equity (deficit)	(2,220)	791
Total liabilities and stockholders’ equity (deficit)	$ 20,200	$ 18,403

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 96	$ 151

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Revenue	$ 10,535	$ 13,474	$ 21,962	$ 27,760
Cost of revenue and operating expenses:
Network access costs	6,339	9,598	13,183	19,157
Network operations	1,379	1,514	2,763	3,206
Research and development	1,967	2,137	3,920	4,111
Sales and marketing	2,439	2,615	4,908	5,069
General and administrative	2,980	2,546	5,569	5,318
Total cost of revenue and operating expenses	15,104	18,410	30,343	36,861
Operating loss	(4,569)	(4,936)	(8,381)	(9,101)
Interest income, net	(43)	14	(36)	28
Foreign exchange loss, net	150	(129)	7	(179)
Loss before provision for income taxes	(4,462)	(5,051)	(8,410)	(9,252)
Provision for income taxes	61	217	126	332
Net loss	(4,523)	(5,268)	(8,536)	(9,584)
Comprehensive loss	$ (4,523)	$ (5,268)	$ (8,536)	$ (9,584)
Net loss per share - basic and diluted
Total net income (loss) per share (USD per share)	$ (0.06)	$ (0.08)	$ (0.12)	$ (0.15)
Weighted average shares outstanding - basic and diluted	74,226,596	65,667,559	72,045,226	65,616,234

