Great Elm Capital 10-Q 3 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 03, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	UPIP
Entity Registrant Name	UNWIRED PLANET, INC.
Entity Central Index Key	1,082,506
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,440,191

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 55,856	$ 73,755
Short-term investments		11,713
Restricted cash	4	27
Prepaid and other current assets	2,561	632
Total current assets	58,421	86,127
Property and equipment, net	93	110
Initial direct license costs, net	1,341	1,595
Debt issuance costs and other assets, net	971	1,052
Total assets	60,826	88,884
Current liabilities:
Accounts payable	5,011	678
Fee share obligation		500
Deferred revenue	5,005	5,005
Accrued liabilities	921	970
Accrued legal expense	2,760	3,152
Accrued compensation	485	433
Total current liabilities	14,182	10,738
Long-term note payable, related party	33,410	29,874
Deferred revenue, net of current portion	20,808	24,562
Other long-term liabilities	20	206
Total liabilities	$ 68,420	$ 65,380
Commitments and Contingencies (See Note 6)
Stockholders' equity (deficit)
Preferred stock, $0.001 par value; 5,000 shares authorized and zero outstanding
Common stock, $0.001 par value; 350,000 shares authorized and 9,444 and 9,373 issued; and 9,440 and 9,362 outstanding at March 31, 2016 and June 30, 2015, respectively	$ 9	$ 9
Treasury stock, 4 and 11 shares at March 31, 2016 and June 30, 2015, respectively	(43)	(93)
Additional paid-in-capital	3,246,634	3,245,049
Accumulated other comprehensive income	182	234
Accumulated deficit	(3,254,376)	(3,221,695)
Total stockholders' equity (deficit)	(7,594)	23,504
Total liabilities and stockholders' equity (deficit)	$ 60,826	$ 88,884

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	350,000,000	350,000,000
Common stock, shares issued	9,444,490	9,373,000
Common stock, shares outstanding	9,440,191	9,362,000
Treasury stock, shares	4,000	11,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net revenue	$ 1,251	$ 1,251	$ 3,754	$ 3,754
Operating costs and expenses:
Patent licensing expenses	6,509	7,895	24,154	24,620
General and administrative	3,369	2,115	8,796	9,321
Restructuring and other related costs				2
Total operating costs and expenses	9,878	10,010	32,950	33,943
Operating loss from continuing operations	(8,627)	(8,759)	(29,196)	(30,189)
Interest income		16	6	61
Interest expense	(1,220)	(1,104)	(3,677)	(3,181)
Other income	73	283	64	598
Loss from continuing operations	(9,774)	(9,564)	(32,803)	(32,711)
Income tax benefit (expense)	(12)		122
Loss from continuing operations after income taxes	(9,786)	(9,564)	(32,681)	(32,711)
Discontinued operations:
Loss from discontinued operations, net of tax		(83)		(15)
Net loss	$ (9,786)	$ (9,647)	$ (32,681)	$ (32,726)
Basic and diluted net loss per share from:
Continuing operations	$ (1.04)	$ (1.03)	$ (3.48)	$ (3.51)
Net loss per share	$ (1.04)	$ (1.03)	$ (3.48)	$ (3.51)
Weighted average shares outstanding basic and diluted	9,432	9,342	9,402	9,326

