Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Entity Registrant Name | ONVIA INC | |
Entity Central Index Key | 1,100,917 | |
Trading Symbol | onvi | |
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) | 7,470,126 | |
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 Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | ||||
Subscription | $ 5,417 | $ 5,131 | $ 16,048 | $ 15,159 |
Content license | 403 | 480 | 1,295 | 1,417 |
Management information reports | 20 | 34 | 109 | 129 |
Other | 47 | 55 | 174 | 178 |
Total revenue | 5,887 | 5,700 | 17,626 | 16,883 |
Cost of revenue (exclusive of depreciation and amortization included below) | 783 | 801 | 2,414 | 2,475 |
Gross margin | 5,104 | 4,899 | 15,212 | 14,408 |
Operating expenses: | ||||
Sales and marketing | 3,246 | 3,002 | 9,454 | 8,827 |
Technology and development | 1,067 | 1,035 | 3,161 | 3,176 |
General and administrative | 788 | 906 | 3,015 | 2,660 |
Total operating expenses | 5,101 | 4,943 | 15,630 | 14,663 |
Income/(loss) from operations | 3 | (44) | (418) | (255) |
Interest and other income, net | 6 | 2 | 30 | 7 |
Net income/( loss) | 9 | (42) | (388) | (248) |
Unrealized gain/(loss) on available-for-sale securities | 1 | (1) | 1 | (1) |
Comprehensive income/(loss) | $ 10 | $ (43) | $ (387) | $ (249) |
Basic net income/(loss) per common share (in dollars per share) | $ 0 | $ (0.01) | $ (0.05) | $ (0.03) |
Diluted net income/(loss) per common share (in dollars per share) | $ 0 | $ (0.01) | $ (0.05) | $ (0.03) |
Basic weighted average shares outstanding (in shares) | 7,449 | 7,396 | 7,421 | 7,381 |
Diluted weighted average shares outstanding (in shares) | 7,561 | 7,396 | 7,421 | 7,381 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,794,000 | $ 1,577,000 |
Short-term investments, available-for-sale | 6,140,000 | 6,436,000 |
Accounts receivable, net of allowance for doubtful accounts of $34 and $42 | 1,300,000 | 1,735,000 |
Prepaid expenses and other current assets | 705,000 | 682,000 |
Total current assets | 9,939,000 | 10,430,000 |
LONG TERM ASSETS: | ||
Property and equipment, net of accumulated depreciation | 1,142,000 | 1,358,000 |
Internal use software, net of accumulated amortization | 5,157,000 | $ 5,059,000 |
Long-term investments, available-for-sale | 249,000 | |
Other long-term assets | 243,000 | $ 181,000 |
Total long term assets | 6,791,000 | 6,598,000 |
TOTAL ASSETS | 16,730,000 | 17,028,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 725,000 | 873,000 |
Accrued expenses | 854,000 | 1,098,000 |
Unearned revenue, current portion | 8,674,000 | 8,478,000 |
Other current liabilities | 97,000 | 82,000 |
Total current liabilities | 10,350,000 | 10,531,000 |
LONG TERM LIABILITIES: | ||
Unearned revenue, net of current portion | 386,000 | 405,000 |
Deferred rent, net of current portion | 596,000 | 590,000 |
Other long-term liabilities | 50,000 | 69,000 |
Total long term liabilities | 1,032,000 | 1,064,000 |
TOTAL LIABILITIES | $ 11,382,000 | $ 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; 8,712,933 and 8,643,460 shares issued; and 7,470,126 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 | 354,153,000 | 353,852,000 |
Accumulated other comprehensive gain/(loss) | 1,000 | (1,000) |
Accumulated deficit | (344,409,000) | (344,021,000) |
Total stockholders’ equity | 5,348,000 | 5,433,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 16,730,000 | $ 17,028,000 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
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) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 11,000,000 | 11,000,000 |
Common stock, shares issued (in shares) | 8,712,933 | 8,643,460 |
Common stock, shares outstanding (in shares) | 7,470,126 | 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 ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (388,000) | $ (248,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,766,000 | 2,404,000 |
Stock-based compensation | 78,000 | $ 130,000 |
Loss on sale of property and equipment | 2,000 | |
Change in operating assets and liabilities: | ||
Accounts receivable | 435,000 | $ 77,000 |
Prepaid expenses and other assets | (84,000) | |
Accounts payable | (124,000) | $ (26,000) |
Accrued expenses | (244,000) | (161,000) |
Unearned revenue | 176,000 | 155,000 |
Deferred rent | 20,000 | 35,000 |
Net cash provided by operating activities | 1,637,000 | 2,366,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (296,000) | (270,000) |
Additions to internal use software | (1,403,000) | (1,688,000) |
