Onvia (ONVI) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Entity Registrant Name	ONVIA INC
Entity Central Index Key	1,100,917
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)		7,423,567
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue
Subscription	$ 5,368	$ 5,003	$ 10,631	$ 10,028
Content license	430	463	892	937
Management information reports	41	42	89	95
Other	55	59	127	123
Total revenue	5,894	5,567	11,739	11,183
Cost of revenue (exclusive of depreciation and amortization included below)	838	849	1,631	1,674
Gross margin	5,056	4,718	10,108	9,509
Operating expenses:
Sales and marketing	3,118	2,891	6,208	5,825
Technology and development	1,062	1,021	2,094	2,141
General and administrative	818	925	2,227	1,754
Total operating expenses	4,998	4,837	10,529	9,720
Income/(loss) from operations	58	(119)	(421)	(211)
Interest and other income, net	22	2	24	5
Net income/(loss)	$ 80	(117)	$ (397)	$ (206)
Unrealized loss on available-for-sale securities		(1)
Comprehensive income/(loss)	$ 80	$ (118)	$ (397)	$ (206)
Basic net income/(loss) per share (in dollars per share)	$ 0.01	$ (0.02)	$ (0.05)	$ (0.03)
Diluted net income/(loss) per share (in dollars per share)	$ 0.01	$ (0.02)	$ (0.05)	$ (0.03)
Basic weighted average shares outstanding (in shares)	7,413	7,395	7,404	7,373
Diluted weighted average shares outstanding (in shares)	7,578	7,395	7,404	7,373

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 2,052,000	$ 1,577,000
Short-term investments, available-for-sale	6,335,000	6,436,000
Accounts receivable, net of allowance for doubtful accounts of $31 and $42	1,093,000	1,735,000
Prepaid expenses and other current assets	949,000	682,000
Total current assets	10,429,000	10,430,000
LONG TERM ASSETS:
Property and equipment, net of accumulated depreciation	1,194,000	1,358,000
Internal use software, net of accumulated amortization	5,143,000	5,059,000
Other long-term assets	179,000	181,000
Total long term assets	6,516,000	6,598,000
TOTAL ASSETS	16,945,000	17,028,000
CURRENT LIABILITIES:
Accounts payable	1,005,000	873,000
Accrued expenses	833,000	1,098,000
Unearned revenue, current portion	8,608,000	8,478,000
Other current liabilities	91,000	82,000
Total current liabilities	10,537,000	10,531,000
LONG TERM LIABILITIES:
Unearned revenue, net of current portion	576,000	405,000
Deferred rent, net of current portion	618,000	590,000
Other long-term liabilities	56,000	69,000
Total long term liabilities	1,250,000	1,064,000
TOTAL LIABILITIES	$ 11,787,000	11,595,000
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY:
Preferred stock; $.0001 par value: 2,000,000 shares authorized; no shares issued or outstanding	$ 0	0
Common stock; $.0001 par value: 11,000,000 shares authorized; 8,666,374 and 8,643,460 shares issued; and 7,423,567 and 7,400,653 shares outstanding	1,000	1,000
Treasury stock, at cost: 1,242,807 and 1,242,807 shares	(4,398,000)	(4,398,000)
Additional paid in capital	$ 353,973,000	353,852,000
Accumulated other comprehensive loss		(1,000)
Accumulated deficit	$ (344,418,000)	(344,021,000)
Total stockholders’ equity	5,158,000	5,433,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 16,945,000	$ 17,028,000

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 31	$ 42
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	11,000,000	11,000,000
Common stock, shares issued (in shares)	8,666,374	8,643,460
Common stock, shares outstanding (in shares)	7,423,567	7,400,653
Treasury stock, Shares (in shares)	1,242,807	1,242,807