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (9,786)	$ (9,647)	$ (32,681)	$ (32,726)
Other comprehensive income
Change in unrealized loss on marketable securities		(3)		(19)
Foreign currency translation adjustment	34		(52)
Other comprehensive income (loss)	34	(3)	(52)	(19)
Comprehensive loss	$ (9,752)	$ (9,650)	$ (32,733)	$ (32,745)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (32,681)	$ (32,726)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	52	80
Stock-based compensation	1,743	1,543
Non-cash restructuring charges		2
Amortization of premiums on investments, net	3	70
Realized gain on foreign currency	(87)
Gain on change in fair value of consultant incentive award obligation		(316)
In-kind interest on notes payable	3,214	2,832
Amortization debt discount and issuance costs	464	349
Changes in operating assets and liabilities:
Initial licensing costs	254	395
Prepaid assets, deposits, and other assets	(1,965)	(23)
Accounts payable	4,333	1,486
Fee share obligation	(500)	(20,032)
Accrued liabilities and other	(226)	(63)
Accrued legal expense	(392)
Accrued compensation	52
Deferred revenues	(3,754)	(3,753)
Accrued restructuring costs		(256)
Restricted cash	23	586
Net cash used in operating activities	(29,467)	(49,826)
Cash flows from investing activities:
Purchases of property and equipment	(35)	(30)
Proceeds from sales and maturities of investments	11,710	30,000
Net cash provided by investing activities	11,675	29,970
Cash flows from financing activities:
Proceeds from exercise of stock options		92
Purchase of treasury stock	(107)	(178)
Net cash used in financing activities	(107)	(86)
Net decrease in cash and cash equivalents	(17,899)	(19,942)
Cash and cash equivalents at beginning of period	73,755	93,877
Cash and cash equivalents at end of period	55,856	73,935
Non-cash investing and financing activity
Retirement of treasury stock	156	1,002
Unpaid debt and equity issuance costs		31
Total non-cash investing and financing activities	$ 156	$ 1,033

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Organization and Basis of Presentation	(1) Organization and Basis of Presentation Organization Unwired Planet, Inc. (referred to as “Unwired Planet” or the “Company”) is an intellectual property licensing company with a portfolio of worldwide mobile technology patents and patent applications. Our patents are held in two subsidiaries, Unwired Planet LLC, a Nevada corporation, and Unwired Planet International Limited, an Irish company, and cover a wide range of technology in the mobile ecosystem. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of March 31, 2016 and June 30, 2015, and the results of its operations for the three and nine months ended March 31, 2016 and 2015, and cash flows for the nine months ended March 31, 2016 and 2015. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. On December 4, 2015, the Company’s stockholders approved a one-for-twelve (1:12) reverse stock split of its common stock. The reverse stock split was effective on January 5, 2016. The number of authorized shares of common stock was reduced from one billion to 350 million with the effectiveness of the reverse stock split. All per share amounts in these unaudited condensed consolidated financial statements and accompanying notes have been retroactively adjusted to the earliest period presented for the effect of this reverse stock split. Use of Estimates The preparation of condensed consolidated financial statements in conformity with the accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist primarily of exchange traded money market funds. The Company is exposed to credit risk in the event of default by the financial institutions or the issuers of these investments to the extent the amounts on deposit or invested are in excess of amounts that are insured by the FDIC or SIPC.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	(2) Stockholders’ Equity Common Stock As of March 31, 2016, the Company had 9,444,490 shares of common stock issued and 9,440,191 shares of common stock outstanding. During the nine months ended March 31, 2016, the Company: · issued 89,410 shares of common stock for vested restricted stock grants at par value · re-purchased 11,445 shares of common stock at a cost of $0.1 million, which is included in treasury stock · retired 217,988 shares of treasury stock Options During the nine months ended March 31, 2016, the Company granted stock options to both employees and non-employees. The fair value of options is estimated on the date of grant using a Black-Scholes-Merton option pricing model. The following table illustrates the assumptions used in estimating the fair value of the options during the nine month period ended March 31, 2016: Expected volatility 64.3 - 78.3% Expected dividends — Expected term (years) 1.0 - 9.7 Risk-free rate 0.4 - 2.25% A summary of option activity is presented below (in thousands except per share and year amounts): Options Shares Weighted Average Exercise Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at July 1, 2015 640 $ 12.18 Options granted 131 9.01 Exercised — — Forfeited, cancelled or expired (136 ) 19.62 Outstanding at March 31, 2016 635 $ 9.93 8.58 $ 789 Exercisable at March 31, 2016 75 $ 20.57 3.87 $ — The estimated grant date fair value of options granted during the nine months ended March 31, 2016 was $0.7 million. No options were granted during the nine months ended March 31, 2015. As of March 31, 2016, there was $2.0 million of unrecognized compensation costs related to outstanding options. Restricted Stock Awards and Units During the nine months ended March 31, 2016 and 2015, the Company granted 50,000 and 1,151,000 restricted stock units, respectively, with a grant date fair value of $0.6 million and $1.8 million, respectively. As of March 31, 2016 the Company had 62,000 outstanding restricted stock units with unrecognized compensation cost totaling $0.8 million. During both of the three months ended March 31, 2016 and 2015, the Company recognized stock based compensation of $0.5 million;and $1.7 and $1.5 million for the nine months ended March 31, 2016, and 2015, respectively.

