Dominari (DOMH) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document And Entity Information
Entity Registrant Name	SPHERIX INC
Entity Central Index Key	12,239
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		34,402,763
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 87	$ 805
Marketable securities	775	3,500
Prepaid expenses and other assets	73	107
Total current assets	935	4,412
Property and equipment, net	3	4
Patent portfolios, net	9,776	55,004
Goodwill	1,712	1,712
Deposit	26	26
Total assets	12,452	61,158
Current liabilities
Accounts payable and accrued expenses	531	728
Accrued salaries and benefits	265	329
Short-term lease liabilities	175	173
Total current liabilities	971	1,230
Long-term lease liabilities	319	407
Total liabilities	1,290	1,637
Series I redeemable preferred stock, $0.0001 par value; 29,940 and 35,541 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively; liquidation preference of $167 per share	$ 5,000	$ 5,935
Commitments and contingencies
Stockholders' equity
Common stock, $0.0001 par value, 200,000,000 shares authorized; 28,612,195 and 28,609,695 shares issued at June 30, 2015 and December 31, 2014, respectively; 28,611,967 and 28,609,467 shares outstanding at June 30, 2015 and December 31, 2014, respectively	$ 3	$ 3
Additional paid-in-capital	137,769	137,655
Treasury stock, at cost, 228 shares at June 30, 2015 and December 31, 2014, respectively	(264)	(264)
Accumulated deficit	(131,346)	(83,808)
Total stockholders' equity	6,162	53,586
Total liabilities and stockholders' equity	$ 12,452	$ 61,158
Series A Preferred Stock [Member]
Stockholders' equity
Preferred stock
Series C Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock
Series D Preferred Stock [Member]
Stockholders' equity
Preferred stock
Series D-1 Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock
Series F-1 Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock
Series H Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock
Series J Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Stockholders' equity
Series I redeemable preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Series I redeemable preferred stock, shares issued	29,940	35,541
Series I redeemable preferred stock, shares outstanding	29,940	35,541
Series I redeemable preferred stock, liquidation preference	$ 167	$ 167
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	28,612,195	28,609,695
Common stock, shares outstanding	28,611,967	28,609,467
Treasury stock, shares	228	228
Series A Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
liquidation preference	$ 0.0001	$ 0.0001
Series C Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	1	1
Preferred stock, shares outstanding	1	1
liquidation preference	$ 0.0001	$ 0.0001
Series D Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	4,725	4,725
Preferred stock, shares outstanding	4,725	4,725
liquidation preference	$ 0.0001	$ 0.0001
Series D-1 Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	834	834
Preferred stock, shares outstanding	834	834
liquidation preference	$ 0.0001	$ 0.0001
Series F-1 Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
liquidation preference	$ 0.0001	$ 0.0001
Series H Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	439,043	439,043
Preferred stock, shares outstanding	439,043	439,043
liquidation preference	$ 83.50	$ 83.50
Series J Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
liquidation preference	$ 0.0001	$ 0.0001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements Of Operations
Revenues		$ 3	$ 2	$ 7
Operating costs and expenses
Amortization of patent portfolio	$ 2,449	2,449	4,871	4,878
Compensation and related expenses (including stock-based compensation)	(54)	7,202	665	10,734
Professional fees	551	$ 1,816	1,280	$ 2,965
Impairment of intangible assets	40,357		40,357
Rent	22	$ 71	44	$ 138
Other selling, general and administrative	122	51	348	886
Total operating expenses	43,447	11,589	47,565	19,601
Loss from operations	(43,447)	(11,586)	(47,563)	(19,594)
Other income (expenses)
Other income (expenses), net	$ (5)	11	$ 25	16
Fair value adjustments for warrant liabilities		7		47
Total other (expenses) income	$ (5)	18	$ 25	63
Net loss	$ (43,452)	$ (11,568)	$ (47,538)	$ (19,531)
Net loss per share, basic and diluted	$ (1.52)	$ (0.69)	$ (1.66)	$ (1.80)
Weighted average number of common shares outstanding, Basic and diluted	28,618,209	16,879,472	28,615,050	10,844,706

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (47,538)	$ (19,531)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of patent portfolio	$ 4,871	4,878
Non-cash registration rights penalty		654
Fair value adjustment for warrant liabilities		(47)
Stock-based compensation	$ 134	$ 10,388
Depreciation expenses	1
Unrealized gain on marketable securities	45
Impairment of intangible assets	40,357
Changes in assets and liabilities:
Prepaid expenses and other assets	34	$ 64
Accounts payable and accrued expenses	(217)	501
Accrued salaries and benefits	(64)	$ (192)
Accrued lease liabilities	(86)
Net cash used in operating activities	(2,463)	$ (3,285)
Cash flows from investing activities
Purchase of marketable securities	(3,774)
Sale of marketable securities	$ 6,454
Payment of accrued patent costs		$ (1,000)
Net provided by (cash used) in investing activities	$ 2,680	(1,000)
Cash flows from financing activities
Proceeds from issuance of common stock and warrants, net		3,874
Proceeds from issuance of preferred stock, net		18,497
Redemption of Series I redeemable convertible preferred stock	$ (935)	(14,065)
Net cash (used in) provided by financing activities	(935)	8,306
Net (decrease) increase in cash and cash equivalents	(718)	4,021
Cash and cash equivalents, beginning of period	805	3,125
Cash and cash equivalents, end of period	$ 87	$ 7,146
Cash paid for interest and taxes
Non-cash investing and financing activities
Retirement of treasury stock		$ 201
Conversion of preferred stock to common stock		$ 1

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Organization and Description of Business	Spherix Incorporated (the “Company”) is an intellectual property company incorporated in the State of Delaware that owns patented and unpatented intellectual property. The Company was formed in 1967 as a scientific research company and for much of its history pursued drug development including through Phase III clinical studies which were discontinued. Through the Company’s acquisition of patents and patent applications developed by Nortel Networks Corporation from Rockstar Consortium US, LP (“Rockstar”) and Harris Corporation from North South Holdings Inc. (“North South”) in 2013, the Company has expanded its activities and is a significant owner of intellectual property assets. The Company is a patent commercialization company that realizes revenue from the monetization of IP. Such monetization includes, but is not limited to, acquiring IP from patent holders in order to maximize the value of the patent holdings by conducting and managing a licensing campaign. The Company intends to generate revenues and related cash flows from the granting of intellectual property rights for the use of patented technologies that it owns, or that it manages for others, or through the settlement and litigation of patents. The Company continually works to enhance the portfolio of intellectual property through acquisition and strategic partnerships. The Company’s mission is to partner with inventors, or other entities, who own undervalued intellectual property (“IP”). The Company then works with the inventors or other entities to commercialize the IP. Currently, the Company owns over 330 patents and patent applications. On March 24, 2015, the Company received a letter (the “Notice”) from the Listing Qualifications Staff of The NASDAQ Stock Market LLC (“Nasdaq”) indicating that, based upon the closing bid price of the Company’s common stock (the “Common Stock”) for the last 30 consecutive business days, the Common Stock no longer meets the requirement to maintain a minimum closing bid price of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2). The Notice has no immediate effect on the listing of the Company’s Common Stock on the Nasdaq Capital Market. In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until September 21, 2015, to regain compliance with the minimum closing bid price requirement for continued listing. In order to regain compliance, the minimum closing bid price per share of the Company’s Common Stock must be at least $1.00 for a minimum of ten consecutive business days.