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)	$ (397,000)	$ (206,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,222,000	1,619,000
Stock-based compensation	44,000	$ 84,000
Loss on sale of property and equipment	2,000
Change in operating assets and liabilities:
Accounts receivable	642,000	$ 214,000
Prepaid expenses and other assets	(265,000)	(130,000)
Accounts payable	10,000	(152,000)
Accrued expenses	(265,000)	(171,000)
Unearned revenue	301,000	(51,000)
Deferred rent	37,000	46,000
Net cash provided by operating activities	1,331,000	1,253,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(110,000)	(174,000)
Additions to internal use software	(932,000)	(1,138,000)
Purchases of investments	$ (4,062,000)	(6,201,000)
Sales of investments		1,570,000
Maturities of investments	$ 4,163,000	$ 3,370,000
Proceeds from sale of equipment	8,000
Net cash used in investing activities	$ (933,000)	$ (2,573,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital lease obligations		(126,000)
Proceeds from exercise of stock options and purchases under employee stock purchase plan	$ 77,000	227,000
Net cash provided by financing activities	77,000	101,000
Net increase / (decrease) in cash and cash equivalents	475,000	(1,219,000)
Cash and cash equivalents, beginning of period	1,577,000	2,073,000
Cash and cash equivalents, end of period	2,052,000	$ 854,000
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases under capital lease obligations	(6,000)
Property and equipment additions in accounts payable	(114,000)	$ (68,000)
Internal use software additions in accounts payable	$ (192,000)	$ (253,000)

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Basis of Presentation The interim unaudited Condensed Consolidated Financial Statements and related notes thereto have been prepared pursuant to generally accepted accounting principles in the United States of America, or GAAP, and the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying interim unaudited Condensed Consolidated Financial Statements and related notes thereto should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report”). Onvia had a wholly-owned subsidiary in Canada that was dissolved effective December 19, 2014; and there was no business activity in this subsidiary during the three and six month periods ended June 30, 2014. The wholly-owned subsidiary owned no assets or liabilities as of the date of dissolution. The information furnished is unaudited, but reflects, in the opinion of management, all adjustments, consisting of only normal recurring items, necessary for a fair presentation of the results for the interim periods presented. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. Interim results are not necessarily indicative of results for a full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of stock-based compensation, allowance for doubtful accounts, capitalization of costs for internally developed software, recoverability of long-lived assets, including internally developed software, and the valuation allowance for Onvia’s net deferred tax assets. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ significantly from the Company’s estimates. In addition, any significant unanticipated changes in any of the Company’s assumptions could have a material adverse effect on its business, financial condition, and results of operations. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on the recognition of revenue from contracts with customers. Revenue recognition will depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The guidance was originally effective January 1, 2017 and early adoption was not permitted. In July 2015, the FASB approved a one-year deferral of the effective date to January 1, 2018, with an option of applying the standard on the original effective date. The company is currently evaluating the impact of the new guidance, the effective date and the method of adoption.

Note 2 - Stock-Based Compensati

Note 2 - Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	2. Stock-Based Compensation The impact to Onvia’s interim unaudited Condensed Consolidated Statements of Operations for recording stock-based compensation was as follows for the periods presented (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Cost of sales $ - $ 1 $ - $ 3 Sales and marketing 6 (14 ) (3 ) (5 ) Technology and development 3 5 8 11 General and administrative 13 38 39 75 Total stock-based compensation $ 22 $ 30 $ 44 $ 84

