Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 15, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'GLOBALSCAPE INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 20,048,817 | ' |
Entity Public Float | ' | ' | $21,955,050 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001112920 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $9,455 | $8,079 |
Accounts receivable (net of allowance for doubtful accounts of $154 and $171 in 2013 and 2012, respectively) | 3,765 | 3,350 |
Federal income tax receivable | 113 | 0 |
Current deferred tax asset | 184 | 177 |
Prepaid expenses | 349 | 426 |
Total current assets | 13,866 | 12,032 |
Fixed assets, net | 744 | 900 |
Long term investments | 3,122 | 3,060 |
Intangible assets, net | 1,028 | 4,308 |
Goodwill | 12,712 | 12,712 |
Deferred tax asset | 1,476 | 535 |
Other assets | 144 | 41 |
Total assets | 33,092 | 33,588 |
Current liabilities: | ' | ' |
Accounts payable | 655 | 432 |
Accrued expenses | 898 | 1,353 |
Deferred revenue | 9,092 | 8,293 |
Income taxes payable | 0 | 46 |
TappIn earn out, current portion | 0 | 500 |
Long term debt, current portion | 1,397 | 1,335 |
Total current liabilities | 12,042 | 11,959 |
Deferred revenue, non-current portion | 1,708 | 1,480 |
TappIn earn out, non-current portion | 0 | 3,694 |
Long term debt, non-current portion | 2,989 | 4,389 |
Other long term liabilities | 60 | 62 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, par value $0.001 per share, 10,000,000 authorized, no shares issued or outstanding | 0 | 0 |
Common stock, par value $0.001 per share, 40,000,000 authorized, 19,592,117 and 18,846,547 shares issued at December 31, 2013 and December 31, 2012, respectively | 20 | 19 |
Additional paid-in capital | 15,834 | 14,435 |
Treasury stock, 403,581 shares, at cost, at December 31, 2013 and December 31, 2012 | -1,452 | -1,452 |
Retained earnings | 1,891 | -998 |
Total stockholders’ equity | 16,293 | 12,004 |
Total liabilities and stockholders’ equity | $33,092 | $33,588 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts (in Dollars) | $154 | $171 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, authorized | 40,000,000 | 40,000,000 |
Common stock, issued | 19,592,117 | 18,846,547 |
Treasury stock, shares | 403,581 | 403,581 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating Revenues: | ' | ' | ' | |
Software licenses | $8,086 | $9,447 | $9,149 | |
Maintenance and support | 13,650 | 11,298 | 9,424 | |
Professional services | 1,479 | 1,547 | 1,772 | |
Other | 1,124 | 1,080 | 549 | |
Total revenues | 24,339 | 23,372 | 20,894 | |
Operating Expenses: | ' | ' | ' | |
Cost of revenues | 1,011 | 1,296 | 1,723 | |
Selling, general and administrative | 14,881 | 16,761 | 14,466 | |
Research and development | 3,766 | 3,531 | 3,124 | |
Affiliated entity asset impairment | 0 | 3,264 | 0 | |
TappIn intangible asset impairment and earnout liability elimination | -128 | -1,303 | 0 | |
Depreciation and amortization | 908 | 1,217 | 790 | |
Total operating expenses | 20,438 | 24,766 | 20,103 | |
Income (loss) from operations | 3,901 | -1,394 | 791 | |
Other income (expense): | ' | ' | ' | |
Interest expense | -227 | -289 | -25 | |
Interest income | 62 | 100 | 38 | |
Total other income (expense) | -165 | -189 | 13 | |
Income (loss) before income taxes | 3,736 | -1,583 | 804 | |
Provision for income taxes | -104 | 217 | 169 | |
Net income (loss) | 3,840 | -1,800 | [1] | 635 |
Comprehensive income (loss) | $3,840 | ($1,800) | $635 | |
Net income (loss) per common share - basic (in Dollars per share) | $0.21 | ($0.10) | [1] | $0.04 |
Net income (loss) per common share - diluted (in Dollars per share) | $0.20 | ($0.10) | [1] | $0.03 |
Weighted average shares outstanding: | ' | ' | ' | |
Basic (in Shares) | 18,626 | 18,358 | [1] | 18,081 |
Diluted (in Shares) | 19,082 | 18,358 | [1] | 18,747 |
[1] | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total | |
In Thousands, except Share data | ||||||
Balances at Dec. 31, 2010 | $18 | $12,137 | ($1,452) | $1,456 | $12,159 | |
Balances (in Shares) at Dec. 31, 2010 | 18,346,982 | ' | ' | ' | ' | |
Shares issued upon exercise of stock options | 1 | 351 | ' | ' | 352 | |
Shares issued upon exercise of stock options (in Shares) | 291,545 | ' | ' | ' | 291,545 | |
Tax (deficiency) from stock-based compensation | ' | -13 | ' | ' | -13 | |
Stock-based compensation expense | ' | 1,003 | ' | ' | 1,003 | |
Issuance of vested restricted stock (in Shares) | 53,420 | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | 635 | 635 | |
Balances at Dec. 31, 2011 | 19 | 13,478 | -1,452 | 2,091 | 14,136 | |
Balances (in Shares) at Dec. 31, 2011 | 18,691,947 | ' | ' | ' | ' | |
Shares issued upon exercise of stock options | ' | 70 | ' | ' | 70 | |
Shares issued upon exercise of stock options (in Shares) | 74,600 | ' | ' | ' | 74,600 | |
Tax (deficiency) from stock-based compensation | ' | -28 | ' | ' | -28 | |
Stock-based compensation expense | ' | 915 | ' | ' | 915 | |
Issuance of vested restricted stock (in Shares) | 80,000 | ' | ' | ' | ' | |
Common stock cash dividends | ' | ' | ' | -1,289 | -1,289 | |
Net income (loss) | ' | ' | ' | -1,800 | -1,800 | [1] |
Balances at Dec. 31, 2012 | 19 | 14,435 | -1,452 | -998 | 12,004 | |
Balances (in Shares) at Dec. 31, 2012 | 18,846,547 | ' | ' | ' | ' | |
Shares issued upon exercise of stock options | 1 | 889 | ' | ' | 890 | |
Shares issued upon exercise of stock options (in Shares) | 585,570 | ' | ' | ' | 585,570 | |
Tax (deficiency) from stock-based compensation | ' | -156 | ' | ' | -156 | |
Stock-based compensation expense | ' | 527 | ' | ' | 527 | |
Issuance of vested restricted stock | ' | 139 | ' | ' | 139 | |
Issuance of vested restricted stock (in Shares) | 160,000 | ' | ' | ' | ' | |
Common stock cash dividends | ' | ' | ' | -951 | -951 | |
Net income (loss) | ' | ' | ' | 3,840 | 3,840 | |
Balances at Dec. 31, 2013 | $20 | $15,834 | ($1,452) | $1,891 | $16,293 | |
Balances (in Shares) at Dec. 31, 2013 | 19,592,117 | ' | ' | ' | ' | |
[1] | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating Activities: | ' | ' | ' | |
Net income (loss) | $3,840 | ($1,800) | [1] | $635 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' | |
Bad debt expense (recoveries) | 29 | 68 | -62 | |
Depreciation and amortization | 908 | 1,217 | 790 | |
Stock-based compensation | 666 | 915 | 1,003 | |
Deferred taxes | -948 | -377 | -352 | |
Excess tax deficiency from exercise of share based compensation | 156 | 28 | 13 | |
Affiliated entity asset impairment | 0 | 3,264 | 0 | |
TappIn intangible asset impairment and earnout liability elimination | -128 | -1,303 | 0 | |
Other | 0 | 40 | 0 | |
Changes in operating assets and liabilities: | ' | ' | ' | |
Accounts receivable | -444 | -60 | -78 | |
CoreTrace receivable | 0 | -150 | -463 | |
Prepaid expenses | 77 | -187 | 108 | |
Federal income taxes | -315 | 292 | -52 | |
Other assets | -103 | -11 | 0 | |
Accounts payable | 223 | -159 | 341 | |
Accrued expenses | -455 | -43 | 1 | |
Deferred revenues | 1,027 | 2,141 | 690 | |
Other long-term liabilities | -2 | 9 | 252 | |
Net cash provided by operating activities | 4,531 | 3,844 | 2,826 | |
Investing Activities: | ' | ' | ' | |
Software development costs | -899 | -330 | 0 | |
Purchase of property and equipment | -139 | -213 | -201 | |
Purchase of TappIn, Inc. and earnout payments | -500 | -1,500 | -9,190 | |
Purchase of long-term investments | 0 | -60 | -3,000 | |
Interest on long term investments | -62 | 0 | 0 | |
Net cash provided by (used in) investing activities | -1,600 | -2,103 | -12,391 | |
Financing Activities: | ' | ' | ' | |
Proceeds from exercise of stock options | 890 | 70 | 352 | |
Tax deficiency (benefit) from stock-based compensation | -156 | -28 | -13 | |
Notes payable principle payments | -1,338 | -1,276 | 0 | |
Proceeds from note payable | 0 | 0 | 7,000 | |
Dividends paid | -951 | -1,289 | 0 | |
Net cash provided by (used in) financing activities | -1,555 | -2,523 | 7,339 | |
Net increase (decrease) in cash | 1,376 | -782 | -2,226 | |
Cash at beginning of period | 8,079 | 8,861 | 11,087 | |
Cash at end of period | 9,455 | 8,079 | 8,861 | |
Cash paid during the period for: | ' | ' | ' | |
Interest | 234 | 294 | 0 | |
Income taxes | 1,161 | 271 | 1,225 | |
Noncash - TappIn earn out | $0 | $0 | $6,997 | |
[1] | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. |
1_Nature_of_Business_and_Corpo
1. Nature of Business and Corporate Structure | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
1. Nature of Business and Corporate Structure | |
We provide secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. We operate primarily in the Managed File Transfer, or MFT, industry. Our solution portfolio addresses data and information management, movement, security and accessibility across a broad range of environments encompassing data and information in motion (for example, with traditional MFT solutions delivered as on-premises software or as a cloud service) and at rest (for example, through securely deleting or purging files or securely accessing stored data from mobile tablet or smartphone devices). | |
Our solution portfolio facilitates transmission of critical information such as financial data, medical records, customer files, vendor files, personnel files, transaction activity, and other similar documents between diverse and geographically separated network infrastructures while supporting a range of information protection approaches to meet privacy and other security requirements. In addition to enabling secure, flexible transmission of critical information using servers, desktop and notebook computers, and a wide range of network-enabled mobile devices, our products also provide customers with the ability to monitor and audit file transfer activities. | |
Throughout these notes unless otherwise noted, our references to 2013, 2012 and 2011 refer to the years ended December 31, 2013, 2012 and 2011, respectively. | |
2_Significant_Accounting_Polic
2. Significant Accounting Policies | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Significant Accounting Policies [Text Block] | ' | |||||||||||||
2. Significant Accounting Policies | ||||||||||||||
Basis of Presentation | ||||||||||||||
We follow accounting standards set by the Financial Accounting Standards Board. This board sets generally accepted accounting principles in the United States, or GAAP, that we follow in preparing financial statements that report our financial position, results of operations, and sources and uses of cash. We also follow the reporting regulations of the United States Securities and Exchange Commission, or SEC. | ||||||||||||||
The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements. It is possible the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations. | ||||||||||||||
Principles of Consolidation | ||||||||||||||
The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP. All intercompany accounts and transactions have been eliminated. | ||||||||||||||
Revenue Recognition | ||||||||||||||
We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met: | ||||||||||||||
· Persuasive evidence of an arrangement exists. | ||||||||||||||
· Delivery has occurred or services have been rendered. | ||||||||||||||
· The amount is fixed or determinable. | ||||||||||||||
· Collection is reasonably assured. | ||||||||||||||
For a sale transaction not meeting any one of these four criteria, we defer recognition of revenue related to that transaction until all the criteria are met. | ||||||||||||||
We earn the majority of our software license revenue from software products sold under perpetual software license agreements. At the time our customers purchase these products, they typically also purchase a product maintenance and support, or M&S, agreement. These transactions are multiple element software sales for which we assess the presence of vendor specific objective evidence (“VSOE”) of the fair value of the undelivered elements to determine the portion of these sales to recognize as revenue upon delivery of the software product and the portion of these sales to record as deferred revenue at the time the product is delivered. We amortize the deferred revenue component to revenue in future periods as we deliver the related future services to the customer. For transactions, if any, for which we cannot establish VSOE of fair value of the undelivered elements, we initially record the entire transaction as deferred revenue and amortize that amount to revenue in future periods as we deliver the related future services to the customer. | ||||||||||||||
Our deferred revenue consists primarily of revenue to be earned in the future as we deliver services under M&S agreements. Certain of our customers will accept, and sometimes pay, our invoices for M&S services prior to the commencement of the M&S period. In such cases, we record accounts receivable and deferred revenue in the same amount at the time we submit an invoice to the customer and commence recognition of the deferred revenue as revenue only after the M&S period begins. | ||||||||||||||
For our products delivered under a software-as-a-service transaction on a monthly or other periodic subscription basis, we recognize subscription revenue, including initial setup fees, on a monthly basis over the contractual term of the customer contract as we deliver our products and services. These amounts are in other revenue. Amounts invoiced or paid prior to this revenue recognition are presented as deferred revenue until earned. | ||||||||||||||
We provide professional services to our customers consisting primarily of software installation support, operations support and training. We recognize revenue from these services as they are completed and accepted by our customers. | ||||||||||||||
We collect sales tax on many of our sales. We do not include sales tax collected in our revenue. We record it as a liability payable to taxing authorities. | ||||||||||||||
Concentrations of Credit Risk and Significant Customers | ||||||||||||||
Our cash, cash equivalents and long term investments are on deposit in banks and are collectively insured by the Federal Deposit Insurance Corporation for $750,000. Our balances in excess of that amount are not insured. With the exception of our long-term investment in certificate of deposit pledged as collateral for our notes payable, we may withdraw our cash deposits upon demand. We maintain our cash with multiple financial institutions of reputable credit to minimize our risk of loss. | ||||||||||||||
We generally provide credit to our customers under typical invoice payment terms (for example, net 30) that gives rise to trade accounts receivable from those customers. We do not require collateral from our customers. We perform ongoing evaluations of the credit risk related to offering these payment terms. We provide an allowance for uncollectible accounts based on our historical collections experience and the profile of our accounts receivable. | ||||||||||||||
In 2013, 2012 and 2011, no single customer accounted for more than 10% of revenues. As of December 31, 2013, we had one customer, Lifeboat, which accounted for 14% of our total accounts receivable. In 2012, we had no customer from whom accounts receivable from them individually comprised 10% or more of our total accounts receivables. | ||||||||||||||
Other Concentrations | ||||||||||||||
Sales in Foreign Markets. In 2013, 2012 and 2011, approximately 27%, 26% and 31%, respectively, of our revenues came from sales to customers in foreign countries. We received substantially all of our revenues from foreign countries in U.S. dollars resulting in limited exchange rate risks. Our foreign sales are concentrated mostly in Canada, Australia and Western Europe. | ||||||||||||||
Labor. We use software developers outside the United States to perform a portion of the coding for the development and maintenance of our software products. If we were unable to continue using these developers because of political or economic instability, we may have difficulty finding comparably skilled developers or may have to pay considerably more for the same work, which could have a material adverse impact on our financial position and results of operations. | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Cash and cash equivalents includes all cash and highly liquid investments with original maturities of three months or less. Our cash balance as of December 31, 2013, is insured by the Federal Deposit Insurance Corporation for $750,000. | ||||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment is comprised of furniture and fixtures, software, computer equipment and leasehold improvements which are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Furniture, fixtures and equipment have a useful life of 5 to 7 years, computer equipment and software have a life of 3 years and leasehold improvements are depreciated over the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset. | ||||||||||||||
