Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
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) | 7,125,484 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,450,000 | $ 1,483,000 |
Short-term investments, available-for-sale | 5,552,000 | 5,275,000 |
Accounts receivable, net of allowance for doubtful accounts of $45 and $32 | 1,797,000 | 1,298,000 |
Prepaid expenses and other current assets | 925,000 | 1,075,000 |
Total current assets | 10,724,000 | 9,131,000 |
LONG TERM ASSETS: | ||
Property and equipment, net of accumulated depreciation | 963,000 | 1,036,000 |
Internal use software, net of accumulated amortization | 5,177,000 | 5,091,000 |
Other long-term assets | 248,000 | 260,000 |
Total long term assets | 6,388,000 | 6,387,000 |
TOTAL ASSETS | 17,112,000 | 15,518,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 791,000 | 499,000 |
Accrued expenses | 753,000 | 937,000 |
Unearned revenue, current portion | 10,161,000 | 8,821,000 |
Other current liabilities | 116,000 | 103,000 |
Total current liabilities | 11,821,000 | 10,360,000 |
LONG TERM LIABILITIES: | ||
Unearned revenue, net of current portion | 315,000 | 283,000 |
Deferred rent, net of current portion | 611,000 | 575,000 |
Other long-term liabilities | 37,000 | 43,000 |
Total long term liabilities | 963,000 | 901,000 |
TOTAL LIABILITIES | 12,784,000 | 11,261,000 |
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; 8,717,788 and 8,717,788 shares issued; and 7,125,484 and 7,125,484 shares outstanding | 1,000 | 1,000 |
Treasury stock, at cost: 1,592,304 and 1,592,304 shares | (5,446,000) | (5,446,000) |
Additional paid in capital | 354,260,000 | 354,212,000 |
Accumulated other comprehensive gain/(loss) | 1,000 | (3,000) |
Accumulated deficit | (344,488,000) | (344,507,000) |
Total stockholders’ equity | 4,328,000 | 4,257,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 17,112,000 | $ 15,518,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 45 | $ 32 |
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) | 8,717,788 | 8,717,788 |
Common stock, shares outstanding (in shares) | 7,125,484 | 7,125,484 |
Treasury stock, Shares (in shares) | 1,592,304 | 1,592,304 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Subscription | $ 5,594 | $ 5,263 |
Content license | 404 | 462 |
Management information reports | 16 | 48 |
Other | 48 | 72 |
Total revenue | 6,062 | 5,845 |
Cost of revenue (exclusive of depreciation and amortization included below) | 764 | 793 |
Gross margin | 5,298 | 5,052 |
Operating expenses: | ||
Sales and marketing | 2,891 | 2,806 |
Technology and development | 1,479 | 1,316 |
General and administrative | 916 | 1,409 |
Total operating expenses | 5,286 | 5,531 |
Income/(loss) from operations | 12 | (479) |
Interest and other income, net | 7 | 2 |
Net income/(loss) | 19 | $ (477) |
Unrealized gain on available-for-sale securities | 3 | |
Comprehensive income/(loss) | $ 22 | $ (477) |
Basic net income/(loss) per common share (in dollars per share) | $ 0 | $ (0.06) |
Diluted net income/(loss) per common share (in dollars per share) | $ 0 | $ (0.06) |
Basic weighted average shares outstanding (in shares) | 7,125 | 7,401 |
Diluted weighted average shares outstanding (in shares) | 7,193 | 7,401 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 19,000 | $ (477,000) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 500,000 | 649,000 |
Stock-based compensation | $ 48,000 | 22,000 |
Loss on sale of property and equipment | 2,000 | |
Change in operating assets and liabilities: | ||
Accounts receivable | $ (499,000) | 192,000 |
Prepaid expenses and other assets | 162,000 | (633,000) |
Accounts payable | 171,000 | 78,000 |
Accrued expenses | (184,000) | (172,000) |
Unearned revenue | 1,373,000 | 1,035,000 |
Deferred rent | 49,000 | 53,000 |
Net cash provided by operating activities | 1,639,000 | 749,000 |
Additions to property and equipment | (57,000) | (68,000) |
Additions to internal use software | (341,000) | (407,000) |
Purchases of investments | (1,878,000) | (2,712,000) |
Maturities of investments | $ 1,604,000 | 2,833,000 |
Proceeds from sale of equipment | 8,000 | |
Net cash used in investing activities | $ (672,000) | (346,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 1,000 | |
Net cash provided by financing activities | 1,000 | |
Net increase in cash and cash equivalents | $ 967,000 | 404,000 |
Cash and cash equivalents, beginning of period | 1,483,000 | 1,577,000 |
Cash and cash equivalents, end of period | 2,450,000 | $ 1,981,000 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment additions in accounts payable | (18,000) | |
Internal use software additions in accounts payable | $ (161,000) | $ (227,000) |
Note 1 - Accounting Policies
