Prism Technologies (PRZM) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Entity Registrant Name	Prism Technologies Group, Inc.
Entity Central Index Key	1,077,370
Trading Symbol	przm
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		10,073,688
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 2,862,000	$ 23,137,000
Short-term investments	1,494,000	1,494,000
Restricted Cash and Investments, Current	600,000	800,000
Prepaid expenses and other current assets	569,000	143,000
Total current assets	5,525,000	$ 25,574,000
Intangible assets	52,593,000
Goodwill	107,000
Other assets	63,000	$ 4,000
Total assets	58,288,000	25,578,000
Current liabilities:
Accounts payable	282,000	675,000
Accrued expenses	205,000	$ 194,000
Accrued contingent consideration, current	15,033,000
Notes payable, current	1,891,000
Total current liabilities	17,411,000	$ 869,000
Accrued contingent consideration, non-current	17,815,000
Notes payable, non-current	868,000
Accrued lease obligation, non-current	100,000	$ 251,000
Income tax liability	101,000	101,000
Other liabilities	45,000	45,000
Total liabilities	$ 36,340,000	$ 1,266,000
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock	$ 15,000	$ 11,000
Paid-in capital	231,276,000	221,771,000
Treasury stock	(10,323,000)	(10,323,000)
Accumulated deficit	(199,020,000)	(187,147,000)
Total stockholders’ equity	21,948,000	24,312,000
Total liabilities and stockholders’ equity	$ 58,288,000	$ 25,578,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues	$ 700		$ 700
Cost of revenues	210		210
Gross margin	490		490
Operating expenses:
General and administrative	986	$ 738	2,974	$ 1,619
Depreciation and amortization	4,246		8,772	1
Total operating expenses	5,232	$ 738	11,746	1,620
Loss from operations	(4,742)	(738)	(11,256)	(1,620)
Other income	3	$ 8	12	$ 23
Interest expense	(293)		(628)
Net loss before income taxes	$ (5,032)	$ (730)	$ (11,872)	$ (1,597)
Income tax benefit
Net loss	$ (5,032)	$ (730)	$ (11,872)	$ (1,597)
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.50)	$ (0.10)	$ (1.32)	$ (0.21)
Shares used in computing per share amounts
Basic and diluted —weighted average shares of common stock outstanding (in shares)	10,074	7,752	8,997	7,752

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net loss	$ (5,032)	$ (730)	$ (11,872)	$ (1,597)
Other comprehensive loss:
Unrealized gain on available-for-sale securities		1
Other comprehensive loss before tax		1
Other comprehensive loss, net of tax		1
Comprehensive loss	$ (5,032)	$ (729)	$ (11,872)	$ (1,597)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (11,872)	$ (1,597)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	127	21
Depreciation and amortization	8,772	$ 1
Imputed interest expense on contingent consideration	437
Imputed interest expense on notes payable	189
Net changes in operating assets and liabilities:
Prepaid expenses and other current assets	(423)	$ (76)
Accounts payable	(434)	43
Accrued expenses and other current liabilities	(140)	(180)
Net cash used in operating activities	(3,344)	$ (1,788)
Cash flows from investing activities:
Purchase of Prism, net of cash acquired	$ (16,131)
Purchases of short-term investments		$ (2,490)
Redemption of short-term investments		1,494
Redemptions of restricted cash equivalents	$ 200	200
Net cash used in investing activities	(15,931)	$ (796)
Cash flows from financing activities:
Repayment of note payable	(1,000)
Net cash used in financing activities	(1,000)
Net decrease in cash and cash equivalents	(20,275)	$ (2,584)
Cash and cash equivalents, beginning of period	23,137	30,113
Cash and cash equivalents, end of period	$ 2,862	$ 27,529

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information and Non-cash Transactions	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	Supplemental disclosures of cash flow information and non-cash transactions: In connection with its acquisition of Prism, the Company assumed liabilities and issued common stock as follows: Cash paid for acquisition $ 16,500 Contingent consideration 32,411 Issuance of common stock 9,380 Value of net assets acquired $ 58,291 Liabilities assumed $ 3,611