Expenditures for maintenance and repairs are charged to operations as incurred. | ||||||||||||||
Goodwill | ||||||||||||||
Goodwill is not amortized. On at least an annual basis, we test goodwill for impairment at the reporting unit level. We operate as a single reporting unit. | ||||||||||||||
When testing goodwill, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of our reporting unit is less than its carrying amount, including goodwill. In performing this qualitative assessment, we assess events and circumstances relevant to us including, but not limited to: | ||||||||||||||
• | Macroeconomic conditions. | |||||||||||||
• | Industry and market considerations. | |||||||||||||
• | Cost factors and trends for labor and other expenses of operating our business. | |||||||||||||
• | Our overall financial performance and outlook for the future. | |||||||||||||
• | Trends in the quoted market value and trading of our common stock. | |||||||||||||
In considering these and other factors, we consider the extent to which any adverse events and circumstances identified could affect the comparison of our reporting unit’s fair value with its carrying amount. We place more weight on events and circumstances that most affect our reporting unit’s fair value or the carrying amount of our net assets. We consider positive and mitigating events and circumstances that may affect our determination of whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. We evaluate, on the basis of the weight of the evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. | ||||||||||||||
If, after assessing the totality of these qualitative events and circumstances, we determine it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, we conclude there is no impairment of goodwill and perform no further testing in accordance with GAAP. If we conclude otherwise, we proceed with performing the first step, and if necessary, the second step, of the two-step goodwill impairment test prescribed by GAAP. | ||||||||||||||
As of December 31, 2013, after assessing the totality of the relevant events and circumstances, we determined it not more likely than not that the fair value of our reporting unit was less than its carrying amount. Accordingly, we concluded there was no impairment of goodwill as of that date. | ||||||||||||||
Capitalized Software Development Costs | ||||||||||||||
When we complete research and development for a software product and have completed a detail program design or a working model of that software product, we capitalize production costs incurred for that software product from that point forward until it is ready for general release to the public. Thereafter, we amortize capitalized software production costs to expense using the straight-line method over the estimated useful life of that product, which is generally three years. | ||||||||||||||
Intangible Assets – Patent, Customer Relationships and Developed Technology | ||||||||||||||
During a portion of 2013 and all of 2012, we had intangible assets, other than goodwill, consisting of a patent, customer relationships and developed technology that we acquired through the purchase of other companies. We determined the value of those intangible assets at the time of acquisition through discounted cash flow and other similar valuation methods. We amortized these intangible assets on straight-line basis over their estimated useful lives that range from seven to eighteen years. As of December 31, 2013, the balance of these intangible assets had been reduced to zero as a result of the combination of this amortization and a determination that the unamortized portion of these intangible assets was of nominal value. | ||||||||||||||
Contingent Consideration | ||||||||||||||
Our TappIn acquisition in 2011 included future contingent milestone payments based on achieving certain levels of sales in the future and the introduction of new products (i.e. the TappIn earn out). We estimate the fair value of the TappIn earn out contingent consideration liability based on our assessment of the probabilities of achieving the prescribed milestones. These estimates involve significant judgment. Changes in the fair value of the TappIn earn out contingent consideration liability may result from changes in discount periods, changes in the timing and amount of sales and/or other specific milestone estimates and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. At each reporting date, we assess the fair value of this contingent consideration liability. Changes in the fair value of these liabilities related are reflected in our net income and could materially affect our operating results. | ||||||||||||||
Research and Development | ||||||||||||||
We expense research and development costs as incurred. | ||||||||||||||
Royalty Expense | ||||||||||||||
Certain of our products contain software components that we license from others. We pay royalties under those licenses which we record as a cost of revenues when our product containing the applicable component is sold. Our royalties expense was $288,000, $329,000 and $466,000, in royalty expense in 2013, 2012 and 2011, respectively. | ||||||||||||||
Advertising Expense | ||||||||||||||
We expense advertising costs as incurred as a component of our selling, general and administrative expenses. Advertising expense was $729,000, $493,000 and $582,000 in 2013, 2012 and 2011, respectively. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
We measure the cost of share-based payment transactions at the grant date based on the calculated fair value of the award. We recognize this cost as an expense ratably over the recipient’s requisite service period during which that award vests or becomes unrestricted. | ||||||||||||||
For stock option awards, we estimate their fair value at the grant date using the Black-Scholes option-pricing model considering the following factors: | ||||||||||||||
• | We estimate expected volatility based on historical volatility of our common stock. | |||||||||||||
• | We use primarily the simplified method to derive an expected term which represents an estimate of the time options are expected to remain outstanding. We use this method because our options are plain-vanilla options, and we believe our historical option exercise experience is not adequately indicative of our future expectations. | |||||||||||||
• | We base the risk-free rate for periods within the contractual life of the option on the U.S. treasury yield curve in effect at the time of grant. | |||||||||||||
For restricted stock awards, we use the quoted price of our common stock on the grant date as the fair value of the award. | ||||||||||||||
Income Taxes | ||||||||||||||
We account for income taxes using the asset and liability method. We record deferred tax assets and liabilities based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes, as measured by the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are carried on the balance sheet with the presumption that they will be realizable in future periods in which we generate taxable income. | ||||||||||||||
We assess the likelihood that deferred tax assets will be realized from future taxable income. Based on this assessment, we provide any necessary valuation allowance on our balance sheet with a corresponding increase in the tax provision on our statement of operations. Any valuation allowances we establish are determined based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic jurisdictions in which we operate. | ||||||||||||||
We account for uncertainty in income taxes using a two-step process to determine the amount of tax benefit to be recognized. First, we evaluate the tax position to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, we assess the tax position to determine the amount of benefit to recognize in the financial statements. The amount of the benefit we recognize is the largest amount that we believe has a greater than 50% likelihood of being realized upon ultimate settlement. Unrecognized tax benefits represent tax positions for which reserves have been established. | ||||||||||||||
Earnings Per Share | ||||||||||||||
We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. In applying the treasury stock method to non-vested options, the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits. Below is a reconciliation of the numerators and denominators of basic and diluted earnings per share for each of the following years (in thousands except share amounts): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 (1) | 2011 | ||||||||||||
Numerators | ||||||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||
Net income (loss) | $ | 3,840 | $ | (1,800 | ) | $ | 635 | |||||||
Denominators | ||||||||||||||
Denominators for basic and diluted earnings per share: | ||||||||||||||
Weighted average shares outstanding basic | 18,626 | 18,358 | 18,081 | |||||||||||
Dilutive potential common shares | ||||||||||||||
Stock options and awards | 456 | - | 666 | |||||||||||
Denominator for dilutive earnings per share | 19,082 | 18,358 | 18,747 | |||||||||||
Net income (loss) per common share - basic | $ | 0.21 | $ | (0.10 | ) | $ | 0.04 | |||||||
Net income (loss) per common share – diluted | $ | 0.2 | $ | (0.10 | ) | $ | 0.03 | |||||||
(1) | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. | |||||||||||||
Recent accounting pronouncements | ||||||||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except under certain circumstances when one or more of these items is not available at the reporting date under the tax law of the applicable jurisdiction. ASU 2013-11 is applicable for fiscal years beginning after December 15, 2013. We do not expect adoption of this ASU to have a material impact on our financial statements. | ||||||||||||||
In February 2013, the FASB issued FASB ASU No. 2013-04,Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements to the extent such obligations are not already addressed within existing guidance under GAAP. ASU 2013-04 is applicable for fiscal years beginning after December 15, 2013. We do not expect adoption of this ASU to have a material impact on our financial statements. | ||||||||||||||
In July 2012, the FASB issued FASB ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350)—Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30. If an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then no further action is required. If an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. ASU 2012-02 became effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Our adoption of this ASU did not have a material impact on our financial statements. | ||||||||||||||
In December 2011, the FASB issued FASB ASU No. 2011-11, Balance Sheet (Topic 210)—Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. Entities are required to disclose both gross and net information about these instruments. ASU 2011-11 became effective for annual reporting periods beginning on or after January 1, 2013. Our adoption of this ASU did not have a material impact on our financial statements. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of consolidated financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements. It is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s financial position and results of operation. | ||||||||||||||
Reclassifications | ||||||||||||||
Capitalized software development costs are included in intangible assets at December 31, 2013, and December 31, 2012 in the accompanying financial statements. That balance as of December 31, 2012, of $303,000 was previously included in fixed assets. | ||||||||||||||
4_Accounts_Receivable
4. Accounts Receivable | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||||
4. Accounts Receivable | |||||||||||||
Accounts receivable, which are primarily from sales of software licenses, are presented net of an allowance for doubtful accounts. The activity of the Company’s allowance for the years ended December 31, 2013, 2012 and 2011 is as follows ($’s in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of period | $ | 171 | $ | 170 | $ | 237 | |||||||
Bad debt expense or (recovery) | 29 | 68 | (62 | ) | |||||||||
Uncollectible accounts receivable | (46 | ) | (67 | ) | (5 | ) | |||||||
Balance, end of period | $ | 154 | $ | 171 | $ | 170 | |||||||
5_Fixed_Assets
5. Fixed Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
5. Fixed Assets | |||||||||
Fixed assets, at cost, consist of the following ($’s in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Furniture and equipment | $ | 648 | $ | 646 | |||||
Software | 788 | 750 | |||||||
Equipment | 939 | 844 | |||||||
Leasehold improvements | 590 | 590 | |||||||
2,965 | 2,830 | ||||||||
Less accumulated depreciation | (2,221 | ) | (1,930 | ) | |||||
Fixed assets, net | $ | 744 | $ | 900 | |||||
6_Capitalized_Software_Develop
6. Capitalized Software Development Costs | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||
6. Capitalized Software Development Costs | |||||||||
Our capitalized software development costs profile is as follows: ($’s in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Gross capitalized cost | $ | 1,229 | $ | 330 | |||||
Accumulated amortization | (201 | ) | (27 | ) | |||||
Net balance | $ | 1,028 | $ | 303 | |||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Amount capitalized | $ | 889 | $ | 330 | |||||
Amortization expense | (174 | ) | (27 | ) | |||||
Released | Unreleased | ||||||||
Products | Products | ||||||||
Gross capitalized amount at December 31, 2013 | $ | 408 | $ | 620 | |||||
Future amortization expense for | |||||||||
the year ending December 31, | |||||||||
2014 | $ | 203 | |||||||
2015 | 175 | ||||||||
2016 | 30 | ||||||||
Total | $ | 408 | |||||||
We include capitalized software development costs in intangible assets on our balance sheet. The future amortization expense of the gross capitalized software development costs related to unreleased products will be determinable at a future date when those products are ready for general release to the public. | |||||||||
7_Acquired_Intangible_Assets_a
7. Acquired Intangible Assets and TappIn Earnout Liability | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
7. Acquired Intangible Assets and TappIn Earnout Liability | |||||||||||||||||||||||||||||||||
Intangible assets resulting from our acquisition of Availl, Inc. in 2006 and TappIn, Inc. in 2011 consisted of the following ($’s in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Life | Accumulated | Reduction to | Accumulated | ||||||||||||||||||||||||||||||
(Years) | Gross | Amortization | Zero | Net | Gross | Amortization | Net | ||||||||||||||||||||||||||
TappIn, Inc. | |||||||||||||||||||||||||||||||||
Customer relationship | 10 | $ | 1,863 | $ | (342 | ) | $ | (1,521 | ) | $ | - | $ | 1,863 | $ | (202 | ) | $ | 1,661 | |||||||||||||||
Developed technology | 7 | 2,771 | (726 | ) | (2,045 | ) | - | 2,771 | (429 | ) | 2,342 | ||||||||||||||||||||||
Availl, Inc. | |||||||||||||||||||||||||||||||||
Software | 5 | 1,775 | (1,775 | ) | - | - | 1,775 | (1,775 | ) | 0 | |||||||||||||||||||||||
Customer List | 5 | 180 | (180 | ) | - | - | 180 | (180 | ) | - | |||||||||||||||||||||||
Patent | 18 | 7 | (7 | ) | - | - | 7 | (4 | ) | 3 | |||||||||||||||||||||||
Total | $ | 6,596 | $ | (3,030 | ) | $ | (3,566 | ) | $ | - | $ | 6,596 | $ | (2,590 | ) | $ | 4,006 | ||||||||||||||||
We amortize acquired intangible assets on a straight-line basis over their weighted average lives. This amortization expense was $614,000, $895,000, and $350,000 in 2013, 2012, and 2011, respectively. There is no future amortization expense associated with these acquired intangibles. | |||||||||||||||||||||||||||||||||
When we acquired TappIn in December 2011, we allocated the total purchase price of this acquisition to assets and liabilities based on their estimated fair values at the acquisition date. That allocation resulted in the TappIn intangible assets set forth in the table above. We have since evaluated input from our customers and the marketplace as a whole relative to the TappIn product line and concluded that our future emphasis will be on merging the TappIn technology and functionality with our EFT Standard Edition and EFT Enterprise Edition products to create a TappIn Enterprise solution. We believe offering the TappIn technology through this integration will maximize the return on our investment in this product line. While we will continue to offer TappIn as a standalone product in its Standard and Professional Editions, we have concluded that revenue earned from the TappIn product line sold in those configurations will not be significant to our results of operations and financial position in the future. | |||||||||||||||||||||||||||||||||