Note 1 - Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Accounting Policies Basis of Presentation The unaudited interim Condensed Consolidated Financial Statements and related notes thereto have been prepared pursuant to generally accepted accounting principles in the United States of America, (“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 unaudited interim 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, 2015 (“2015 Annual Report”). 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. Interim results are not necessarily indicative of results for a full year. Reclassifications Certain amounts in sales and marketing operating expense for 2015 have been reclassified as technology and development operating expenses to conform to current period presentation. 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 authoritative guidance for revenue from contracts with customers, which provides a single comprehensive revenue recognition model to apply in determining how and when to recognize revenue. The core principle of the guidance is that an entity should recognize revenue to 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. When applying the new revenue model to contracts with customers the guidance requires five steps to be applied, which include: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. This guidance will be effective for Onvia in the first quarter of 2018 and early adoption is permitted beginning in the first quarter of 2017. The Company is currently assessing the impact the guidance will have upon adoption. In November 2015, the FASB issued authoritative guidance amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the balance sheet. The objective of the guidance is to simplify the presentation as current GAAP requires the Company to separate the deferred tax assets into current and noncurrent amounts. The FASB concluded that the current presentation does not benefit financial statement users because the classification does not align with the time period in which the deferred tax amounts are expected to be recovered. The guidance will be effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The guidance may be adopted either prospectively or retrospectively. The Company is currently assessing the impact the guidance will have upon adoption but does not expect it to have a material impact on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance which requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The guidance will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance shall be applied at the beginning of the earliest period presented using the modified retrospective approach, which includes a number of practical expedients that an entity may elect to apply. Early application of the guidance is permitted. The Company is evaluating the adoption of this guidance and the potential effects on its consolidated financial statements. In March 2016, the FASB issued authoritative guidance on accounting for share-based payment transactions. The guidance makes several modifications related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies and clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently assessing how the adoption of this standard will impact the Company’s results of operations, financial condition or cash flows.] |
Note 2 - Stock-based Compensati
Note 2 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 2. Stock-Based Compensation The impact on Onvia’s results of operations of recording stock-based compensation was as follows for the three months ended March 31, 2016 and 2015, respectively (in thousands): Three Months Ended 2016 2015 Sales and marketing $ 12 $ 3 Technology and development 13 (7 ) General and administrative 23 26 Total stock-based compensation $ 48 $ 22 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. Earnings/(Loss) per Share Basic net income/(loss) per share is calculated by dividing the net income/(loss) for the period by the weighted average shares of common stock outstanding for the period. Diluted net 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 months ended March 31, 2016 and 2015, (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Net income/(loss) $ 19 $ (477 ) Shares used to compute basic net income/(loss) per share 7,125 7,401 Dilutive potential common shares: Stock options 68 - Shares used to compute diluted net income/(loss) per share 7,193 7,401 Basic net income/(loss) per share $ 0.00 $ (0.06 ) Diluted net income/(loss) per share $ 0.00 $ (0.06 ) For the three months ended March 31, 2016, the weighted average effect of approximately 467,541 options to purchase shares of common stock were not included in the calculation because the effect would have been anti-dilutive. For the three months ended March 31, 2015, the weighted average effect of approximately 879,000 options to purchase shares of common stock were not included in the calculation because the effect would have been anti-dilutive. |
Note 4 - Investments
Note 4 - Investments | 3 Months Ended |
Mar. 31, 2016 | |