Purchases of investments | (6,803,000) | (9,606,000) |
Sales of investments | 340,000 | 1,570,000 |
Maturities of investments | 6,511,000 | $ 7,152,000 |
Proceeds from sale of equipment | 8,000 | |
Net cash used in investing activities | $ (1,643,000) | $ (2,842,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on capital lease obligations | (189,000) | |
Proceeds from exercise of stock options | $ 223,000 | 227,000 |
Net cash provided by financing activities | 223,000 | 38,000 |
Net increase / (decrease) in cash and cash equivalents | 217,000 | (438,000) |
Cash and cash equivalents, beginning of period | 1,577,000 | 2,073,000 |
Cash and cash equivalents, end of period | 1,794,000 | 1,635,000 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Purchases under capital lease obligations | (6,000) | (6,000) |
Property and equipment additions in accounts payable | (38,000) | (4,000) |
Internal use software additions in accounts payable | $ (122,000) | $ (185,000) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 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 nine month periods ended September 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 | 9 Months Ended |
Sep. 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 Nine Months Ended 2015 2014 2015 2014 Cost of sales $ - $ 1 $ - $ 4 Sales and marketing 6 5 3 - Technology and development 3 5 11 16 General and administrative 25 35 64 110 Total stock-based compensation $ 34 $ 46 $ 78 $ 130 |
Note 3 - Earnings per Share
Note 3 - Earnings per Share | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income/(loss) $ 9 $ (42 ) $ (388 ) $ (248 ) Shares used to compute basic net income/(loss) per share 7,449 7,396 7,421 7,381 Dilutive potential common shares: Stock options 112 - - - Shares used to compute diluted net income/(loss) per share 7,561 7,396 7,421 7,381 Basic and diluted net income/(loss) per share $ 0.00 $ (0.01 ) $ (0.05 ) $ (0.03 ) For the three and nine months ended September 30, 2015, the weighted average effect of stock options to purchase approximately 314,000 and 853,000 shares of common stock, respectively, were excluded from the computation of diluted net loss per share because the exercise price is greater than the average market price of common stock for the respective period. For the three and nine months ended September 30, 2014, the weighted average effect of stock options to purchase approximately 1,076,000 and 1,095,000 shares of common stock, respectively, were excluded from the computation of diluted net loss per share because the exercise price is greater than the average market price of common stock for the respective period. |
Note 4 - Investments
Note 4 - Investments | 9 Months Ended |
Sep. 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): September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 1,228 $ - $ - $ 1,228 Certificates of Deposit (1) 4,911 1 - 4,912 Total Investments $ 6,139 $ 1 $ - $ 6,140 Long-Term Investments Certificates of Deposit (1) 249 - - 249 Total Long-Term Investments 249 - - 249 Total Investments $ 6,388 $ 1 $ - $ 6,389 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 September 30, 2015 and at December 31, 2014, stated at fair value (in thousands): Fair Value Measurements as of September 30, 2015 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 1,228 $ - $ 1,228 Certificates of Deposit - 5,161 - 5,161 Total Investments $ - $ 6,389 $ - $ 6,389 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 Total Investments $ - $ 6,436 $ - $ 6,436 There were no transfers in or out of Level 2 investments during the first nine 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 | 9 Months Ended |
Sep. 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): September 30, 2015 December 31, 2014 Prepaid insurance $ 153 $ 110 Prepaid software licences and maintenance 314 440 Prepaid expenses - other 203 123 Interest receivable 13 4 Other receivables 22 5 Total prepaid expenses and other current assets $ 705 $ 682 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 9 Months Ended |
Sep. 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): September 30, 2015 December 31, 2014 Computer equipment $ 3,869 $ 3,676 Software 1,855 1,855 Furniture and fixtures 112 109 Leasehold improvements 883 883 Total cost basis 6,719 6,523 Less accumulated depreciation (5,577 ) (5,165 ) Net book value $ 1,142 $ 1,358 Depreciation expense was $156,000 and $473,000 for the three and nine months ended September 30, 2015, respectively, compared to $176,000 and $538,000, respectively, for the same periods of 2014. |