For accounting and financial statement presentation purposes, the value assigned to the developed technology intangible asset as of the date we acquired TappIn and subsequent thereto relates only to the TappIn Standard Edition developed technology that existed on the date we acquired TappIn. Under GAAP, none of the value of this intangible asset can be derived from the TappIn Professional Edition or from other uses of the TappIn technology. Specifically, none of the TappIn core technology, enabling technology or the migration of that technology, including the application of that technology to our EFT Standard Edition and EFT Enterprise Edition product lines as mentioned above, can be relied upon to ascribe value to the developed technology intangible asset. Since we believe revenue earned from the TappIn Standard Edition will not be significant to our results of operations and financial position in the future, we have concluded it to be more-likely-than-not that the intangible asset arising from this developed technology is of nominal future value. Accordingly, we have reduced its value to zero on our balance sheet as of December 31, 2013, and have recorded a corresponding expense for the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||
For accounting and financial statement purposes, the value assigned to the customer relationship intangible asset relates to one contract with a third-party as it stood and was in place on the date we acquired TappIn. Under GAAP, none of the value of this intangible can be derived from future modifications of this contract or from other, subsequent customer relationships. The value of the contract that gave rise to this customer relationship intangible is dependent upon both (1) continued shipments of that customer’s products as they existed at the time we acquired TappIn and (2) the purchasers of that customer’s products subscribing to TappIn Professional Edition. We believe revenue earned from the activities upon which the value of the customer relationship intangible asset was derived will not be significant to our results of operations and financial position in the future. Our relationship with that customer remains in place relative to products it is currently selling that did not exist at the time we acquired TappIn and that were not part of determining the intangible value of this customer relationship at that time. We have concluded it to be more-likely-than-not that the intangible asset arising from this customer relationship and the products it covered as they existed at the time we acquired TappIn is of nominal future value. Accordingly, we have reduced its value to zero on our balance sheet as of December 31, 2013, and have recorded a corresponding expense for the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||
Our acquisition of TappIn provides for the possible payment of $4.5 million of contingent consideration remaining as of December 31, 2013, to the former shareholders of TappIn if our TappIn product line achieves certain revenue milestones by no later than December 31, 2014. Based on our past estimates of the probability and likelihood of this earn out ultimately being paid, our balance sheet has previously included a liability of $3.7 million for these possible payments. We evaluated the likelihood of the TappIn product lines achieving the revenue milestones by December 31, 2014, necessary for the remaining earnout to be paid. We concluded the likelihood that those revenue milestones will be achieved to be remote and that the contingent consideration will not have to be paid. Accordingly, we reduced the TappIn earn out liability on our balance sheet to zero as of December 31, 2013 and recorded a corresponding credit to income in 2013. | |||||||||||||||||||||||||||||||||
When we acquired TappIn, Inc. in December 2011, we recorded a deferred tax liability resulting from our recording of the intangible assets described above as of the acquisition date for which there was no corresponding change in the tax basis of the TappIn common stock that we purchased. The balance of this deferred tax liability was $1.2 million as of December 31, 2012. Our reduction of the TappIn intangible assets to zero eliminated this deferred tax liability with a corresponding credit to federal income tax expense during the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||
The effects of the above items are summarized as follows ($’s in thousands): | |||||||||||||||||||||||||||||||||
Reduction of intangible assets: | |||||||||||||||||||||||||||||||||
Customer relationship | $ | (1,521 | ) | ||||||||||||||||||||||||||||||
Developed technology | (2,045 | ) | |||||||||||||||||||||||||||||||
Elimination of earnout liability | 3,694 | ||||||||||||||||||||||||||||||||
Net TappIn asset impairment and earnout liability elimination before taxes | 128 | ||||||||||||||||||||||||||||||||
Federal income taxes | 1,213 | ||||||||||||||||||||||||||||||||
Net TappIn asset impairment and earnout liability elimination after taxes | $ | 1,341 | |||||||||||||||||||||||||||||||
8_Notes_Payable
8. Notes Payable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt Disclosure [Text Block] | ' | ||||
8. Notes Payable | |||||
In December 2011, we borrowed $7 million under loan agreements with The Bank of San Antonio to fund a portion of the purchase price of TappIn. These loan agreements provide for the following notes payable: | |||||
• | A note payable with an original principal balance of $4 million bearing interest at 4.75% per annum and secured by substantially all of our assets. | ||||
• | A note payable with an original principal balance of $3 million bearing interest at 4.25% per annum and secured by a certificate of deposit with The Bank of San Antonio of $3.0 million bearing interest at 2.0% per annum. This certificate of deposit is included in long-term investments on our balance sheet. | ||||
At December 31, 2013, the total principal balance outstanding under these notes payable was $4.4 million. | |||||
Interest and principal are payable under both notes payable in 60 equal monthly installments aggregating $131,000 each that will fully amortize the notes as of their December 2, 2016 maturity date. The loans may be prepaid at any time without premium or penalty. | |||||
Scheduled future principal payments under the loan agreements as of December 31, 2013, are as follows ($ in thousands): | |||||
Year Ending December 31, | |||||
2014 | $ | 1,397 | |||
2015 | 1,462 | ||||
2016 | 1,527 | ||||
Total | $ | 4,386 | |||
The Loan Agreements contain the following financial covenants: | |||||
• | We must maintain a debt service coverage ratio of at least 1.25. This ratio is defined in the loan agreements as (1) net income plus depreciation, interest and non-cash charges divided by (2) the sum of the current portion of long-term debt plus interest expense. As of December 31, 2013, this debt service coverage ratio was 2.44. | ||||
• | We must maintain a maximum debt to tangible net worth ratio of 4.00:1. This ratio is defined in the loan agreements as (1) total liabilities less deferred revenues divided by (2) total assets, excluding intangible assets, minus total liabilities, excluding deferred revenues. As of December 31, 2013, this debt to tangible net worth ratio was 0.45:1. | ||||
• | We must maintain liquid assets (cash and marketable securities) of at least $3.2 million as of December 31, 2013, and $2.2 million thereafter. As of December 31, 2013, cash and marketable securities were $9.5 million. | ||||
The loan agreements contain customary events of default including the failure to make payments of principal and interest, the breach of any covenants, the occurrence of a material adverse change, and certain bankruptcy and insolvency events. | |||||
9_Stock_Options_Restricted_Sto
9. Stock Options, Restricted Stock and Share-Based Compensation | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||||||||||||||
9. Stock Options, Restricted Stock and Share-Based Compensation | ||||||||||||||||||||||||||
We have stock-based compensation plans under which we have granted, and may grant in the future, incentive stock options, non-qualified stock options, and restricted stock to employees and non-employee members of the Board of Directors. Our share-based compensation expense was as follows ($ in thousands): | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Share-based compensation expense | $ | 666 | $ | 915 | $ | 1,003 | ||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||
The GlobalSCAPE, Inc. 2010 Employee Long-Term Equity Incentive Plan is our current stock-based incentive plan for our employees. Provisions and characteristics of this plan include the following: | ||||||||||||||||||||||||||
· It authorizes the issuance of up to three million shares of common stock for stock-based incentives including stock options and restricted stock awards. | ||||||||||||||||||||||||||
· The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors. | ||||||||||||||||||||||||||
· The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock at market close on that date. | ||||||||||||||||||||||||||
· Stock options we issue generally become exercisable ratably over a three year period and expire ten years from the date of grant. | ||||||||||||||||||||||||||
· We issued no restricted stock awards under this plan in 2013, 2012 or 2011. | ||||||||||||||||||||||||||
· As of December 31, 2013, stock-based incentives for up to 1,596,540 shares remained available for issuance in the future under this plan. | ||||||||||||||||||||||||||
During a portion of 2010 and in earlier years, we issued stock options under the GlobalSCAPE, Inc. 2000 Stock Option Plan. We no longer issue stock options under this plan. | ||||||||||||||||||||||||||
Our stock option activity has been as follows: | ||||||||||||||||||||||||||
Weighted | Weighted Average | |||||||||||||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||||||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||||||||||||||||
Shares | Price | Terms | Value | |||||||||||||||||||||||
(Years) | (000's) | |||||||||||||||||||||||||
Outstanding at December 31, 2010 | 3,260,327 | $ | 1.83 | 7.63 | $ | 1,480 | ||||||||||||||||||||
2011 | ||||||||||||||||||||||||||
Granted | 1,293,500 | $ | 2 | |||||||||||||||||||||||
Forfeitures | 203,962 | $ | 2.28 | |||||||||||||||||||||||
Exercised | 291,545 | $ | 1.21 | |||||||||||||||||||||||
Outstanding at December 31, 2011 | 4,058,320 | $ | 1.91 | 6.39 | $ | 540 | ||||||||||||||||||||
2012 | ||||||||||||||||||||||||||
Granted | 422,000 | $ | 1.93 | |||||||||||||||||||||||
Forfeitures | 755,625 | $ | 4.09 | |||||||||||||||||||||||
Exercised | 74,600 | $ | 0.94 | |||||||||||||||||||||||
Outstanding at December 31, 2012 | 3,650,095 | $ | 1.91 | 6.14 | $ | 300 | ||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Granted | 424,740 | $ | 1.66 | |||||||||||||||||||||||
Forfeitures | 371,520 | $ | 2.17 | |||||||||||||||||||||||
Exercised | 585,570 | $ | 1.52 | |||||||||||||||||||||||
Outstanding at December 31, 2013 | 3,117,745 | $ | 1.92 | 4.46 | $ | 1,808 | ||||||||||||||||||||
Exercisable at December 31, 2013 | 2,437,135 | $ | 1.96 | 3.33 | $ | 1,436 | ||||||||||||||||||||
Additional information about our stock options is as follows: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Weighted average fair value of options granted during the year | $ | 0.87 | $ | 1.09 | $ | 1.08 | ||||||||||||||||||||
Intrinsic value of options exercised during the year | $ | 238,905 | $ | 63,820 | $ | 185,258 | ||||||||||||||||||||
Cash received from stock options exercised during the year | $ | 889,000 | $ | 70,000 | $ | 352,000 | ||||||||||||||||||||
Number of options that vested during the year | 519,175 | 382,772 | 376,409 | |||||||||||||||||||||||
Fair value of options that vested during the year | $ | 632,000 | $ | 737,000 | $ | 946,000 | ||||||||||||||||||||
Unrecognized compensation expense related to non-vested options at end of year | $ | 526,000 | $ | 963,000 | $ | 1,700,000 | ||||||||||||||||||||
Weighted average years over which non-vested option expense will be recognized | 1.97 | 1.84 | 2.36 | |||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||||||||||||
Underlying | Remaining | Average | Number of | Average | ||||||||||||||||||||||
Range of | Shares | Contractual | Exercise | Underlying | Exercise | |||||||||||||||||||||
Exercise Prices | Outstanding | Life | Price | Shares | Price | |||||||||||||||||||||
$ | 0.15 | - | $ | 0.33 | 53,000 | 1.2 | $ | 0.26 | 53,000 | $ | 0.26 | |||||||||||||||
$ | 0.85 | - | $ | 1.41 | 605,040 | 2.4 | $ | 1.09 | 605,040 | $ | 1.09 | |||||||||||||||
$ | 1.43 | - | $ | 2.16 | 1,700,685 | 5.7 | $ | 1.8 | 1,084,915 | $ | 1.8 | |||||||||||||||
$ | 2.18 | - | $ | 4.10 | 759,020 | 3.6 | $ | 3.02 | 694,180 | $ | 3.09 | |||||||||||||||
Total options | 3,117,745 | 2,437,135 | ||||||||||||||||||||||||
We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Expected volatility | 55 | % | 63 | % | 77 | % | ||||||||||||||||||||
Expected annual dividend yield | 0 | 0 | 0 | |||||||||||||||||||||||
Risk free rate of return | 1.48 | % | 0.98 | % | 2.46 | % | ||||||||||||||||||||
Expected option term (years) | 6 | 6 | 6 | |||||||||||||||||||||||
Restricted Stock Awards | ||||||||||||||||||||||||||
The 2006 Non-Employee Directors Long Term Incentive Plan provides for the issuance of either stock options or restricted stock awards for up to 500,000 shares of our common stock. Provisions of this plan included the following: | ||||||||||||||||||||||||||
· It authorizes the issuance of up to 500,000 shares of our common stock for stock-based incentives including stock options and restricted stock awards. | ||||||||||||||||||||||||||
· The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors. | ||||||||||||||||||||||||||
· Restricted stock awards are initially issued with a legend restricting transferability of the shares until the recipient satisfies the vesting provision of the award, which is generally continuing service for one year subsequent to the date of the award. | ||||||||||||||||||||||||||
· We issued no stock options under this plan in 2013, 2012 or 2011. | ||||||||||||||||||||||||||
· As of December 31, 2013, stock-based incentives for up to 148,500 shares remained available for issuance in the future under this plan. | ||||||||||||||||||||||||||
Our restricted stock awards activity has been as follows: | ||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Grant Date | Fair Value of | |||||||||||||||||||||||||
Number of | Fair Value | Shares That | ||||||||||||||||||||||||
Shares | Per Share | Vested | ||||||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2010 | 53,420 | $ | 2.01 | |||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||
Shares granted with restrictions | 80,000 | $ | 2.16 | |||||||||||||||||||||||
Shares vested and restrictions removed | (53,420 | ) | $ | 2.01 | $ | 107,000 | ||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2011 | 80,000 | $ | 2.16 | |||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||
Shares granted with restrictions | 80,000 | $ | 1.97 | |||||||||||||||||||||||
Shares vested and restrictions removed | (80,000 | ) | $ | 2.16 | $ | 158,000 | ||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2012 | 80,000 | $ | 1.97 | |||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Shares granted with restrictions | 80,000 | $ | 1.65 | |||||||||||||||||||||||
Shares vested and restrictions removed | (80,000 | ) | $ | 1.97 | $ | 133,600 | ||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2013 | 80,000 | $ | 1.65 | |||||||||||||||||||||||
At December 31, 2013, we had $58,000 of unrecognized compensation expense related to non-vested restricted stock awards. We expect to recognize that expense in the future over a weighted-average period of five months. | ||||||||||||||||||||||||||
10_Common_Stock_Purchase_Warra
10. Common Stock Purchase Warrants | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
10. Common Stock Purchase Warrants | |
We had a securities purchase agreement with certain accredited investors under which we granted them warrants to purchase 1,352,000 shares of our common stock at an exercise price of $3.15 per share. These warrants expired unexercised in May 2012. | |
11_Income_Taxes
11. Income Taxes | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||||||
11. Income Taxes | |||||||||||||||||||||||||||||||||||||
The components of our income tax expense (benefit) are as follows ($ in thousands): | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||||
Federal | $ | 898 | $ | (1,090 | ) | $ | (192 | ) | $ | (574 | ) | $ | 741 | $ | 167 | $ | 460 | $ | (352 | ) | $ | 108 | |||||||||||||||