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 tables (in thousands): March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 1,536 $ - $ - $ 1,536 Certificates of Deposit (1) 3,764 - - 3,764 Other securities 252 - - 252 Total Investments $ 5,552 $ - $ - $ 5,552 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 902 $ - $ - $ 902 Certificates of Deposit (1) 4,375 $ - $ (2 ) 4,373 Total Investments $ 5,277 $ - $ (2 ) $ 5,275 (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 tables summarize, by major security type, investments classified as available-for-sale at March 31, 2016 and at December 31, 2015, stated at fair value (in thousands): Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 1,536 $ - $ 1,536 Certificates of Deposit - 3,764 - 3,764 Other securities - 252 - 252 Total Investments $ - $ 5,552 $ - $ 5,552 Fair Value Measurements as of December 31, 2015 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 902 $ - $ 902 Certificates of Deposit - 4,373 - 4,373 Total Investments $ - $ 5,275 $ - $ 5,275 There were no transfers in or out of Level 2 investments during the first quarter of 2016 and fourth quarter of 2015, and there was no activity in Level 3 fair value measurements during those periods. |
Note 5 - Prepaid Expenses and O
Note 5 - Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2016 | |
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): March 31, December 31, Prepaid software maintenance agreements $ 550 $ 690 Other prepaid expenses 159 175 Prepaid insurance 116 108 Other receivables 88 94 Interest receivable 12 8 $ 925 $ 1,075 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. Property and Equipment Property and equipment to be held and used consist of the following (in thousands): March 31, December 31, Computer equipment $ 3,995 $ 3,932 Software 1,856 1,856 Furniture and fixtures 120 117 Leasehold improvements 815 815 Total cost basis 6,786 6,720 Less accumulated depreciation and amortization (5,823 ) (5,684 ) Net book value $ 963 $ 1,036 Depreciation expense was $142,000 and $164,000 for the three months ended March 31, 2016 and 2015, respectively. Depreciation expense is included in operating expenses in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss). |
Note 7 - Internal Use Software
Note 7 - Internal Use Software | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and March 31, 2015. The following table presents a roll-forward of capitalized internal use software for the three months ended March 31, 2016 (in thousands): Balance at Additions Balance at Capitalized internal use software $ 18,812 $ 444 $ 19,256 Accumulated amortization (13,721 ) (358 ) (14,079 ) $ 5,091 $ 86 $ 5,177 Amortization expense was $358,000 and $485,000 for the three months ended March 31, 2016 and 2015, respectively. Amortization expense is included in operating expenses in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss). |
Note 8 - Accrued Expenses and O
Note 8 - Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
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): March 31, December 31, Payroll and related liabilities $ 715 $ 855 Taxes payable and other 38 82 $ 753 $ 937 Other current liabilities consist of the following (in thousands): March 31, December 31, Deferred rent, current portion 91 78 Obligations under capital leases, current portion $ 25 $ 25 $ 116 $ 103 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 in April 2021. Onvia also has a non-cancellable operating lease for office equipment, which expires in June 2019. The office lease contains rent escalation clauses and rent holidays. Rent expense is recorded on a straight-line basis over the lease term with the difference between the rent paid and the straight-line rent expense recorded as a deferred rent liability. Total rent expense associated with real estate operating leases was $193,000 and $192,000 for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, 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 2016 $ 638 $ 14 $ 652 2017 873 20 893 2018 896 20 916 2019 918 10 928 2020 940 - 940 2021 and thereafter 321 - 321 $ 4,586 $ 64 $ 4,650 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 2016 to 2018. Future required payments under these non-cancellable agreements are as follows for the years ending December 31 (in thousands): Purchase 2016 $ 654 2017 336 2018 273 $ 1,263 CEO Transition Agreement On March 28, 2016, the Company and its current President and Chief Executive Officer (“Riner”) entered into a Transition and Release Agreement (the “Transition Agreement”). Under the terms of the Transition Agreement, Riner will transition into planned retirement and a 12-month consulting relationship with the Company effective no later than June 30, 2017, or such earlier date that Onvia selects and announces a new Chief Executive Officer (“CEO”) (the “Transition Date”). Riner will continue to serve as the Company’s President and CEO on a full-time basis through the Transition Date. In exchange for Riner’s entry into the Transition Agreement, his covenants and promises described therein, and his entry into an additional Release of Claims Agreement on his last of date of employment with the Company, the Company has agreed to pay Riner a lump sum cash payment of $362,000 on July 8, 2017. 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 - Income Taxes