Liquidity and Financial Conditi

Liquidity and Financial Condition	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Liquidity and Financial Condition	The Company continues to incur ongoing administrative and other expenses, including public company expenses, in excess of corresponding (non-financing related) revenue. While the Company continues to implement its business strategy, it intends to finance its activities through: ● managing current cash and cash equivalents on hand from the Company’s past equity offerings, ● seeking additional funds raised through the sale of additional securities in the future, ● seeking additional liquidity through credit facilities or other debt arrangements, and ● increasing revenue from its patent portfolios, license fees and new business ventures. Pursuant to the terms of our Series I Preferred Stock, the Company redeemed 5,601 shares of its outstanding Series I preferred stock on June 30, 2015 at an aggregate redemption price of $935,297, and is obligated to redeem the remaining 29,940 shares of its outstanding Series I preferred stock on December 31, 2015 at an aggregate redemption price of $5.0 million. As a result of the Company’s recurring operating losses, net operating cash flow deficits and remaining obligations relating to the redemption of its Series I preferred Stock, there is substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. The Company’s ultimate success is dependent on its ability to obtain additional financing and generate sufficient cash flow to meet its obligations on a timely basis. The Company’s business will require significant amounts of capital to sustain operations and make the investments it needs to execute its longer term business plan. The Company’s working capital deficiency amounted to $0.04 million at June 30, 2015, and net loss amounted to approximately $43.5 million and $47.5 million for the three and six month ended June 30, 2015, primarily due to a $40.4 million non-cash impairment loss on intangible assets in the second quarter of 2015 (see Note 4). The Company had a $131.3 million accumulated deficit as of June 30, 2015. The Company’s existing liquidity is not sufficient to fund its operations, anticipated capital expenditures, working capital and other financing requirements for the foreseeable future. Absent generation of sufficient revenue from the execution of the Company’s business plan, the Company will need to obtain additional debt or equity financing, especially if the Company experiences downturns in its business that are more severe or longer than anticipated, or if the Company experiences significant increases in expense levels resulting from being a publicly-traded company or operations. If the Company attempts to obtain additional debt or equity financing, the Company cannot assume that such financing will be available to the Company on favorable terms, or at all. Disputes regarding the assertion of patents and other intellectual property rights are highly complex and technical. The Company may be forced to litigate against others to enforce or defend its intellectual property rights or to determine the validity and scope of other parties’ proprietary rights. The defendants or other third parties involved in the lawsuits in which the Company is involved may allege defenses and/or file counterclaims or initiate inter parties reviews in an effort to avoid or limit liability and damages for patent infringement or cause the Company to incur additional costs as a strategy. If such efforts are successful, they may have an impact on the value of the patents and preclude the Company from deriving revenue from the patents. The patents could be declared invalid by a court or the United States Patent and Trademark Office, in whole or in part, or the costs of the Company can increase. Recent rulings also create an increased risk that if the Company is unsuccessful in litigation it could be responsible to pay the attorneys’ fees and other costs of defendants by lowering the standard for legal fee shifting sought by defendants in patent cases. As a result, a negative outcome of any such litigation, or one or more claims contained within any such litigation, could materially and adversely impact the Company’s business. Additionally, the Company anticipates that legal fees which are not included in contingency fee arrangements, experts and other expenses will be material and could have an adverse effect on its financial condition and results of operations if its efforts to monetize its patents are unsuccessful. In addition, the costs of enforcing the Company’s patent rights may exceed its recoveries from such enforcement activities. Accordingly, in order for the Company to generate a profit from its patent enforcement and monetization activities, the revenues from such enforcement and monetization activities must be high enough to offset both the cash outlays and the contingent fees payable from such revenues, including any profit sharing arrangements with inventors or prior owners of the patents. The Company’s failure to monetize its patent assets or the occurrence of unforeseen circumstances that could have a negative impact on the Company’s liquidity could significantly harm its business.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Summary of Significant Accounting Policies	Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2014 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 30, 2015. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements of the Company are unaudited and do not include all of the information and disclosures generally required for annual financial statements. In the opinion of management, the statements contain all material adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s condensed consolidated financial position as of June 30, 2015, and the condensed consolidated results of its operations for the three and six-month periods ended June 30, 2015 and 2014, and the condensed consolidated results of its cash flows for the six-month periods ended June 30, 2015 and 2014. This report should be read in conjunction with the Company’s Annual Report on Form 10-K, which does contain the complete information and disclosure for the year ended December 31, 2014. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Biospherics Incorporated, Nuta Technology Corp. (“Nuta”), Spherix Portfolio Acquisition I, Inc. (“SPXI”), Spherix Portfolio Acquisition II, Inc. (“SPXII”), Guidance IP, LLC (“Guidance”), CompuFill LLC (“CompuFill”) , Directional IP, LLC (“Directional”) and NNPT, LLC (“NNPT”). All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). This requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. The Company’s significant estimates and assumptions include the recoverability and useful lives of long-lived assets, stock-based compensation, and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates, including the carrying amount of the intangible assets, could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions. Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of mutual funds which are valued at quoted market prices. The Company invested funds into highly liquid mutual funds in 2015. The realized gain and losses, dividend income and unrealized gain and losses on its investments in marketable securities are included in other income, net on the condensed consolidated statements of operations. During the three-month periods ended June 30, 2015, the Company incurred of realized losses, unrealized losses and dividend income of approximately $7,900, $12,000 and $15,000, respectively. During the six-month period ended June 30, 2015, the Company incurred of realized losses, unrealized gains and dividend income of approximately $60,800, $45,200 and $40,600, respectively. The Company reinvested dividend income into its marketable securities and at June 30, 2015, its holdings in marketable securities aggregated approximately $0.8 million. Impairment of Intangible Assets The Company monitors the carrying value of long-lived assets for potential impairment and tests the recoverability of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If a change in circumstance occurs, the Company performs a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, the Company will determine whether impairment has occurred for the group of assets for which the Company can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, the Company measures any impairment by comparing the fair value of the asset or asset group to its carrying value. The Company determined it was necessary to test its intangible assets for impairment during the second quarter of 2015 (see Note 4). Net Loss per Share Basic loss per share is computed by dividing the net income or loss applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method) and the conversion of the Company’s convertible preferred stock and warrants (using the if-converted method). Diluted loss per share excludes the shares issuable upon the conversion of preferred stock and the exercise of stock options and warrants from the calculation of net loss per share if their effect would be anti-dilutive. Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at June 30, 2015 and 2014 are as follows: As of June 30, 2015 2014 Convertible preferred stock 5,044,821 5,834,881 Warrants to purchase common stock 769,803 775,021 Non-vested restricted stock awards 45,000 10,000 Options to purchase common stock 5,048,701 4,218,877 Total 10,908,325 10,838,779 Subsequent Events The Company has evaluated the period after the balance sheet date but prior to the issuance of the financial statement, and determined that other than noted in Note 9 below, there were no subsequent events or transactions that required recognition or disclosure in the condensed consolidated financial statements.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Goodwill and Intangible Assets	Other Intangible Assets The Company’s intangible assets with finite lives consist of its patents and patent rights. For all periods presented, all of the Company’s identifiable intangible assets were subject to amortization. The gross carrying amounts related to acquired intangible assets as of June 30, 2015 are as follows (in thousands, except year amounts): June 30, 2015 Weighted average amortization period (years) Patent Portfolios at December 31, 2014, net $ 55,004 5.62 Amortization expenses 4,871 Impairment loss 40,357 Patent Portfolios at June 30, 2015, net $ 9,776 5.13 The accumulated amortization related to acquired intangible assets for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands, except year amounts): Amortization Expense for the Three Months Ended June 30, Amortization Expense for the Six Months Ended June 30, Date Acquired and Description 2015 2014 2015 2014 7/24/13 - Rockstar patent portfolio $ 117 $ 117 $ 233 $ 233 9/10/13 - North South patent portfolio 32 32 64 64 12/31/13 - Rockstar patent portfolio 2,300 2,300 4,574 4,581 $ 2,449 $ 2,449 $ 4,871 $ 4,878 The Company incurred amortization expense associated with its finite-lived intangible assets of $2.4 million and $2.4 million for the three months ended June 30, 2015 and 2014, respectively. The Company incurred amortization expense associated with its finite-lived intangible assets of $4.9 million and $4.9 million for the six months ended June 30, 2015 and 2014, respectively. The Company reviews its patent portfolio for impairment as a single asset group whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the second quarter of 2015, the Company determined that certain events occurred that were indicators of a potential impairment. In accordance with ASC 360-10, the Company first estimated the future undiscounted cash flows anticipated to be generated by the patent portfolio based on the Company’s current usage and future plans for the patent portfolio over its remaining weighted average useful life. The analysis concluded that the carrying amount of the patent portfolio was not recoverable at June 30, 2015. As a result, the Company performed an analysis to determine if the carrying value of the patent portfolio exceeded its fair value. Considering that the patent portfolio is the Company’s most significant asset and is the foundation of all of its operations, the Company determined that the most appropriate measurement of fair value of the asset group was the aggregate market value of the Company’s common stock. As a result, the Company determined that the fair value of the patent portfolio at June 30, 2015 was approximately $9.8 million, which is comparable to the aggregate market capitalization of the Company as of that date. The Company recorded a $40.4 impairment charge against its patent portfolio during the three and six months ended June 30, 2015, which is included in operating expenses on the condensed consolidated statement of operations. The new cost basis of the patent portfolio of $9.8 million will be amortized over its weighted average remaining useful life of 5.13 years. The future amortization of these intangible assets was based on the adjusted carrying amount. Future amortization of all patents is as follows (in thousands): Rockstar North South Rockstar Portfolio Portfolio Portfolio Acquired Acquired Acquired Total 24-Jul-13 10-Sep-13 31-Dec-13 Amortization Six Months Ended December 31, 2015 $ 47 $ 14 $ 904 $ 965 Year Ended December 31, 2016 93 27 1,799 1,919 Year Ended December 31, 2017 93 28 1,794 1,915 Year Ended December 31, 2018 93 27 1,794 1,914 Year Ended December 31, 2019 93 28 1,794 1,915 Thereafter 191 61 896 1,148 Total $ 610 $ 185 $ 8,981 $ 9,776 Goodwill The Company’s market capitalization is sensitive to the volatility of the Company’s stock price. During the six months ended June 30, 2015, the market price of the Common Stock decreased from $1.13 to $0.48. The decline in stock price experienced by the Company was deemed a “triggering” event requiring that goodwill be tested for impairment as of June 30, 2015. The Company performed the first step of the goodwill impairment test as of June 30, 2015 in order to identify potential impairment by comparing the fair value of the reporting unit with its carrying amount, including goodwill. The fair value of the reporting unit is based upon the Company’s market capitalization on the measurement date, June 30, 2015 and also on July 15, 2015 (date of the $1.5 million private placement as discussed in Note 9). The Company believes that this is the most appropriate valuation technique for determining the fair value of the reporting unit for various reasons. The Company’s common shares are publicly traded on NASDAQ. Therefore, active quoted market prices can be readily observed and the Company has a widely distributed shareholder base which provides for a substantial amount of daily trading volume. As such, the Company believes that the quoted market price is a good representation of a fair value of one share of the Company, or a fractional interest in the Company. The Company also considered the use other valuation approaches to determine the fair value of the reporting unit, including an income approach and other market approaches. When considering the use of an income approach for determining the fair value of the reporting unit, the Company considered using valuation techniques such as a discounted cash flows model. However, it was determined that, due to factors specific to the Company and the nature of its operations, the use of such techniques would impose significant feasibility hurdles and would not yield an effective result. First, the Company does not have a history of revenue to use for purposes of projecting future earnings and revenue streams. Second, the Company’s future earnings and revenue are heavily contingent upon the outcomes of certain litigation and settlements which are difficult to predict with a sufficient degree of precision. As such, the Company concluded that an income approach would not add meaningfully to the determination of fair value of the reporting unit. When considering the use of other market approaches for determining the fair value of the reporting unit, the Company considered using relevant information generated by market transactions of comparable companies such as multiples of earnings and revenue. It was determined, however, that there was a lack of publicly available information with respect to comparable entities within the intellectual property market space that would enable the Company to gather useful information for purposes of such valuation techniques. Additionally, the fact that the Company has not yet experienced significant revenue or earnings poses limitations to the use of a market multiples approach. As such, the Company concluded that this technique would not yield an effective result. Based upon the first step of the goodwill impairment test performed as of June 30, 2015, the Company determined that the fair value of the reporting unit was in excess of its carrying amount by approximately 53% and therefore the second step of the goodwill impairment test was not required at this time. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the interim impairment test measurement date.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Fair Value of Financial Assets and Liabilities	The following table presents the Company’s assets and liabilities that are measured at fair value at June 30, 2015 and December 31, 2014 (in thousands): Fair value measured at June 30, 2015 Total carrying value at June 30, Quoted prices in active markets Significant other observable inputs Significant unobservable 2015 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 775 $ 775 $ — $ — Fair value measured at December 31, 2014 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2014 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 3,500 $ 3,500 $ — $ — There were no transfers between Level 1, 2 or 3 during the three and six months ended June 30, 2015.