State | 85 | 3 | 88 | 55 | (5 | ) | 50 | 61 | - | 61 | |||||||||||||||||||||||||||
Total | $ | 983 | $ | (1,087 | ) | $ | (104 | ) | $ | (519 | ) | $ | 736 | $ | 217 | $ | 521 | $ | (352 | ) | $ | 169 | |||||||||||||||
Deferred income taxes on our balance sheet reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): | |||||||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||||||||||||||
Capital loss carryforward | $ | 1,099 | $ | 1,099 | |||||||||||||||||||||||||||||||||
Share-based compensation | 1,005 | 1,017 | |||||||||||||||||||||||||||||||||||
Deferred revenue | 503 | 470 | |||||||||||||||||||||||||||||||||||
Net operating loss carryforward | 270 | 386 | |||||||||||||||||||||||||||||||||||
Compensation and benefits | 84 | 102 | |||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | 52 | 58 | |||||||||||||||||||||||||||||||||||
Other | 2 | 24 | |||||||||||||||||||||||||||||||||||
Total gross deferred tax assets | 3,015 | 3,156 | |||||||||||||||||||||||||||||||||||
Valuation allowance | (1,099 | ) | (1,099 | ) | |||||||||||||||||||||||||||||||||
Net deferred tax assets | 1,916 | 2,057 | |||||||||||||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||||||||||||||
Intangible assets | 193 | 1,142 | |||||||||||||||||||||||||||||||||||
Depreciation | 65 | 203 | |||||||||||||||||||||||||||||||||||
Total gross deferred tax liabilities | 258 | 1,345 | |||||||||||||||||||||||||||||||||||
Net deferred tax assets | $ | 1,658 | $ | 712 | |||||||||||||||||||||||||||||||||
As of December 31, 2013, we had federal income tax net operating loss carry forwards of $794,000 available to offset future federal taxable income, if any. These carry forwards arose from TappIn operations before we purchased TappIn, Inc. and became available to us at the time we acquired that company. These carry forwards expire in 2030 and 2031. | |||||||||||||||||||||||||||||||||||||
In assessing the realizability of deferred tax assets, we consider whether it is more-likely-than-not that a deferred tax asset will not be realized. Our assessment of the likelihood of having sufficient taxable income in the future to support deduction or utilization of the items giving rise to our deferred tax assets indicates it is more-likely-than-not that we will realize the deferred tax assets listed in the table above with the exception of the $1.1 million deferred tax asset related to the capital loss carry forward resulting from the reduction to zero of our investments in and notes receivable from CoreTrace Corporation in 2012. We can realize this capital loss carry forward deferred tax asset to the extent we have capital gains in future periods against which this capital loss can be deducted. We believe it uncertain that we will have sufficient capital gains in the future to support this deduction and have recorded a valuation allowance of $1.1 million for the capital loss carry forward deferred tax asset. | |||||||||||||||||||||||||||||||||||||
We claimed research and experimentation tax credits, or R&D tax credit, on certain of our tax returns and have included the effect of those credits in our provision for income taxes. Certain of those returns, and in particular the R&D tax credit claimed on those returns, are under routine examination by the Internal Revenue Service. We believe it more-likely-than-not this examination could result in $125,000 of such credits we claimed not being allowed by the Internal Revenue Service. During 2012, we recorded a valuation allowance for this amount due to the uncertainty of this item. | |||||||||||||||||||||||||||||||||||||
The R&D tax credit for 2012 was extended by legislation passed in 2013. GAAP requires that this credit related to 2012 be recorded in the year in which this legislation passed (i.e. 2013). Accordingly, the effects of the R&D credit related to 2012 are included in our 2013 financial statements, and our 2012 financial statements do not include an R&D credit. | |||||||||||||||||||||||||||||||||||||
The aggregate changes in the balance of our gross unrecognized tax benefits were as follows ($ in thousands): | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 125 | $ | - | |||||||||||||||||||||||||||||||||
Increases for tax positions related to the current year | - | - | |||||||||||||||||||||||||||||||||||
Increases for tax positions related to prior years | - | 125 | |||||||||||||||||||||||||||||||||||
Decreases for tax positions related to prior years | - | - | |||||||||||||||||||||||||||||||||||
Reductions due to lapsed statute of limitations | - | - | |||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 125 | $ | 125 | |||||||||||||||||||||||||||||||||
Our federal income tax returns for 2009 and prior years are no longer subject to examination by the Internal Revenue Service except for the R&D tax credit component of our 2008 and 2009 federal income tax returns. Our 2010 federal income tax return is under routine examination by the Internal Revenue Service with the results of this examination not yet reported by the Internal Revenue Service. | |||||||||||||||||||||||||||||||||||||
To the extent they arise, we record interest and penalty expense related to income taxes as an other expense in our statement of operations. We incurred no such expenses in 2013, 2012 or 2011. | |||||||||||||||||||||||||||||||||||||
We file state tax returns in Texas, Massachusetts, New Hampshire and Pennsylvania. The taxes resulting from these filings are included in income tax expense. Taxes we pay to these states are not material to our results of operations or financial position. | |||||||||||||||||||||||||||||||||||||
Our income tax expense (benefit) reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Income tax expense (benefit) at federal statutory rate | $ | 1,270 | $ | (538 | ) | $ | 291 | ||||||||||||||||||||||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||||||||||||||||||||||
State taxes, net of federal benefit | 57 | 32 | 40 | ||||||||||||||||||||||||||||||||||
Other | 20 | (16 | ) | 26 | |||||||||||||||||||||||||||||||||
Capital loss carryforward valuation allowance | - | 1,099 | - | ||||||||||||||||||||||||||||||||||
R&D tax credit uncertain tax position | - | 125 | - | ||||||||||||||||||||||||||||||||||
Costs to acquire TappIn, Inc. | - | - | 185 | ||||||||||||||||||||||||||||||||||
Share-based compensation | (1 | ) | 1 | 60 | |||||||||||||||||||||||||||||||||
Research and development credit | (95 | ) | - | (358 | ) | ||||||||||||||||||||||||||||||||
Domestic production activities deduction | (99 | ) | (43 | ) | (75 | ) | |||||||||||||||||||||||||||||||
Tappin earnout liability not earned | (1,256 | ) | (443 | ) | - | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) per the statement of operations | $ | (104 | ) | $ | 217 | $ | 169 | ||||||||||||||||||||||||||||||
12_Employee_Benefit_Plan
12. Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Compensation and Employee Benefit Plans [Text Block] | ' |
12. Employee Benefit Plan | |
We provide our employees a 401(k) plan under which we make employer matching contributions in amounts determined by our Board of Directors. Our matching contributions were $111,000, $102,000, and $88,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
13_Investment_in_and_Notes_Rec
13. Investment in and Notes Receivable From Affiliated Entity | 12 Months Ended |
Dec. 31, 2013 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | ' |
13. Investment in and Notes Receivable From Affiliated Entity | |
During 2012 and prior years, we had an investment as a shareholder in and notes receivable from CoreTrace Corporation. We also had a joint development and reseller agreement with CoreTrace for our appShield product. In 2012, CoreTrace sold a substantial portion of its assets to an unrelated third party and ceased operations. As a result of that event, the value of our investment in and notes receivable from CoreTrace was eliminated. Accordingly, we reduced to zero the carrying value of those assets related to CoreTrace and recorded a corresponding affiliated entity asset impairment expense of $3.3 million during 2012. | |
14_Commitments_and_Contingenci
14. Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Loss Contingency [Abstract] | ' | ||||
Contingencies Disclosure [Text Block] | ' | ||||
14. Commitments and Contingencies | |||||
Minimum rental commitments under operating leases at December 31, 2013, are as follows ($ in thousands): | |||||
Year Ending December 31, | |||||
2014 | $ | 473 | |||
2015 | 357 | ||||
2016 | 347 | ||||
2017 | 347 | ||||
2018 | 347 | ||||
Thereafter | 115 | ||||
Total | $ | 1,986 | |||
Rent expense under operating leases was $473,000 in 2013, $468,000 in 2012 and $356,000 in 2011. We had a deferred rent credit of $60,000 at December 31, 2013, that we amortize as a credit to rent expense on a straight-line basis over the remaining life of the applicable lease. | |||||
We have employment agreements with certain officers and employees under which we are obligated to pay them compensation of $471,000 and $145,000 during the years ending 2014 and 2015, respectively. | |||||
15_Acquisition_of_TappIn_Inc
15. Acquisition of TappIn, Inc. | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||
15. Acquisition of TappIn, Inc. | |||||||||||||
In December 2011, we acquired all of the issued and outstanding shares TappIn, Inc. At the time of the acquisition, we paid the TappIn selling shareholders $9 million cash for the outstanding common stock of that company and $190,000 cash for TappIn’s working capital acquired at closing. We also agreed to pay the former shareholders of TappIn, Inc. up to $8 million of additional payments upon achieving certain revenue milestones by December 31, 2014. | |||||||||||||
For financial statement purposes, we determined and recorded the purchase price as follows ($’s in thousands): | |||||||||||||
Cash paid at acquisition close date: | |||||||||||||
Sourced from cash on hand | $ | 2,000 | |||||||||||
Sourced from note payable to a bank | 7,000 | ||||||||||||
Total | 9,000 | ||||||||||||
Contingent consideration | 6,997 | ||||||||||||
Additional cash paid for net working capital | 190 | ||||||||||||
Total purchase price | $ | 16,187 | |||||||||||
We determined the contingent consideration portion of the purchase price we recorded based on our assessment at that time as to the amount of such consideration we estimated we would most-likely pay. | |||||||||||||
We allocated the total purchase price to assets and liabilities based on their estimated fair values at the acquisition date. In allocating the purchase price to intangible assets and goodwill, our first allocation was to identifiable intangible assets, including developed technology and customer relationships, after which we allocated the remainder to goodwill. These allocations were as follows ($ in thousands): | |||||||||||||
Accounts receivable | $ | 169 | |||||||||||
Current assets | 28 | ||||||||||||
Property and equipment, net | 20 | ||||||||||||
Intangibles | 4,634 | ||||||||||||
Goodwill | 11,343 | ||||||||||||
Assumed liabilities | (3 | ) | |||||||||||
Deferred revenue | (4 | ) | |||||||||||
Net assets acquired | $ | 16,187 | |||||||||||
The contingent consideration provides for the following possible milestone payments to the former shareholders of TappIn, Inc.: | |||||||||||||
· | $2.0 million upon the completion of the development of a certain product. This milestone was achieved in 2012 for which we paid those former shareholders $1.5 million in 2012 and $500,000 in 2013. | ||||||||||||
· | $1.5 million upon the achievement of a certain revenue milestone during 2012. This milestone was not achieved. Based on our prior estimates of the likelihood of achieving this milestone, we had recorded a liability of $3.3 million for this event. We eliminated this liability from our balance sheet as of December 31, 2012, and recorded a corresponding credit to operating expense during 2012. | ||||||||||||
· | $8.0 million upon achieving certain revenue milestones by no later than December 31, 2014. Our balance sheet at December 31, 2012, included a liability of $4.2 million for these possible payments. During 2013, we concluded the likelihood that those revenue milestones will be achieved to be remote and that the contingent consideration will not have to be paid. Accordingly, we reduced the TappIn earn out liability on our balance sheet to zero as of December 31, 2013 and recorded a corresponding credit to income in 2013. | ||||||||||||
The change in the TappIn earn out liability is as follows ($ in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 4,194 | $ | 6,997 | |||||||||
Earn out paid in cash | - | (1,500 | ) | ||||||||||
Earn out liability not earned | (4,194 | ) | (1,303 | ) | |||||||||
Ending balance | $ | - | $ | 4,194 | |||||||||
TappIn earnout liability, current portion | $ | - | $ | 500 | |||||||||
TappIn earnout liability, non-current portion | - | 3,694 | |||||||||||
$ | - | $ | 4,194 | ||||||||||
The following table presents unaudited, pro forma consolidated results of operations for 2011 as if the TappIn acquisition had been completed on January 1, 2010. The comparative amounts for 2013 and 2012 are as they appear in our consolidated statement of operations and require no proforma adjustments since they already include the results of Tappin operations: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total revenues | $ | 24,339 | $ | 23,372 | $ | 21,170 | |||||||
Net income (loss) | $ | 3,840 | $ | (1,800 | ) | $ | (1,276 | ) | |||||
Net loss per share: | |||||||||||||
Basic | $ | 0.21 | $ | (0.10 | ) | $ | (0.07 | ) | |||||
Diluted | $ | 0.2 | $ | (0.10 | ) | $ | (0.07 | ) | |||||
The pro forma consolidated results of operations for 2011 include adjustments to: | |||||||||||||
· | Include the results of TappIn for the periods presented. | ||||||||||||
· | Include the incremental amortization expense associated with the finite-lived intangible assets from January 1, 2010. | ||||||||||||
· | Include additional interest expense related to financing the acquisition as if the notes began on January 1, 2010. | ||||||||||||
· | Include acquisition expenses associated with the purchase of TappIn as if the purchase occurred January 1, 2010. | ||||||||||||
· | Reflect the pro forma tax adjustments resulting from the acquisition as if the purchase occurred January 1, 2010. | ||||||||||||
The pro forma information is not necessarily indicative of the results of operations that would have occurred had the transaction been made at the beginning of the periods presented or the future results of the combined operations. | |||||||||||||
16_Quarterly_Consolidated_Fina
16. Quarterly Consolidated Financial Information (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
16. Quarterly Consolidated Financial Information (unaudited) | |||||||||||||||||
Fiscal Year 2013 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Total revenues | $ | 5,879 | $ | 5,925 | $ | 6,337 | $ | 6,197 | |||||||||
Total operating expenses | $ | 5,132 | $ | 5,297 | $ | 4,802 | $ | 5,207 | |||||||||
Other income (expense) | $ | (47 | ) | $ | (43 | ) | $ | (39 | ) | $ | (35 | ) | |||||
Net income (loss) before provision for income taxes | $ | 700 | $ | 585 | $ | 1,496 | $ | 955 | |||||||||
Net income (loss) | $ | 517 | $ | 381 | $ | 2,287 | $ | 655 | |||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.03 | $ | 0.02 | $ | 0.12 | $ | 0.04 | |||||||||
Diluted | $ | 0.03 | $ | 0.02 | $ | 0.12 | $ | 0.03 | |||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 18,444 | 18,502 | 18,761 | 18,873 | |||||||||||||
Diluted | 18,982 | 18,955 | 19,158 | 19,461 | |||||||||||||
Fiscal Year 2012 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Total revenues | $ | 5,393 | $ | 5,702 | $ | 6,078 | $ | 6,199 | |||||||||
Total operating expenses | $ | 5,728 | $ | 5,774 | $ | 8,867 | $ | 4,397 | |||||||||
Other income (expense) | $ | (66 | ) | $ | (61 | ) | $ | (11 | ) | $ | (51 | ) | |||||
Net income (loss) before provision for income taxes | $ | (401 | ) | $ | (133 | ) | $ | (2,800 | ) | $ | 1,751 | ||||||
Net income (loss) | $ | (253 | ) | $ | (140 | ) | $ | (2,714 | ) | $ | 1,307 | ||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.07 | ||||||
Diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.07 | ||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 18,288 | 18,320 | 18,398 | 18,421 | |||||||||||||
Diluted | 18,288 | 18,320 | 18,398 | 18,959 | |||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||||||||||||
Basis of Presentation | ||||||||||||||
We follow accounting standards set by the Financial Accounting Standards Board. This board sets generally accepted accounting principles in the United States, or GAAP, that we follow in preparing financial statements that report our financial position, results of operations, and sources and uses of cash. We also follow the reporting regulations of the United States Securities and Exchange Commission, or SEC. | ||||||||||||||