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (8,536)	$ (9,584)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	655	693
Depreciation and amortization	346	796
Provision for doubtful accounts	73	110
Changes in operating assets and liabilities:
Accounts receivable	463	2,807
Prepaid expenses and other current assets	533	(258)
Other assets	68	(24)
Accounts payable	(3,034)	62
Accrued liabilities	(54)	(417)
Deferred revenue	949	380
Other liabilities	(893)	(95)
Net cash used in operating activities	(9,430)	(5,530)
Cash flows from investing activities:
Purchases of property and equipment	(21)	(437)
Net cash used in investing activities	(21)	(437)
Cash flows from financing activities:
Proceeds from debt financing	10,000	0
Issuance cost of debt financing	(1,396)
Net proceeds from issuance of common stock	0	263
Proceeds from common stock purchase agreement	3,891	0
Issuance cost of common stock purchase agreement	(38)	0
Net cash provided by financing activities	12,457	263
Net increase (decrease) in cash and cash equivalents	3,006	(5,704)
Cash and cash equivalents at beginning of period	5,159	16,072
Cash and cash equivalents at end of period	8,165	10,368
Supplemental disclosures of cash flow information:
Net cash paid for taxes	36	116
Accrued amounts for acquisition of property and equipment	0	151
Accrued issuance costs from debt financing		0
Warrants and Rights Outstanding	843	0
Derivative Liability	$ 685	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation The condensed consolidated financial statements include the accounts of iPass Inc., its wholly owned subsidiaries, and the variable interest entity discussed in detail in Note 6 (all together "iPass" and the “Company”). The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The interim financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair presentation for the interim periods presented. The condensed consolidated financial statements as of and for the year ended December 31, 2017, were derived from audited financial statements. This interim financial information should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the six months ended June 30, 2018 , are not necessarily indicative of the operating results for the full fiscal year or any future periods. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results that the Company experiences may differ materially from those estimates. Estimates are used for, but not limited to, the valuation of accounts receivables, other long-lived assets, deferred commissions, derivative liabilities, warrants, recognition of revenue and deferred revenue, network access costs, stock-based compensation, legal contingencies, and income taxes. The Company reports total comprehensive net loss in a single continuous financial statement within its condensed consolidated statements of operations and comprehensive loss. The Company’s comprehensive net loss is equivalent to its total net loss because the Company does not have any transactions that are recorded through other comprehensive loss. Going Concern The Company has historically relied on existing cash and cash equivalents, sales of equity and debt financing for its liquidity needs. As of June 30, 2018, the Company had $8.2 million in cash and cash equivalents. In November 2017, the Company entered into a Common Stock Purchase Agreement ("CSPA") with Aspire Capital Fund, LLC, ("Aspire Capital"). The agreement allowed the Company to sell up to $10.0 million worth of common stock to Aspire Capital over a 24 month period. Upon execution of the agreement on November 16, 2017, Aspire Capital purchased from the Company 1,867,692 shares of common stock for a total purchase price of $1.0 million . In addition, the Company issued 840,461 commitment shares to Aspire Capital. Beyond the initial purchase, the Company, at its discretion, had the right to direct Aspire Capital to purchase additional shares up to a daily maximum of 200,000 shares. The Company and Aspire Capital could mutually agree to increase the daily maximum in any given business day. However, the total number of shares issued to Aspire Capital cannot exceed 13,341,750 , which represents 19.99% of the Company's total outstanding shares of common stock at the signing of the CSPA. As of June 30, 2018, the Company has issued a total of 13,341,750 shares to Aspire Capital for a gross amount of $5.1 million and therefore cannot sell any additional shares under the current agreement. In June 2018, the Company executed a credit agreement with Fortress Credit Corp ("Fortress") to borrow $10.0 million with an option to borrow up to an additional $10.0 million , subject to the discretion of Fortress. See Note 6 for further details. The accompanying condensed consolidated financial statements were prepared on a going concern basis in accordance with GAAP. The going concern basis assumes that the Company will continue operations for the next twelve months from the date the condensed consolidated financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company's history of losses, limited liquidity, and other factors raise substantial doubt about the Company's ability to continue as a going concern. The Company may require additional financing, through either debt or equity arrangements. Equity and debt financing, however, might not be available when needed or, if available, might not be available on terms satisfactory to the Company. If the Company raises additional funds through equity financing, stockholders will experience dilution. Debt financing, if available, may involve covenants restricting operations or the Company's ability to incur additional debt. If the Company is unable to execute its business plan or obtain adequate financing and satisfactory financing terms, its ability to continue to support business growth and to respond to business challenges would be significantly limited as the Company may have to delay, reduce the scope of or eliminate some or all of its initiatives, or reduce expenses which would harm operating results. The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects that may result from the Company's inability to continue as a going concern. Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance is intended to align the accounting for such payments to nonemployees with the existing requirements for share-based payments granted to employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 but may be early adopted. The Company chose to early adopt this standard during its second quarter of 2018 and notes no material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 impacts any entity that enters a lease with some specified scope exceptions. The guidance updates and supersedes Topic 840, Leases . For public entities, ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. For leases longer than twelve months, the Company may be required to recognize a right-of-use ("ROU") asset and a lease liability. The Company is evaluating the effect ASU 2014-09 will have on the Company's consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("Topic 606") . Topic 606 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018, are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. The Company recorded a net decrease to opening accumulated deficit of $0.2 million as of January 1, 2018, due to the cumulative impact of adopting Topic 606. The impact primarily related to the capitalization of costs to obtain customer contracts of $0.3 million , specifically commissions, offset by $0.1 million from the deferral of revenue from certain arrangements. There was no impact to other items on the condensed consolidated balance sheets. The adoption of Topic 606 had a less than $0.1 million impact on the Company’s condensed consolidated statements of operations and comprehensive loss and to each of the line items therein. The costs associated with obtaining a customer contract were previously expensed in the period they were incurred. Under Topic 606, these payments have been deferred on our condensed consolidated balance sheets as other current assets and other assets and amortized over the expected life of the customer contract. Previously, the revenue from certain arrangements was recognized on a straight-line basis on an estimated period of time it was expected end users would activate the service to begin their twelve month trial period. Under Topic 606, the Company will recognize revenue in proportion to end user activation of the twelve month trial period based on expected or historical experience. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The majority of the Company's revenue is derived from monthly recurring arrangements that provide the Company's customers access to the Company's WiFi network footprint. Other sources of revenue include professional services, Veri-Fi TM big data analytics, software license and support. The Company applies the following five steps to recognize revenue: 1. Identify the contract with a customer: The terms and conditions of the Company's contracts are considered to identify contracts under Topic 606. The Company identifies a contract with a customer once the contract is approved, details each party's rights regarding the services to be transferred, specifies the payment terms for the services, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. Typically, the terms of contracts with customers is twelve months. Payment terms less than 90 days are not considered a significant financing component. 2. Identify the performance obligations in the contract: Performance obligations in contracts are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The most significant performance obligations identified by the Company consist of 1) access to the Company's Wi-Fi network footprint via the iPass SmartConnect TM application (which forms a monthly series of performance obligations together with technical support and unspecified upgrades), 2) professional services, 3) Veri-Fi big data analytics, 4) software licenses and 5) support. As the Company's product offerings continue to evolve, the Company could identify further performance obligations based on the terms of the contract. 3. Determine the transaction price: The transaction price is based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. The Company concludes that because fees are consistently priced throughout the contract on a monthly basis, there is no need to allocate potential variable consideration. None of the Company's contracts contain a significant financing component. In certain situations the transaction price is constrained to avoid the risk of a potential material revenue reversal. 4. Allocate the transaction price to performance obligations in the contract: If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP"). 5. Recognize revenue when the performance obligation is satisfied: Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised services to a customer. The Company recognizes revenue when the Company transfers control of the services to the customers for an amount that reflects the consideration that the Company expects to receive in exchange for those services. Typically, access to the Company's Wi-Fi network footprint and the Company providing support services is recognized over time, such as over a month or quarter, and at a point in time for when professional services, Veri-Fi big data analytics, or software license obligations are satisfied. For the six months ended June 30, 2018 and 2017, the Company recognized $2.5 million and $1.9 million from amounts included in the deferred revenue beginning balance, respectively. Costs to Obtain a Customer Contract The Company capitalizes sales commissions that are incremental to the acquisition of contracts with customers. These costs are recorded as other current assets and other assets on our condensed consolidated balance sheets. The Company determines whether costs should be deferred based on sales compensation plans and agreements when the costs are in fact incremental and would not have occurred absent the customer contract. The deferred commission amounts are deemed recoverable through future revenue streams and positive margins. Deferred commissions are amortized on a straight-line basis over the expected customer contract life and included in sales and marketing expense in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2018, the estimated customer contract life is deemed to approximate three years. The Company periodically reviews these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred sales commissions. There were no material impairment losses for deferred sales commissions through June 30, 2018.