Borrowings

Borrowings	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Borrowings	(3) Borrowings Senior Secured Notes The Company’s Senior Secured Notes (“Notes”) are summarized below (in thousands): March 31, June 30, 2016 2015 Balance beginning of year $ 29,874 $ 25,693 Issuance of in-kind notes 3,214 3,837 Amortization of discount 322 344 Balance end of period $ 33,410 $ 29,874 For the nine months ended March 31, 2016 and 2015, the Company recognized interest expense of $3.7 million and $3.2 million, respectively, inclusive of in-kind note issuances, and discount and issuance cost amortization. Interest expense of $1.2 million and $1.1 million was recognized during the three months ended March 31, 2016 and 2015, respectively. In December 2015, the Company extended the maturity date of the Notes from June 30, 2018 to June 30, 2019. The extension of the maturity date did not result in a material modification to the present value of the cash flows associated with the payment due at maturity.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	(4) Net Loss Per Share The following table sets forth potential shares of Company common stock that are not included in the diluted net loss per share calculation because to do so would reduce net loss per share for the periods indicated below (in thousands): As of March 31, 2016 2015 Potentially dilutive securities: Non-vested restricted share units 58 6 Options outstanding 760 2,639 Non-vested restricted share awards — 1,651 Total 818 4,296

Financial Instruments

Financial Instruments	9 Months Ended
	Mar. 31, 2016
Investments All Other Investments [Abstract]
Financial Instruments	(5) Financial Instruments The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The carrying amount of cash and cash equivalents approximates fair value because of the short-term maturity and is based on Level 1 fair value hierarchy inputs. The carrying amount of the Company’s other current assets and liabilities, with the exception of short-term investments, approximate fair value based on the short-term maturity of the instruments using Level 2 inputs. Investments - the Company’s investment policy is consistent with the definition of available-for-sale securities. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. The fair value of the Company’s short-term investments, which approximate amortized cost using Level 1 inputs, was zero and $11.7 million at March 31, 2016 and June 30, 2015, respectively. Long-Term Notes Payable - The Company’s long-term notes payable were recognized on a fair value basis using Level 3 inputs on the date of entry into the obligation and are not subject to fair value estimation on a recurring basis.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	(6) Commitments and Contingencies Contingent Legal Expenses In connection with patent infringement litigation filed by the Company in the U.S. and Europe, the Company entered into two engagement agreements for legal services rendered to Unwired Planet, Inc. and its subsidiaries, both of which included a blended fixed fee and contingent “success fee” arrangement. In both cases, the fixed fee element of both engagement agreements concluded on June 30, 2015, but the contingent fee arrangement continues. In the case of the European litigation engagement agreement, the contingent fee arrangement was payable upon the first finding of validity and infringement in the United Kingdom, which occurred in December 2015 and was paid during the three months ended March 31, 2016. With respect to the U.S. litigation, the engagement letter with the law firm provides that the contingency fee is based upon proceeds net of Ericsson’s fee share under the terms of the Master Sale Agreement by and among Telefonaktiebolaget L M Ericsson, Cluster LLC, Unwired Planet, Inc., Unwired Planet IP Holdings, Inc., Unwired Planet IP Manager, LLC, and Unwired Planet, LLC dated January 10, 2013, as amended (the “MSA”). Under court rules in the United Kingdom, parties to litigation are entitled to reimbursement of their attorney’s fees with respect to portions of the case on which they prevail. The Company will become liable for the opposing parties’ attorney fees and costs if it loses all or a portion of the pending litigation in the United Kingdom. During the three months ended March 31, 2016, the Company paid approximately $3.1 million in partial attorneys’ fees reimbursements to defendants in the United Kingdom litigation in compliance with the court’s order as a result of losing a trial held in February 2016. The Company has not accrued for any additional losses as of March 31, 2016 because the amount of such additional loss was not reasonably estimable nor was a further obligation to pay such loss in the pending United Kingdom litigation probable as of March 31, 2016. Rather, as a result of the judgment announced on March 22, 2016, the other parties will be responsible for reimbursing approximately $1.7 million in legal costs previously incurred by the Company which is recognized in prepaid and other current assets in the accompanying condensed consolidated balance sheets. In August 2015, the Company engaged a consultant to assist in the progression of its international patent enforcement litigation efforts, primarily focused in the United Kingdom (“UK”). As part of this engagement, the Company agreed to pay the consultant for various types of favorable outcomes as mutually agreed by the Company and the consultant. The fees, paid on a per outcome basis, range from $100,000 to $200,000 depending on the various components of the litigation. The Company cannot reasonably determine the likelihood of additional favorable outcomes related to other on-going litigation and has recognized success fees payable of $125,000 as of March 31, 2016. Other Legal Matters From time to time, the Company may be involved in litigation or other legal proceedings, including those noted above, relating to or arising out of its day-to-day operations or otherwise. Litigation is inherently uncertain and the Company could experience unfavorable rulings. Should the Company experience an unfavorable ruling, there exists the possibility of a material adverse impact on its financial condition, results of operations, cash flows, or on its business for the period in which the ruling occurs and/or in future periods. Operating Lease In September 2015, the Company entered into a three year lease with a base monthly rent of $11,250 to move its corporate headquarters to Los Altos, California. Upon execution of the lease, the Company paid a $50,000 refundable deposit. For the periods ended March 31, 2016, 2017, and 2018 the Company is obligated to pay approximately $100,000 per year.