Note 1 - Business of Prism Tech

Note 1 - Business of Prism Technologies Group Inc	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Business of Prism Technologies Group, Inc. Prism Technologies Group, Inc. (also referred to as “Company”, “we”, “our” or “us”) was originally incorporated in California in February 1995 and re-incorporated in Delaware in October 1996, and is headquartered outside Sacramento, California. Our headquarters mailing address is 101 Parkshore Drive, Suite 100, Folsom, CA 95630, and the telephone number at that location is (916) 932-2860. Our principal website is www.przmgroup.com . On December 21, 2011 and in connection with the sale of substantially all of our assets to Bankrate, Inc., we changed our name from InsWeb Corporation (“InsWeb”) to Internet Patents Corporation and subsequently to Prism Technologies Group, Inc. Our business consists of licensing and enforcing a portfolio of patents. On March 26, 2015, we completed a merger with Prism Technologies, LLC (“Prism”), with Prism becoming a wholly-owned subsidiary of the Company (the “Merger”). Prism also operates a patent licensing and enforcement business. Prism and its subsidiaries own a portfolio of nine patent families with over 50 issued patents and patent applications in the areas of computer and network security, semiconductors and medical technology. In September 2015, we changed our name to Prism Technologies Group, Inc. to better reflect the operations of the combined companies.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	2. Basis of Presentation The consolidated financial statements include the accounts of Prism Technologies Group, Inc. and its wholly-owned subsidiaries, Goldrush Insurance Services, Inc. and Prism Technologies LLC. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not contain all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly our financial position as of September 30, 2015 and the results of operations for the three and nine months ended September 30, 2015 and 2014 and of cash flows for the nine months ended September 30, 2015 and 2014. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these periods are unaudited. The results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for any future period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K and other information as filed with the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. The December 31, 2014 condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. We believe the disclosures in its notes to the condensed consolidated financial statements are adequate to make the information presented not misleading. We have evaluated subsequent events through the time of filing these financial statements. Based upon the evaluation, there was no material impact on the accompanying condensed consolidated financial statements. Reclassifications Certain reclassifications, which have no effect on previously reported net loss, have been made to the 2014 condensed consolidated statements of operations to conform to the Company’s 2014 financial statement presentation. Summary of Significant Accounting Policies Revenue recognition In general, patent licensing arrangements are expected to provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. Complex revenue arrangements may require significant judgments, assumptions and estimates about when substantial delivery of contract elements will occur, whether any significant ongoing obligations exist subsequent to contract execution, whether collectability is reasonably assured and determination of the appropriate period in which the completion of the earning process occurs. The Company recognizes revenue when (i) persuasive evidence of a contractual arrangement between the Company and the licensee exists, which create legally enforceable rights and obligations, (ii) delivery of the licensee agreement was provided to the licensee, based upon the point at which control of license transfers to the licensee, (iii) the price to the licensee was fixed or determinable, represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised licensee agreement to a licensee and (iv) collectability of consideration to which the Company is entitled to is reasonably assured. Business Combination Accounting We account for acquisitions in accordance with ASC 805 “Business Combinations.” Intangible Assets The fair value amount assigned to each acquired patent asset is being amortized on a straight-line basis, depending on the patent, over a period ranging from 1.5 to 4.5 years. The amortization period of the entire acquired patent portfolio is a weighted average of 3.7 years and was determined using the estimated life of each patent, which is represented by the period over which 100% of the expected discounted cash flows are received, and then using a weighted average approach based on the value of the patent and the estimated life. The amortization period of the covenants not to compete with Prism’s officers is 3 years; the expected term of the agreements. Purchased definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset or asset group may not be recoverable. Significant judgment is required in determining whether a potential indicator of impairment of the assets exists and in estimating future cash flows for any necessary impairment tests. Recoverability of the intangible assets to be held and used is measured by the comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. Goodwill Goodwill represents the excess of: (a) the aggregate of the fair value of consideration transferred, the fair value of any noncontrolling interest in the acquiree (if any) and the acquisition date fair value of the Company’s previously held equity interest in the acquiree (if any), over (b) the fair value of assets acquired and liabilities assumed. Goodwill, deemed to have an indefinite life is subject to periodic impairment testing as described below. Goodwill is tested for impairment on a periodic basis, and at least annually in the fourth quarter of the year. In the first step of testing for goodwill and intangible assets impairment, we will estimate the fair value of the net assets associated with the goodwill. If the fair value of these net assets is greater than the carrying value of the net assets, including goodwill, then there will be no impairment. If the fair value is less than the carrying value, then we would perform a second step and determine the fair value of the goodwill. In this second step, the fair value of goodwill is determined by deducting the fair value of the identifiable assets and liabilities from the fair value of the reporting unit as a whole, as if that reporting unit had just been acquired and the purchase price were being initially allocated. If the fair value of the goodwill is less than its carrying value for a reporting unit, an impairment charge would be recorded to earnings in the Company’s Consolidated Statements of Operations. In addition, the Company would evaluate goodwill for impairment if events or circumstances change between annual tests indicating a possible impairment. Examples of such events or circumstances include the following: ● a significant adverse change in legal factors or in the business climate; ● a more likely than not expectation that a segment or a significant portion thereof will be sold; or ● the testing for recoverability of a significant asset group within the segment. Share-Based Payments The Company accounts for share-based compensation in accordance with ASC 718 “Compensation – Stock Compensation.” Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our Condensed Consolidated Financial Statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In August 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements—Going Concern” (Subtopic 205-40) which amends the current guidance in ASC Topic 205 by adding Subtopic 40. Subtopic 40 requires management to evaluate whether there are conditions or events that in aggregate would raise substantial doubt about an entity’s ability to continue as a going concern for one year from the date the financial statements are issued or available to be issued. If substantial doubt existed, management would be required to make certain disclosures related to nature of the substantial doubt and, under certain circumstances, how that substantial doubt would be mitigated. This amendment is effective for annual periods ending after December 15, 2017 and for subsequent interim and annual periods thereafter. Early adoption is permitted. We are evaluating the effects, if any, adoption of this guidance will have on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. The guidance is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2016. We are evaluating the effects, if any, that the adoption of this guidance will have on our consolidated financial statements.