Financial Instruments and Fair

Financial Instruments and Fair Value	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value	Financial Instruments and Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction in the principal or most advantageous market between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy The three levels of inputs that may be used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices 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; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value measurements of these financial assets (excluding cash) and liabilities and the related hierarchy level for the fair value measurement at June 30, 2018 , and December 31, 2017 are as follows: As of June 30, 2018 As of December 31, 2017 Fair Value Measured Using Total Balance Fair Value Measured Using Total Balance Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Financial assets Money market funds (1) $ 6,543 $ — $ — $ 6,543 $ 4,175 $ — $ — $ 4,175 Total financial assets $ 6,543 $ — $ — $ 6,543 $ 4,175 $ — $ — $ 4,175 Financial liabilities Derivative liability (2) $ — $ — $ 685 $ 685 $ — $ — $ — $ — Total financial liabilities $ — $ — $ 685 $ 685 $ — $ — $ — $ — (1) Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. (2) Recorded in other long-term liabilities on the Company’s condensed consolidated balance sheets. There were no transfers between Levels 1, 2, and 3 from December 31, 2017 through June 30, 2018 . As of June 30, 2018 and December 31, 2017 , the carrying amounts of accounts receivable, accounts payable, and accrued liabilities approximated fair value due to their short maturities.

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, net Property and equipment, net, consisted of the following: June 30, December 31, 2017 (In thousands) Equipment $ 10,714 $ 10,698 Furniture and fixtures 246 246 Computer software 10,727 10,723 Construction in progress — 36 Leasehold improvements 483 483 22,170 22,186 Less: Accumulated depreciation and amortization (21,170 ) (20,852 ) Property and equipment, net $ 1,000 $ 1,334 Depreciation expense was approximately $0.1 million and $0.3 million for the three and six months ended June 30, 2018, respectively, compared to approximately $0.3 million and $0.8 million for the three and six months ended June 30, 2017, respectively. During the three and six months ended June 30, 2018 and 2017, the Company retired less than $0.1 million in gross property and equipment.

Other Assets Other Assets (Note

Other Assets Other Assets (Notes)	6 Months Ended
	Jun. 30, 2018
Other Assets [Abstract]
Other Assets	Note 4. Other Assets Other assets (non-current) consisted of the following: June 30, December 31, 2017 (In thousands) Deposits $ 481 $ 503 Long-term deferred tax asset, net 209 209 Long-term tax receivable 128 128 Deferred commissions, long-term 61 — $ 879 $ 840

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities and Other Long-term Liabilities Accrued liabilities consisted of the following: June 30, December 31, 2017 (In thousands) Accrued tax liabilities $ 866 $ 886 Accrued bonus, commissions and other employee benefits 491 522 Amounts due to customers 833 962 Legal fee accruals 335 492 Sales tax liability 289 — Other accrued liabilities 866 872 $ 3,680 $ 3,734 Other long-term liabilities consisted of the following: June 30, December 31, 2017 (In thousands) Other long-term liabilities $ 348 $ 1,009 Derivative liability 685 — $ 1,033 $ 1,009