Stockholders' Equity and Redeem

Stockholders' Equity and Redeemable Convertible Preferred Stock	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Stockholders' Equity and Redeemable Convertible Preferred Stock	Preferred Stock The Company had designated separate series of its capital stock as of June 30, 2015 and December 31, 2014 as summarized below: Number of Shares Issued and Outstanding as of June 30, 2015 December 31, 2014 Par Value Conversion Ratio Series “A” — — $ 0.0001 N/A Series “C” 1 1 0.0001 1:1 Series “D” 4,725 4,725 0.0001 10:1 Series “D-1” 834 834 0.0001 10:1 Series “F-1” — — 0.0001 1:1 Series “H” 439,043 439,043 0.0001 10:1 Series “I” 29,940 35,541 0.0001 20:1 Series “J” — — 0.0001 1:1 Series I Redeemable Convertible Preferred Stock In connection with the agreement to acquire Rockstar patents entered on December 31, 2013, the Company and Rockstar entered into a series of agreements which require the Company to redeem $20 million of stated value of Series I Convertible Preferred Stock in $5 million increments on each of the 6, 12, 18 and 24 months anniversary of the purchase. In the event that such payments are not timely made, Rockstar may employ certain remedies, including the imposition of interest at a rate of 15% per annum from the closing date on unpaid and unconverted amounts due and after the 12 month anniversary can reduce the redemption obligations through sale or recovery of patents in the acquisition at a value equal to unconverted amounts due which have been pledged as collateral for such obligations. Rockstar has filed a UCC-1 covering its redemption obligations and the right to foreclose on the collateral. The redemption obligation is also required to be satisfied in the event that the Company engage in certain capital raising transactions (among other instances, where such transactions result in net proceeds to us in excess of $7.5 million) and from recoveries on other assets. The obligation to utilize capital from financings and from other sources or the loss of patents to Rockstar upon a default could adversely impact our liquidity and financial position. During the quarter ended June 30, 2014, the Company redeemed 84,219 shares of Series I Preferred Stock. In accordance with this redemption, the Company paid Rockstar $14.1 million. In January 2015, Rockstar transferred its remaining outstanding Series I Redeemable Convertible Preferred Stock, as well as its other stock in Spherix (including the Company’s Series H Convertible Preferred Stock) to RPX Clearinghouse LLC (“RPX”), an affiliate of RPX Corporation. During the quarter ended June 30, 2015, the Company redeemed 5,601 shares of Series I Preferred Stock. In accordance with this redemption, the Company paid RPX $0.94 million. As of June 30, 2015, 29,940 shares of Series I Preferred Stock with an aggregate remaining redemption price of $5.0 million remained issued and outstanding Warrants A summary of warrant activity for the six months ended June 30, 2015 is presented below: Weighted Average Total Intrinsic Weighted Average Remaining Contractual Warrants Exercise Price Value Life (in years) Outstanding as of December 31, 2014 769,803 $ 13.70 $ — 4.03 Issued — — — — Outstanding as of June 30, 2015 769,803 $ 13.70 $ — 3.54 All warrants outstanding as of December 31, 2014 and June 30, 2015 were exercisable as of such dates. Stock Options On April 3, 2014, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued 500,000 non-qualified options with a term of five years and an exercise price of $2.86 to Anthony Hayes, the director and Chief Executive Officer of the Company. 50% of the options vested immediately, and the remaining 50% vesting upon the Company’s receipt of gross proceeds of at least $30 million by April 3, 2015 from an offering of its securities (the “Performance Condition”). Since the Performance Condition was not satisfied by April 3, 2015, 250,000 options were forfeited. As a result, the Company reversed $0.4 million of option expense related to this grant during the six months ended June 30, 2015. On May 24, 2015, 176 options granted on May 25, 2010 were expired. A summary of option activity under the Company’s employee stock option plan for the six months ended June 30, 2015 is presented below: Weighted Average Weighted Average Total Intrinsic Remaining Contractual Number of Shares Exercise Price Value Life (in years) Outstanding as of December 31, 2014 5,243,877 $ 4.97 $ — 6.0 Employee options forfeited (250,000 ) — — — Employee options expired (176 ) — — — Outstanding as of June 30, 2015 4,993,701 5.07 $ — 5.6 Options vested and expected to vest 4,993,701 5.07 — 5.6 Options vested and exercisable 4,993,576 $ 5.06 $ — 5.6 A summary of option activity under the Company’s non-employee stock option plan for the six months ended June 30, 2015 is presented below: Weighted Average Weighted Average Total Intrinsic Remaining Contractual Number of Shares Exercise Price Value Life (in years) Outstanding as of December 31, 2014 55,000 $ 5.16 $ — 6.4 Non-employee options granted — — — — Outstanding as of June 30, 2015 55,000 5.16 — 5.9 Options vested and expected to vest 55,000 5.16 — 5.9 Options vested and exercisable 55,000 $ 5.16 $ — 5.9 Stock-based compensation associated with the amortization of stock option expense was approximately $0.01 million and $6.8 million for the three months ended June 30, 2015 and 2014, and was approximately $0.1 million and $10.2 million for the six months ended June 30, 2015 and 2014, respectively. Unamortized compensation cost for these awards amounted to $0.01 million at June 30, 2015, and will be amortized over 0.1 years. Restricted Stock Awards On January 5, 2015, the Company issued 2,500 shares of fully vested common shares to an employee. On June 10, 2015, the Company entered into a consulting agreement with a third party for three months of services. The Company has agreed to pay the consultant a monthly fee of $10,000, payable in shares of Common Stock for each month of the term. $20,000 of this stock payable was accrued in accrued expenses account on condensed consolidated balance sheet as of June 30. 2015. On June 15, 2015, the Company entered into a consulting agreement with a third party. The Company has agreed to pay the consultant a monthly fee of $5,000 for three months commencing on June 15, 2015, and granted 45,000 shares of restricted stock. The restricted stock awards vest monthly for each of the three months following the grant date. A summary of the restricted stock award activity for the six months ended June 30, 2015 is as follows: Weighted Average Grant Day Fair Number of Units Value Nonvested at December 31, 2014 7,500 $ 2.63 Granted 60,625 0.61 Vested (23,125 ) 1.23 Nonvested at June 30, 2015 45,000 $ — Stock-based Compensation Stock-based compensation for the three months and six months ended June 30, 2015 and 2014 was comprised of the following (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Employee restricted stock awards $ — $ 12 $ 11 $ 14 Employee stock option awards 14 6,757 90 10,150 Non-employee restricted stock awards 33 175 33 176 Non-employee option awards — 48 — 48 Total compensation expense $ 47 $ 6,992 $ 134 $ 10,388