The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements. It is possible the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations. | ||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | |||||||||||||
Principles of Consolidation | ||||||||||||||
The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP. All intercompany accounts and transactions have been eliminated. | ||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met: | ||||||||||||||
· Persuasive evidence of an arrangement exists. | ||||||||||||||
· Delivery has occurred or services have been rendered. | ||||||||||||||
· The amount is fixed or determinable. | ||||||||||||||
· Collection is reasonably assured. | ||||||||||||||
For a sale transaction not meeting any one of these four criteria, we defer recognition of revenue related to that transaction until all the criteria are met. | ||||||||||||||
We earn the majority of our software license revenue from software products sold under perpetual software license agreements. At the time our customers purchase these products, they typically also purchase a product maintenance and support, or M&S, agreement. These transactions are multiple element software sales for which we assess the presence of vendor specific objective evidence (“VSOE”) of the fair value of the undelivered elements to determine the portion of these sales to recognize as revenue upon delivery of the software product and the portion of these sales to record as deferred revenue at the time the product is delivered. We amortize the deferred revenue component to revenue in future periods as we deliver the related future services to the customer. For transactions, if any, for which we cannot establish VSOE of fair value of the undelivered elements, we initially record the entire transaction as deferred revenue and amortize that amount to revenue in future periods as we deliver the related future services to the customer. | ||||||||||||||
Our deferred revenue consists primarily of revenue to be earned in the future as we deliver services under M&S agreements. Certain of our customers will accept, and sometimes pay, our invoices for M&S services prior to the commencement of the M&S period. In such cases, we record accounts receivable and deferred revenue in the same amount at the time we submit an invoice to the customer and commence recognition of the deferred revenue as revenue only after the M&S period begins. | ||||||||||||||
For our products delivered under a software-as-a-service transaction on a monthly or other periodic subscription basis, we recognize subscription revenue, including initial setup fees, on a monthly basis over the contractual term of the customer contract as we deliver our products and services. These amounts are in other revenue. Amounts invoiced or paid prior to this revenue recognition are presented as deferred revenue until earned. | ||||||||||||||
We provide professional services to our customers consisting primarily of software installation support, operations support and training. We recognize revenue from these services as they are completed and accepted by our customers. | ||||||||||||||
We collect sales tax on many of our sales. We do not include sales tax collected in our revenue. We record it as a liability payable to taxing authorities. | ||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||||||||
Concentrations of Credit Risk and Significant Customers | ||||||||||||||
Our cash, cash equivalents and long term investments are on deposit in banks and are collectively insured by the Federal Deposit Insurance Corporation for $750,000. Our balances in excess of that amount are not insured. With the exception of our long-term investment in certificate of deposit pledged as collateral for our notes payable, we may withdraw our cash deposits upon demand. We maintain our cash with multiple financial institutions of reputable credit to minimize our risk of loss. | ||||||||||||||
We generally provide credit to our customers under typical invoice payment terms (for example, net 30) that gives rise to trade accounts receivable from those customers. We do not require collateral from our customers. We perform ongoing evaluations of the credit risk related to offering these payment terms. We provide an allowance for uncollectible accounts based on our historical collections experience and the profile of our accounts receivable. | ||||||||||||||
In 2013, 2012 and 2011, no single customer accounted for more than 10% of revenues. As of December 31, 2013, we had one customer, Lifeboat, which accounted for 14% of our total accounts receivable. In 2012, we had no customer from whom accounts receivable from them individually comprised 10% or more of our total accounts receivables. | ||||||||||||||
Other Concentrations Policy [Text Block] | ' | |||||||||||||
Other Concentrations | ||||||||||||||
Sales in Foreign Markets. In 2013, 2012 and 2011, approximately 27%, 26% and 31%, respectively, of our revenues came from sales to customers in foreign countries. We received substantially all of our revenues from foreign countries in U.S. dollars resulting in limited exchange rate risks. Our foreign sales are concentrated mostly in Canada, Australia and Western Europe. | ||||||||||||||
Labor. We use software developers outside the United States to perform a portion of the coding for the development and maintenance of our software products. If we were unable to continue using these developers because of political or economic instability, we may have difficulty finding comparably skilled developers or may have to pay considerably more for the same work, which could have a material adverse impact on our financial position and results of operations. | ||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||||||
Cash and cash equivalents | ||||||||||||||
Cash and cash equivalents includes all cash and highly liquid investments with original maturities of three months or less. Our cash balance as of December 31, 2013, is insured by the Federal Deposit Insurance Corporation for $750,000. | ||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment is comprised of furniture and fixtures, software, computer equipment and leasehold improvements which are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Furniture, fixtures and equipment have a useful life of 5 to 7 years, computer equipment and software have a life of 3 years and leasehold improvements are depreciated over the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset. | ||||||||||||||
Expenditures for maintenance and repairs are charged to operations as incurred. | ||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | |||||||||||||
Goodwill | ||||||||||||||
Goodwill is not amortized. On at least an annual basis, we test goodwill for impairment at the reporting unit level. We operate as a single reporting unit. | ||||||||||||||
When testing goodwill, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of our reporting unit is less than its carrying amount, including goodwill. In performing this qualitative assessment, we assess events and circumstances relevant to us including, but not limited to: | ||||||||||||||
• | Macroeconomic conditions. | |||||||||||||
• | Industry and market considerations. | |||||||||||||
• | Cost factors and trends for labor and other expenses of operating our business. | |||||||||||||
• | Our overall financial performance and outlook for the future. | |||||||||||||
• | Trends in the quoted market value and trading of our common stock. | |||||||||||||
In considering these and other factors, we consider the extent to which any adverse events and circumstances identified could affect the comparison of our reporting unit’s fair value with its carrying amount. We place more weight on events and circumstances that most affect our reporting unit’s fair value or the carrying amount of our net assets. We consider positive and mitigating events and circumstances that may affect our determination of whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. We evaluate, on the basis of the weight of the evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. | ||||||||||||||
If, after assessing the totality of these qualitative events and circumstances, we determine it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, we conclude there is no impairment of goodwill and perform no further testing in accordance with GAAP. If we conclude otherwise, we proceed with performing the first step, and if necessary, the second step, of the two-step goodwill impairment test prescribed by GAAP. | ||||||||||||||
As of December 31, 2013, after assessing the totality of the relevant events and circumstances, we determined it not more likely than not that the fair value of our reporting unit was less than its carrying amount. Accordingly, we concluded there was no impairment of goodwill as of that date. | ||||||||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | |||||||||||||
Capitalized Software Development Costs | ||||||||||||||
When we complete research and development for a software product and have completed a detail program design or a working model of that software product, we capitalize production costs incurred for that software product from that point forward until it is ready for general release to the public. Thereafter, we amortize capitalized software production costs to expense using the straight-line method over the estimated useful life of that product, which is generally three years. | ||||||||||||||
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | ' | |||||||||||||
Intangible Assets – Patent, Customer Relationships and Developed Technology | ||||||||||||||
During a portion of 2013 and all of 2012, we had intangible assets, other than goodwill, consisting of a patent, customer relationships and developed technology that we acquired through the purchase of other companies. We determined the value of those intangible assets at the time of acquisition through discounted cash flow and other similar valuation methods. We amortized these intangible assets on straight-line basis over their estimated useful lives that range from seven to eighteen years. As of December 31, 2013, the balance of these intangible assets had been reduced to zero as a result of the combination of this amortization and a determination that the unamortized portion of these intangible assets was of nominal value. | ||||||||||||||
Commitments and Contingencies, Policy [Policy Text Block] | ' | |||||||||||||
Contingent Consideration | ||||||||||||||
Our TappIn acquisition in 2011 included future contingent milestone payments based on achieving certain levels of sales in the future and the introduction of new products (i.e. the TappIn earn out). We estimate the fair value of the TappIn earn out contingent consideration liability based on our assessment of the probabilities of achieving the prescribed milestones. These estimates involve significant judgment. Changes in the fair value of the TappIn earn out contingent consideration liability may result from changes in discount periods, changes in the timing and amount of sales and/or other specific milestone estimates and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. At each reporting date, we assess the fair value of this contingent consideration liability. Changes in the fair value of these liabilities related are reflected in our net income and could materially affect our operating results. | ||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | |||||||||||||
Research and Development | ||||||||||||||
We expense research and development costs as incurred. | ||||||||||||||
Revenue Recognition, Services, Royalty Fees [Policy Text Block] | ' | |||||||||||||
Royalty Expense | ||||||||||||||
Certain of our products contain software components that we license from others. We pay royalties under those licenses which we record as a cost of revenues when our product containing the applicable component is sold. Our royalties expense was $288,000, $329,000 and $466,000, in royalty expense in 2013, 2012 and 2011, respectively. | ||||||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | |||||||||||||
Advertising Expense | ||||||||||||||
We expense advertising costs as incurred as a component of our selling, general and administrative expenses. Advertising expense was $729,000, $493,000 and $582,000 in 2013, 2012 and 2011, respectively. | ||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
We measure the cost of share-based payment transactions at the grant date based on the calculated fair value of the award. We recognize this cost as an expense ratably over the recipient’s requisite service period during which that award vests or becomes unrestricted. | ||||||||||||||
For stock option awards, we estimate their fair value at the grant date using the Black-Scholes option-pricing model considering the following factors: | ||||||||||||||
• | We estimate expected volatility based on historical volatility of our common stock. | |||||||||||||
• | We use primarily the simplified method to derive an expected term which represents an estimate of the time options are expected to remain outstanding. We use this method because our options are plain-vanilla options, and we believe our historical option exercise experience is not adequately indicative of our future expectations. | |||||||||||||
• | We base the risk-free rate for periods within the contractual life of the option on the U.S. treasury yield curve in effect at the time of grant. | |||||||||||||
For restricted stock awards, we use the quoted price of our common stock on the grant date as the fair value of the award. | ||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||||||||
Income Taxes | ||||||||||||||
We account for income taxes using the asset and liability method. We record deferred tax assets and liabilities based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes, as measured by the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are carried on the balance sheet with the presumption that they will be realizable in future periods in which we generate taxable income. | ||||||||||||||
We assess the likelihood that deferred tax assets will be realized from future taxable income. Based on this assessment, we provide any necessary valuation allowance on our balance sheet with a corresponding increase in the tax provision on our statement of operations. Any valuation allowances we establish are determined based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic jurisdictions in which we operate. | ||||||||||||||
We account for uncertainty in income taxes using a two-step process to determine the amount of tax benefit to be recognized. First, we evaluate the tax position to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, we assess the tax position to determine the amount of benefit to recognize in the financial statements. The amount of the benefit we recognize is the largest amount that we believe has a greater than 50% likelihood of being realized upon ultimate settlement. Unrecognized tax benefits represent tax positions for which reserves have been established. | ||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||||||
Earnings Per Share | ||||||||||||||
We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. In applying the treasury stock method to non-vested options, the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits. Below is a reconciliation of the numerators and denominators of basic and diluted earnings per share for each of the following years (in thousands except share amounts): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 (1) | 2011 | ||||||||||||
Numerators | ||||||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||
Net income (loss) | $ | 3,840 | $ | (1,800 | ) | $ | 635 | |||||||
Denominators | ||||||||||||||
Denominators for basic and diluted earnings per share: | ||||||||||||||
Weighted average shares outstanding basic | 18,626 | 18,358 | 18,081 | |||||||||||
Dilutive potential common shares | ||||||||||||||
Stock options and awards | 456 | - | 666 | |||||||||||
Denominator for dilutive earnings per share | 19,082 | 18,358 | 18,747 | |||||||||||
Net income (loss) per common share - basic | $ | 0.21 | $ | (0.10 | ) | $ | 0.04 | |||||||
Net income (loss) per common share – diluted | $ | 0.2 | $ | (0.10 | ) | $ | 0.03 | |||||||
(1) | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||||||