Patent License and Patent Purch

Patent License and Patent Purchase Agreements	9 Months Ended
	Mar. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Patent License and Patent Purchase Agreements	(7) Patent License and Patent Purchase Agreements In March 2014, the Company entered into a Patent License Agreement (“License Agreement”) with a subsidiary of Lenovo Group Limited (“Lenovo”). License fee revenue is recognized ratably over the estimated licensing term of seven years and the Ericsson fee share is 20% of the gross licensing revenue. The following table summarizes gross license revenue, fee share, and net revenue for the nine month period ended March 31, 2016 (in thousands): License fee revenue $ 4,692 Fee share (938 ) Net Revenue $ 3,754 The following table summarizes the licensing revenue recognition and Ericsson fee share for the License Agreement over the remaining term of the License Agreement: 2016 (1) 2017 2018 2019 2020 2021 Total License Revenue Recognition $ 1,564 $ 6,256 $ 6,256 $ 6,256 $ 6,256 $ 4,468 $ 31,056 Fee share (313 ) (1,251 ) (1,251 ) (1,251 ) (1,251 ) (926 ) $ (6,243 ) Net Revenue $ 1,251 $ 5,005 $ 5,005 $ 5,005 $ 5,005 $ 3,542 $ 24,813 (1) Remaining amount for the 2016 fiscal year The net revenue amounts above are recorded as deferred revenue on the Condensed Consolidated Balance Sheets.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	(8) Subsequent Events Purchase and Sale Agreement On April 6, 2016, the Company entered into Purchase and Sale Agreement (the “PSA”) with Optis UP Holdings, LLC (“Optis”), pursuant to which Optis will acquire all of the outstanding capital stock of selected subsidiaries of the Company, including Unwired Planet IP Holdings, Inc., a Delaware corporation (“Sub 1”), and all of the outstanding membership interests of Unwired Planet IP Manager, LLC, a Delaware limited liability company (“Sub 2”, and together with Sub 1, the “Holding Companies”) (collectively, the “Divestiture”). The Holding Companies own all of the outstanding membership interests of Unwired Planet, LLC, a Nevada limited liability company (“UPLLC”), and UPLLC owns all of the outstanding shares of Unwired Planet International Limited, an Irish company limited by shares (“Unwired Planet Ireland” and together with Sub 1, Sub 2 and UPLLC, the “Unwired Planet Companies”). UPLLC and Unwired Planet Ireland collectively own all of the Company’s patent assets. The aggregate purchase price for the Divestiture will be a total of up to $40,000,000; as specified in the PSA, Optis will pay the Company $30,000,000 less certain adjustments upon the closing of the Divestiture, and $10,000,000 less certain other potential adjustments upon the second anniversary of the closing. The completion of the Divestiture is subject to certain conditions, including, among others: (i) the Company stockholders’ approval, (ii) the absence of an order or law prohibiting consummation of the transactions (including without limitation a stop order issued by the Securities and Exchange Commission suspending the use of the proxy statement sent to stockholders in connection with meeting scheduled to approve the Divestiture), (iii) the consent of the holders of the Company’s Senior Secured Notes due 2019 and (iv) the consents of Telefonaktiebolaget L M Ericsson (“Ericsson”) and Cluster LLC. The PSA contains specified termination rights for both Optis and the Company, including that, in general, either party may terminate if the Divestiture is not consummated on or before July 31, 2016. If the PSA is terminated under certain specified circumstances, including in connection with the Company’s entry into a definitive agreement for a superior proposal, the Company must pay Optis a termination fee of $2.0 million. Upon closing the transaction, the Company will be required to pay $4.6 million to its counsel McKool Smith PC as settlement for the cancellation of the service agreement with that firm. Similarly, the Company will be required to pay $200,000 to the Company’s European counsel for the cancellation of their contract. In addition, the Company continues to bear all the risk of paying Microsoft’s legal fees in the event it is not successful and the Company will be required to share one-half of any recovery with Optis in the event the litigation is successful. The patent assets contemplated by the Divesture have not previously been capitalized in the accompanying condensed consolidated balance sheets. Additionally, there are no other assets with a material carrying value as presented in the accompanying condensed consolidated balance sheet that will be disposed of upon closing of the Divesture. Finally, the Company is currently evaluating the financial statement presentation of the Divesture entities in future periods. Historically, the Divesture entities’ have comprised over 90% of total expenses for each period presented in the accompanying condensed consolidated statements of operations and cash flows.