Note 3 - Acquisition and Prelim

Note 3 - Acquisition and Preliminary Purchase Accounting	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Business Combination Disclosure [Text Block]	3. Acquisition and Purchase Accounting On March 26, 2015 (the “Closing Date”), the Company completed its acquisition of Prism Technologies, LLC (“Prism”) pursuant to the terms of the Agreement and Plan of Merger (the “Merger Agreement”) dated November 12, 2014. Prism was acquired for a purchase price of $58.3 million paid in a combination of cash, stock and potential contingent earn-out payments as discussed further below. We account for acquisitions in accordance with ASC 805 “Business Combinations.” The maximum purchase price, exclusive of the discounting or probability reductions associated with the contingent consideration, is $75.4 million as of the Closing Date. The $75.4 million maximum purchase price is comprised of: (a) $16.5 million in cash ($1.3 million paid at Closing and $15.2 million paid in April, 2015); (b) $9.4 million associated with the issuance of 3.5 million shares of our common stock at Closing; and (c) a total of up to $49.5 million in cash in future contingent consideration. Contingent Consideration The contingent consideration payable to Prism’s former security holders consists of a share of future revenues related to lawsuits filed by Prism prior to March 26, 2015 (“Open Suits”). Under the terms of the Merger Agreement, we will retain the first $16.5 million in litigation or settlement proceeds received from Open Suits after closing (the “Sharing Threshold”), less any cash remaining in Prism at the time of closing. Prism’s former security holders will receive 70% of the litigation and settlement proceeds related to Open Suits in excess of the Sharing Threshold, up to $49.5 million. The contingent consideration is calculated quarterly and payable in the quarter following the period in which it is earned. Payments due for the quarters ended March 31, September 30, and September 30, are subject to a 20% retention. The retention payments are due in conjunction with the earn-out payment for December 31. The estimated fair values of the Prism purchase price is comprised of the following (in thousands): Consideration paid on the Closing Date: Cash payment (portion of $16.5 million cash consideration) $ 1,343 Common stock 9,380 Consideration paid after the Closing Date: Payable to former Prism shareholders (remaining portion of $16.5 million cash consideration paid in April, 2015) 15,157 Contingent consideration expected to be paid 49,500 Discount on contingent consideration (17,089 ) $ 58,291 A portion of the consideration at closing was the issuance of 3,500,000 new shares of our common stock. The closing price-per-share of our common stock on the acquisition date was $2.68. The fair value of contingent consideration to be paid as of the date of acquisition is calculated based upon the time value of money and the probability assessment in achieving patent proceeds. Purchase Price Allocation The Company recognized of $0.1 million in goodwill, representing the excess purchase consideration over acquired tangible and intangible assets and liabilities assumed. The goodwill relates to expected synergies and the assembled workforce of Prism. The acquired intangible assets included a patent portfolio valued, for purchase price allocation purposes, at $58.9 million with a weighted average useful life of 3.7 years and $2.5 million of non-compete agreements with a weighted average useful life of 3 years. Management determined the fair value of intangible assets based on a number of factors, including a third-party valuation, utilizing the income approach in conjunction with discussions with Prism’s management and certain forecasts prepared by Prism. The rate utilized to discount net cash flows to their present values was approximately 32% for the non-compete agreements and a range of 34-35% for the patent portfolio. The discount rates were determined using a weighted-average cost of capital which incorporated a number of factors which included the risk-free rate, the market premium, a company size premium and a company-specific premium for the non-compete agreements. In addition, for the patent portfolio, there was an additional premium applied. 3. Acquisition and Purchase Accounting (continued) The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the Closing Date. (in thousands) Acquired assets Cash and cash equivalents $ 369 Intangible assets, net 58,908 Covenant not to compete 2,457 Other assets 61 Goodwill 107 Assumed liabilities: Notes payable (3,570 ) Accounts payable and other liabilities (41 ) Total liabilities assumed (3,611 ) Total purchase price $ 58,291 Based upon refinements to our accounting estimates, the total purchase price, net of liabilities assumed, was reduced from $60.2 million at March 31, 2015 to $58.3 million at June 30, 2015. The refinements consisted of a decrease in goodwill from $5.1 million to $0.1 million, offset by an increase in intangible assets from $58.3 million to $61.4 million. The decrease in goodwill resulted from a revision to the revenue base used to calculate the contributory asset charges from a specific year to a range of years, pre and post-merger. In addition, the discount rates for the non-compete agreements and intangible assets were revised. The discount rate for the non-compete agreements increased from 27% to 32% to reflect the three year term of these agreements. The discount rate for the intangible assets decreased from 37% to a range of 34-35% as a result of evaluating the projected cash flows from individual patents rather than the entire portfolio. The refinements were made based on information available as of the transaction date. The fair value of the notes payable was determined, using an annual discount rate of 12.0% to discount the notes payable’s payment stream based on management’s assumptions about the risk associated with satisfying the payment obligations, including the fact that certain patents serve as security for the notes. The Company incurred approximately $0 and $219,000 in acquisition-related expenses for the three and nine months ended September 30, 2015, respectively. For the nine months ended September 30, 2015, $107,000 was related to legal expenses, $83,000 in accounting and valuation expenses and $29,000 in special shareholder meeting expenses. For the three and nine months ended September 30, 2014 acquisition related expense of $264,000 each were recognized for legal expenses, valuation and accounting services. These costs are included in the consolidated statement of operations in general and administrative operating expenses for the three and nine months ended September 30, 2014 and 2015. 3. Acquisition and Purchase Accounting (continued) Pro forma Results of Operations The pro forma results of operations provided below for the three and nine months ended September 30, 2015 and 2014 are presented as though the acquisition had occurred at the beginning of the period presented. The pro forma information presented below does not purport to indicate what the Company's results of operations would have been if the acquisition had in fact occurred at the beginning of the earliest period presented nor does it intend to be a projection of the impact on future results or trends. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total revenues $ 700 $ 386 $ 700 $ 606 Operating loss $ (4,742 ) $ (4,945 ) $ (15,989 ) $ (15,439 ) Net loss $ (5,033 ) $ (5,245 ) $ (16,932 ) $ (16,353 ) Diluted loss per share $ (0.50 ) $ (0.46 ) $ (1.68 ) $ (1.45 )

Note 4 - Fair Value Measurement

Note 4 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	4. Fair Value Measurements The following table presents the assets measured at fair value on a recurring basis as of September 30, 2015 (in thousands): September 30, 2015 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 2,112 $ 2,112 $ — $ — Short-term investments 1,494 1,494 — — Restricted cash equivalents 600 600 Total assets at fair value $ 4,206 $ 4,206 $ — $ — The following table presents the financial assets measured at fair value on a recurring basis as of December 31, 2014 (in thousands): December 31, 2014 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 22,600 $ 22,600 $ — $ — Short-term investments 1,494 1,494 Restricted cash equivalents 800 800 — — Total assets at fair value $ 24,894 $ 24,894 $ — $ — Cash equivalents, short-term investments and restricted cash equivalents include certificates of deposit, money market deposit accounts and money market funds. The carrying value of these cash equivalents, short-term investments and restricted cash equivalents approximates fair value. These securities are considered Level 1 instruments, and we use quoted prices in active markets for identical assets to determine their fair value.

Note 5 - Restricted Cash Equiva

Note 5 - Restricted Cash Equivalents and Short-Term Investments	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Restricted Assets Disclosure [Text Block]	5. Restricted Cash Equivalents and Short-Term Investments As of September 30, 2015 and December 31, 2014, restricted cash equivalents consisted of $0.6 million and $0.8 million respectively. A portion of the cash equivalents is used as collateral for a letter of credit of the same amount which secures our remaining rent obligations under the office space lease for our former corporate headquarters.