Note 3 - Earnings per Share

Note 3 - Earnings per Share	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	3. Earnings per Share Basic income/(loss) per share is calculated by dividing the net loss for the period by the weighted average shares of common stock outstanding for the period. Diluted income/(loss) per share is calculated by dividing the net income/(loss) per share by the weighted average common stock outstanding for the period, plus dilutive potential common shares using the treasury stock method. In periods with a net loss, basic and diluted earnings per share are identical because inclusion of potentially dilutive common shares would be anti-dilutive. The following table sets forth the computation of basic and diluted net income/(loss) per share for the three and six months ended June 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income/(loss) $ 80 $ (117 ) $ (397 ) $ (206 ) Shares used to compute basic net income/(loss) per share 7,413 7,395 7,404 7,373 Dilutive potential common shares: Stock options 165 - - - Shares used to compute diluted net income/(loss) per share 7,578 7,395 7,404 7,373 Basic net income/(loss) per share $ 0.01 $ (0.02 ) $ (0.05 ) $ (0.03 ) Diluted net income/(loss) per share $ 0.01 $ (0.02 ) $ (0.05 ) $ (0.03 ) For the three and six months ended June 30, 2015, the weighted average effect of stock options to purchase approximately 290,000 and 877,000 shares of common stock, respectively, were excluded from the computation of diluted net loss per share because their effect would be anti-dilutive. For the three and six months ended June 30, 2014, the weighted average effect of stock options to purchase approximately 1,085,000 and 1,105,000 shares of common stock, respectively, were excluded from the computation of diluted net loss per share because their effect would be anti-dilutive.

Note 4 - Investments

Note 4 - Investments	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	4. Investments Onvia classifies investments in debt securities as available-for-sale, stated at fair value as summarized in the following table (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 390 $ - $ - $ 390 Certificates of Deposit (1) 5,945 - - 5,945 Total Investments $ 6,335 $ - $ - $ 6,335 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 158 $ - $ - $ 158 Certificates of Deposit (1) 6,279 - (1 ) 6,278 Total Investments $ 6,437 $ - $ (1 ) $ 6,436 (1) . Onvia accounts for investments held as available for sale according to their fair values, which is defined as the exchange price that would be received for an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following are the three levels of inputs that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Onvia uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The following table summarizes, by major security type, investments classified as available-for-sale at June 30, 2015 and at December 31, 2014, stated at fair value (in thousands): Fair Value Measurements as of June 30, 2015 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 390 $ - $ 390 Certificates of Deposit - 5,945 - 5,945 $ - $ 6,335 $ - $ 6,335 Fair Value Measurements as of December 31, 2014 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 158 $ - $ 158 Certificates of Deposit - 6,278 - 6,278 $ - $ 6,436 $ - $ 6,436 There were no transfers in or out of Level 2 investments during the first six months of 2015 and fourth quarter of 2014, and there was no activity in Level 1 or Level 3 fair value measurements during those periods.

Note 5 - Prepaid Expenses and O

Note 5 - Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Other Current Assets [Text Block]	5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, Prepaid insurance $ 187 $ 110 Prepaid software licences and maintenance 430 440 Prepaid expenses - other 295 123 Interest receivable 11 4 Other receivables 26 5 Total prepaid expenses and other current assets $ 949 $ 682

Note 6 - Property and Equipment

Note 6 - Property and Equipment	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	6. Property and Equipment Property and equipment, net of accumulated depreciation, consist of the following (in thousands): June 30, December 31, Computer equipment $ 3,768 $ 3,676 Software 1,855 1,855 Furniture and fixtures 109 109 Leasehold improvements 883 883 Total cost basis 6,615 6,523 Less accumulated depreciation (5,421 ) (5,165 ) Net book value $ 1,194 $ 1,358 Depreciation expense was $153,000 and $317,000 for the three and six months ended June 30, 2015, respectively, compared to $179,000 and $362,000, respectively, for the same periods of 2014.