Note 7 - Internal Use Software
Note 7 - Internal Use Software | 9 Months Ended |
Sep. 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 for the nine months ended September 30, 2015 and 2014. The following table presents a roll-forward of capitalized internal use software for the nine months ended September 30, 2015 (in thousands): Balance at Additions Balance at Capitalized internal use software $ 17,107 $ 1,390 $ 18,497 Accumulated amortization (12,048 ) (1,292 ) (13,340 ) Internal use software, net $ 5,059 $ 98 $ 5,157 Amortization expense was $388,000 and $1.3 million for the three and nine months ended September 30, 2015, respectively, compared to $609,000 and $1.9 million, 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 | 9 Months Ended |
Sep. 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): September 30, December 31, Payroll and related liabilities $ 776 $ 966 Taxes payable and other 78 132 Total accrued expenses $ 854 $ 1,098 Other current liabilities consist of the following (in thousands): September 30, 2015 December 31, 2014 Obligations under capital leases, current portion 25 24 Deferred rent, current portion 72 58 Total other current liabilities $ 97 $ 82 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Sep. 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 September 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 $ 207 $ 5 $ 212 2016 780 20 800 2017 873 20 893 2018 896 20 916 2019 918 9 927 2020 and thereafter 1,261 - 1,261 Total $ 4,935 $ 74 $ 5,009 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 June 2017. Future required payments under these non-cancellable agreements are as follows for the years ending December 31 (in thousands): Purchase 2015 $ 395 2016 779 2017 234 Total $ 1,408 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, the Company is not currently involved in any legal proceeding in which the outcome, in its judgment based on information currently available, is likely to have a material adverse effect on its business or financial position. |
Note 10 - Provision for Income
Note 10 - Provision for Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. Provision for Income Taxes As of September 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 September 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 | 9 Months Ended |
Sep. 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 September 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) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 nine month periods ended September 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) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of sales $ - $ 1 $ - $ 4 Sales and marketing 6 5 3 - Technology and development 3 5 11 16 General and administrative 25 35 64 110 Total stock-based compensation $ 34 $ 46 $ 78 $ 130 |
Note 3 - Earnings per Share (Ta
Note 3 - Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income/(loss) $ 9 $ (42 ) $ (388 ) $ (248 ) Shares used to compute basic net income/(loss) per share 7,449 7,396 7,421 7,381 Dilutive potential common shares: Stock options 112 - - - Shares used to compute diluted net income/(loss) per share 7,561 7,396 7,421 7,381 Basic and diluted net income/(loss) per share $ 0.00 $ (0.01 ) $ (0.05 ) $ (0.03 ) |
Note 4 - Investments (Tables)
Note 4 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 1,228 $ - $ - $ 1,228 Certificates of Deposit (1) 4,911 1 - 4,912 Total Investments $ 6,139 $ 1 $ - $ 6,140 Long-Term Investments Certificates of Deposit (1) 249 - - 249 Total Long-Term Investments 249 - - 249 Total Investments $ 6,388 $ 1 $ - $ 6,389 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 September 30, 2015 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 1,228 $ - $ 1,228 Certificates of Deposit - 5,161 - 5,161 Total Investments $ - $ 6,389 $ - $ 6,389 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 Total Investments $ - $ 6,436 $ - $ 6,436 |
Note 5 - Prepaid Expenses and21
Note 5 - Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | September 30, 2015 December 31, 2014 Prepaid insurance $ 153 $ 110 Prepaid software licences and maintenance 314 440 Prepaid expenses - other 203 123 Interest receivable 13 4 Other receivables 22 5 Total prepaid expenses and other current assets $ 705 $ 682 |
Note 6 - Property and Equipme22