Note 6 - Other Assets

Note 6 - Other Assets	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Other Assets Disclosure [Text Block]	6. Other Assets Prism owns several life insurance policies (also referred to as “life settlement contracts”). These life settlement contracts were part of the assets we acquired in the Merger. A life settlement contract is the payment of cash to an insured in return for an assignment of ownership or beneficial interest in, and the right to receive the value of, a life insurance policy upon the death of the insured. Life settlement contracts are preliminarily recorded at cash surrender value, with premium payments expensed as incurred. The policies are not subject to amortization; however, we analyze the carrying value for the impairment annually. Based upon our analysis, no impairment was noted for the three and nine months ended September 30, 2015. Life settlement contracts consist of the following at September 30, 2015 (in thousands): September 30, 2015 Number of individual life insurance policies held 6 Aggregate face/maturity value of all policies $ 2,200 Cash surrender value of all policies $ 58

Note 7 - Intangible Assets

Note 7 - Intangible Assets	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	7. Intangible Assets Intangible assets, net, include the following amounts (in thousands): September 30, Goodwill $ 107 Patent portfolio 58,908 Covenant not to compete 2,457 61,472 Accumulated amortization patent portfolio (8,350 ) Accumulated amortization covenant not to compete (422 ) Total goodwill and other intangible assets $ 52,700 Goodwill, the excess of the purchase price paid to former security holders of Prism over the fair market value of the net assets acquired, in the amount of $0.1 million was recorded as of the Closing Date. We did not have goodwill prior to the acquisition of Prism.

Note 8 - Accrued Expenses

Note 8 - Accrued Expenses	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Other Liabilities Disclosure [Text Block]	8. Accrued Expenses Accrued expenses and other current liabilities consist of the following (in thousands ): September 30, 2015 December 31, 2014 Accrued lease obligations $ 194 $ 194 Payroll accrual 11 - $ 205 $ 194

Note 9 - Notes Payable

Note 9 - Notes Payable	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	9. Notes payable As part of the Merger, the Company assumed $3.6 million in two discounted non-interest bearing notes payable , due in four semi-annual installments of $1,000,000 from June 2015 to December 2016. The notes, include imputed interest of 12% based on management’s assumptions about the risk associated with satisfying the payment obligations, including the fact that certain patents serve as security for the notes. The aggregate maturities of the notes payable as of September 30, 2015 are as follows (in thousands): Year Ending December 31, 2015 $ 1,000 2016 2,000 Total $ 3,000 Less imputed interest (241 ) Fair Value $ 2,759

Note 10 - Net Loss Per Share

Note 10 - Net Loss Per Share	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	10. Net Loss Per Share Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding. Diluted income per share is a measure of the potential dilution that would occur if stock options had been exercised. The following table reconciles the numerator and denominator used to calculate basic and diluted net loss per share of common stock: Three months ended September 30, Nine months ended September 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Numerator for basic and diluted net loss per share: Net loss available to common stockholders $ (5,032 ) $ (730 ) $ (11,872 ) $ (1,597 ) Denominator for net loss per share: Basic and diluted —weighted average shares of common stock outstanding 10,074 7,752 8,997 7,752 Net loss per share: Basic and diluted $ (0.50 ) $ (0.10 ) $ (1.32 ) $ (0.21 ) Potentially dilutive securities are not included in the diluted net loss calculation, because we had a net loss from operations, net of tax. The antidilutive securities that are not included in the calculation above are employee stock options and non-employee directors to purchase shares totaling 72,574 and 14,174 for the three and nine month periods ending September 30, 2015 and 0 for the comparable periods in 2014.

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. Commitments and Contingencies Leases The Company has a non-cancelable 24 month lease through May 15, 2017 for approximately 1,300 square feet of office space in Folsom, California, which is currently our corporate headquarters. Prism leases approximately 2,200 square feet of office space in Omaha, Nebraska under a non-cancelable 60 month lease through August 31, 2017. We have a non-cancelable 5-year full-service lease through February 14, 2017 for approximately 16,000 square feet of office space in a building that housed our headquarters until May 2013. The facility is located in Rancho Cordova, California. The lease includes negotiated annual increases in the monthly rental payments. On April 16, 2013, we subleased this space for the remainder of our term. The monthly sublease rent is less than our rent obligation to the landlord. As of September 30, 2015, we expect to receive $193,000 from the sub-lessee for the remainder of our lease. Until the expiration of the lease in September 2014, we also leased approximately 10,000 square feet of office space in San Francisco, California. This facility was fully subleased to two tenants.

Note 12- Legal Proceedings

Note 12- Legal Proceedings	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	12. Legal Proceedings On March 19, 2015, Maxim Group LLC (“Maxim”) sent Prism a letter demanding payment of a fee under an Advisory Agreement dated September 19, 2013 (the “Advisory Agreement). Prism rejected the demand and on April 10, 2015, Maxim filed a Statement of Claim with the Financial Industry Regulatory Authority (“FINRA”) to initiate arbitration of the dispute. In the Statement of Claim, Maxim alleges that Prism is liable for payment of a percentage of the Merger consideration as an advisory fee under the Advisory Agreement. Prism has answered the Statement of Claim and contested FINRA’s jurisdiction. However, Prism also filed a declaratory judgment action in Nebraska state court seeking a declaration that the Advisory Agreement is void, no advisory fee is owed and staying the FINRA arbitration proceeding. In the state court action Prism argues: (i) Maxim did not introduce Prism to the Company and Prism did not seek Maxim’s assistance with the Merger; (ii) Maxim was not registered as an investment advisor and cannot charge an advisory fee; and (iii) the advisory fee demanded by Maxim is grossly excessive under applicable law. On August 8, 2015, the district court denied our motion to stay, and an appeal has been made to the Nebraska Court of Appeals. If the stay is not granted on appeal, the Company and Prism intend to vigorously defend the FINRA arbitration. Although an arbitration award to Maxim would be paid by the Company, it relates to a pre-Merger dispute and would reduce the maximum earnout payable to Prism’s former security holders. As such, an adverse arbitration decision, if any, would have a near term impact on our cash flow but is not expected to have a significant impact on our long term financial condition. As previously reported, in June 2015 a jury awarded Prism $30 million in damages in its case against Sprint Spectrum d/b/a Sprint PCS. No portion of the award has been paid by Sprint and the District Court is considering several post trial motions filed by the parties. As noted below in Footnote 14, “Subsequent Events, on October 30, 2015 a jury found that T-Mobile did not infringe the asserted claims of U.S. Patent Nos. 8,387,155 and 8,127,345. The Company is reviewing the decision and evaluating a potential appeal. The table in Item 2 “Management’s Discussion And Analysis Of Financial Condition And Results Of Operations” lists the pending patent litigation involving the Company and its subsidiaries.