Recent accounting pronouncements | ||||||||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except under certain circumstances when one or more of these items is not available at the reporting date under the tax law of the applicable jurisdiction. ASU 2013-11 is applicable for fiscal years beginning after December 15, 2013. We do not expect adoption of this ASU to have a material impact on our financial statements. | ||||||||||||||
In February 2013, the FASB issued FASB ASU No. 2013-04,Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements to the extent such obligations are not already addressed within existing guidance under GAAP. ASU 2013-04 is applicable for fiscal years beginning after December 15, 2013. We do not expect adoption of this ASU to have a material impact on our financial statements. | ||||||||||||||
In July 2012, the FASB issued FASB ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350)—Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30. If an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then no further action is required. If an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. ASU 2012-02 became effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Our adoption of this ASU did not have a material impact on our financial statements. | ||||||||||||||
In December 2011, the FASB issued FASB ASU No. 2011-11, Balance Sheet (Topic 210)—Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. Entities are required to disclose both gross and net information about these instruments. ASU 2011-11 became effective for annual reporting periods beginning on or after January 1, 2013. Our adoption of this ASU did not have a material impact on our financial statements. | ||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The preparation of consolidated financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements. It is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s financial position and results of operation. | ||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | |||||||||||||
Reclassifications | ||||||||||||||
Capitalized software development costs are included in intangible assets at December 31, 2013, and December 31, 2012 in the accompanying financial statements. That balance as of December 31, 2012, of $303,000 was previously included in fixed assets. |
2_Significant_Accounting_Polic1
2. Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 'We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. In applying the treasury stock method to non-vested options, the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits. Below is a reconciliation of the numerators and denominators of basic and diluted earnings per share for each of the following years (in thousands except share amounts): | |||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 (1) | 2011 | ||||||||||||
Numerators | ||||||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||
Net income (loss) | $ | 3,840 | $ | (1,800 | ) | $ | 635 | |||||||
Denominators | ||||||||||||||
Denominators for basic and diluted earnings per share: | ||||||||||||||
Weighted average shares outstanding basic | 18,626 | 18,358 | 18,081 | |||||||||||
Dilutive potential common shares | ||||||||||||||
Stock options and awards | 456 | - | 666 | |||||||||||
Denominator for dilutive earnings per share | 19,082 | 18,358 | 18,747 | |||||||||||
Net income (loss) per common share - basic | $ | 0.21 | $ | (0.10 | ) | $ | 0.04 | |||||||
Net income (loss) per common share – diluted | $ | 0.2 | $ | (0.10 | ) | $ | 0.03 | |||||||
(1) | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. |
4_Accounts_Receivable_Tables
4. Accounts Receivable (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | 'Accounts receivable, which are primarily from sales of software licenses, are presented net of an allowance for doubtful accounts. The activity of the Company’s allowance for the years ended December 31, 2013, 2012 and 2011 is as follows ($’s in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of period | $ | 171 | $ | 170 | $ | 237 | |||||||
Bad debt expense or (recovery) | 29 | 68 | (62 | ) | |||||||||
Uncollectible accounts receivable | (46 | ) | (67 | ) | (5 | ) | |||||||
Balance, end of period | $ | 154 | $ | 171 | $ | 170 |
5_Fixed_Assets_Tables
5. Fixed Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'Fixed assets, at cost, consist of the following ($’s in thousands): | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Furniture and equipment | $ | 648 | $ | 646 | |||||
Software | 788 | 750 | |||||||
Equipment | 939 | 844 | |||||||
Leasehold improvements | 590 | 590 | |||||||
2,965 | 2,830 | ||||||||
Less accumulated depreciation | (2,221 | ) | (1,930 | ) | |||||
Fixed assets, net | $ | 744 | $ | 900 |
6_Capitalized_Software_Develop1
6. Capitalized Software Development Costs (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 'Our capitalized software development costs profile is as follows: ($’s in thousands): | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Gross capitalized cost | $ | 1,229 | $ | 330 | |||||
Accumulated amortization | (201 | ) | (27 | ) | |||||
Net balance | $ | 1,028 | $ | 303 | |||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Amount capitalized | $ | 889 | $ | 330 | |||||
Amortization expense | (174 | ) | (27 | ) | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||
Released | Unreleased | ||||||||
Products | Products | ||||||||
Gross capitalized amount at December 31, 2013 | $ | 408 | $ | 620 | |||||
Future amortization expense for | |||||||||
the year ending December 31, | |||||||||
2014 | $ | 203 | |||||||
2015 | 175 | ||||||||
2016 | 30 | ||||||||
Total | $ | 408 |
7_Acquired_Intangible_Assets_a1
7. Acquired Intangible Assets and TappIn Earnout Liability (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | 'Intangible assets resulting from our acquisition of Availl, Inc. in 2006 and TappIn, Inc. in 2011 consisted of the following ($’s in thousands): | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Life | Accumulated | Reduction to | Accumulated | ||||||||||||||||||||||||||||||
(Years) | Gross | Amortization | Zero | Net | Gross | Amortization | Net | ||||||||||||||||||||||||||
TappIn, Inc. | |||||||||||||||||||||||||||||||||
Customer relationship | 10 | $ | 1,863 | $ | (342 | ) | $ | (1,521 | ) | $ | - | $ | 1,863 | $ | (202 | ) | $ | 1,661 | |||||||||||||||
Developed technology | 7 | 2,771 | (726 | ) | (2,045 | ) | - | 2,771 | (429 | ) | 2,342 | ||||||||||||||||||||||
Availl, Inc. | |||||||||||||||||||||||||||||||||
Software | 5 | 1,775 | (1,775 | ) | - | - | 1,775 | (1,775 | ) | 0 | |||||||||||||||||||||||
Customer List | 5 | 180 | (180 | ) | - | - | 180 | (180 | ) | - | |||||||||||||||||||||||
Patent | 18 | 7 | (7 | ) | - | - | 7 | (4 | ) | 3 | |||||||||||||||||||||||
Total | $ | 6,596 | $ | (3,030 | ) | $ | (3,566 | ) | $ | - | $ | 6,596 | $ | (2,590 | ) | $ | 4,006 | ||||||||||||||||
Schedule of Impaired Intangible Assets [Table Text Block] | 'The effects of the above items are summarized as follows ($’s in thousands): | ||||||||||||||||||||||||||||||||
Reduction of intangible assets: | |||||||||||||||||||||||||||||||||
Customer relationship | $ | (1,521 | ) | ||||||||||||||||||||||||||||||
Developed technology | (2,045 | ) | |||||||||||||||||||||||||||||||
Elimination of earnout liability | 3,694 | ||||||||||||||||||||||||||||||||
Net TappIn asset impairment and earnout liability elimination before taxes | 128 | ||||||||||||||||||||||||||||||||
Federal income taxes | 1,213 | ||||||||||||||||||||||||||||||||
Net TappIn asset impairment and earnout liability elimination after taxes | $ | 1,341 |
8_Notes_Payable_Tables
8. Notes Payable (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | 'Scheduled future principal payments under the loan agreements as of December 31, 2013, are as follows ($ in thousands): | ||||
Year Ending December 31, | |||||
2014 | $ | 1,397 | |||
2015 | 1,462 | ||||
2016 | 1,527 | ||||
Total | $ | 4,386 |
9_Stock_Options_Restricted_Sto1
9. Stock Options, Restricted Stock and Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||
Schedule Of Share Based Compensation Expense | 'Our share-based compensation expense was as follows ($ in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Share-based compensation expense | $ | 666 | $ | 915 | $ | 1,003 | ||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'Our stock option activity has been as follows: | |||||||||||||||||||||||||
Weighted | Weighted Average | |||||||||||||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||||||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||||||||||||||||
Shares | Price | Terms | Value | |||||||||||||||||||||||
(Years) | (000's) | |||||||||||||||||||||||||
Outstanding at December 31, 2010 | 3,260,327 | $ | 1.83 | 7.63 | $ | 1,480 | ||||||||||||||||||||
2011 | ||||||||||||||||||||||||||
Granted | 1,293,500 | $ | 2 | |||||||||||||||||||||||
Forfeitures | 203,962 | $ | 2.28 | |||||||||||||||||||||||
Exercised | 291,545 | $ | 1.21 | |||||||||||||||||||||||
Outstanding at December 31, 2011 | 4,058,320 | $ | 1.91 | 6.39 | $ | 540 | ||||||||||||||||||||
2012 | ||||||||||||||||||||||||||
Granted | 422,000 | $ | 1.93 | |||||||||||||||||||||||
Forfeitures | 755,625 | $ | 4.09 | |||||||||||||||||||||||
Exercised | 74,600 | $ | 0.94 | |||||||||||||||||||||||
Outstanding at December 31, 2012 | 3,650,095 | $ | 1.91 | 6.14 | $ | 300 | ||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Granted | 424,740 | $ | 1.66 | |||||||||||||||||||||||
Forfeitures | 371,520 | $ | 2.17 | |||||||||||||||||||||||
Exercised | 585,570 | $ | 1.52 | |||||||||||||||||||||||
Outstanding at December 31, 2013 | 3,117,745 | $ | 1.92 | 4.46 | $ | 1,808 | ||||||||||||||||||||
Exercisable at December 31, 2013 | 2,437,135 | $ | 1.96 | 3.33 | $ | 1,436 | ||||||||||||||||||||
Schedule of Stock Options Roll Forward [Table Text Block] | 'Additional information about our stock options is as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Weighted average fair value of options granted during the year | $ | 0.87 | $ | 1.09 | $ | 1.08 | ||||||||||||||||||||
Intrinsic value of options exercised during the year | $ | 238,905 | $ | 63,820 | $ | 185,258 | ||||||||||||||||||||
Cash received from stock options exercised during the year | $ | 889,000 | $ | 70,000 | $ | 352,000 | ||||||||||||||||||||
Number of options that vested during the year | 519,175 | 382,772 | 376,409 | |||||||||||||||||||||||
Fair value of options that vested during the year | $ | 632,000 | $ | 737,000 | $ | 946,000 | ||||||||||||||||||||
Unrecognized compensation expense related to non-vested options at end of year | $ | 526,000 | $ | 963,000 | $ | 1,700,000 | ||||||||||||||||||||
Weighted average years over which non-vested option expense will be recognized | 1.97 | 1.84 | 2.36 | |||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||||||||||||
Underlying | Remaining | Average | Number of | Average | ||||||||||||||||||||||
Range of | Shares | Contractual | Exercise | Underlying | Exercise | |||||||||||||||||||||
Exercise Prices | Outstanding | Life | Price | Shares | Price | |||||||||||||||||||||
$ | 0.15 | - | $ | 0.33 | 53,000 | 1.2 | $ | 0.26 | 53,000 | $ | 0.26 | |||||||||||||||
$ | 0.85 | - | $ | 1.41 | 605,040 | 2.4 | $ | 1.09 | 605,040 | $ | 1.09 | |||||||||||||||
$ | 1.43 | - | $ | 2.16 | 1,700,685 | 5.7 | $ | 1.8 | 1,084,915 | $ | 1.8 | |||||||||||||||
$ | 2.18 | - | $ | 4.10 | 759,020 | 3.6 | $ | 3.02 | 694,180 | $ | 3.09 | |||||||||||||||
Total options | 3,117,745 | 2,437,135 | ||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 'We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: | |||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Expected volatility | 55 | % | 63 | % | 77 | % | ||||||||||||||||||||
Expected annual dividend yield | 0 | 0 | 0 | |||||||||||||||||||||||
Risk free rate of return | 1.48 | % | 0.98 | % | 2.46 | % | ||||||||||||||||||||
Expected option term (years) | 6 | 6 | 6 | |||||||||||||||||||||||
Nonvested Restricted Stock Shares Activity [Table Text Block] | 'Our restricted stock awards activity has been as follows: | |||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Grant Date | Fair Value of | |||||||||||||||||||||||||
Number of | Fair Value | Shares That | ||||||||||||||||||||||||
Shares | Per Share | Vested | ||||||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2010 | 53,420 | $ | 2.01 | |||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||
Shares granted with restrictions | 80,000 | $ | 2.16 | |||||||||||||||||||||||
Shares vested and restrictions removed | (53,420 | ) | $ | 2.01 | $ | 107,000 | ||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2011 | 80,000 | $ | 2.16 | |||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||
Shares granted with restrictions | 80,000 | $ | 1.97 | |||||||||||||||||||||||
Shares vested and restrictions removed | (80,000 | ) | $ | 2.16 | $ | 158,000 | ||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2012 | 80,000 | $ | 1.97 | |||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Shares granted with restrictions | 80,000 | $ | 1.65 | |||||||||||||||||||||||
Shares vested and restrictions removed | (80,000 | ) | $ | 1.97 | $ | 133,600 | ||||||||||||||||||||
Restricted Shares Outstanding at December 31, 2013 | 80,000 | $ | 1.65 |
11_Income_Taxes_Tables
11. Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 'The components of our income tax expense (benefit) are as follows ($ in thousands): | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||||
Federal | $ | 898 | $ | (1,090 | ) | $ | (192 | ) | $ | (574 | ) | $ | 741 | $ | 167 | $ | 460 | $ | (352 | ) | $ | 108 | |||||||||||||||
State | 85 | 3 | 88 | 55 | (5 | ) | 50 | 61 | - | 61 | |||||||||||||||||||||||||||
Total | $ | 983 | $ | (1,087 | ) | $ | (104 | ) | $ | (519 | ) | $ | 736 | $ | 217 | $ | 521 | $ | (352 | ) | $ | 169 | |||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'Deferred income taxes on our balance sheet reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): | ||||||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||||||||||||||
Capital loss carryforward | $ | 1,099 | $ | 1,099 | |||||||||||||||||||||||||||||||||
Share-based compensation | 1,005 | 1,017 | |||||||||||||||||||||||||||||||||||
Deferred revenue | 503 | 470 | |||||||||||||||||||||||||||||||||||
Net operating loss carryforward | 270 | 386 | |||||||||||||||||||||||||||||||||||
Compensation and benefits | 84 | 102 | |||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | 52 | 58 | |||||||||||||||||||||||||||||||||||
Other | 2 | 24 | |||||||||||||||||||||||||||||||||||
Total gross deferred tax assets | 3,015 | 3,156 | |||||||||||||||||||||||||||||||||||
Valuation allowance | (1,099 | ) | (1,099 | ) | |||||||||||||||||||||||||||||||||
Net deferred tax assets | 1,916 | 2,057 | |||||||||||||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||||||||||||||
Intangible assets | 193 | 1,142 | |||||||||||||||||||||||||||||||||||
Depreciation | 65 | 203 | |||||||||||||||||||||||||||||||||||
Total gross deferred tax liabilities | 258 | 1,345 | |||||||||||||||||||||||||||||||||||
Net deferred tax assets | $ | 1,658 | $ | 712 | |||||||||||||||||||||||||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 'The aggregate changes in the balance of our gross unrecognized tax benefits were as follows ($ in thousands): | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 125 | $ | - | |||||||||||||||||||||||||||||||||
Increases for tax positions related to the current year | - | - | |||||||||||||||||||||||||||||||||||
Increases for tax positions related to prior years | - | 125 | |||||||||||||||||||||||||||||||||||
Decreases for tax positions related to prior years | - | - | |||||||||||||||||||||||||||||||||||
Reductions due to lapsed statute of limitations | - | - | |||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 125 | $ | 125 | |||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 'Our income tax expense (benefit) reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Income tax expense (benefit) at federal statutory rate | $ | 1,270 | $ | (538 | ) | $ | 291 | ||||||||||||||||||||||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||||||||||||||||||||||
State taxes, net of federal benefit | 57 | 32 | 40 | ||||||||||||||||||||||||||||||||||
Other | 20 | (16 | ) | 26 | |||||||||||||||||||||||||||||||||
Capital loss carryforward valuation allowance | - | 1,099 | - | ||||||||||||||||||||||||||||||||||
R&D tax credit uncertain tax position | - | 125 | - | ||||||||||||||||||||||||||||||||||
Costs to acquire TappIn, Inc. | - | - | 185 | ||||||||||||||||||||||||||||||||||
Share-based compensation | (1 | ) | 1 | 60 | |||||||||||||||||||||||||||||||||
Research and development credit | (95 | ) | - | (358 | ) | ||||||||||||||||||||||||||||||||
Domestic production activities deduction | (99 | ) | (43 | ) | (75 | ) | |||||||||||||||||||||||||||||||