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Debt On June 14, 2018, the Company entered into a loan and security agreement and related transaction documents (together forming the "Credit Agreement") with Fortress for an initial term loan of $10.0 million . From June 14, 2018 through September 14, 2019, the Company may request an additional draw down in $1.0 million increments not to exceed $10.0 million in total (the "Delayed Draw Term Loan"). Each Delayed Draw Term Loan is made at Fortress's sole discretion. The Credit Agreement bears an annual interest at a stated rate of 11.0% plus the greater of the following i) LIBO Rate or ii) 1.0% , with an effective interest rate of 38% after factoring in the issuance costs, debt discount from end of term fee, warrants, and embedded derivative liability. If the non-cash expenses associated with the warrants and the derivative liability are excluded, the adjusted effective interest rate is 22% . Payments are due at the beginning of each month and the first 18 payments are interest-only. The Company may elect that up to 5.5% of interest to be paid in-kind by capitalizing and adding such interest to the unpaid principal amount. Starting in December 2019, the Company shall make thirty monthly principal payments, plus any accrued and unpaid interest, to fully payoff the Credit Agreement. At the end of the term the Company will pay a fee equal to 5.0% of the principal amount. The Company may prepay the Credit Agreement in whole or in part but any prepayment made before the first anniversary of the Credit Agreement is subject to a 5.0% fee of the principal balance being prepaid. Prepayments made between the first and second anniversary of the Credit Agreement are subject to a 2.0% fee, and prepayments made between the second and third anniversary are subject to a 1.0% fee. The Company’s obligations under the Credit Agreement are secured by a first-priority security interest in all of the assets of the Company, including the Company’s intellectual property assets ("IP"). The Credit Agreement calls for the creation of a special-purpose entity ("SPE") to hold the Company’s IP. The Company owns 99.8% of the entity and Fortress owns the remaining 0.2% . The Company holds voting control and manages the day-to-day activities of the SPE with Fortress granted certain protective rights to provide it assurance over the collateral and Fortress's interest. The transfer of IP to the SPE has no material impact on the Company or its operations as it can continue to license and engage in revenue generating activities. The Company considered the guidance under ASC 810, Consolidation , and concludes the SPE is a variable interest entity ("VIE"). Because the Company has power over the VIE and its activities and has the economic risk and rewards related to the VIE, the Company is considered to be the primary beneficiary of the VIE, and it is consolidated within the Company's financial statements. Because the book value of the IP is zero, there is no accounting impact and any potential non-controlling interest is considered immaterial. The Credit Agreement contains certain events of default that, if triggered, grants Fortress the unilateral right to manage any potential disposition of the IP owned by the SPE. All of the proceeds are allocated to Fortress until the outstanding loan principal is fully covered and then the remaining proceeds are allocated between Fortress and the Company based on terms stipulated in the Credit Agreement. Until such event of default happens, control over the operations of the SPE remains with the Company. At the time of potential default, the VIE conclusion would be reconsidered and could change from the Company being the primary beneficiary. The Credit Agreement contains customary representations, warranties and indemnification provisions. The Credit Agreement also contains affirmative and negative covenants with respect to operations of the business and properties of the Company as well as financial performance, including requirements to maintain a minimum of $1.5 million of unrestricted cash; limits on network access cost, operating expenses and gross revenue levels on a trailing four-quarter basis to be within a stated percentage of budgeted amounts; changes in senior management not otherwise approved by Fortress; limits on undisputed trade payables to 90 days or less; prohibitions on incurring additional indebtedness or making guarantees, making investments, loans and acquisitions; prohibitions on consolidating or merging, altering the business of the Company; requirements for a December 31, 2018 audit report without a going concern emphasis of a matter paragraph; and prohibitions on paying dividends or making distributions. The Credit Agreement further provides customary events of default and cure periods for certain specified events of default, and in the event of uncured default, the acceleration of the maturity date, an increase in the applicable interest rate with respect to amounts outstanding, and an additional fee based on the outstanding principal balance. The Company analyzed Fortress's option to require full repayment and charge an additional fee based on the outstanding principal balance and concludes this to be a put option that is an embedded derivative under ASC 815, Derivatives and Hedging. This embedded derivative should be bifurcated and measured at fair value at each reporting period. The Company assessed the fair value of the embedded derivative using a probability assessment on the event of default. As of June 30, 2018, the fair value of the embedded derivative was deemed to be $0.7 million . The Company incurred transaction costs of $1.6 million which included fees from the Company's general counsel, financial advisers, a 3.0% structuring fee paid to Fortress, and the reimbursement to Fortress of certain expenses related to the execution of the Credit Agreement. Concurrently with the execution of the Credit Agreement, the Company issued to entities related to Fortress 2,784,930 common stock warrants at a per share exercise price of $0.3022 with a seven year life. The Company considered the guidance in ASC 480, Distinguishing Liabilities from Equity , and ASC 815, Derivatives and Hedging, and concluded the warrants should be classified as equity. Many factors support this conclusion including the ability to settle in a fixed number of unregistered shares and cashless exercise. The fair value of $0.8 million was calculated using the Black-Scholes model. A reconciliation of the proceeds from the Credit Agreement to its carrying value is as follows: (In thousands) Principal $ 10,000 End of term fee 500 Issuance costs (1,628 ) Debt discount from end of term fee (500 ) Warrants - equity (843 ) Derivative liability (685 ) Long-term debt, net of discount $ 6,844 The debt discount will be amortized to interest expense over the life of the loan using the effective interest method. Amortization during the quarter ended June 30, 2018 was insignificant. The expected timing of principal payments are as follows as of June 30, 2018: Year ended December 31, (In thousands) 2018 $ — 2019 333 2020 4,000 2021 4,000 2022 2,167 10,500 Debt discount (3,656 ) Long-term debt, net of discount 6,844 Less current portion, net — Debt, long-term $ 6,844