Note 13 - Equity and Stock Opti

Note 13 - Equity and Stock Options	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	13. Equity and Stock Options As of September 30, 2015, there was $192,000 in unrecognized compensation cost for all stock options outstanding. A portion of the unrecognized compensation cost relates to grants of options to purchase 500,000 shares of common stock to five Prism executive officers under employment agreements executed in connection with the Merger. The exercise price of all of the options granted to Prism executive officers is $2.68. One-half of the options granted to each employee is serviced based and vest as follows: (i) 33.33% will vest upon the first anniversary of the first date of employment, and (ii) 1/24 of the remaining 66.67% will vest at the end of each of the 24 months following such anniversary, so long as the individual remains employed pursuant to the terms of his or her employment agreement. The remaining one-half of the options granted to the five Prism officers are performance based and vest as follows: (i) 33.33% will vest upon the first anniversary of the first date of employment based on achievements measured against financial targets for such period; (ii) 33.33% will vest upon the second anniversary of the first date of employment based on achievements measured against financial targets for the second year of employment; and (iii) 33.34% will vest upon the third anniversary of the first date of employment based on achievements measured against financial targets for the third year of employment. The employee must remain employed for the service based and performance based options to vest; however, all unvested options will immediately vest upon: (A) termination of such person’s employment without good cause; or (B) the occurrence of a change of control as defined in such person’s employment agreement. On June 11, 2015, the Company granted 72,500 performance based stock options, 72,500 service based stock options and 70,000 stock options which vested immediately, to members of management. The service based stock options vest 33% after one year and ratably over the next two years. The performance based stock options vest annually, if financial targets are met. For the performance based options noted above, in accordance with ASC 718 “Compensation – Stock Compensation.” The 2008 Stock Option Plan provides that each non-employee director receive a fully-vested option to purchase 5,000 shares of common stock on July 1st (or the first business day thereafter) of each year in which the director remains in office. Pursuant to the Option Plan, on July 1, 2015 and July 1, 2014, fully-vested options to purchase 5,000 shares of common stock were granted to each of the three non-employee directors with exercise prices of $3.06 and $3.15 respectively. The Company recognized $32,000 and $127,000 in stock compensation expense for the three and nine months ended September 30, 2015 and $21,000 for the comparable periods in 2014. During the three and nine months ended September 30, 2015 and 2014 there were no common share issuances associated with the exercise of stock options.

Note 14 - Subsequent Event

Note 14 - Subsequent Event	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	14. Subsequent Event On October 30, 2015 a jury found that T-Mobile USA, Inc. did not infringe the asserted claims of U.S. Patent Nos. 8,387,155 and 8,127,345. The Company is reviewing the decision and evaluating a potential appeal. The suit against T-Mobile USA was the third of five patent infringement lawsuits filed by our subsidiary, Prism Technologies, LLC against wireless carriers. As previously reported, in November 2014, Prism settled on favorable terms with AT&T Wireless, and in June 2015 a jury awarded Prism $30 million in damages in its case against Sprint Spectrum LP, d/b/a Sprint PCS. The remaining two suits are against United States Cellular Corporation and Cellco Partnership d/b/a Verizon Wireless.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Reclassification, Policy [Policy Text Block]	Reclassifications Certain reclassifications, which have no effect on previously reported net loss, have been made to the 2014 condensed consolidated statements of operations to conform to the Company’s 2014 financial statement presentation.
Revenue Recognition, Policy [Policy Text Block]	Revenue recognition In general, patent licensing arrangements are expected to provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. Complex revenue arrangements may require significant judgments, assumptions and estimates about when substantial delivery of contract elements will occur, whether any significant ongoing obligations exist subsequent to contract execution, whether collectability is reasonably assured and determination of the appropriate period in which the completion of the earning process occurs. The Company recognizes revenue when (i) persuasive evidence of a contractual arrangement between the Company and the licensee exists, which create legally enforceable rights and obligations, (ii) delivery of the licensee agreement was provided to the licensee, based upon the point at which control of license transfers to the licensee, (iii) the price to the licensee was fixed or determinable, represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised licensee agreement to a licensee and (iv) collectability of consideration to which the Company is entitled to is reasonably assured.
Business Combinations Policy [Policy Text Block]	Business Combination Accounting We account for acquisitions in accordance with ASC 805 “Business Combinations.”
Intangible Assets, Finite-Lived, Policy [Policy Text Block]	Intangible Assets The fair value amount assigned to each acquired patent asset is being amortized on a straight-line basis, depending on the patent, over a period ranging from 1.5 to 4.5 years. The amortization period of the entire acquired patent portfolio is a weighted average of 3.7 years and was determined using the estimated life of each patent, which is represented by the period over which 100% of the expected discounted cash flows are received, and then using a weighted average approach based on the value of the patent and the estimated life. The amortization period of the covenants not to compete with Prism’s officers is 3 years; the expected term of the agreements. Purchased definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset or asset group may not be recoverable. Significant judgment is required in determining whether a potential indicator of impairment of the assets exists and in estimating future cash flows for any necessary impairment tests. Recoverability of the intangible assets to be held and used is measured by the comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such an asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	Goodwill Goodwill represents the excess of: (a) the aggregate of the fair value of consideration transferred, the fair value of any noncontrolling interest in the acquiree (if any) and the acquisition date fair value of the Company’s previously held equity interest in the acquiree (if any), over (b) the fair value of assets acquired and liabilities assumed. Goodwill, deemed to have an indefinite life is subject to periodic impairment testing as described below. Goodwill is tested for impairment on a periodic basis, and at least annually in the fourth quarter of the year. In the first step of testing for goodwill and intangible assets impairment, we will estimate the fair value of the net assets associated with the goodwill. If the fair value of these net assets is greater than the carrying value of the net assets, including goodwill, then there will be no impairment. If the fair value is less than the carrying value, then we would perform a second step and determine the fair value of the goodwill. In this second step, the fair value of goodwill is determined by deducting the fair value of the identifiable assets and liabilities from the fair value of the reporting unit as a whole, as if that reporting unit had just been acquired and the purchase price were being initially allocated. If the fair value of the goodwill is less than its carrying value for a reporting unit, an impairment charge would be recorded to earnings in the Company’s Consolidated Statements of Operations. In addition, the Company would evaluate goodwill for impairment if events or circumstances change between annual tests indicating a possible impairment. Examples of such events or circumstances include the following: ? a significant adverse change in legal factors or in the business climate; ? a more likely than not expectation that a segment or a significant portion thereof will be sold; or ? the testing for recoverability of a significant asset group within the segment.
Compensation Related Costs, Policy [Policy Text Block]	Share-Based Payments The Company accounts for share-based compensation in accordance with ASC 718 “Compensation – Stock Compensation.”
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our Condensed Consolidated Financial Statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. In August 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements—Going Concern” (Subtopic 205-40) which amends the current guidance in ASC Topic 205 by adding Subtopic 40. Subtopic 40 requires management to evaluate whether there are conditions or events that in aggregate would raise substantial doubt about an entity’s ability to continue as a going concern for one year from the date the financial statements are issued or available to be issued. If substantial doubt existed, management would be required to make certain disclosures related to nature of the substantial doubt and, under certain circumstances, how that substantial doubt would be mitigated. This amendment is effective for annual periods ending after December 15, 2017 and for subsequent interim and annual periods thereafter. Early adoption is permitted. We are evaluating the effects, if any, adoption of this guidance will have on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. The guidance is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2016. We are evaluating the effects, if any, that the adoption of this guidance will have on our consolidated financial statements.