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Related Party Transactions	Executive Officer Agreements In February 2015, the members of the Compensation Committee revised the annual bonus structure to be paid to the Company’s Chief Executive Officer, Mr. Anthony Hayes, and established an incentive target bonus per the Employment Agreement (a “Target Bonus”). The amount of the Target Bonus shall be (i) $350,000 in cash, which shall be payable in a single lump-sum payment promptly following the consummation of a qualifying strategic transaction, and (ii) a discretionary bonus to be determined by the Compensation Committee, in its sole discretion, prior to the earlier of a proxy solicitation in 2015 in relation to a qualifying strategic transaction or the consummation thereof. The Target Bonus of $350,000 was included in accrued salaries and benefits in the first quarter of 2015 as management determined at that time it was probable that a qualifying strategic transaction would occur. During the second quarter of 2015, the Company’s management determined that it was no longer probable that a qualifying strategic transaction would occur and the accrual of the $350,000 bonus was reversed. On June 30, 2015, the Board of Directors (the “Board”) of the Company accepted the resignation of Richard Cohen as Chief Financial Officer of the Company, effective immediately. In connection therewith, the Company amended and restated its consulting agreement with Chord Advisors, LLC (“Chord”), an advisory firm that has provided the Company with certain accounting services, such that it will continue to provide the Company with certain financial accounting and advisory services, with the monthly fee to Chord reduced from $20,000 to $10,000 per month since its affiliate will no longer serve as the Company’s Chief Financial Officer. In connection with the resignation of Mr. Cohen, on June 30, 2015, the Board appointed Frank Reiner, the Interim Chief Financial Officer of the Company, effective immediately. Pursuant to Mr. Reiner’s Employment Agreement with the Company, dated as of March 14, 2014, as amended (the “Agreement”), the term of Mr. Reiner’s employment is one year and automatically extends for additional one-year terms unless no less than 60 days’ prior written notice of non-renewal is given by Mr. Reiner or the Company. Mr. Reiner’s base salary under the Agreement was $235,000 per year, but in connection with being named Interim Chief Financial Officer, the Board authorized an amendment to the Agreement to increase Mr. Reiner’s base salary to $271,000. Mr. Reiner is also entitled to receive an annual bonus if the Compensation Committee of the Board determines that performance targets have been met. The amount of the annual bonus is determined based on the Company’s gross proceeds from certain monetization of the Company’s intellectual property. Mr. Reiner is also eligible to participate in all employee benefits plans from time to time in effect for the Company’s other senior executive officers.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies	Legal Proceedings In the ordinary course of business, the Company actively pursues legal remedies to enforce its intellectual property rights and to stop unauthorized use of our technology. From time to time, the Company may be involved in various claims and counterclaims and legal actions arising in the ordinary course of business. There were no pending material claims or legal matters as of the date of this report other than the following matters: Guidance IP LLC v. T-Mobile Inc., Case No. 2:14-cv-01066-RSM, in the United States District Court for the Western District of Washington On August 1, 2013, the Company’s wholly owned subsidiary Guidance initiated litigation against T-Mobile Inc. (“T-Mobile”) in Guidance IP LLC v. T-Mobile Inc Spherix Incorporated v. VTech Telecommunications Ltd. et al., Case No. 3:13-cv-03494-M, in the United States District Court for the Northern District of Texas On August 30, 2013, the Company initiated litigation against VTech Telecommunications Ltd. and VTech Communications, Inc. (collectively “VTech”) in Spherix Incorporated v. VTech Telecommunications Ltd. et al inter partes Markman Markman Spherix Incorporated v. Uniden Corporation et al. Markman Spherix Incorporated v. Uniden Corporation et al., Case No. 3:13-cv-03496-M, in the United States District Court for the Northern District of Texas On August 30, 2013, the Company initiated litigation against Uniden Corporation and Uniden America Corporation (collectively “Uniden”) in Spherix Incorporated v. Uniden Corporation et al. inter partes Markman Spherix Incorporated v. VTech Telecommunications Ltd. et al. Markman Charter Communications, Inc., Wideopenwest Finance LLC a/k/a Wow! Internet, Cable & Phone, Knology, Inc., Cequel Communications, LLC, d/b/a Suddenlink Communications, and Cable One, Inc. v. Rockstar Consortium US LP, Bockstar Technologies LLC, Constellation Technologies LLC, and Spherix Incorporated. On January 17, 2014, an action was filed by several cable operators in the United States District Court for the District of Delaware (No 1:99-mc-09999) against Rockstar, Bockstar Technologies LLC, Constellation Technologies LLC and the Company (collectively, the “Defendants”). The complaint was filed by Charter Communications, Inc., WideOpenWest Finance, LLC a/k/a WOW! Internet, Cable & Phone, Knology, Inc., Cequel Communications, LLC d/b/a Suddenlink Communications, and Cable One, Inc. (collectively, the “Plaintiffs”). Plaintiffs are in the communications, cable and/or wireline industries and allege that Rockstar has accused the Plaintiffs of practicing various communication and networking technologies (including many well-established technical standards), related to those industries. The complaint states that in many instances such technical standards are designed into the equipment Plaintiffs purchase from vendors, and must be implemented to interoperate with other communications providers and their end user customers. Rockstar owns (and since December 31, 2013, the Company owns) patents alleged to be infringed by Plaintiffs activities. The relief sought against the Company is principally for a declaratory judgment that Plaintiffs do not infringe the patents, requiring that the Plaintiffs be granted a patent license, that the Company has misused the patents and it and the other Defendants have waived and are estopped from enforcing the patents in the marketplace, that the Company is liable to Plaintiffs for entering into an illegal conspiracy, and assessing corresponding damages, for direct and consequential damages, attorney’s fees and costs. On June 11, 2014, the Company and the Plaintiffs filed a joint stipulation of dismissal in the action filed on January 17, 2014. As a result, the Plaintiffs’ allegations against the Company are dismissed without prejudice, with each party to bear its own costs. The Plaintiffs and the Company also agreed, with respect to all patents owned by the Company as of the date of the filing, to negotiate in good faith prior to bringing any action concerning these patents or bringing an action for infringement of these patents. The parties agreed that any further actions related to these patents will be brought solely in Delaware. Spherix Incorporated v. Cisco Systems Inc., Case No. 1:14-cv-00393-SLR, in the United States District Court for the District of Delaware On March 28, 2014, the Company initiated litigation against Cisco Systems Inc. (“Cisco”) in Spherix Incorporated v. Cisco Systems Inc. Bockstar Technologies LLC v. Cisco Systems, Inc. inter partes Bockstar Markman Spherix Incorporated v. Juniper Networks, Inc., Case No. 1:14-cv-00578-SLR, in the United States District Court for the District of Delaware On May 2, 2014, the Company initiated litigation against Juniper Networks, Inc. (“Juniper”) in Spherix Incorporated v. Juniper Networks, Inc. Markman Bockstar Technologies LLC v. Cisco Systems, Inc., Case No. 1:13-cv-02020-SLR-SRF, in the United States District Court for the District of Delaware On June 6, 2014, Defendant Cisco filed an amended complaint and counterclaim in which it added counterclaims against the Company in Bockstar Technologies LLC v. Cisco Systems, Inc. Spherix Incorporated v. Cisco Systems Inc., Case No. 1:14-cv-00393-SLR NNPT, LLC v. Huawei Investment & Holding Co., Ltd. et al., Case No. 2:14-cv-00677-JRG-RSP, in the United States District Court for the Eastern District of Texas On June 9, 2014, NNPT initiated litigation against Futurewei Technologies, Inc., Huawei Device (Hong Kong) Co., Ltd., Huawei Device USA Inc., Huawei Investment & Holding Co., Ltd., Huawei Technologies Co., Ltd., Huawei Technologies Cooperatif U.A., and Huawei Technologies USA Inc. (collectively “Huawei”), in NNPT, LLC v. Huawei Investment & Holding Co., Ltd. et al. Markman Markman inter partes Markman Markman Spherix Incorporated v. Verizon Services Corp. et al., Case No. 1:14-cv-00721-GBL-TCB, in the United States District Court for the Eastern District of Virginia On June 11, 2014, the Company initiated litigation against Verizon Services Corp.; Verizon South Inc.; Verizon Virginia LLC; Verizon Communications Inc.; Verizon Federal Inc.; Verizon Business Network Services Inc.; and MCI Communications Services, Inc. (collectively, “Verizon”) in Spherix Incorporated v. Verizon Services Corp. et al. Markman Markman Markman inter partes Spherix Incorporated v. Verizon Services Corp. et al., Case No. 1:15-cv-0576-GBL-IDD, in the United States District Court for the Eastern District of Virginia On May 1, 2015, the Company initiated litigation against Verizon Services Corp.; Verizon South Inc.; Verizon Virginia LLC; Verizon Communications Inc.; Verizon Federal Inc.; Verizon Business Network Services Inc.; MCI Communications Services, Inc.; Cellco Partnership d/b/a Verizon Wireless; and Cisco Systems, Inc. (collectively, “Defendants”) in Spherix Incorporated v. Verizon Services Corp. et al. Cisco Systems, Inc. v. Spherix Incorporated, 1:14-cv-00393-SLR-SRF, in the United States District Court for the District of Delaware On June 30, 2015, Cisco Systems, Inc. initiated litigation against the Company in United States District Court for the District of Delaware, requesting a declaration of non-infringement U.S. Patent No. RE45,598, which was issued on June 30, 2015, and, with respect to that patent, alleging breach of contract, breach of covenant of good faith and fair dealing implied in contract and promissory estoppel. Currently, the Company’s deadline to move, answer or otherwise respond to the Complaint is August 20, 2015. Counterclaims In the ordinary course of business, the Company, along with the Company’s wholly-owned subsidiaries, will initiate litigation against parties whom the Company believe have infringed on intellectual property rights and technologies. The initiation of such litigation exposes us to potential counterclaims initiated by the defendants. Currently, as stated above, defendants in the cases Spherix Incorporated v. VTech Telecommunications Ltd. Spherix Incorporated v. Uniden Corporation; Spherix Incorporated v. Cisco Systems Inc., and NNPT, LLC v. Huawei Investment & Holding Co., Ltd. et al.