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease and Purchase Commitments The Company leases facilities under operating leases that expire at various dates through October 2020. Future minimum lease payments under these operating leases as of June 30, 2018, are as follows: Year Operating Leases (In thousands) Remainder of 2018 (six months) $ 851 2019 1,252 2020 926 $ 3,029 The Company has contracts with certain network service and other infrastructure providers which have minimum purchase commitments that expire on various dates through December 2019 . Future minimum purchase commitments under these agreements as of June 30, 2018, are as follows: Year Minimum Purchase Commitments (In thousands) Remainder of 2018 (six months) $ 5,544 2019 1,309 $ 6,853 Unclaimed Property Compliance The Company has received notices from several states stating that they have appointed an agent to conduct an examination of the books and records of the Company to determine whether it has complied with state unclaimed property laws. In addition to seeking the turnover of unclaimed property subject to escheat laws, the states may seek interest, penalties, costs of examinations, and other relief. If the potential loss from any payment claim is considered probable and the amount or the range of the loss can be estimated, the Company accrues a liability for the estimated loss. While the Company is not able to estimate the possible payment, if any, it continues to work through this matter with the states and their appointed agents. Legal Proceedings The Company is involved in legal proceedings and claims arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any such pending legal proceeding or claim will result in a judgment or settlement that would have a material adverse effect on the Company’s financial position, results of operations or cash flows. In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third-parties. Certain indemnification agreements may not be subject to maximum loss clauses. If the potential loss from any indemnification claim is considered probable and the amount or the range of the loss can be estimated, the Company accrues a liability for the estimated loss. To date, claims under such indemnification provisions have not been significant.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding plus dilutive potential common shares as determined using the treasury stock method for outstanding stock options, restricted stock-based awards, shares issuable under the employee stock purchase plan, and warrants unless the result of adding such shares would be anti-dilutive. The following weighted average potential shares of common stock have been excluded from the computation of diluted net loss per share because the effect of including these shares would have been anti-dilutive: Three Months Ended Six Months Ended 2018 2017 2018 2017 Options to purchase common stock 9,342,487 4,952,867 9,273,861 4,669,545 Warrants to purchase common stock 509,359 — 721,766 — Restricted stock awards, including participating securities 63,332 212,498 199,165 215,831 Total 9,915,178 5,165,365 10,194,792 4,885,376

Segment and Geographical Inform

Segment and Geographical Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment and Geographical Information	Segment and Geographical Information The Company has one reportable operating segment, Mobile Connectivity Services. The Company's cloud-based service gives the Company's customers and their users access to the Company's global Wi-Fi network and mobile connectivity solutions. The following table presents total Company revenue by country or by geographical region: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 United States 52 % 48 % 51 % 46 % Europe, Middle East and Africa 40 % 43 % 42 % 44 % Asia Pacific 4 % 6 % 4 % 7 % Rest of the World 4 % 3 % 3 % 3 % No individual country, except for the United States and Germany accounted for 10% or more of total revenue for the three and six months ended June 30, 2018. For those periods, revenue in Germany accounted for 10% and 12% of total revenue, respectively. No customers represented 10% or more of total revenues for the three and six months ended June 30, 2018. No individual country, except for the United States and Germany accounted for 10% or more of total revenue for the three and six months ended June 30, 2017. Revenue in Germany accounted for 14% of total revenue for both the three and six month periods. One customer, a channel reseller, represented 11% of total revenues for the three and six months ended June 30, 2017. Substantially all of the Company's long-lived assets are located in the United States.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Management has evaluated events subsequent to June 30, 2018, through the date the filing of this Form 10-Q for other transactions and events that may require adjustment of and/or disclosure in such financial statements and noted no additional significant subsequent events that require disclosure.

Basis of Presentation and Sum16

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The majority of the Company's revenue is derived from monthly recurring arrangements that provide the Company's customers access to the Company's WiFi network footprint. Other sources of revenue include professional services, Veri-Fi TM big data analytics, software license and support. The Company applies the following five steps to recognize revenue: 1. Identify the contract with a customer: The terms and conditions of the Company's contracts are considered to identify contracts under Topic 606. The Company identifies a contract with a customer once the contract is approved, details each party's rights regarding the services to be transferred, specifies the payment terms for the services, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. Typically, the terms of contracts with customers is twelve months. Payment terms less than 90 days are not considered a significant financing component. 2. Identify the performance obligations in the contract: Performance obligations in contracts are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The most significant performance obligations identified by the Company consist of 1) access to the Company's Wi-Fi network footprint via the iPass SmartConnect TM application (which forms a monthly series of performance obligations together with technical support and unspecified upgrades), 2) professional services, 3) Veri-Fi big data analytics, 4) software licenses and 5) support. As the Company's product offerings continue to evolve, the Company could identify further performance obligations based on the terms of the contract. 3. Determine the transaction price: The transaction price is based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. The Company concludes that because fees are consistently priced throughout the contract on a monthly basis, there is no need to allocate potential variable consideration. None of the Company's contracts contain a significant financing component. In certain situations the transaction price is constrained to avoid the risk of a potential material revenue reversal. 4. Allocate the transaction price to performance obligations in the contract: If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP"). 5. Recognize revenue when the performance obligation is satisfied: Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised services to a customer. The Company recognizes revenue when the Company transfers control of the services to the customers for an amount that reflects the consideration that the Company expects to receive in exchange for those services. Typically, access to the Company's Wi-Fi network footprint and the Company providing support services is recognized over time, such as over a month or quarter, and at a point in time for when professional services, Veri-Fi big data analytics, or software license obligations are satisfied. For the six months ended June 30, 2018 and 2017, the Company recognized $2.5 million and $1.9 million from amounts included in the deferred revenue beginning balance, respectively. Costs to Obtain a Customer Contract The Company capitalizes sales commissions that are incremental to the acquisition of contracts with customers. These costs are recorded as other current assets and other assets on our condensed consolidated balance sheets. The Company determines whether costs should be deferred based on sales compensation plans and agreements when the costs are in fact incremental and would not have occurred absent the customer contract. The deferred commission amounts are deemed recoverable through future revenue streams and positive margins. Deferred commissions are amortized on a straight-line basis over the expected customer contract life and included in sales and marketing expense in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2018, the estimated customer contract life is deemed to approximate three years. The Company periodically reviews these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred sales commissions. There were no material impairment losses for deferred sales commissions through June 30, 2018.