Supplemental Disclosures of C22

Supplemental Disclosures of Cash Flow Information and Non-cash Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Cash paid for acquisition $ 16,500 Contingent consideration 32,411 Issuance of common stock 9,380 Value of net assets acquired $ 58,291 Liabilities assumed $ 3,611

Note 3 - Acquisition and Prel23

Note 3 - Acquisition and Preliminary Purchase Accounting (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Consideration paid on the Closing Date: Cash payment (portion of $16.5 million cash consideration) $ 1,343 Common stock 9,380 Consideration paid after the Closing Date: Payable to former Prism shareholders (remaining portion of $16.5 million cash consideration paid in April, 2015) 15,157 Contingent consideration expected to be paid 49,500 Discount on contingent consideration (17,089 ) $ 58,291
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	(in thousands) Acquired assets Cash and cash equivalents $ 369 Intangible assets, net 58,908 Covenant not to compete 2,457 Other assets 61 Goodwill 107 Assumed liabilities: Notes payable (3,570 ) Accounts payable and other liabilities (41 ) Total liabilities assumed (3,611 ) Total purchase price $ 58,291
Business Acquisition, Pro Forma Information [Table Text Block]	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total revenues $ 700 $ 386 $ 700 $ 606 Operating loss $ (4,742 ) $ (4,945 ) $ (15,989 ) $ (15,439 ) Net loss $ (5,033 ) $ (5,245 ) $ (16,932 ) $ (16,353 ) Diluted loss per share $ (0.50 ) $ (0.46 ) $ (1.68 ) $ (1.45 )

Note 4 - Fair Value Measureme24

Note 4 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	September 30, 2015 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 2,112 $ 2,112 $ — $ — Short-term investments 1,494 1,494 — — Restricted cash equivalents 600 600 Total assets at fair value $ 4,206 $ 4,206 $ — $ — December 31, 2014 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 22,600 $ 22,600 $ — $ — Short-term investments 1,494 1,494 Restricted cash equivalents 800 800 — — Total assets at fair value $ 24,894 $ 24,894 $ — $ —

Note 6 - Other Assets (Tables)

Note 6 - Other Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Life Settlement Contracts, Investment Method [Table Text Block]	September 30, 2015 Number of individual life insurance policies held 6 Aggregate face/maturity value of all policies $ 2,200 Cash surrender value of all policies $ 58

Note 7 - Intangible Assets (Tab

Note 7 - Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	September 30, Goodwill $ 107 Patent portfolio 58,908 Covenant not to compete 2,457 61,472 Accumulated amortization patent portfolio (8,350 ) Accumulated amortization covenant not to compete (422 ) Total goodwill and other intangible assets $ 52,700

Note 8 - Accrued Expenses (Tabl

Note 8 - Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	September 30, 2015 December 31, 2014 Accrued lease obligations $ 194 $ 194 Payroll accrual 11 - $ 205 $ 194

Note 9 - Notes Payable (Tables)

Note 9 - Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Maturities of Long-term Debt [Table Text Block]	Year Ending December 31, 2015 $ 1,000 2016 2,000 Total $ 3,000 Less imputed interest (241 ) Fair Value $ 2,759

Note 10 - Net Loss Per Share (T

Note 10 - Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended September 30, Nine months ended September 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Numerator for basic and diluted net loss per share: Net loss available to common stockholders $ (5,032 ) $ (730 ) $ (11,872 ) $ (1,597 ) Denominator for net loss per share: Basic and diluted —weighted average shares of common stock outstanding 10,074 7,752 8,997 7,752 Net loss per share: Basic and diluted $ (0.50 ) $ (0.10 ) $ (1.32 ) $ (0.21 )