Note 7 - Internal Use Software

Note 7 - Internal Use Software	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Internal Use Software Disclosure [Text Block]	7. Internal Use Software Onvia capitalizes qualifying computer software costs incurred during the “application development stage” and other costs. Amortization of these costs begins once the product is ready for its intended use. These costs are amortized on a straight-line basis over the estimated useful life of the product, typically 3 to 5 years. The amount of costs capitalized within any period is dependent on the nature of software development activities and projects in each period. Onvia periodically evaluates the remaining useful lives and carrying values of internal use software. If management determines that all or a portion of the asset will no longer be used, or the estimated remaining useful life differs from existing estimates, an abandonment will be recorded to reduce the carrying value or adjust the remaining useful life to reflect revised estimates. In addition, if the carrying value of the software exceeds the estimated future cash flows, an impairment will be recorded to reduce the carrying value to the expected realizable value. No impairment has been recorded during the six months ended June 30, 2015 and 2014. The following table presents a roll-forward of capitalized internal use software for the six months ended June 30, 2015 (in thousands): Balance at Additions Balance at Capitalized internal use software $ 17,107 $ 989 $ 18,096 Accumulated amortization (12,048 ) (905 ) (12,953 ) Internal use software, net $ 5,059 $ 84 $ 5,143 Amortization expense was $420,000 and $905,000 for the three and six months ended June 30, 2015, respectively, compared to $624,000 and $1,258,000, respectively, for the same periods of 2014. Amortization expense is included in operating expenses in the interim unaudited Condensed Consolidated Statements of Operations.

Note 8 - Accrued Expenses and O

Note 8 - Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	8. Accrued Expenses and Other Current Liabilities Accrued expenses consist of the following (in thousands): June 30, December 31, Payroll and related liabilities $ 784 $ 966 Taxes payable and other 49 132 Total accrued expenses $ 833 $ 1,098 Other current liabilities consist of the following (in thousands): June 30, December 31, Obligations under capital leases, current portion 24 24 Deferred rent, current portion 67 58 Total other current liabilities $ 91 $ 82

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	9. Commitments and Contingencies Operating Leases Onvia has a lease agreement for its corporate offices located in Seattle, Washington that expires on April 30, 2021. Rent expense is being recognized on a straight-line basis over the term of the lease. Onvia also has a non-cancellable operating lease for office equipment, which expires in July 2019. As of June 30, 2015, remaining future minimum lease payments required on non-cancellable operating leases are as follows for the years ending December 31 (in thousands): Real Estate Office Equipment Total 2015 $ 414 $ 10 $ 424 2016 780 20 800 2017 873 20 893 2018 896 20 916 2019 918 9 927 2020 and thereafter 1,261 - 1,261 Total $ 5,142 $ 79 $ 5,221 Purchase Obligations Onvia has non-cancellable purchase obligations for software development and license agreements, co-location hosting arrangements, telecom agreements, marketing agreements and third-party content agreements. The agreements expire in dates ranging from April 2015 to 2017. Future required payments under these non-cancellable agreements are as follows for the years ending December 31 (in thousands): Purchase 2015 $ 572 2016 722 2017 237 Total $ 1,531 Legal Proceedings From time to time, legal proceedings may arise in the ordinary course of business. Although the outcomes of legal proceedings are inherently difficult to predict, we are not currently involved in any legal proceeding in which the outcome, in our judgment based on information currently available, is likely to have a material adverse effect on our business or financial position.

Note 10 - Provision for Income

Note 10 - Provision for Income Taxes	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	10. Provision for Income Taxes As of June 30, 2015 and December 31, 2014, Onvia has recorded a valuation allowance against its net deferred tax assets because the Company has determined it is not more likely than not that the asset will be realized. Onvia will continue to evaluate the likelihood that these tax benefits may be realized, and may reverse all or a portion of its valuation allowance in the future if it is determined that realization of these benefits is more likely than not. Pursuant to Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), utilization of net operating loss (NOL) carryforwards to offset future taxable income are subject to substantial annual limitations if we experience a cumulative change in ownership as defined by the Code. In general, an ownership change, as defined by the Code, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. As of June 30, 2015 and December 31, 2014, Onvia’s Federal NOL carryforwards for income tax purposes were approximately $76.0 million. The Federal NOL carryforwards are subject to limitations under Section 382 of the Internal Revenue Code. If not utilized, the Federal NOL carryforwards will begin to expire in 2022. The latest date available for a portion of the Federal NOL carryforwards to be utilized to offset future income is 2033.