Financial Instruments and Fai17

Financial Instruments and Fair Value (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities	The fair value measurements of these financial assets (excluding cash) and liabilities and the related hierarchy level for the fair value measurement at June 30, 2018 , and December 31, 2017 are as follows: As of June 30, 2018 As of December 31, 2017 Fair Value Measured Using Total Balance Fair Value Measured Using Total Balance Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Financial assets Money market funds (1) $ 6,543 $ — $ — $ 6,543 $ 4,175 $ — $ — $ 4,175 Total financial assets $ 6,543 $ — $ — $ 6,543 $ 4,175 $ — $ — $ 4,175 Financial liabilities Derivative liability (2) $ — $ — $ 685 $ 685 $ — $ — $ — $ — Total financial liabilities $ — $ — $ 685 $ 685 $ — $ — $ — $ — (1) Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Components of Property and Equipment, Net	Property and equipment, net, consisted of the following: June 30, December 31, 2017 (In thousands) Equipment $ 10,714 $ 10,698 Furniture and fixtures 246 246 Computer software 10,727 10,723 Construction in progress — 36 Leasehold improvements 483 483 22,170 22,186 Less: Accumulated depreciation and amortization (21,170 ) (20,852 ) Property and equipment, net $ 1,000 $ 1,334

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Other Assets [Abstract]
Components of other assets	Note 4. Other Assets Other assets (non-current) consisted of the following: June 30, December 31, 2017 (In thousands) Deposits $ 481 $ 503 Long-term deferred tax asset, net 209 209 Long-term tax receivable 128 128 Deferred commissions, long-term 61 — $ 879 $ 840

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: June 30, December 31, 2017 (In thousands) Accrued tax liabilities $ 866 $ 886 Accrued bonus, commissions and other employee benefits 491 522 Amounts due to customers 833 962 Legal fee accruals 335 492 Sales tax liability 289 — Other accrued liabilities 866 872 $ 3,680 $ 3,734 Other long-term liabilities consisted of the following: June 30, December 31, 2017 (In thousands) Other long-term liabilities $ 348 $ 1,009 Derivative liability 685 — $ 1,033 $ 1,009

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt	of the proceeds from the Credit Agreement to its carrying value is as follows: (In thousands) Principal $ 10,000 End of term fee 500 Issuance costs (1,628 ) Debt discount from end of term fee (500 ) Warrants - equity (843 ) Derivative liability (685 ) Long-term debt, net of discount $ 6,844
Schedule of Maturities of Debt	The expected timing of principal payments are as follows as of June 30, 2018: Year ended December 31, (In thousands) 2018 $ — 2019 333 2020 4,000 2021 4,000 2022 2,167 10,500 Debt discount (3,656 ) Long-term debt, net of discount 6,844 Less current portion, net — Debt, long-term $ 6,844

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments	The Company leases facilities under operating leases that expire at various dates through October 2020. Future minimum lease payments under these operating leases as of June 30, 2018, are as follows: Year Operating Leases (In thousands) Remainder of 2018 (six months) $ 851 2019 1,252 2020 926 $ 3,029
Schedule of Future Minimum Purchase Commitments	Future minimum purchase commitments under these agreements as of June 30, 2018, are as follows: Year Minimum Purchase Commitments (In thousands) Remainder of 2018 (six months) $ 5,544 2019 1,309 $ 6,853

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share	The following weighted average potential shares of common stock have been excluded from the computation of diluted net loss per share because the effect of including these shares would have been anti-dilutive: Three Months Ended Six Months Ended 2018 2017 2018 2017 Options to purchase common stock 9,342,487 4,952,867 9,273,861 4,669,545 Warrants to purchase common stock 509,359 — 721,766 — Restricted stock awards, including participating securities 63,332 212,498 199,165 215,831 Total 9,915,178 5,165,365 10,194,792 4,885,376