Organization and Basis of Pre15

Organization and Basis of Presentation (Policies)	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of March 31, 2016 and June 30, 2015, and the results of its operations for the three and nine months ended March 31, 2016 and 2015, and cash flows for the nine months ended March 31, 2016 and 2015. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. On December 4, 2015, the Company’s stockholders approved a one-for-twelve (1:12) reverse stock split of its common stock. The reverse stock split was effective on January 5, 2016. The number of authorized shares of common stock was reduced from one billion to 350 million with the effectiveness of the reverse stock split. All per share amounts in these unaudited condensed consolidated financial statements and accompanying notes have been retroactively adjusted to the earliest period presented for the effect of this reverse stock split.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with the accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist primarily of exchange traded money market funds. The Company is exposed to credit risk in the event of default by the financial institutions or the issuers of these investments to the extent the amounts on deposit or invested are in excess of amounts that are insured by the FDIC or SIPC.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Black-Scholes-Merton Option Pricing Model Weighted Average Assumptions	The following table illustrates the assumptions used in estimating the fair value of the options during the nine month period ended March 31, 2016: Expected volatility 64.3 - 78.3% Expected dividends — Expected term (years) 1.0 - 9.7 Risk-free rate 0.4 - 2.25%
Summary of Option Activity	A summary of option activity is presented below (in thousands except per share and year amounts): Options Shares Weighted Average Exercise Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at July 1, 2015 640 $ 12.18 Options granted 131 9.01 Exercised — — Forfeited, cancelled or expired (136 ) 19.62 Outstanding at March 31, 2016 635 $ 9.93 8.58 $ 789 Exercisable at March 31, 2016 75 $ 20.57 3.87 $ —

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Senior Secured Notes	The Company’s Senior Secured Notes (“Notes”) are summarized below (in thousands): March 31, June 30, 2016 2015 Balance beginning of year $ 29,874 $ 25,693 Issuance of in-kind notes 3,214 3,837 Amortization of discount 322 344 Balance end of period $ 33,410 $ 29,874