Note 6 - Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2015 December 31, 2014 Computer equipment $ 3,869 $ 3,676 Software 1,855 1,855 Furniture and fixtures 112 109 Leasehold improvements 883 883 Total cost basis 6,719 6,523 Less accumulated depreciation (5,577 ) (5,165 ) Net book value $ 1,142 $ 1,358 |
Note 7 - Internal Use Software
Note 7 - Internal Use Software (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Capitalized Internal Use Software Roll Forward [Table Text Block] | Balance at Additions Balance at Capitalized internal use software $ 17,107 $ 1,390 $ 18,497 Accumulated amortization (12,048 ) (1,292 ) (13,340 ) Internal use software, net $ 5,059 $ 98 $ 5,157 |
Note 8 - Accrued Expenses and24
Note 8 - Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | September 30, December 31, Payroll and related liabilities $ 776 $ 966 Taxes payable and other 78 132 Total accrued expenses $ 854 $ 1,098 |
Schedule of Other Assets and Other Liabilities [Table Text Block] | September 30, 2015 December 31, 2014 Obligations under capital leases, current portion 25 24 Deferred rent, current portion 72 58 Total other current liabilities $ 97 $ 82 |
Note 9 - Commitments and Cont25
Note 9 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Real Estate Office Equipment Total 2015 $ 207 $ 5 $ 212 2016 780 20 800 2017 873 20 893 2018 896 20 916 2019 918 9 927 2020 and thereafter 1,261 - 1,261 Total $ 4,935 $ 74 $ 5,009 |
Long-term Purchase Commitment [Table Text Block] | Purchase 2015 $ 395 2016 779 2017 234 Total $ 1,408 |
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cost of Sales [Member] | ||||
Stock-based compensation | $ 1 | $ 4 | ||
Selling and Marketing Expense [Member] | ||||
Stock-based compensation | $ 6 | 5 | $ 3 | |
Technology and Development [Member] | ||||
Stock-based compensation | 3 | 5 | 11 | $ 16 |
General and Administrative Expense [Member] | ||||
Stock-based compensation | 25 | 35 | 64 | 110 |
Stock-based compensation | $ 34 | $ 46 | $ 78 | $ 130 |
Note 3 - Earnings per Share (De
Note 3 - Earnings per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 314,000 | 1,076,000 | 853,000 | 1,095,000 |
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income/(loss) | $ 9 | $ (42) | $ (388) | $ (248) |
Shares used to compute basic net income/(loss) per share (in shares) | 7,449 | 7,396 | 7,421 | 7,381 |
Dilutive potential common shares: | ||||
Stock options (in shares) | 112,000 | |||
Shares used to compute diluted net income/(loss) per share (in shares) | 7,561 | 7,396 | 7,421 | 7,381 |
Basic and diluted net income/(loss) per share (in dollars per share) | $ 0 | $ (0.01) | $ (0.05) | $ (0.03) |
Note 4 - Investments - Debt Sec
Note 4 - Investments - Debt Securities Available-for-sale at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
US Government Agencies Debt Securities [Member] | Short-term Investments [Member] | |||
Amortized Cost | $ 1,228 | ||
Fair Value | 1,228 | ||
Long-Term Investments | |||
Amortized Cost | 1,228 | ||
Fair Value | 1,228 | ||
US Government Agencies Debt Securities [Member] | |||
Amortized Cost | $ 158 | ||
Fair Value | 158 | ||
Long-Term Investments | |||
Amortized Cost | 158 | ||
Fair Value | 158 | ||
Certificate of Deposit [Member] | Short-term Investments [Member] | |||
Amortized Cost | [1] | 4,911 | |
Fair Value | [1] | 4,912 | |
Gross Unrealized Gains | [1] | 1 | |
Long-Term Investments | |||
Amortized Cost | [1] | 4,911 | |
Fair Value | [1] | 4,912 | |
Gross Unrealized Gains | [1] | 1 | |
Certificate of Deposit [Member] | Long-term Investments [Member] | |||
Amortized Cost | [1] | 249 | |
Fair Value | [1] | 249 | |
Long-Term Investments | |||
Amortized Cost | [1] | 249 | |
Fair Value | [1] | 249 | |
Certificate of Deposit [Member] | |||
Amortized Cost | [1] | 6,279 | |
Fair Value | [1] | 6,278 | |
Long-Term Investments | |||
Amortized Cost | [1] | 6,279 | |
Fair Value | [1] | 6,278 | |
Gross Unrealized Losses | [1] | (1) | |
Short-term Investments [Member] | |||
Amortized Cost | 6,139 | ||
Fair Value | 6,140 | ||
Gross Unrealized Gains | 1 | ||
Long-Term Investments | |||
Amortized Cost | 6,139 | ||
Fair Value | 6,140 | ||
Gross Unrealized Gains | 1 | ||
Long-term Investments [Member] | |||
Amortized Cost | 249 | ||
Fair Value | 249 | ||
Long-Term Investments | |||
Amortized Cost | 249 | ||
Fair Value | 249 | ||
Amortized Cost | 6,388 | 6,437 | |
Fair Value | 6,389 | 6,436 | |
Gross Unrealized Gains | 1 | ||
Amortized Cost | 6,388 | 6,437 | |
Fair Value | 6,389 | 6,436 | |
Gross Unrealized Gains | $ 1 | ||
Gross Unrealized Losses | $ (1) | ||