Tappin earnout liability not earned | (1,256 | ) | (443 | ) | - | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) per the statement of operations | $ | (104 | ) | $ | 217 | $ | 169 |
14_Commitments_and_Contingenci1
14. Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Loss Contingency [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 'Minimum rental commitments under operating leases at December 31, 2013, are as follows ($ in thousands): | ||||
Year Ending December 31, | |||||
2014 | $ | 473 | |||
2015 | 357 | ||||
2016 | 347 | ||||
2017 | 347 | ||||
2018 | 347 | ||||
Thereafter | 115 | ||||
Total | $ | 1,986 |
15_Acquisition_of_TappIn_Inc_T
15. Acquisition of TappIn, Inc. (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 'For financial statement purposes, we determined and recorded the purchase price as follows ($’s in thousands): | ||||||||||||
Cash paid at acquisition close date: | |||||||||||||
Sourced from cash on hand | $ | 2,000 | |||||||||||
Sourced from note payable to a bank | 7,000 | ||||||||||||
Total | 9,000 | ||||||||||||
Contingent consideration | 6,997 | ||||||||||||
Additional cash paid for net working capital | 190 | ||||||||||||
Total purchase price | $ | 16,187 | |||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | 'We allocated the total purchase price to assets and liabilities based on their estimated fair values at the acquisition date. In allocating the purchase price to intangible assets and goodwill, our first allocation was to identifiable intangible assets, including developed technology and customer relationships, after which we allocated the remainder to goodwill. These allocations were as follows ($ in thousands): | ||||||||||||
Accounts receivable | $ | 169 | |||||||||||
Current assets | 28 | ||||||||||||
Property and equipment, net | 20 | ||||||||||||
Intangibles | 4,634 | ||||||||||||
Goodwill | 11,343 | ||||||||||||
Assumed liabilities | (3 | ) | |||||||||||
Deferred revenue | (4 | ) | |||||||||||
Net assets acquired | $ | 16,187 | |||||||||||
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | 'The change in the TappIn earn out liability is as follows ($ in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 4,194 | $ | 6,997 | |||||||||
Earn out paid in cash | - | (1,500 | ) | ||||||||||
Earn out liability not earned | (4,194 | ) | (1,303 | ) | |||||||||
Ending balance | $ | - | $ | 4,194 | |||||||||
TappIn earnout liability, current portion | $ | - | $ | 500 | |||||||||
TappIn earnout liability, non-current portion | - | 3,694 | |||||||||||
$ | - | $ | 4,194 | ||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | 'The following table presents unaudited, pro forma consolidated results of operations for 2011 as if the TappIn acquisition had been completed on January 1, 2010. The comparative amounts for 2013 and 2012 are as they appear in our consolidated statement of operations and require no proforma adjustments since they already include the results of Tappin operations: | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total revenues | $ | 24,339 | $ | 23,372 | $ | 21,170 | |||||||
Net income (loss) | $ | 3,840 | $ | (1,800 | ) | $ | (1,276 | ) | |||||
Net loss per share: | |||||||||||||
Basic | $ | 0.21 | $ | (0.10 | ) | $ | (0.07 | ) | |||||
Diluted | $ | 0.2 | $ | (0.10 | ) | $ | (0.07 | ) |
16_Quarterly_Consolidated_Fina1
16. Quarterly Consolidated Financial Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 'Quarterly Consolidated Financial Information (unaudited) | ||||||||||||||||
Fiscal Year 2013 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Total revenues | $ | 5,879 | $ | 5,925 | $ | 6,337 | $ | 6,197 | |||||||||
Total operating expenses | $ | 5,132 | $ | 5,297 | $ | 4,802 | $ | 5,207 | |||||||||
Other income (expense) | $ | (47 | ) | $ | (43 | ) | $ | (39 | ) | $ | (35 | ) | |||||
Net income (loss) before provision for income taxes | $ | 700 | $ | 585 | $ | 1,496 | $ | 955 | |||||||||
Net income (loss) | $ | 517 | $ | 381 | $ | 2,287 | $ | 655 | |||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.03 | $ | 0.02 | $ | 0.12 | $ | 0.04 | |||||||||
Diluted | $ | 0.03 | $ | 0.02 | $ | 0.12 | $ | 0.03 | |||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 18,444 | 18,502 | 18,761 | 18,873 | |||||||||||||
Diluted | 18,982 | 18,955 | 19,158 | 19,461 | |||||||||||||
Fiscal Year 2012 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Total revenues | $ | 5,393 | $ | 5,702 | $ | 6,078 | $ | 6,199 | |||||||||
Total operating expenses | $ | 5,728 | $ | 5,774 | $ | 8,867 | $ | 4,397 | |||||||||
Other income (expense) | $ | (66 | ) | $ | (61 | ) | $ | (11 | ) | $ | (51 | ) | |||||
Net income (loss) before provision for income taxes | $ | (401 | ) | $ | (133 | ) | $ | (2,800 | ) | $ | 1,751 | ||||||
Net income (loss) | $ | (253 | ) | $ | (140 | ) | $ | (2,714 | ) | $ | 1,307 | ||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.07 | ||||||
Diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.07 | ||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 18,288 | 18,320 | 18,398 | 18,421 | |||||||||||||
Diluted | 18,288 | 18,320 | 18,398 | 18,959 |
2_Significant_Accounting_Polic2
2. Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Cash, FDIC Insured Amount | $750,000 | ' | ' |
Goodwill, Impairment Loss | 0 | ' | ' |
Finite-Lived Intangible Assets, Net | 0 | 4,006,000 | ' |
Royalty Expense | 288,000 | 329,000 | 466,000 |
Advertising Expense | 729,000 | 493,000 | 582,000 |
Probability of occurrence of event | 50.00% | ' | ' |
Intangible Assets, Current | $303,000 | ' | ' |
Foreign Customers [Member] | Customer Concentration Risk [Member] | Sales [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 27.00% | 26.00% | 31.00% |
Equity Option [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | ' | 531,634 | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '7 years | ' | ' |
Computer Equipment [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Leasehold Improvements [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'depreciated over the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset | ' | ' |
Software and Software Development Costs [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years | ' | ' |
Customer Concentration Risk [Member] | Sales [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Customer | 'no single customer | 'no single customer | 'no single customer |
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Customer | 'one customer | 'no customer | ' |
Concentration Risk, Percentage | 14.00% | 10.00% | ' |
Minimum [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years | ' | ' |
Maximum [Member] | ' | ' | ' |
2. Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '18 years | ' | ' |
2_Significant_Accounting_Polic3
2. Significant Accounting Policies (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Numerator for basic and diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) (in Dollars) | $655 | $2,287 | $381 | $517 | $1,307 | ($2,714) | ($140) | ($253) | $3,840 | ($1,800) | [1] | $635 |
Denominators for basic and diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Weighted average shares outstanding basic | 18,873 | 18,761 | 18,502 | 18,444 | 18,421 | 18,398 | 18,320 | 18,288 | 18,626 | 18,358 | [1] | 18,081 |
Dilutive potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | 456 | 0 | [1] | 666 |
Denominator for dilutive earnings per share | 19,461 | 19,158 | 18,955 | 18,982 | 18,959 | 18,398 | 18,320 | 18,288 | 19,082 | 18,358 | [1] | 18,747 |
Net income (loss) per common share - basic (in Dollars per share) | $0.04 | $0.12 | $0.02 | $0.03 | $0.07 | ($0.15) | ($0.01) | ($0.01) | $0.21 | ($0.10) | [1] | $0.04 |
Net income (loss) per common share – diluted (in Dollars per share) | $0.03 | $0.12 | $0.02 | $0.03 | $0.07 | ($0.15) | ($0.01) | ($0.01) | $0.20 | ($0.10) | [1] | $0.03 |
[1] | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. |
4_Accounts_Receivable_Details_
4. Accounts Receivable (Details) - Allowance for Credit Losses on Financing Receivables (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Credit Losses on Financing Receivables [Abstract] | ' | ' | ' |
Balance, beginning of period | $171 | $170 | $237 |
Bad debt expense or (recovery) | 29 | 68 | -62 |
Uncollectible accounts receivable | -46 | -67 | -5 |
Balance, end of period | $154 | $171 | $170 |
5_Fixed_Assets_Details_Propert
5. Fixed Assets (Details) - Property, Plant and Equipment (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $2,965 | $2,830 |
Less accumulated depreciation | -2,221 | -1,930 |
Fixed assets, net | 744 | 900 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 648 | 646 |
Software and Software Development Costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 788 | 750 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 939 | 844 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $590 | $590 |
6_Capitalized_Software_Develop2
6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Finite-Lived Intangible Assets [Abstract] | ' | ' |
Gross capitalized cost | $1,229 | $330 |
Accumulated amortization | -201 | -27 |
Net balance | $1,028 | $303 |
6_Capitalized_Software_Develop3
6. Capitalized Software Development Costs (Details) - Finite-lived Intangible Assets Amortization Expense (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-lived Intangible Assets Amortization Expense [Abstract] | ' | ' |
Amount capitalized | $889 | $330 |
Amortization expense | ($174) | ($27) |
6_Capitalized_Software_Develop4
6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Line Items] | ' | ' |
Gross capitalized amount at December 31, 2013 | $1,229 | $330 |
Future amortization expense for the year ending December 31, | ' | ' |
Total | 0 | 4,006 |
Released Products [Member] | Computer Software, Intangible Asset [Member] | ' | ' |
6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Line Items] | ' | ' |
Gross capitalized amount at December 31, 2013 | 408 | ' |
Future amortization expense for the year ending December 31, | ' | ' |
2014 | 203 | ' |
2015 | 175 | ' |
2016 | 30 | ' |
Total | 408 | ' |
Unreleased Products [Member] | Computer Software, Intangible Asset [Member] | ' | ' |
6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Line Items] | ' | ' |
Gross capitalized amount at December 31, 2013 | $620 | ' |
7_Acquired_Intangible_Assets_a2
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) [Line Items] | ' | ' | ' |
Intangible Assets, Current | $303,000 | ' | ' |
Business Acquisition Earn Out Liabilities, Current | 0 | 500,000 | ' |
TappIn [Member] | Developed Technology Rights [Member] | ' | ' | ' |
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) [Line Items] | ' | ' | ' |
Intangible Assets, Current | 0 | ' | ' |
TappIn [Member] | Customer Relationships [Member] | ' | ' | ' |
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) [Line Items] | ' | ' | ' |
Intangible Assets, Current | 0 | ' | ' |
TappIn [Member] | ' | ' | ' |
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | 614,000 | 895,000 | 350,000 |
Contingent Consideration Eligible To Receive On Fulfillment Of Revenue Targets | 4,500,000 | ' | ' |
Business Combination, Consideration Transferred, Liabilities Incurred | 3,700,000 | ' | 7,000,000 |
Business Acquisition Earn Out Liabilities, Current | 0 | 500,000 | ' |
Deferred Tax Liabilities, Net | $1,200,000 | ' | ' |
7_Acquired_Intangible_Assets_a3
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) - Schedule of Acquired Finite-Lived Intangible Assets by Major Class (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
TappIn, Inc. | ' | ' |
Gross Carrying Amount | $6,596 | $6,596 |
Accumulated Amortization | -3,030 | -2,590 |
Reduction to Zero | -3,566 | ' |
Net Book Value | 0 | 4,006 |
TappIn [Member] | Customer Relationships [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Life | '10 years | ' |
Gross Carrying Amount | 1,863 | 1,863 |
Accumulated Amortization | -342 | -202 |
Reduction to Zero | -1,521 | ' |
Net Book Value | 0 | 1,661 |
TappIn [Member] | Developed Technology Rights [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Life | '7 years | ' |
Gross Carrying Amount | 2,771 | 2,771 |
Accumulated Amortization | -726 | -429 |
Reduction to Zero | -2,045 | ' |
Net Book Value | 0 | 2,342 |
Availl, Inc. [Member] | Computer Software, Intangible Asset [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Life | '5 years | ' |
Gross Carrying Amount | 1,775 | 1,775 |
Accumulated Amortization | -1,775 | -1,775 |
Reduction to Zero | 0 | ' |
Net Book Value | 0 | 0 |
Availl, Inc. [Member] | Customer Lists [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Life | '5 years | ' |
Gross Carrying Amount | 180 | 180 |
Accumulated Amortization | -180 | -180 |
Reduction to Zero | 0 | ' |
Net Book Value | 0 | 0 |
Availl, Inc. [Member] | Patents [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Life | '18 years | ' |
Gross Carrying Amount | 7 | 7 |
Accumulated Amortization | -7 | -4 |
Reduction to Zero | 0 | ' |
Net Book Value | 0 | 3 |
Customer Relationships [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Reduction to Zero | -1,521 | ' |
Developed Technology Rights [Member] | ' | ' |
TappIn, Inc. | ' | ' |
Reduction to Zero | ($2,045) | ' |
7_Acquired_Intangible_Assets_a4
7. Acquired Intangible Assets and TappIn Earnout Liability (Details) - Schedule of Impaired Intangible Assets (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reduction of intangible assets: | ' | ' | ' |
Impairment of intangible asset | ($3,566) | ' | ' |
Elimination of earnout liability | 3,694 | ' | ' |
Net TappIn asset impairment and earnout liability elimination before taxes | 128 | 1,303 | 0 |
Federal income taxes | 1,213 | ' | ' |
Net TappIn asset impairment and earnout liability elimination after taxes | 1,341 | ' | ' |
Customer Relationships [Member] | ' | ' | ' |
Reduction of intangible assets: | ' | ' | ' |
Impairment of intangible asset | -1,521 | ' | ' |
Developed Technology Rights [Member] | ' | ' | ' |
Reduction of intangible assets: | ' | ' | ' |
Impairment of intangible asset | ($2,045) | ' | ' |
8_Notes_Payable_Details
8. Notes Payable (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
Substantial Assets [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | TappIn [Member] | Minimum [Member] | Maximum [Member] | |||
4 Million Note [Member] | 3 Million Note [Member] | |||||||
8. Notes Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Secured Long-term Debt, Noncurrent | ' | ' | ' | ' | ' | $7,000,000 | ' | ' |
Debt Instrument, Face Amount | ' | ' | 4,000,000 | 3,000,000 | ' | ' | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' | 4.75% | 4.25% | 2.00% | ' | ' | ' |
Debt Instrument, Collateral Amount | ' | ' | ' | 3,000,000 | ' | ' | ' | ' |
Secured Debt | 4,400,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Payment Terms | 'Interest and principal are payable under both notes payable in 60 equal monthly installments | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment | 131,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | 2-Dec-16 | ' | ' | ' | ' | ' | ' | ' |
Required Debt Service Coverage Ratio | 2.44 | ' | ' | ' | ' | ' | 1.25 | ' |
Required Debt To Tangible Net Worth Ratio Debt Covenant | 0.45 | ' | ' | ' | ' | ' | ' | 4 |
Liquid Assets | 3,200,000 | 2,200,000 | ' | ' | ' | ' | ' | ' |
Cash, Cash Equivalents, and Short-term Investments | $9,500,000 | ' | ' | ' | ' | ' | ' | ' |
8_Notes_Payable_Details_Schedu
8. Notes Payable (Details) - Schedule of Maturities of Long-term Debt (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Maturities of Long-term Debt [Abstract] | ' |
2014 | $1,397 |
2015 | 1,462 |
2016 | 1,527 |
Total | $4,386 |
9_Stock_Options_Restricted_Sto2
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 424,740 | 422,000 | 1,293,500 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 354 days | '1 year 306 days | '2 years 131 days |
Employee Stock Option [Member] | 2010 Employee Long-Term Equity Incentive Plan [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '10 years | ' | ' |
Employee Stock Option [Member] | 2006 Non-Employee Directors Long-term Equity Incentive Plan [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Restricted Stock [Member] | 2010 Employee Long-Term Equity Incentive Plan [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0 | 0 | 0 |
Restricted Stock [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | '1 year | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options (in Dollars) | 58,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '5 months | ' | ' |
2010 Employee Long-Term Equity Incentive Plan [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,596,540 | ' | ' |
2006 Non-Employee Directors Long-term Equity Incentive Plan [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 148,500 | ' | ' |
9_Stock_Options_Restricted_Sto3