Note 11 - Security Deposits

Note 11 - Security Deposits	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Lease Security Deposit [Text Block]	11. Security Deposits Pursuant to Onvia’s lease for its current corporate office space, Onvia has established a stand by letter of credit as security to the lease increasing from $100,000 in April 2013, to $125,000 in January 2014 and to $150,000 on January 2015. The letter of credit will be returned at lease termination in April 2021, or earlier as discussed above, subject to standard office lease conditions. As of June 30, 2015 and December 31, 2014, the stand by letter of credit is secured by a security deposit of $150,000 and reported as other long-term assets on the unaudited Condensed Consolidated Balance Sheets.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The interim unaudited Condensed Consolidated Financial Statements and related notes thereto have been prepared pursuant to generally accepted accounting principles in the United States of America, or GAAP, and the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying interim unaudited Condensed Consolidated Financial Statements and related notes thereto should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report”). Onvia had a wholly-owned subsidiary in Canada that was dissolved effective December 19, 2014; and there was no business activity in this subsidiary during the three and six month periods ended June 30, 2014. The wholly-owned subsidiary owned no assets or liabilities as of the date of dissolution. The information furnished is unaudited, but reflects, in the opinion of management, all adjustments, consisting of only normal recurring items, necessary for a fair presentation of the results for the interim periods presented. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. Interim results are not necessarily indicative of results for a full year.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of stock-based compensation, allowance for doubtful accounts, capitalization of costs for internally developed software, recoverability of long-lived assets, including internally developed software, and the valuation allowance for Onvia’s net deferred tax assets. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ significantly from the Company’s estimates. In addition, any significant unanticipated changes in any of the Company’s assumptions could have a material adverse effect on its business, financial condition, and results of operations.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on the recognition of revenue from contracts with customers. Revenue recognition will depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The guidance was originally effective January 1, 2017 and early adoption was not permitted. In July 2015, the FASB approved a one-year deferral of the effective date to January 1, 2018, with an option of applying the standard on the original effective date. The company is currently evaluating the impact of the new guidance, the effective date and the method of adoption.

Note 2 - Stock-Based Compensa18

Note 2 - Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended Six Months Ended 2015 2014 2015 2014 Cost of sales $ - $ 1 $ - $ 3 Sales and marketing 6 (14 ) (3 ) (5 ) Technology and development 3 5 8 11 General and administrative 13 38 39 75 Total stock-based compensation $ 22 $ 30 $ 44 $ 84

Note 3 - Earnings per Share (Ta

Note 3 - Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income/(loss) $ 80 $ (117 ) $ (397 ) $ (206 ) Shares used to compute basic net income/(loss) per share 7,413 7,395 7,404 7,373 Dilutive potential common shares: Stock options 165 - - - Shares used to compute diluted net income/(loss) per share 7,578 7,395 7,404 7,373 Basic net income/(loss) per share $ 0.01 $ (0.02 ) $ (0.05 ) $ (0.03 ) Diluted net income/(loss) per share $ 0.01 $ (0.02 ) $ (0.05 ) $ (0.03 )

Note 4 - Investments (Tables)

Note 4 - Investments (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 390 $ - $ - $ 390 Certificates of Deposit (1) 5,945 - - 5,945 Total Investments $ 6,335 $ - $ - $ 6,335 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 158 $ - $ - $ 158 Certificates of Deposit (1) 6,279 - (1 ) 6,278 Total Investments $ 6,437 $ - $ (1 ) $ 6,436
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Fair Value Measurements as of June 30, 2015 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 390 $ - $ 390 Certificates of Deposit - 5,945 - 5,945 $ - $ 6,335 $ - $ 6,335 Fair Value Measurements as of December 31, 2014 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 158 $ - $ 158 Certificates of Deposit - 6,278 - 6,278 $ - $ 6,436 $ - $ 6,436

Note 5 - Prepaid Expenses and21

Note 5 - Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	June 30, December 31, Prepaid insurance $ 187 $ 110 Prepaid software licences and maintenance 430 440 Prepaid expenses - other 295 123 Interest receivable 11 4 Other receivables 26 5 Total prepaid expenses and other current assets $ 949 $ 682