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earning Per Share	The following table sets forth potential shares of Company common stock that are not included in the diluted net loss per share calculation because to do so would reduce net loss per share for the periods indicated below (in thousands): As of March 31, 2016 2015 Potentially dilutive securities: Non-vested restricted share units 58 6 Options outstanding 760 2,639 Non-vested restricted share awards — 1,651 Total 818 4,296

Patent License and Patent Pur19

Patent License and Patent Purchase Agreements (Tables)	9 Months Ended
	Mar. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Gross License Revenue, Fee Share, and Net Revenue	The following table summarizes gross license revenue, fee share, and net revenue for the nine month period ended March 31, 2016 (in thousands): License fee revenue $ 4,692 Fee share (938 ) Net Revenue $ 3,754
Summary of Licensing Revenue Recognition and Ericsson Fee Share for License Agreement	The following table summarizes the licensing revenue recognition and Ericsson fee share for the License Agreement over the remaining term of the License Agreement: 2016 (1) 2017 2018 2019 2020 2021 Total License Revenue Recognition $ 1,564 $ 6,256 $ 6,256 $ 6,256 $ 6,256 $ 4,468 $ 31,056 Fee share (313 ) (1,251 ) (1,251 ) (1,251 ) (1,251 ) (926 ) $ (6,243 ) Net Revenue $ 1,251 $ 5,005 $ 5,005 $ 5,005 $ 5,005 $ 3,542 $ 24,813 (1) Remaining amount for the 2016 fiscal year

Organization and Basis of Pre20

Organization and Basis of Presentation - Additional Information (Detail) shares in Millions	Dec. 04, 2015shares	Mar. 31, 2016
Accounting Policies [Abstract]
Stockholders' equity, reverse stock split description		On December 4, 2015, the Company’s stockholders approved a one-for-twelve (1:12) reverse stock split of its common stock
Reserve split for common stock	0.083
Effective date of reverse stock split		Jan. 5, 2016
Number of authorized shares of common stock before reduced	1,000
Stock issued during period, shares, reverse stock splits	350

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Stockholders Equity Note [Line Items]
Common stock, shares issued	9,444,490		9,444,490		9,373,000
Common stock, shares outstanding	9,440,191		9,440,191		9,362,000
Common stock issued for vested restricted stock			89,410
Treasury stock, shares acquired			11,445
Treasury stock acquired			$ 100
Treasury stock, shares retired			217,988
Estimated grant date fair value of options granted			$ 700
Options granted			131,000	0
Unrecognized compensation cost for outstanding options	$ 2,000		$ 2,000
Stock-based compensation			$ 1,743	$ 1,543
Restricted Stock Awards and Units
Stockholders Equity Note [Line Items]
Restricted stock units granted			50,000	1,151,000
Restricted stock units granted with grant date fair value			$ 600	$ 1,800
Restricted stock awards outstanding	62,000		62,000
Total unrecognized compensation cost related to all unvested share awards and options	$ 800		$ 800
Stock-based compensation	$ 500	$ 500	$ 1,700	$ 1,500

Black-Scholes-Merton Option Pri

Black-Scholes-Merton Option Pricing Model Weighted Average Assumptions (Detail) - Employee Stock Option	9 Months Ended
	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividends	0.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	64.30%
Expected term (in years)	1 year
Risk-free rate	0.40%
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	78.30%
Expected term (in years)	9 years 8 months 12 days
Risk-free rate	2.25%

Summary of Option Activity (Det

Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Shares
Beginning Balance	640,000
Options granted	131,000	0
Exercised	0
Forfeited, cancelled or expired	(136,000)
Ending Balance	635,000
Exercisable at March 31, 2016	75,000
Weighted Average Exercise Price
Beginning Balance	$ 12.18
Options granted	9.01
Exercised	0
Forfeited, cancelled or expired	19.62
Ending Balance	9.93
Exercisable at March 31, 2016	$ 20.57
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term, Outstanding	8 years 6 months 29 days
Exercisable at March 31, 2016	3 years 10 months 13 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 789
Exercisable at March 31, 2016	$ 0