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule Of Share Based Compensation Expense (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Share Based Compensation Expense [Abstract] | ' | ' | ' |
Share-based compensation expense | $666 | $915 | $1,003 |
9_Stock_Options_Restricted_Sto4
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ' | ' | ' |
Outstanding at December 31, 2010 | 3,650,095 | 4,058,320 | 3,260,327 |
Outstanding at December 31, 2010 | $1.91 | $1.91 | $1.83 |
Outstanding at December 31, 2010 | '6 years 51 days | '6 years 142 days | '7 years 229 days |
Outstanding at December 31, 2010 | $300 | $540 | $1,480 |
Number of Shares, Granted | 424,740 | 422,000 | 1,293,500 |
Average Exercise Price, Granted | $1.66 | $1.93 | $2 |
Number of Shares, Forfeitures | 371,520 | 755,625 | 203,962 |
Average Exercise Price, Forfeitures | $2.17 | $4.09 | $2.28 |
Number of Shares, Exercised | 585,570 | 74,600 | 291,545 |
Average Exercise Price, Exercised | $1.52 | $0.94 | $1.21 |
Number of Shares, Outstanding | 3,117,745 | 3,650,095 | 4,058,320 |
Average Exercise Price, Outstanding | $1.92 | $1.91 | $1.91 |
Remaining Contractual Term, Outstanding | '4 years 167 days | '6 years 51 days | '6 years 142 days |
Intrinsic Value, Outstanding | 1,808 | 300 | 540 |
Exercisable at December 31, 2013 | 2,437,135 | ' | ' |
Exercisable at December 31, 2013 | $1.96 | ' | ' |
Exercisable at December 31, 2013 | '3 years 120 days | ' | ' |
Exercisable at December 31, 2013 | $1,436 | ' | ' |
9_Stock_Options_Restricted_Sto5
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Stock Options Roll Forward (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Stock Options Roll Forward [Abstract] | ' | ' | ' |
Weighted average fair value of options granted during the year (in Dollars per share) | $0.87 | $1.09 | $1.08 |
Intrinsic value of options exercised during the year | $238,905 | $63,820 | $185,258 |
Cash received from stock options exercised during the year | 889,000 | 70,000 | 352,000 |
Number of options that vested during the year (in Shares) | 519,175 | 382,772 | 376,409 |
Fair value of options that vested during the year | 632,000 | 737,000 | 946,000 |
Unrecognized compensation expense related to non-vested options at end of year | $526,000 | $963,000 | $1,700,000 |
Weighted average years over which non-vested option expense will be recognized | '1 year 354 days | '1 year 306 days | '2 years 131 days |
9_Stock_Options_Restricted_Sto6
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, ActiviSchedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Underlying Shares Outstanding (in Shares) | 3,117,745 |
Number of Underlying Shares, Options Exercisable (in Shares) | 2,437,135 |
$0.15 - $0.33 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Limit | $0.15 |
Range of Exercise Price, Upper Limit | $0.33 |
Underlying Shares Outstanding (in Shares) | 53,000 |
Weighted Average Remaining Contractual Life, Options Outstanding | '1 year 73 days |
Weighted Average Exercise Price, Options Outstanding | $0.26 |
Number of Underlying Shares, Options Exercisable (in Shares) | 53,000 |
Weighted Average Exercise Price, Options Exercisable | $0.26 |
$0.85 - $1.41 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Limit | $0.85 |
Range of Exercise Price, Upper Limit | $1.41 |
Underlying Shares Outstanding (in Shares) | 605,040 |
Weighted Average Remaining Contractual Life, Options Outstanding | '2 years 146 days |
Weighted Average Exercise Price, Options Outstanding | $1.09 |
Number of Underlying Shares, Options Exercisable (in Shares) | 605,040 |
Weighted Average Exercise Price, Options Exercisable | $1.09 |
$1.43 - $2.16 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Limit | $1.43 |
Range of Exercise Price, Upper Limit | $2.16 |
Underlying Shares Outstanding (in Shares) | 1,700,685 |
Weighted Average Remaining Contractual Life, Options Outstanding | '5 years 255 days |
Weighted Average Exercise Price, Options Outstanding | $1.80 |
Number of Underlying Shares, Options Exercisable (in Shares) | 1,084,915 |
Weighted Average Exercise Price, Options Exercisable | $1.80 |
$2.18 - $4.10 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Limit | $2.18 |
Range of Exercise Price, Upper Limit | $4.10 |
Underlying Shares Outstanding (in Shares) | 759,020 |
Weighted Average Remaining Contractual Life, Options Outstanding | '3 years 219 days |
Weighted Average Exercise Price, Options Outstanding | $3.02 |
Number of Underlying Shares, Options Exercisable (in Shares) | 694,180 |
Weighted Average Exercise Price, Options Exercisable | $3.09 |
9_Stock_Options_Restricted_Sto7
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract] | ' | ' | ' |
Expected volatility | 55.00% | 63.00% | 77.00% |
Expected annual dividend yield | 0.00% | 0.00% | 0.00% |
Risk free rate of return | 1.48% | 0.98% | 2.46% |
Expected option term (years) | '6 years | '6 years | '6 years |
9_Stock_Options_Restricted_Sto8
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Number of Shares [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items] | ' | ' | ' |
Number of shares, restricted shares outstanding | 80,000 | 80,000 | 53,420 |
Number of shares, shares granted with restrictions | 80,000 | 80,000 | 80,000 |
Number of shares, shares vested and restrictions eliminated | -80,000 | -80,000 | -53,420 |
Number of shares, restricted shares outstanding | 80,000 | 80,000 | 80,000 |
Grant Date Fair Value Per Share [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items] | ' | ' | ' |
Grant date fair value per share, restricted shares outstanding | 1.97 | 2.16 | 2.01 |
Grant date fair value per share, shares granted with restrictions | 1.65 | 1.97 | 2.16 |
Grant date fair value per share, shares vested and restrictions eliminated | 1.97 | 2.16 | 2.01 |
Grant date fair value per share, restricted shares outstanding | 1.65 | 1.97 | 2.16 |
Total Value of Shares That Vested [Member] | ' | ' | ' |
9. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items] | ' | ' | ' |
Total fair value of shares that vested, shares vested and restrictions eliminated | 133,600 | 158,000 | 107,000 |
10_Common_Stock_Purchase_Warra1
10. Common Stock Purchase Warrants (Details) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Stockholders' Equity Note [Abstract] | ' |
Class of Warrant or Rights, Granted | 1,352,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.15 |
Warrants, Expiration Date | 'May 2012 |
11_Income_Taxes_Details
11. Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
11. Income Taxes (Details) [Line Items] | ' | ' | ' |
Deferred Tax Assets, Capital Loss Carryforwards | $1,099,000 | $1,099,000 | ' |
Due from Related Parties | 0 | ' | ' |
Income Tax Examination, Estimate of Possible Loss | ' | 125,000 | ' |
Income Tax Examination, Penalties and Interest Expense | 0 | 0 | 0 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% |
Domestic Tax Authority [Member] | ' | ' | ' |
11. Income Taxes (Details) [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | $794,000 | ' | ' |
Domestic Tax Authority [Member] | Minimum [Member] | ' | ' | ' |
11. Income Taxes (Details) [Line Items] | ' | ' | ' |
Federal Net Operating Loss Carryforwards Expiration Year | '2030 | ' | ' |
Domestic Tax Authority [Member] | Maximum [Member] | ' | ' | ' |
11. Income Taxes (Details) [Line Items] | ' | ' | ' |
Federal Net Operating Loss Carryforwards Expiration Year | '2031 | ' | ' |
11_Income_Taxes_Details_Schedu
11. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
11. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
Total | $983 | ($519) | $521 |
Total | -948 | -377 | -352 |
Total | -104 | 217 | 169 |
Domestic Tax Authority [Member] | ' | ' | ' |
11. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
Federal | 898 | -574 | 460 |
Federal | -1,090 | 741 | -352 |
Federal | -192 | 167 | 108 |
State and Local Jurisdiction [Member] | ' | ' | ' |
11. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
State | 85 | 55 | 61 |
State | 3 | -5 | 0 |
State | $88 | $50 | $61 |
11_Income_Taxes_Details_Schedu1
11. Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Capital loss carryforward | $1,099 | $1,099 |
Share-based compensation | 1,005 | 1,017 |
Deferred revenue | 503 | 470 |
Net operating loss carryforward | 270 | 386 |
Compensation and benefits | 84 | 102 |
Allowance for doubtful accounts | 52 | 58 |
Other | 2 | 24 |
Total gross deferred tax assets | 3,015 | 3,156 |
Valuation allowance | -1,099 | -1,099 |
Net deferred tax assets | 1,916 | 2,057 |
Deferred tax liabilities: | ' | ' |
Intangible assets | 193 | 1,142 |
Depreciation | 65 | 203 |
Total gross deferred tax liabilities | 258 | 1,345 |
Net deferred tax assets | $1,658 | $712 |
11_Income_Taxes_Details_Schedu2
11. Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract] | ' | ' |
Balance, beginning of year | $125 | $0 |
Increases for tax positions related to the current year | 0 | 0 |
Increases for tax positions related to prior years | 0 | 125 |
Decreases for tax positions related to prior years | 0 | 0 |
Reductions due to lapsed statute of limitations | 0 | 0 |
Balance, end of year | $125 | $125 |
11_Income_Taxes_Details_Schedu3
11. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ' | ' | ' |
Income tax expense (benefit) at federal statutory rate | $1,270 | ($538) | $291 |
Increase (decrease) in taxes resulting from: | ' | ' | ' |
State taxes, net of federal benefit | 57 | 32 | 40 |
Other | 20 | -16 | 26 |
Capital loss carryforward valuation allowance | 0 | 1,099 | 0 |
R&D tax credit uncertain tax position | 0 | 125 | 0 |
Costs to acquire TappIn, Inc. | 0 | 0 | 185 |
Share-based compensation | -1 | 1 | 60 |
Research and development credit | -95 | 0 | -358 |
Domestic production activities deduction | -99 | -43 | -75 |
Tappin earnout liability not earned | -1,256 | -443 | 0 |
Income tax expense (benefit) per the statement of operations | ($104) | $217 | $169 |
12_Employee_Benefit_Plan_Detai
12. Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' |
Defined Benefit Plan, Contributions by Employer | $111,000 | $102,000 | $88,000 |
13_Investment_in_and_Notes_Rec1
13. Investment in and Notes Receivable From Affiliated Entity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | ' | ' |
Investments in and Advances to Affiliates, Balance, Principal Amount | ' | $0 | ' |
Asset Impairment Charges | $0 | $3,264,000 | $0 |
14_Commitments_and_Contingenci2
14. Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
14. Commitments and Contingencies (Details) [Line Items] | ' | ' | ' |
Operating Leases, Rent Expense | $473,000 | $468,000 | $356,000 |
Deferred Rent Credit | ' | 60,000 | ' |
Employee Agreements, Ending 2014 [Member] | ' | ' | ' |
14. Commitments and Contingencies (Details) [Line Items] | ' | ' | ' |
Other Commitment | 471,000 | ' | ' |
Employee Agreements, Ending 2015 [Member] | ' | ' | ' |
14. Commitments and Contingencies (Details) [Line Items] | ' | ' | ' |
Other Commitment | $145,000 | ' | ' |
14_Commitments_and_Contingenci3
14. Commitments and Contingencies (Details) - Schedule of Future Minimum Rental Payments for Operating Leases (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ' |
2014 | $473 |
2015 | 357 |
2016 | 347 |
2017 | 347 |
2018 | 347 |
Thereafter | 115 |
Total | $1,986 |
15_Acquisition_of_TappIn_Inc_D
15. Acquisition of TappIn, Inc. (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
15. Acquisition of TappIn, Inc. (Details) [Line Items] | ' | ' | ' |
Business Acquisition Earn Out Liabilities Noncurrent | $0 | $3,694,000 | ' |
Business Acquisition Earn Out Liabilities, Current | 0 | 500,000 | ' |
Product Development [Member] | TappIn [Member] | ' | ' | ' |
15. Acquisition of TappIn, Inc. (Details) [Line Items] | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | 2,000,000 | ' |
Business Acquisition Cost of Acquired Entity Earn Out Payments Paid In Cash | 500,000 | 1,500,000 | ' |
Revenue Milestone 2012 [Member] | TappIn [Member] | ' | ' | ' |
15. Acquisition of TappIn, Inc. (Details) [Line Items] | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | 1,500,000 | ' |
Business Acquisition Earn Out Liability Not Earned | ' | 3,300,000 | ' |
Revenue Milestone 2014 [Member] | TappIn [Member] | ' | ' | ' |
15. Acquisition of TappIn, Inc. (Details) [Line Items] | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | 8,000,000 | ' |
Business Acquisition Earn Out Liabilities Noncurrent | ' | 4,200,000 | ' |
TappIn [Member] | ' | ' | ' |
15. Acquisition of TappIn, Inc. (Details) [Line Items] | ' | ' | ' |
Business Combination Cost Of Acquisition Entity Cash Paid | ' | ' | 9,000,000 |
Other Payments to Acquire Businesses | ' | ' | 190,000 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | 8,000,000 |
Business Acquisition Cost of Acquired Entity Earn Out Payments Paid In Cash | 0 | 1,500,000 | ' |
Business Acquisition Earn Out Liability Not Earned | 4,194,000 | 1,303,000 | ' |
Business Acquisition Earn Out Liabilities Noncurrent | 0 | 3,694,000 | ' |
Business Acquisition Earn Out Liabilities, Current | $0 | $500,000 | ' |
15_Acquisition_of_TappIn_Inc_D1
15. Acquisition of TappIn, Inc. (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (TappIn [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 |
TappIn [Member] | ' | ' | ' |
Cash paid at acquisition close date: | ' | ' | ' |
Sourced from cash on hand | ' | $2,000 | ' |
Sourced from note payable to a bank | 3,700 | 7,000 | ' |
Total | ' | 9,000 | ' |
Contingent consideration | 0 | 6,997 | 4,194 |
Additional cash paid for net working capital | ' | 190 | ' |
Total purchase price | ' | $16,187 | ' |
15_Acquisition_of_TappIn_Inc_D2
15. Acquisition of TappIn, Inc. (Details) - Schedule of Business Acquisitions, by Acquisition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | TappIn [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' |
Accounts receivable | ' | ' | $169 |
Current assets | ' | ' | 28 |
Property and equipment, net | ' | ' | 20 |
Intangibles | ' | ' | 4,634 |
Goodwill | 12,712 | 12,712 | 11,343 |
Assumed liabilities | ' | ' | -3 |
Deferred revenue | ' | ' | -4 |
Net assets acquired | ' | ' | $16,187 |
15_Acquisition_of_TappIn_Inc_D3
15. Acquisition of TappIn, Inc. (Details) - Schedule of Business Acquisitions by Acquisition, Contingent Consideration (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' |
TappIn earnout liability, current portion | $0 | $500 |
TappIn earnout liability, non-current portion | 0 | 3,694 |
TappIn [Member] | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' |
Beginning balance | 4,194 | 6,997 |
Earn out paid in cash | 0 | -1,500 |
Earn out liability not earned | -4,194 | -1,303 |
Ending balance | 0 | 4,194 |
TappIn earnout liability, current portion | 0 | 500 |
TappIn earnout liability, non-current portion | 0 | 3,694 |
$0 | $4,194 |
15_Acquisition_of_TappIn_Inc_D4
15. Acquisition of TappIn, Inc. (Details) - Business Acquisition, Pro Forma Information (TappIn [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TappIn [Member] | ' | ' | ' |
15. Acquisition of TappIn, Inc. (Details) - Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' |
Total revenues | $24,339 | $23,372 | $21,170 |
Net income (loss) | $3,840 | ($1,800) | ($1,276) |
Basic | $0.21 | ($0.10) | ($0.07) |
Diluted | $0.20 | ($0.10) | ($0.07) |
16_Quarterly_Consolidated_Fina2
16. Quarterly Consolidated Financial Information (unaudited) (Details) - Schedule of Quarterly Financial Information (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total revenues | $6,197 | $6,337 | $5,925 | $5,879 | $6,199 | $6,078 | $5,702 | $5,393 | $24,339 | $23,372 | $20,894 | |
Total operating expenses | 5,207 | 4,802 | 5,297 | 5,132 | 4,397 | 8,867 | 5,774 | 5,728 | 20,438 | 24,766 | 20,103 | |
Other income (expense) | -35 | -39 | -43 | -47 | -51 | -11 | -61 | -66 | ' | ' | ' | |
Net income (loss) before provision for income taxes | 955 | 1,496 | 585 | 700 | 1,751 | -2,800 | -133 | -401 | 3,736 | -1,583 | 804 | |
Net income (loss) | $655 | $2,287 | $381 | $517 | $1,307 | ($2,714) | ($140) | ($253) | $3,840 | ($1,800) | [1] | $635 |
Net income (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Basic (in Dollars per share) | $0.04 | $0.12 | $0.02 | $0.03 | $0.07 | ($0.15) | ($0.01) | ($0.01) | $0.21 | ($0.10) | [1] | $0.04 |
Diluted (in Dollars per share) | $0.03 | $0.12 | $0.02 | $0.03 | $0.07 | ($0.15) | ($0.01) | ($0.01) | $0.20 | ($0.10) | [1] | $0.03 |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Basic (in Shares) | 18,873 | 18,761 | 18,502 | 18,444 | 18,421 | 18,398 | 18,320 | 18,288 | 18,626 | 18,358 | [1] | 18,081 |
Diluted (in Shares) | 19,461 | 19,158 | 18,955 | 18,982 | 18,959 | 18,398 | 18,320 | 18,288 | 19,082 | 18,358 | [1] | 18,747 |
[1] | For the year ended December 31, 2012, options to purchase 531,634 shares and all of the warrants have been excluded in computing dilutive shares, as the effect would be anti-dilutive. |