Segment and Geographical Info24

Segment and Geographical Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Summary of Revenue by Geographical Region	Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 United States 52 % 48 % 51 % 46 % Europe, Middle East and Africa 40 % 43 % 42 % 44 % Asia Pacific 4 % 6 % 4 % 7 % Rest of the World 4 % 3 % 3 % 3 %

Basis of Presentation and Sum25

Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($)	Jan. 01, 2018	Nov. 17, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 14, 2018	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents			$ 8,165,000	$ 10,368,000	$ 8,165,000	$ 10,368,000		$ 5,159,000	$ 16,072,000
Subsidiary, Sale of Stock [Line Items]
Accumulated deficit			(234,132,000)		(234,132,000)			$ (225,770,000)
Impact on operations (less than)			(4,523,000)	(5,268,000)	(8,536,000)	(9,584,000)
Impact on comprehensive loss (less than)			4,523,000	$ 5,268,000	$ 8,536,000	9,584,000
Estimated customer contract life					3 years
Deferred revenue impaired					$ 0
Deferred Revenue, Revenue Recognized					$ 2,500,000	$ 1,900,000
CSPA
Subsidiary, Sale of Stock [Line Items]
Authorized transaction amount		$ 10,000,000
Transaction term		24 months
Shares sold (in shares)		1,867,692
Proceeds from transaction		$ 1,000,000
Commitments
Subsidiary, Sale of Stock [Line Items]
Shares sold (in shares)		840,461
Additional Shares
Subsidiary, Sale of Stock [Line Items]
Shares sold (in shares)					13,341,750
Proceeds from transaction					$ 5,100,000
Shares authorized on daily basis (in shares)		200,000
Percentage of total outstanding shares		19.99%
Commitment shares
Subsidiary, Sale of Stock [Line Items]
Sale of stock, maximum number of shares to be sold		13,341,750
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Subsidiary, Sale of Stock [Line Items]
Accumulated deficit	$ 200,000
Capitalization of costs to obtain customer contracts, commissions	(300,000)
Deferral of revenue from certain arrangements	(100,000)
Impact on operations (less than)	100,000
Impact on comprehensive loss (less than)	$ 100,000
Term Loan | Credit Agreement
Subsidiary, Sale of Stock [Line Items]
Initial term loan			10,000,000		10,000,000		$ 10,000,000
Additional draw down, limit			$ 10,000,000		$ 10,000,000		$ 10,000,000

Financial Instruments and Fai26

Financial Instruments and Fair Value - Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Financial liabilities
Derivative liability		$ 685		$ 0
Fair Value Measurements Recurring
Financial assets
Total financial assets		6,543	$ 4,175
Financial liabilities
Derivative liability		685	0
Total financial liabilities		685	0
Fair Value Measurements Recurring | Level 1
Financial assets
Total financial assets		6,543	4,175
Financial liabilities
Derivative liability		0	0
Total financial liabilities		0	0
Fair Value Measurements Recurring | Level 2
Financial assets
Total financial assets		0	0
Financial liabilities
Derivative liability		0	0
Total financial liabilities		0	0
Fair Value Measurements Recurring | Level 3
Financial assets
Total financial assets		0	0
Financial liabilities
Derivative liability		685	0
Total financial liabilities		685	0
Money market funds | Fair Value Measurements Recurring
Financial assets
Money market funds	[1]	6,543	4,175
Money market funds | Fair Value Measurements Recurring | Level 1
Financial assets
Money market funds	[1]	6,543	4,175
Money market funds | Fair Value Measurements Recurring | Level 2
Financial assets
Money market funds	[1]	0	0
Money market funds | Fair Value Measurements Recurring | Level 3
Financial assets
Money market funds	[1]	$ 0	$ 0
[1]	Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets.

Financial Instruments and Fai27

Financial Instruments and Fair Value - Narrative (Detail)	6 Months Ended
	Jun. 30, 2018USD ($)
Fair Value Disclosures [Abstract]
Transfers between Levels 1, 2, and 3	$ 0

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Equipment	$ 10,714	$ 10,698
Furniture and fixtures	246	246
Computer software	10,727	10,723
Construction in progress	0	36
Leasehold improvements	483	483
Property plant and equipment, gross	22,170	22,186
Less: Accumulated depreciation and amortization	(21,170)	(20,852)
Property and equipment, net	$ 1,000	$ 1,334

Property and Equipment, Net - N

Property and Equipment, Net - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, wrote-off (less than 0.1 million)	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Continuing Operations
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 0.1	$ 0.3	$ 0.3	$ 0.8

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Components of other assets
Deposits	$ 481	$ 503
Long-term deferred tax assets, net	209	209
Long-term tax receivable	128	128
Deferred Sales Commission	61	0
Other Assets, Noncurrent	$ 879	$ 840