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Subsequent Events	Offering of Common Stock and Warrants On July 15, 2015, the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Chardan Capital Markets, LLC (the “Placement Agent”) relating to the Company’s registered direct offering, issuance and sale (the “Offering”) to select institutional investors (the “Investors”) of 5,719,530 shares (the “Offered Shares”) of the Company’s Common Stock, $0.0001 par value per share, and Common Stock Purchase Warrants (the “Warrants”) to purchase up to an aggregate of 7,035,024 shares of Common Stock (the “Warrant Shares”). Pursuant to the Placement Agency Agreement, the Company paid the Placement Agent a cash fee of 8.0% of the gross proceeds from the Offering and $25,000 for its expenses related to the offering. The Placement Agent had no commitment to purchase any of the shares of Common Stock or Warrants and was acting only as an agent in obtaining indications of interest from investors who purchased the shares of Common Stock and Warrants directly from the Company. The Placement Agency Agreement requires the Company to indemnify the Placement Agent and certain of its affiliates against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Act”), or to contribute to payments the Placement Agent may be required to make because of any of those liabilities. In addition, on July 15, 2015, the Company and the Investors entered into a securities purchase agreement (the “Securities Purchase Agreement”) relating to the issuance and sale of the Offered Shares and the Warrants. The Offered Shares and Warrants were sold in units, with each unit consisting of one Offered Share and a Warrant to purchase 1.23 Warrant Shares. The purchase price per unit was $0.256. The Warrants provide for an exercise price of $0.43 per share and become exercisable on January 22, 2016 and have a term of five years thereafter. The exercise price of the Warrants will also be adjusted in the event of stock splits and reverse stock splits. Except upon at least 61 days’ prior notice from the holder to the Company, the holder will not have the right to exercise any portion of the Warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of the Company’s common stock (including securities convertible into common stock) outstanding immediately after the exercise; provided, however, that the holder may not increase this limitation at any time in excess of 9.99%. The Securities Purchase Agreement provides that, subject to certain exceptions, for a period ending 60 days after the date of closing of the Securities Purchase Agreement, neither the Company nor any of its subsidiaries will issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of common stock or common stock equivalents. The Securities Purchase Agreement further provides that, subject to certain exceptions, until the Warrants are no longer outstanding, the Company will not affect or enter into a variable rate transaction. The Securities Purchase Agreement also provides the Investors an 18 month right of participation for an amount up to 100% of such subsequent financing common stock (or common stock equivalents or a combination thereof), on the same terms and conditions of such transaction. The use of proceeds from the Offering shall be for working capital and general corporate purposes, and shall not be used for the satisfaction of the Company’s debt (other than ordinary course payables), for the redemption of common stock or common stock equivalents, for the settlement of outstanding litigation or in violation of OFAC or FCPA regulations. The net proceeds to the Company from the Offering, after deducting Placement Agent fees and the Company’s estimated offering expenses, and excluding the proceeds, if any, from the exercise of the Warrants, were approximately $1.3 million. The Offering closed on July 21, 2015. The Offered Shares, the Warrants and the Warrant Shares are registered under the Act on the Company’s Registration Statement on Form S-3 (Registration No. 333-198498) previously filed with the Securities and Exchange Commission and declared effective on November 18, 2014.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary Of Significant Accounting Policies Policies
Significant Accounting Policies	There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2014 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 30, 2015.
Basis of Presentation and Principles of Consolidation	The accompanying condensed consolidated financial statements of the Company are unaudited and do not include all of the information and disclosures generally required for annual financial statements. In the opinion of management, the statements contain all material adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s condensed consolidated financial position as of June 30, 2015, and the condensed consolidated results of its operations for the three and six-month periods ended June 30, 2015 and 2014, and the condensed consolidated results of its cash flows for the six-month periods ended June 30, 2015 and 2014. This report should be read in conjunction with the Company’s Annual Report on Form 10-K, which does contain the complete information and disclosure for the year ended December 31, 2014. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Biospherics Incorporated, Nuta Technology Corp. (“Nuta”), Spherix Portfolio Acquisition I, Inc. (“SPXI”), Spherix Portfolio Acquisition II, Inc. (“SPXII”), Guidance IP, LLC (“Guidance”), CompuFill LLC (“CompuFill”) , Directional IP, LLC (“Directional”) and NNPT, LLC (“NNPT”). All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). This requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. The Company’s significant estimates and assumptions include the recoverability and useful lives of long-lived assets, stock-based compensation, and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates, including the carrying amount of the intangible assets, could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions.
Marketable Securities	Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of mutual funds which are valued at quoted market prices. The Company invested funds into highly liquid mutual funds in 2015. The realized gain and losses, dividend income and unrealized gain and losses on its investments in marketable securities are included in other income, net on the condensed consolidated statements of operations. During the three-month periods ended June 30, 2015, the Company incurred of realized losses, unrealized losses and dividend income of approximately $7,900, $12,000 and $15,000, respectively. During the six-month period ended June 30, 2015, the Company incurred of realized losses, unrealized gains and dividend income of approximately $60,800, $45,200 and $40,600, respectively. The Company reinvested dividend income into its marketable securities and at June 30, 2015, its holdings in marketable securities aggregated approximately $0.8 million.
Impairment of Intangible Assets	The Company monitors the carrying value of long-lived assets for potential impairment and tests the recoverability of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If a change in circumstance occurs, the Company performs a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, the Company will determine whether impairment has occurred for the group of assets for which the Company can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, the Company measures any impairment by comparing the fair value of the asset or asset group to its carrying value. The Company determined it was necessary to test its intangible assets for impairment during the second quarter of 2015 (see Note 4).
Net Loss per Share	Basic loss per share is computed by dividing the net income or loss applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method) and the conversion of the Company’s convertible preferred stock and warrants (using the if-converted method). Diluted loss per share excludes the shares issuable upon the conversion of preferred stock and the exercise of stock options and warrants from the calculation of net loss per share if their effect would be anti-dilutive. Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at June 30, 2015 and 2014 are as follows: As of June 30, 2015 2014 Convertible preferred stock 5,044,821 5,834,881 Warrants to purchase common stock 769,803 775,021 Non-vested restricted stock awards 45,000 10,000 Options to purchase common stock 5,048,701 4,218,877 Total 10,908,325 10,838,779
Subsequent Events	The Company has evaluated the period after the balance sheet date but prior to the issuance of the financial statement, and determined that other than noted in Note 9 below, there were no subsequent events or transactions that required recognition or disclosure in the condensed consolidated financial statements.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Summary Of Significant Accounting Policies Tables
Diluted earning per share Calculation	Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at June 30, 2015 and 2014 are as follows: As of June 30, 2015 2014 Convertible preferred stock 5,044,821 5,834,881 Warrants to purchase common stock 769,803 775,021 Non-vested restricted stock awards 45,000 10,000 Options to purchase common stock 5,048,701 4,218,877 Total 10,908,325 10,838,779