Note 6 - Property and Equipme22

Note 6 - Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	June 30, December 31, Computer equipment $ 3,768 $ 3,676 Software 1,855 1,855 Furniture and fixtures 109 109 Leasehold improvements 883 883 Total cost basis 6,615 6,523 Less accumulated depreciation (5,421 ) (5,165 ) Net book value $ 1,194 $ 1,358

Note 7 - Internal Use Software

Note 7 - Internal Use Software (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Capitalized Internal Use Software Roll Forward [Table Text Block]	Balance at Additions Balance at Capitalized internal use software $ 17,107 $ 989 $ 18,096 Accumulated amortization (12,048 ) (905 ) (12,953 ) Internal use software, net $ 5,059 $ 84 $ 5,143

Note 8 - Accrued Expenses and24

Note 8 - Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	June 30, December 31, Payroll and related liabilities $ 784 $ 966 Taxes payable and other 49 132 Total accrued expenses $ 833 $ 1,098
Schedule of Other Assets and Other Liabilities [Table Text Block]	June 30, December 31, Obligations under capital leases, current portion 24 24 Deferred rent, current portion 67 58 Total other current liabilities $ 91 $ 82

Note 9 - Commitments and Cont25

Note 9 - Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Real Estate Office Equipment Total 2015 $ 414 $ 10 $ 424 2016 780 20 800 2017 873 20 893 2018 896 20 916 2019 918 9 927 2020 and thereafter 1,261 - 1,261 Total $ 5,142 $ 79 $ 5,221
Long-term Purchase Commitment [Table Text Block]	Purchase 2015 $ 572 2016 722 2017 237 Total $ 1,531

Note 2 - Stock-Based Compensa26

Note 2 - Stock-Based Compensation - Impact on Results of Operations of Recording Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015
Cost of Sales [Member]
Cost of sales		$ 1
Selling and Marketing Expense [Member]
Cost of sales	$ 6	(14)	$ (3)
Technology and Development [Member]
Cost of sales	3	5	8
General and Administrative Expense [Member]
Cost of sales	13	38	39
Cost of sales	$ 22	$ 84	$ 44

Note 3 - Earnings per Share (De

Note 3 - Earnings per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	290,000	1,085,000	877,000	1,105,000

Note 3 - Earnings per Share - B

Note 3 - Earnings per Share - Basic and Diluted Net Loss Per Share Calculation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income/(loss)	$ 80	$ (117)	$ (397)	$ (206)
Shares used to compute basic net income/(loss) per share (in shares)	7,413	7,395	7,404	7,373
Dilutive potential common shares:
Stock options (in shares)	165,000
Shares used to compute diluted net income/(loss) per share (in shares)	7,578	7,395	7,404	7,373
Basic net income/(loss) per share (in dollars per share)	$ 0.01	$ (0.02)	$ (0.05)	$ (0.03)
Diluted net income/(loss) per share (in dollars per share)	$ 0.01	$ (0.02)	$ (0.05)	$ (0.03)

Note 4 - Investments - Short-te

Note 4 - Investments - Short-term Investments in Debt Securities as Available-for-sale at Fair Value (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
US Government Agencies Debt Securities [Member]
Amortized Cost		$ 390	$ 158
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value		$ 390	$ 158
Certificate of Deposit [Member]
Amortized Cost	[1]	$ 5,945	$ 6,279
Gross Unrealized Gains	[1]
Gross Unrealized Losses	[1]		$ (1)
Fair Value	[1]	$ 5,945	6,278
Amortized Cost		$ 6,335	$ 6,437
Gross Unrealized Gains
Gross Unrealized Losses			$ (1)
Fair Value		$ 6,335	$ 6,436
[1]	The Company evaluated certificates of deposits held as of June 30, 2015 and December 31, 2014 and concluded that they meet the definition of securities as available for sale.