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued tax liabilities	$ 866	$ 886
Accrued bonus, commissions and other employee benefits	491	522
Amounts due to customers	833	962
Legal fee accruals	335	492
Sales tax liability	289	0
Other accrued liabilities	866	872
Accrued liabilities	3,680	3,734
Other long-term liabilities	348	1,009
Derivative liability	685	0
Accrued Liabilities, Long-term	$ 1,033	$ 1,009

Debt (Details)

Debt (Details)	Jun. 14, 2018USD ($)payment$ / sharesshares	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)
Debt Instrument [Line Items]
Warrants and Rights Outstanding		$ 843,000	$ 0
Term Loan | Credit Agreement
Debt Instrument [Line Items]
Initial term loan	$ 10,000,000	10,000,000
Additional draw down	1,000,000
Additional draw down, limit	$ 10,000,000	10,000,000
Stated interest rate	11.00%
Effective interest rate	38.00%
Interest rate that may be paid in-kind	5.50%
Number of monthly payments | payment	30
End of term fee	5.00%
Unrestricted cash requirement	$ 1,500,000
Fair value of embedded derivative	700,000
Transaction costs	$ 1,600,000	$ 1,628,000
Structuring fee	3.00%
Number of warrants issued (in shares) | shares	2,784,930
Exercise price of warrants (in USD per share) | $ / shares	$ 0.3022
Warrant life	7 years
Warrants and Rights Outstanding	$ 800,000
Adjusted effective interest rate	22.00%
Term Loan | Credit Agreement | Minimum
Debt Instrument [Line Items]
Basis spread on stated rate		1.00%
Term Loan | Credit Agreement | First Anniversary of Credit Agreement
Debt Instrument [Line Items]
Prepayment fee	5.00%
Term Loan | Credit Agreement | First Anniversary to Second Anniversary
Debt Instrument [Line Items]
Prepayment fee	2.00%
Term Loan | Credit Agreement | Second and Third Anniversary
Debt Instrument [Line Items]
Prepayment fee	1.00%
Variable Interest Entity, Primary Beneficiary | Term Loan | Credit Agreement
Debt Instrument [Line Items]
Ownership of special purpose entity	99.80%
Fortress | Variable Interest Entity, Not Primary Beneficiary | Term Loan | Credit Agreement
Debt Instrument [Line Items]
Ownership of special purpose entity	0.20%

Debt - Allocation of Proceeds F

Debt - Allocation of Proceeds From Credit Agreement (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 14, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt, net of discount	$ 6,844		$ 0
Term Loan | Credit Agreement
Debt Instrument [Line Items]
Principal	10,000
End of term fee	500
Issuance costs	(1,628)	$ (1,600)
Warrant - equity	(843)
Derivative liability	(685)
Long-term debt, net of discount	6,844
Debt discount from end of term fee	$ (500)

Debt - Expected Timing of Princ

Debt - Expected Timing of Principal Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt, net of discount	$ 6,844	$ 0
Term Loan | Credit Agreement
Debt Instrument [Line Items]
2,018	0
2,019	333
2,020	4,000
2,021	4,000
2,022	2,167
Long term debt, gross	10,500
Debt discount	(3,656)
Long-term debt, net of discount	6,844
Less current portion, net	0
Debt, long-term	$ 6,844

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Detail)	3 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Purchase commitments expiration period	expire on various dates through December 2019

Commitments and Contingencies36

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2018 (six months)	$ 851
2,019	1,252
2,020	926
Operating leases, future minimum payments	$ 3,029

Commitments and Contingencies37

Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2018 (six months)	$ 5,544
2,019	1,309
Future minimum purchase commitments	$ 6,853

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Anti-Dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	9,915,178	5,165,365	10,194,792	4,885,376
Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	9,342,487	4,952,867	9,273,861	4,669,545
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	509,359	0	721,766	0
Restricted Stock Awards, Including Participating Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	63,332	212,498	199,165	215,831

Segment and Geographical Info39

Segment and Geographical Information - Narrative (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2018Customer	Jun. 30, 2017Customer	Jun. 30, 2018	Jun. 30, 2017CustomerSegment
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | Segment				1
United States | Revenue | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	52.00%	48.00%	51.00%	46.00%
Germany | Revenue | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	10.00%	14.00%	12.00%	14.00%
Germany | Revenue | Customer Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage		11.00%
Customer A | Revenue | Customer Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of individual customer | Customer	0	1		1

Segment and Geographical Info40

Segment and Geographical Information - Summary of Revenue by Geographical Region (Detail) - Revenue - Geographic Concentration Risk	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	52.00%	48.00%	51.00%	46.00%
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	40.00%	43.00%	42.00%	44.00%
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	4.00%	6.00%	4.00%	7.00%
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	4.00%	3.00%	3.00%	3.00%

Uncategorized Items - ipas-2018

Label	Element	Value
Accrued Financing Costs	ipas_AccruedFinancingCosts	$ 232,000