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill And Intangible Assets Tables
Amortization to acquired intangible assets	The gross carrying amounts related to acquired intangible assets as of June 30, 2015 are as follows (in thousands, except year amounts): June 30, 2015 Weighted average amortization period (years) Patent Portfolios at December 31, 2014, net $ 55,004 5.62 Amortization expenses 4,871 Impairment loss 40,357 Patent Portfolios at June 30, 2015, net $ 9,776 5.13 The accumulated amortization related to acquired intangible assets for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands, except year amounts): Amortization Expense for the Three Months Ended June 30, Amortization Expense for the Six Months Ended June 30, Date Acquired and Description 2015 2014 2015 2014 7/24/13 - Rockstar patent portfolio $ 117 $ 117 $ 233 $ 233 9/10/13 - North South patent portfolio 32 32 64 64 12/31/13 - Rockstar patent portfolio 2,300 2,300 4,574 4,581 $ 2,449 $ 2,449 $ 4,871 $ 4,878
Future amortization of all patents	The future amortization of these intangible assets was based on the adjusted carrying amount. Future amortization of all patents is as follows (in thousands): Rockstar North South Rockstar Portfolio Portfolio Portfolio Acquired Acquired Acquired Total 24-Jul-13 10-Sep-13 31-Dec-13 Amortization Six Months Ended December 31, 2015 $ 47 $ 14 $ 904 $ 965 Year Ended December 31, 2016 93 27 1,799 1,919 Year Ended December 31, 2017 93 28 1,794 1,915 Year Ended December 31, 2018 93 27 1,794 1,914 Year Ended December 31, 2019 93 28 1,794 1,915 Thereafter 191 61 896 1,148 Total $ 610 $ 185 $ 8,981 $ 9,776