Note 10 - Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. Income Taxes As of March 31, 2016 and December 31, 2015, 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 March 31, 2016 and December 31, 2015, Onvia’s Federal NOL carryforwards for income tax purposes were approximately $76.8 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 2021. 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 in the amount of $150,000. The letter of credit will be returned at lease termination in April 2021, or earlier, subject to certain office lease conditions. As of March 31, 2016, the stand by letter of credit is secured by a security deposit of $150,000 and included within other long-term assets on the unaudited Condensed Consolidated Balance Sheets. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The unaudited interim Condensed Consolidated Financial Statements and related notes thereto have been prepared pursuant to generally accepted accounting principles in the United States of America, (“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 unaudited interim 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, 2015 (“2015 Annual Report”). 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. Interim results are not necessarily indicative of results for a full year. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts in sales and marketing operating expense for 2015 have been reclassified as technology and development operating expenses to conform to current period presentation. |
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 authoritative guidance for revenue from contracts with customers, which provides a single comprehensive revenue recognition model to apply in determining how and when to recognize revenue. The core principle of the guidance is that an entity should recognize revenue to 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. When applying the new revenue model to contracts with customers the guidance requires five steps to be applied, which include: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. This guidance will be effective for Onvia in the first quarter of 2018 and early adoption is permitted beginning in the first quarter of 2017. The Company is currently assessing the impact the guidance will have upon adoption. In November 2015, the FASB issued authoritative guidance amending the accounting for income taxes and requiring all deferred tax assets and liabilities to be classified as non-current on the balance sheet. The objective of the guidance is to simplify the presentation as current GAAP requires the Company to separate the deferred tax assets into current and noncurrent amounts. The FASB concluded that the current presentation does not benefit financial statement users because the classification does not align with the time period in which the deferred tax amounts are expected to be recovered. The guidance will be effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The guidance may be adopted either prospectively or retrospectively. The Company is currently assessing the impact the guidance will have upon adoption but does not expect it to have a material impact on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance which requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The guidance will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance shall be applied at the beginning of the earliest period presented using the modified retrospective approach, which includes a number of practical expedients that an entity may elect to apply. Early application of the guidance is permitted. The Company is evaluating the adoption of this guidance and the potential effects on its consolidated financial statements. In March 2016, the FASB issued authoritative guidance on accounting for share-based payment transactions. The guidance makes several modifications related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies and clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently assessing how the adoption of this standard will impact the Company’s results of operations, financial condition or cash flows.] |
Note 2 - Stock-based Compensa18
Note 2 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended 2016 2015 Sales and marketing $ 12 $ 3 Technology and development 13 (7 ) General and administrative 23 26 Total stock-based compensation $ 48 $ 22 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended March 31, 2016 2015 Net income/(loss) $ 19 $ (477 ) Shares used to compute basic net income/(loss) per share 7,125 7,401 Dilutive potential common shares: Stock options 68 - Shares used to compute diluted net income/(loss) per share 7,193 7,401 Basic net income/(loss) per share $ 0.00 $ (0.06 ) Diluted net income/(loss) per share $ 0.00 $ (0.06 ) |