[1] | The Company evaluated certificates of deposits held as of September 30, 2015 and December 31, 2014 and concluded that they meet the definition of securities as available for sale. |
Note 4 - Investments - Investme
Note 4 - Investments - Investments Classified as Available-for-sale Stated at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | ||
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | $ 1,228 | $ 158 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | ||
US Government Agencies Debt Securities [Member] | ||
Available for sale securities | $ 1,228 | $ 158 |
Certificate of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | ||
Certificate of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | $ 5,161 | $ 6,278 |
Certificate of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | ||
Certificate of Deposit [Member] | ||
Available for sale securities | $ 5,161 | $ 6,278 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | $ 6,389 | $ 6,436 |
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | ||
Available for sale securities | $ 6,389 | $ 6,436 |
Note 5 - Prepaid Expenses and31
Note 5 - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Prepaid insurance | $ 153 | $ 110 |
Prepaid software licences and maintenance | 314 | 440 |
Prepaid expenses - other | 203 | 123 |
Interest receivable | 13 | 4 |
Other receivables | 22 | 5 |
Total prepaid expenses and other current assets | $ 705 | $ 682 |
Note 6 - Property and Equipme32
Note 6 - Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Depreciation | $ 156,000 | $ 176,000 | $ 473,000 | $ 538,000 |
Note 6 - Property and Equipme33
Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Computer equipment | $ 3,869 | $ 3,676 |
Software | 1,855 | 1,855 |
Furniture and fixtures | 112 | 109 |
Leasehold improvements | 883 | 883 |
Total cost basis | 6,719 | 6,523 |
Less accumulated depreciation | (5,577) | (5,165) |
Net book value | $ 1,142 | $ 1,358 |
Note 7 - Internal Use Softwar34
Note 7 - Internal Use Software (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Minimum [Member] | ||||
Capitalized Internal Use Software Usefu Life | 3 years | |||
Maximum [Member] | ||||
Capitalized Internal Use Software Usefu Life | 5 years | |||
Asset Impairment Charges | $ 0 | $ 0 | ||
Amortization of Intangible Assets | $ 388,000 | $ 609,000 | $ 1,300,000 | $ 1,900,000 |
Note 7 - Internal Use Softwar35
Note 7 - Internal Use Software - Roll-forward of Capitalized Internal Use Software (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Capitalized internal use software | $ 17,107 | |
Capitalized internal use software | 1,390 | |
Capitalized internal use software | 18,497 | |
Accumulated amortization | (13,340) | $ (12,048) |
Accumulated amortization | (1,292) | |
Internal use software, net | 5,059 | |
Internal use software, net | 98 | |
Internal use software, net | $ 5,157 |
Note 8 - Accrued Expenses and36
Note 8 - Accrued Expenses and Other Current Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payroll and related liabilities | $ 776 | $ 966 |
Taxes payable and other | 78 | 132 |
Total accrued expenses | $ 854 | $ 1,098 |
Note 8 - Accrued Expenses and37
Note 8 - Accrued Expenses and Other Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Obligations under capital leases, current portion | $ 25 | $ 24 |
Deferred rent, current portion | 72 | 58 |
Total other current liabilities | $ 97 | $ 82 |
Note 9 - Commitments and Cont38
Note 9 - Commitments and Contingencies - Remaining Future Minimum Operating Lease Payments (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Real Estate Operating Leases [Member] | |
2,015 | $ 207 |
2,016 | 780 |
2,017 | 873 |
2,018 | 896 |
2,019 | 918 |
2020 and thereafter | 1,261 |
Total | 4,935 |
Office Equipment Operating Lease [Member] | |
2,015 | 5 |
2,016 | 20 |
2,017 | 20 |
2,018 | 20 |
2,019 | $ 9 |
2020 and thereafter | |
Total | $ 74 |
2,015 | 212 |
2,016 | 800 |
2,017 | 893 |
2,018 | 916 |
2,019 | 927 |
2020 and thereafter | 1,261 |
Total | $ 5,009 |
Note 9 - Commitments and Cont39
Note 9 - Commitments and Contingencies - Non-cancellable Purchase Obligations for Software Development and License Agreements (Details) $ in Thousands | Sep. 30, 2015USD ($) |
2,015 | $ 395 |
2,016 | 779 |
2,017 | 234 |
Total | $ 1,408 |
Note 10 - Provision for Incom40
Note 10 - Provision for Income Taxes (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Operating Loss Carryforwards | $ 76 | $ 76 |
Note 11 - Security Deposits (De
Note 11 - Security Deposits (Details Textual) - USD ($) | Sep. 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 |