Senior Secured Notes (Detail)

Senior Secured Notes (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Balance beginning of year	$ 29,874	$ 25,693
Issuance of in-kind notes	3,214	3,837
Amortization of discount	322	344
Balance end of period	$ 33,410	$ 29,874

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($) $ in Thousands	Nov. 30, 2015	Dec. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Debt Instrument [Line Items]
Interest expense			$ 1,220	$ 1,104	$ 3,677	$ 3,181
Senior Secured Notes
Debt Instrument [Line Items]
Maturity date of senior secured notes	Jun. 30, 2018	Jun. 30, 2019

Antidilutive Securities Exclude

Antidilutive Securities Excluded from Computation of Earning Per Share (Detail) - shares shares in Thousands	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	818	4,296
Non-vested restricted share units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	58	6
Options Outstanding and Exercisable
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	760	2,639
Non-vested restricted share awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities		1,651

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Fair Value Level 1
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost	$ 0	$ 11.7

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Mar. 22, 2016	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2016
Commitments and Contingencies [Line Items]
Operating leases, term of contract			3 years
Monthly base rent payment			$ 11,250
Security deposit			$ 50,000
Operating leases, future minimum payments due, 2016		$ 100,000		$ 100,000
Operating leases, future minimum payments due, 2017		100,000		100,000
Operating leases, future minimum payments due, 2018		100,000		100,000
United Kingdom
Commitments and Contingencies [Line Items]
Success fee payable		125,000		125,000
United Kingdom | Minimum
Commitments and Contingencies [Line Items]
Consultant fees based on litigation expense of patent				100,000
United Kingdom | Maximum
Commitments and Contingencies [Line Items]
Consultant fees based on litigation expense of patent				200,000
Patent Infringement Litigation
Commitments and Contingencies [Line Items]
Payment for reimbursing of legal settlement	$ 1,700,000	3,100,000
Accrual for loss contingencies		$ 0		$ 0

Patent License and Patent Pur29

Patent License and Patent Purchase Agreements - Additional Information (Detail) - Lenovo Agreements	9 Months Ended
	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
License agreement term	7 years
Ericsson fee share percentage	20.00%

Summary of Gross License Revenu

Summary of Gross License Revenue, Fee Share, and Net Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
License fee revenue			$ 4,692
Fee share			(938)
Net Revenue	$ 1,251	$ 1,251	$ 3,754	$ 3,754

Summary of Licensing Revenue Re

Summary of Licensing Revenue Recognition and Ericsson Fee Share for Amount Allocated to License Agreement (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				$ 4,692
Fee share				(938)
Net Revenue		$ 1,251	$ 1,251	3,754	$ 3,754
Ericsson
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				31,056
Fee share				(6,243)
Net Revenue				24,813
Ericsson | 2016
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition	[1]			1,564
Fee share	[1]			(313)
Net Revenue	[1]			1,251
Ericsson | 2017
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				6,256
Fee share				(1,251)
Net Revenue				5,005
Ericsson | 2018
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				6,256
Fee share				(1,251)
Net Revenue				5,005
Ericsson | 2019
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				6,256
Fee share				(1,251)
Net Revenue				5,005
Ericsson | 2020
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				6,256
Fee share				(1,251)
Net Revenue				5,005
Ericsson | 2021
Finite-Lived Intangible Assets [Line Items]
License Revenue Recognition				4,468
Fee share				(926)
Net Revenue				$ 3,542
[1]	Remaining amount for the 2016 fiscal year

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event - Purchase and Sale Agreement	Apr. 06, 2016USD ($)
Subsequent Event [Line Items]
Purchase price for divestiture	$ 40,000,000
Divestiture of businesses closing adjustment first amount	30,000,000
Divestiture of businesses closing adjustment second amount	10,000,000
Termination Fee	$ 2,000,000
Percentage Of Divestiture	90.00%
McKool Smith PC
Subsequent Event [Line Items]
Settlement for cancellation of agreement	$ 4,600,000
European Counsel
Subsequent Event [Line Items]
Settlement for cancellation of agreement	$ 200,000