Supplemental Disclosures of C30

Supplemental Disclosures of Cash Flow Information and Non-cash Transactions - Liabilities Assumed and Common Stock Issued in Connection with the Prism Acquisition (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Prism Acquisition [Member] | Common Stock [Member]
Issuance of common stock	$ 9,380
Prism Acquisition [Member]
Cash paid for acquisition	16,500
Contingent consideration	32,411
Value of net assets acquired	58,291
Liabilities assumed	3,611
Cash paid for acquisition	$ (16,131)

Note 1 - Business of Prism Te31

Note 1 - Business of Prism Technologies Group Inc (Details Textual) - Patents [Member] - Prism Technologies [Member]	Sep. 30, 2015
Patents Pending	0
Patent Families	9
Issued Patents	50

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation (Details Textual)	9 Months Ended
	Sep. 30, 2015
Minimum [Member] | Patents [Member]
Finite-Lived Intangible Asset, Useful Life	1 year 182 days
Maximum [Member] | Patents [Member]
Finite-Lived Intangible Asset, Useful Life	4 years 182 days
Weighted Average [Member] | Patents [Member]
Finite-Lived Intangible Asset, Useful Life	3 years 255 days
Weighted Average [Member] | Noncompete Agreements [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Acquired Finite-lived Intangible Assets, Estimates Used to Determine Useful Lives, Percentage of Cash Flows on a Discounted Basis	100.00%

Note 3 - Acquisition and Prel33

Note 3 - Acquisition and Preliminary Purchase Accounting (Details Textual) - USD ($) $ / shares in Units, shares in Millions	Mar. 31, 2015	Mar. 26, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Prism Acquisition [Member] | Patents [Member] | Minimum [Member]
Fair Value Inputs, Discount Rate					34.00%
Prism Acquisition [Member] | Patents [Member] | Maximum [Member]
Fair Value Inputs, Discount Rate					35.00%
Prism Acquisition [Member] | Patents [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 58,908,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		3 years 255 days
Fair Value Inputs, Discount Rate	37.00%
Prism Acquisition [Member] | Noncompete Agreements [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 2,457,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		3 years
Fair Value Inputs, Discount Rate	27.00%	32.00%
Prism Acquisition [Member] | Notes Payable, Other Payables [Member]
Fair Value Inputs, Discount Rate		12.00%
Prism Acquisition [Member] | General and Administrative Expense [Member] | Legal Expenses [Member]
Business Combination, Acquisition Related Costs						$ 107,000
Prism Acquisition [Member] | General and Administrative Expense [Member] | Accounting and Valuation Expenses [Member]
Business Combination, Acquisition Related Costs						83,000
Prism Acquisition [Member] | General and Administrative Expense [Member] | Special Meeting Expenses [Member]
Business Combination, Acquisition Related Costs						29,000
Prism Acquisition [Member] | General and Administrative Expense [Member]
Business Combination, Acquisition Related Costs			$ 0	$ 264,000		219,000	$ 264,000
Prism Acquisition [Member]
Business Combination, Maximum Purchase Price		$ 75,400,000
Business Combination Cash Agreed to Pay		16,500,000
Payments to Acquire Businesses, Net of Cash Acquired		1,343,000				(16,500,000)
Due to Related Parties, Current		15,157,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned		$ 9,400,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		3.5
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		$ 49,500,000
Percentage of Litigation and Settlement Proceeds for Prism Security Holders		70.00%
Business Combination, Contingent Consideration, Earn-out Calculation, Quarterly Retention Percentage		20.00%
Share Price		$ 2.68
Goodwill	$ 5,100,000	$ 107,000	100,000		$ 100,000	100,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	58,300,000							$ 61,400,000
Fair Value Inputs, Discount Rate		35.00%
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 60,200,000	$ 58,291,000						58,300,000
Payments to Acquire Businesses, Net of Cash Acquired						16,131,000
Goodwill			$ 107,000		$ 107,000	$ 107,000		$ 100,000
Fair Value Inputs, Discount Rate					32.00%

Note 3 - Acquisition and Prel34

Note 3 - Acquisition and Preliminary Purchase Accounting - Fair Value of the Prism Purchase Price (Details)	Mar. 26, 2015USD ($)
Prism Acquisition [Member] | Common Stock [Member]
Consideration paid on the Closing Date:
Common stock	$ 9,380,000
Prism Acquisition [Member]
Consideration paid on the Closing Date:
Payments to Acquire Businesses, Net of Cash Acquired	1,343,000
Consideration paid after the Closing Date:
Due to Related Parties, Current	15,157,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	49,500,000
Discount on contingent consideration	(17,089,000)
	$ 58,291,000

Note 3 - Acquisition and Prel35

Note 3 - Acquisition and Preliminary Purchase Accounting - Purchase Price Allocation Relating to the Prism Acquisitions (Details)	Mar. 26, 2015USD ($)
Prism Acquisition [Member] | Patents [Member]
Acquired assets:
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 58,908,000
Prism Acquisition [Member] | Noncompete Agreements [Member]
Acquired assets:
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	2,457,000
Prism Acquisition [Member]
Acquired assets:
Cash and cash equivalents	369,000
Other assets	61,000
Goodwill	107,000
Assumed liabilities:
Notes payable	(3,570,000)
Accounts payable and other liabilities	(41,000)
Total liabilities assumed	(3,611,000)
Total purchase price	$ 58,291,000

Note 3 - Acquisition and Prel36

Note 3 - Acquisition and Preliminary Purchase Accounting - Pro Forma Results of Operations (Details) - Prism Acquisition [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Total revenues	$ 700	$ 386	$ 700	$ 606
Operating loss	(4,742)	(4,945)	(15,989)	(15,439)
Net loss	$ (5,033)	$ (5,245)	$ (16,932)	$ (16,353)
Diluted loss per share (in dollars per share)	$ (0.50)	$ (0.46)	$ (1.68)	$ (1.45)