Fair Value of Financial Asset18

Fair Value of Financial Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Of Financial Assets And Liabilities Tables
Financial liabilities measured at fair value on a recurring basis	The following table presents the Company’s assets and liabilities that are measured at fair value at June 30, 2015 and December 31, 2014 (in thousands): Fair value measured at June 30, 2015 Total carrying value at June 30, Quoted prices in active markets Significant other observable inputs Significant unobservable 2015 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 775 $ 775 $ — $ — Fair value measured at December 31, 2014 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2014 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 3,500 $ 3,500 $ — $ —

Stockholders' Equity and Rede19

Stockholders' Equity and Redeemable Convertible Preferred Stock (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders Equity Tables
Preferred Stock	The Company had designated separate series of its capital stock as of June 30, 2015 and December 31, 2014 as summarized below: Number of Shares Issued and Outstanding as of June 30, 2015 December 31, 2014 Par Value Conversion Ratio Series “A” — — $ 0.0001 N/A Series “C” 1 1 0.0001 1:1 Series “D” 4,725 4,725 0.0001 10:1 Series “D-1” 834 834 0.0001 10:1 Series “F-1” — — 0.0001 1:1 Series “H” 439,043 439,043 0.0001 10:1 Series “I” 29,940 35,541 0.0001 20:1 Series “J” — — 0.0001 1:1
Summary of warrant activity	A summary of warrant activity for the six months ended June 30, 2015 is presented below: Weighted Average Total Intrinsic Weighted Average Remaining Contractual Warrants Exercise Price Value Life (in years) Outstanding as of December 31, 2014 769,803 $ 13.70 $ — 4.03 Issued — — — — Outstanding as of June 30, 2015 769,803 $ 13.70 $ — 3.54
Summary of option activity	A summary of option activity under the Company’s employee stock option plan for the six months ended June 30, 2015 is presented below: Weighted Average Weighted Average Total Intrinsic Remaining Contractual Number of Shares Exercise Price Value Life (in years) Outstanding as of December 31, 2014 5,243,877 $ 4.97 $ — 6.0 Employee options forfeited (250,000 ) — — — Employee options expired (176 ) — — — Outstanding as of June 30, 2015 4,993,701 5.07 $ — 5.6 Options vested and expected to vest 4,993,701 5.07 — 5.6 Options vested and exercisable 4,993,576 $ 5.06 $ — 5.6 A summary of option activity under the Company’s non-employee stock option plan for the six months ended June 30, 2015 is presented below: Weighted Average Weighted Average Total Intrinsic Remaining Contractual Number of Shares Exercise Price Value Life (in years) Outstanding as of December 31, 2014 55,000 $ 5.16 $ — 6.4 Non-employee options granted — — — — Outstanding as of June 30, 2015 55,000 5.16 — 5.9 Options vested and expected to vest 55,000 5.16 — 5.9 Options vested and exercisable 55,000 $ 5.16 $ — 5.9
Summary of the restricted stock award activity	A summary of the restricted stock award activity for the six months ended June 30, 2015 is as follows: Weighted Average Grant Day Fair Number of Units Value Nonvested at December 31, 2014 7,500 $ 2.63 Granted 60,625 0.61 Vested (23,125 ) 1.23 Nonvested at June 30, 2015 45,000 $ —
Stock-based compensation expense	Stock-based compensation for the three months and six months ended June 30, 2015 and 2014 was comprised of the following (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Employee restricted stock awards $ — $ 12 $ 11 $ 14 Employee stock option awards 14 6,757 90 10,150 Non-employee restricted stock awards 33 175 33 176 Non-employee option awards — 48 — 48 Total compensation expense $ 47 $ 6,992 $ 134 $ 10,388