Note 4 - Investments (Tables)
Note 4 - Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 1,536 $ - $ - $ 1,536 Certificates of Deposit (1) 3,764 - - 3,764 Other securities 252 - - 252 Total Investments $ 5,552 $ - $ - $ 5,552 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government backed securities $ 902 $ - $ - $ 902 Certificates of Deposit (1) 4,375 $ - $ (2 ) 4,373 Total Investments $ 5,277 $ - $ (2 ) $ 5,275 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 1,536 $ - $ 1,536 Certificates of Deposit - 3,764 - 3,764 Other securities - 252 - 252 Total Investments $ - $ 5,552 $ - $ 5,552 Fair Value Measurements as of December 31, 2015 Level 1 Level 2 Level 3 Total U.S. Government backed securities $ - $ 902 $ - $ 902 Certificates of Deposit - 4,373 - 4,373 Total Investments $ - $ 5,275 $ - $ 5,275 |
Note 5 - Prepaid Expenses and21
Note 5 - Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | March 31, December 31, Prepaid software maintenance agreements $ 550 $ 690 Other prepaid expenses 159 175 Prepaid insurance 116 108 Other receivables 88 94 Interest receivable 12 8 $ 925 $ 1,075 |
Note 6 - Property and Equipme22
Note 6 - Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | March 31, December 31, Computer equipment $ 3,995 $ 3,932 Software 1,856 1,856 Furniture and fixtures 120 117 Leasehold improvements 815 815 Total cost basis 6,786 6,720 Less accumulated depreciation and amortization (5,823 ) (5,684 ) Net book value $ 963 $ 1,036 |
Note 7 - Internal Use Software
Note 7 - Internal Use Software (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Capitalized Internal Use Software Roll Forward [Table Text Block] | Balance at Additions Balance at Capitalized internal use software $ 18,812 $ 444 $ 19,256 Accumulated amortization (13,721 ) (358 ) (14,079 ) $ 5,091 $ 86 $ 5,177 |
Note 8 - Accrued Expenses and24
Note 8 - Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | March 31, December 31, Payroll and related liabilities $ 715 $ 855 Taxes payable and other 38 82 $ 753 $ 937 |
Schedule of Other Assets and Other Liabilities [Table Text Block] | March 31, December 31, Deferred rent, current portion 91 78 Obligations under capital leases, current portion $ 25 $ 25 $ 116 $ 103 |
Note 9 - Commitments and Cont25
Note 9 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Real Estate Office Equipment Total 2016 $ 638 $ 14 $ 652 2017 873 20 893 2018 896 20 916 2019 918 10 928 2020 940 - 940 2021 and thereafter 321 - 321 $ 4,586 $ 64 $ 4,650 |
Long-term Purchase Commitment [Table Text Block] | Purchase 2016 $ 654 2017 336 2018 273 $ 1,263 |
Note 2 - Impact on Results of O
Note 2 - Impact on Results of Operations of Recording Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Selling and Marketing Expense [Member] | ||
Stock-based compensation | $ 12 | $ 3 |
Technology and Development [Member] | ||
Stock-based compensation | 13 | (7) |
General and Administrative Expense [Member] | ||
Stock-based compensation | 23 | 26 |
Stock-based compensation | $ 48 | $ 22 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 467,541 | 879,000 |
Note 3 - Basic and Diluted Net
Note 3 - Basic and Diluted Net Loss Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income/(loss) | $ 19 | $ (477) |
Shares used to compute basic net income/(loss) per share (in shares) | 7,125 | 7,401 |
Stock options (in shares) | 68 | |
Shares used to compute diluted net income/(loss) per share (in shares) | 7,193 | 7,401 |
Basic net income/(loss) per share (in dollars per share) | $ 0 | $ (0.06) |
Diluted net income/(loss) per share (in dollars per share) | $ 0 | $ (0.06) |
Note 4 - Debt Securities Availa
Note 4 - Debt Securities Available-for-sale at Fair Value (Details) - Short-term Investments [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
US Government Agencies Debt Securities [Member] | |||
Amortized Cost | $ 1,536 | $ 902 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 1,536 | $ 902 | |
Certificate of Deposit [Member] | |||
Amortized Cost | [1] | $ 3,764 | $ 4,375 |
Gross Unrealized Gains | [1] | ||
Gross Unrealized Losses | [1] | $ (2) | |
Fair Value | [1] | $ 3,764 | 4,373 |
Other Debt Obligations [Member] | |||
Amortized Cost | $ 252 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 252 | ||
Amortized Cost | $ 5,552 | $ 5,277 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (2) | ||
Fair Value | $ 5,552 | $ 5,275 | |
[1] | We evaluated certificates of deposits held as of March 31, 2016 and December 31, 2015 and concluded that they meet the definition of securities as available for sale. |
Note 4 - Investments Classified