Note 4 - Fair Value Measureme37

Note 4 - Fair Value Measurements - Assets at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Cash equivalents	$ 2,112	$ 22,600
Short-term investments	1,494	1,494
Restricted cash equivalents	600	800
Total assets at fair value	$ 4,206	$ 24,894
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Cash equivalents
Short-term investments
Restricted cash equivalents
Total assets at fair value
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Cash equivalents
Short-term investments
Restricted cash equivalents
Total assets at fair value
Fair Value, Measurements, Recurring [Member]
Assets:
Cash equivalents	$ 2,112	$ 22,600
Short-term investments	1,494	1,494
Restricted cash equivalents	600	800
Total assets at fair value	4,206	24,894
Short-term investments	1,494	1,494
Restricted cash equivalents	$ 600	$ 800

Note 5 - Restricted Cash Equi38

Note 5 - Restricted Cash Equivalents and Short-Term Investments (Details Textual) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Restricted Cash and Investments, Current	$ 0.6	$ 0.8

Note 6 - Other Assets (Details

Note 6 - Other Assets (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Other Asset Impairment Charges	$ 0	$ 0

Note 6 - Other Assets - Life Se

Note 6 - Other Assets - Life Settlement Contracts (Details) $ in Thousands	Sep. 30, 2015USD ($)
Number of individual life insurance policies held	6
Aggregate face/maturity value of all policies	$ 2,200
Cash surrender value of all policies	$ 58

Note 7 - Intangible Assets (Det

Note 7 - Intangible Assets (Details Textual) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Mar. 26, 2015	Dec. 31, 2014
Prism Acquisition [Member]
Goodwill	$ 100,000		$ 5,100,000	$ 107,000
Goodwill	$ 107,000	$ 100,000

Note 7 - Intangible Assets - In

Note 7 - Intangible Assets - Intangible Assets, Net (Details)	Sep. 30, 2015USD ($)
Patents [Member]
Intangible assets	$ 58,908,000
Accumulated amortization	(8,350,000)
Noncompete Agreements [Member]
Intangible assets	2,457,000
Accumulated amortization	(422,000)
Goodwill	107,000
	61,472,000
Total goodwill and other intangible assets	$ 52,700,000

Note 8 - Accrued Expenses - Sum

Note 8 - Accrued Expenses - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued lease obligations	$ 194	$ 194
Payroll accrual	11
	$ 205	$ 194

Note 9 - Notes Payable (Details

Note 9 - Notes Payable (Details Textual)	9 Months Ended
	Sep. 30, 2015USD ($)
Notes Payable, Other Payables [Member] | Prism Acquisition [Member]
Debt Instrument, Frequency of Periodic Payment	semi-annual
Long-term Debt, Fair Value	$ 3,600,000
Debt Instrument, Number of Installments	4
Debt Instrument, Periodic Payment	$ 1,000,000
Debt Instrument, Interest Rate, Imputed Percentage	12.00%
Long-term Debt, Fair Value	$ 2,759,000

Note 9 - Aggregate Maturities o

Note 9 - Aggregate Maturities of the Notes Payable (Details) $ in Thousands	Sep. 30, 2015USD ($)
2,015	$ 1,000
2,016	2,000
Total	3,000
Less imputed interest	(241)
Fair Value	$ 2,759

Note 10 - Net Loss Per Share (D

Note 10 - Net Loss Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	72,574	0	14,174	0

Note 10 - Net Loss Per Share -

Note 10 - Net Loss Per Share - Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator for basic and diluted net loss per share:
Net loss	$ (5,032)	$ (730)	$ (11,872)	$ (1,597)
Denominator for net loss per share:
Basic and diluted —weighted average shares of common stock outstanding (in shares)	10,074	7,752	8,997	7,752
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.50)	$ (0.10)	$ (1.32)	$ (0.21)

Note 11 - Commitments and Con48

Note 11 - Commitments and Contingencies (Details Textual)	9 Months Ended
	Sep. 30, 2015USD ($)ft²	Sep. 30, 2014ft²
Folsom, California Corporate Headquarters [Member]
Lease Term	2 years
Area of Real Estate Property	1,300
Office Space in Omaha, Nebraska [Member] | Prism Technologies [Member]
Lease Term	5 years
Area of Real Estate Property	2,200
Rancho Cordova C A [Member]
Lease Term	5 years
Area of Real Estate Property	16,000
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $	$ 193,000
San Francisco [Member]
Area of Real Estate Property		10,000

Note 12- Legal Proceedings (Det

Note 12- Legal Proceedings (Details Textual) $ in Millions	1 Months Ended
	Jun. 30, 2015USD ($)
Litigation Settlement, Amount	$ 30

Note 13 - Equity and Stock Op50

Note 13 - Equity and Stock Options (Details Textual) - USD ($)	Jul. 01, 2015	Jun. 11, 2015	Mar. 26, 2015	Jul. 01, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jul. 01, 2007
Five Prism Executive Officers [Member] | Service-based Options [Member] | Vesting on the First Employment Anniversary Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			33.33%
Five Prism Executive Officers [Member] | Service-based Options [Member] | Vesting at the End of Each of the 24 Months Following the First Employment Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			66.67%
Five Prism Executive Officers [Member] | Performance-based Options [Member] | Vesting on the First Employment Anniversary Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			33.33%
Five Prism Executive Officers [Member] | Performance-based Options [Member] | Vesting on the Second Employment Anniversary Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			33.33%
Five Prism Executive Officers [Member] | Performance-based Options [Member] | Vesting on the Third Employment Anniversary Date [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			33.34%
Five Prism Executive Officers [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options					$ 192,000		$ 192,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			500,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 2.68
Each Non-employee Directors [Member] | The 2008 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	5,000			5,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 3.06			$ 3.15
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									5,000
Service-based Options [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year
Service-based Options [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		2 years
Service-based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		72,500
Performance-based Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage							0.00%
Performance-based Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage							100.00%
Performance-based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		72,500
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage							50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Performance Target Achieved							60.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					0	0	0	0
Allocated Share-based Compensation Expense					$ 32,000	$ 21,000	$ 127,000	$ 21,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares		70,000

Note 14 - Subsequent Event (Det

Note 14 - Subsequent Event (Details Textual) $ in Millions	1 Months Ended
	Jun. 30, 2015USD ($)
Litigation Settlement, Amount	$ 30