Note 4 - Investments - Short-30

Note 4 - Investments - Short-term Investments Classified as Available-for-sale Stated at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member]
U.S. Government backed securities
Fair Value, Inputs, Level 2 [Member]
U.S. Government backed securities	$ 5,945	$ 158
Fair Value, Inputs, Level 3 [Member]
U.S. Government backed securities
U.S. Government backed securities	$ 5,945	$ 158

Note 5 - Prepaid Expenses and31

Note 5 - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Prepaid insurance	$ 187	$ 110
Prepaid software licences and maintenance	430	440
Prepaid expenses - other	295	123
Interest receivable	11	4
Other receivables	26	5
Total prepaid expenses and other current assets	$ 949	$ 682

Note 6 - Property and Equipme32

Note 6 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Depreciation	$ 153,000	$ 179,000	$ 317,000	$ 362,000

Note 6 - Property and Equipme33

Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Computer equipment	$ 3,768	$ 3,676
Software	1,855	1,855
Furniture and fixtures	109	109
Leasehold improvements	883	883
Total cost basis	6,615	6,523
Less accumulated depreciation	(5,421)	(5,165)
Net book value	$ 1,194	$ 1,358

Note 7 - Internal Use Softwar34

Note 7 - Internal Use Software (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Minimum [Member]
Capitalized Internal Use Software Usefu Life			3 years
Maximum [Member]
Capitalized Internal Use Software Usefu Life			5 years
Operating Expense [Member]
Amortization of Intangible Assets	$ 420,000	$ 624,000	$ 905,000	$ 1,258,000
Asset Impairment Charges			$ 0	$ 0

Note 7 - Internal Use Softwar35

Note 7 - Internal Use Software - Roll-forward of Capitalized Internal Use Software (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Capitalized internal use software	$ 17,107
Capitalized internal use software	989
Capitalized internal use software	18,096
Accumulated amortization	(12,953)	$ (12,048)
Accumulated amortization	(905)
Internal use software, net	5,059
Internal use software, net	84
Internal use software, net	$ 5,143

Note 8 - Accrued Expenses and36

Note 8 - Accrued Expenses and Other Current Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Payroll and related liabilities	$ 784	$ 966
Taxes payable and other	49	132
Total accrued expenses	$ 833	$ 1,098

Note 8 - Accrued Expenses and37

Note 8 - Accrued Expenses and Other Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Obligations under capital leases, current portion	$ 24	$ 24
Deferred rent, current portion	67	58
Total other current liabilities	$ 91	$ 82

Note 9 - Commitments and Cont38

Note 9 - Commitments and Contingencies - Remaining Future Minimum Operating Lease Payments (Details) $ in Thousands	Jun. 30, 2015USD ($)
Real Estate Operating Leases [Member]
2,015	$ 414
2,016	780
2,017	873
2,018	896
2,019	918
2020 and thereafter	1,261
Total	5,142
Office Equipment Operating Lease [Member]
2,015	10
2,016	20
2,017	20
2,018	20
2,019	$ 9
2020 and thereafter
Total	$ 79
2,015	424
2,016	800
2,017	893
2,018	916
2,019	927
2020 and thereafter	1,261
Total	$ 5,221

Note 9 - Commitments and Cont39

Note 9 - Commitments and Contingencies - Non-cancellable Purchase Obligations for Software Development and License Agreements (Details) $ in Thousands	Jun. 30, 2015USD ($)
2,015	$ 572
2,016	722
2,017	237
Total	$ 1,531

Note 10 - Provision for Incom40

Note 10 - Provision for Income Taxes (Details Textual) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Operating Loss Carryforwards	$ 76	$ 76

Note 11 - Security Deposits (De

Note 11 - Security Deposits (Details Textual) - USD ($)	Jun. 30, 2015	Jan. 31, 2015	Dec. 31, 2014	Jan. 31, 2014	Apr. 30, 2013
Other Noncurrent Assets [Member]
Security Deposit	$ 150,000		$ 150,000
Secured by Standby Letter of Credit [Member]
Letters of Credit Outstanding, Amount		$ 150,000		$ 125,000	$ 100,000