Note 4 - Investments Classified as Available-for-sale Stated at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale investments | ||
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale investments | $ 1,536 | $ 902 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale investments | ||
US Government Agencies Debt Securities [Member] | ||
Available-for-sale investments | $ 1,536 | $ 902 |
Certificate of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale investments | ||
Certificate of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale investments | $ 3,764 | $ 4,373 |
Certificate of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale investments | ||
Certificate of Deposit [Member] | ||
Available-for-sale investments | $ 3,764 | $ 4,373 |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale investments | ||
Other Debt Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale investments | $ 252 | |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale investments | ||
Other Debt Obligations [Member] | ||
Available-for-sale investments | $ 252 | |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale investments | ||
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale investments | $ 5,552 | $ 5,275 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale investments | ||
Available-for-sale investments | $ 5,552 | $ 5,275 |
Note 5 - Summary of Prepaid Exp
Note 5 - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid software maintenance agreements | $ 550 | $ 690 |
Other prepaid expenses | 159 | 175 |
Prepaid insurance | 116 | 108 |
Other receivables | 88 | 94 |
Interest receivable | 12 | 8 |
$ 925 | $ 1,075 |
Note 6 - Property and Equipme32
Note 6 - Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Expense [Member] | ||
Depreciation | $ 142,000 | $ 164,000 |
Note 6 - Summary of Property an
Note 6 - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Computer equipment | $ 3,995 | $ 3,932 |
Software | 1,856 | 1,856 |
Furniture and fixtures | 120 | 117 |
Leasehold improvements | 815 | 815 |
Total cost basis | 6,786 | 6,720 |
Less accumulated depreciation and amortization | (5,823) | (5,684) |
Net book value | $ 963 | $ 1,036 |
Note 7 - Internal Use Softwar34
Note 7 - Internal Use Software (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Minimum [Member] | ||
Capitalized Internal Use Software Usefu Life | 3 years | |
Maximum [Member] | ||
Capitalized Internal Use Software Usefu Life | 5 years | |
Computer Software, Intangible Asset [Member] | Operating Expense [Member] | ||
Amortization of Intangible Assets | $ 358,000 | $ 485,000 |
Note 7 - Roll-forward of Capita
Note 7 - Roll-forward of Capitalized Internal Use Software (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Beginning balance | $ 18,812 |
Additions | 444 |
Ending balance | 19,256 |
Beginning balance | (13,721) |
Additions | (358) |
Ending balance | (14,079) |
Beginning balance | 5,091 |
Additions | 86 |
Ending balance | $ 5,177 |
Note 8 - Accrued Expenses (Deta
Note 8 - Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Payroll and related liabilities | $ 715 | $ 855 |
Taxes payable and other | 38 | 82 |
$ 753 | $ 937 |
Note 8 - Accrued Expenses and37
Note 8 - Accrued Expenses and Other Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred rent, current portion | $ 91 | $ 78 |
Obligations under capital leases, current portion | 25 | 25 |
$ 116 | $ 103 |
Note 9 - Commitments and Cont38
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) | Mar. 28, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
President and Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Consulting Term | 1 year | ||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 362,000 | ||
Operating Leases, Rent Expense | $ 193,000 | $ 192,000 |
Note 9 - Remaining Future Minim
Note 9 - Remaining Future Minimum Operating Lease Payments (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Real Estate Operating Leases [Member] | |
2,016 | $ 638 |
2,017 | 873 |
2,018 | 896 |
2,019 | 918 |
2,020 | 940 |
2021 and thereafter | 321 |
4,586 | |
Office Equipment Operating Lease [Member] | |
2,016 | 14 |
2,017 | 20 |
2,018 | 20 |
2,019 | $ 10 |
2,020 | |
2021 and thereafter | |
$ 64 | |
2,016 | 652 |
2,017 | 893 |
2,018 | 916 |
2,019 | 928 |
2,020 | 940 |
2021 and thereafter | 321 |
$ 4,650 |
Note 9 - Non-cancellable Purcha
Note 9 - Non-cancellable Purchase Obligations for Software Development and License Agreements (Details) $ in Thousands | Mar. 31, 2016USD ($) |
2,016 | $ 654 |
2,017 | 336 |
2,018 | 273 |
$ 1,263 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards | $ 76.8 | $ 76.8 |
Note 11 - Security Deposits (De
Note 11 - Security Deposits (Details Textual) - USD ($) | Mar. 31, 2016 | Jan. 31, 2015 |
Secured by Standby Letter of Credit [Member] | ||
Letters of Credit Outstanding, Amount | $ 150,000 | |
Other Noncurrent Assets [Member] | ||
Security Deposit | $ 150,000 |