Liquidity and Financial Condi20

Liquidity and Financial Condition (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Liquidity And Financial Condition Details Narrative
Working capital			$ 40
Net loss	$ 43,452	$ 11,568	47,538	$ 19,531
Accumulated deficit	131,346		$ 131,346		$ 83,808
Non-cash impairment loss on intangible assets	$ 40,400

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Potentially dilute securities excluded from calculation	10,908,325	10,838,779
Convertible preferred stock [Member]
Potentially dilute securities excluded from calculation	5,044,821	5,834,881
Warrants to purchase common stock [Member]
Potentially dilute securities excluded from calculation	769,803	775,021
Non-vested restricted stock awards [Member]
Potentially dilute securities excluded from calculation	45,000	10,000
Options to purchase common stock [Member]
Potentially dilute securities excluded from calculation	5,048,701	4,218,877

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Summary Of Significant Accounting Policies Details Narrative
Unrealized loss on marketable securities	$ 12,000	$ 45,200
Incurred realized losses	7,900	60,800
Marketable securities	775	775	$ 3,500
Dividend income	$ 15,000	$ 40,600

Goodwill and Intangible Asset23

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Patent Portfolios at December 31, 2014, net			$ 55,004
Amortization expenses	$ 2,449	$ 2,449	4,871	$ 4,878
Impairment loss	40,357		40,357
Patent Portfolios at June 30, 2015, net	9,776		$ 9,776		$ 55,004
Weighted average amortization period			1 month 6 days
Patents [Member]
Patent Portfolios at December 31, 2014, net			$ 55,004
Amortization expenses			4,871
Impairment loss			40,357
Patent Portfolios at June 30, 2015, net	$ 9,776		$ 9,776		$ 55,004
Weighted average amortization period			5 years 1 month 17 days		5 years 7 months 13 days

Goodwill and Intangible Asset24

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amortization expenses	$ 2,449	$ 2,449	$ 4,871	$ 4,878
7/24/13 - Rockstar Patent Portfolio Acquired [Member]
Amortization expenses	117	117	233	233
9/10/13 - North South patent portfolio Acquired [Member]
Amortization expenses	32	32	64	64
12/31/13 - Rockstar Patent Portfolio Acquired [Member]
Amortization expenses	$ 2,300	$ 2,300	$ 4,574	$ 4,581

Goodwill and Intangible Asset25

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Six Months Ended December 31, 2015	$ 965
Year Ended December 31, 2016	1,919
Year Ended December 31, 2017	1,915
Year Ended December 31, 2018	1,914
Year Ended December 31, 2019	1,915
Thereafter	1,148
Total	9,776	$ 55,004
7/24/13 - Rockstar Patent Portfolio Acquired [Member]
Six Months Ended December 31, 2015	47
Year Ended December 31, 2016	93
Year Ended December 31, 2017	93
Year Ended December 31, 2018	93
Year Ended December 31, 2019	93
Thereafter	191
Total	610
9/10/13 - North South patent portfolio Acquired [Member]
Six Months Ended December 31, 2015	14
Year Ended December 31, 2016	27
Year Ended December 31, 2017	28
Year Ended December 31, 2018	27
Year Ended December 31, 2019	28
Thereafter	61
Total	185
12/31/13 - Rockstar Patent Portfolio Acquired [Member]
Six Months Ended December 31, 2015	904
Year Ended December 31, 2016	1,799
Year Ended December 31, 2017	1,794
Year Ended December 31, 2018	1,794
Year Ended December 31, 2019	1,794
Thereafter	896
Total	$ 8,981

Goodwill and Intangible Asset26

Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill And Intangible Assets Details Narrative
Event requiring that goodwill be tested for impairment			The market price of the Common Stock decreased from $1.13 to $0.48
Fair value of the reporting unit was in excess of its carrying amount	$ 1,500		$ 1,500
Fair value of the reporting unit was in excess of its carrying amount, percentage	53.00%		53.00%
Finite-lived intangible assets amortization expense	$ 2,400	$ 2,400	$ 4,900	$ 4,900
Weighted average life in years of patent portfolios			5 years 1 month 17 days
Fair value of the patent portfolio	9,800		$ 9,800
Impairment charge of patent portfolio	$ 40,357		$ 40,357

Fair Value of Financial Asset27

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Marketable securities - mutual funds	$ 775	$ 3,500
Level 1 [Member]
Assets
Marketable securities - mutual funds	$ 775	$ 3,500
Level 2 [Member]
Assets
Marketable securities - mutual funds
Level 3 [Member]
Assets
Marketable securities - mutual funds

Stockholders' Equity and Rede28

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details) - $ / shares	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Par Value	$ 0.0001	$ 0.0001
Series A Preferred Stock [Member]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	N/A
Series C Convertible Preferred Stock [Member]
Preferred stock, shares issued	1	1
Preferred stock, shares outstanding	1	1
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	1:1
Series D Preferred Stock [Member]
Preferred stock, shares issued	4,725	4,725
Preferred stock, shares outstanding	4,725	4,725
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	10:1
Series D-1 Convertible Preferred Stock [Member]
Preferred stock, shares issued	834	834
Preferred stock, shares outstanding	834	834
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	10:1
Series F-1 Convertible Preferred Stock [Member]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	1:1
Series H Convertible Preferred Stock [Member]
Preferred stock, shares issued	439,043	439,043
Preferred stock, shares outstanding	439,043	439,043
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	10:1
Series I Preferred Stock [Member]
Preferred stock, shares issued	29,940	35,541
Preferred stock, shares outstanding	29,940	35,541
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	20:1
Series J Convertible Preferred Stock [Member]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Par Value	$ 0.0001	$ 0.0001
Conversion Ratio	1:1

Stockholders' Equity and Rede29

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 1) - Warrants - USD ($) None in scaling factor is -9223372036854775296	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Warrants
Outstanding at beginning of year	769,803
Issued
Outstanding at end of year	769,803	769,803
Weighted Average Exercise Price
Outstanding at beginning of year	$ 13.70
Issued
Outstanding at end of year	$ 13.70	$ 13.70
Total Intrinsic Value
Outstanding at beginning of year
Outstanding at end of year
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life Outstanding	3 years 6 months 15 days	4 years 11 days

Stockholders' Equity and Rede30

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 2) - USD ($) None in scaling factor is -9223372036854775296	1 Months Ended	6 Months Ended
	May. 24, 2015	Jun. 30, 2015
Number of Shares
Options expired	(176)
Employee
Number of Shares
Outstanding at beginning of year		5,243,877
Options forfeited		(250,000)
Options expired		(176)
Outstanding at end of year		4,993,701
Options vested and expected to vest		4,993,701
Options vested and exercisable		4,993,576
Weighted Average Exercise Price
Outstanding at beginning of year		$ 4.97
Options forfeited
Options expired
Outstanding at end of year		$ 5.07
Options vested and expected to vest		5.07
Options vested and exercisable		$ 5.06
Total Intrinsic Value
Outstanding at beginning of year
Outstanding at end of year
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life Outstanding, Beginning Balance		6 years
Weighted average remaining contractual life Outstanding, Ending Balance		5 years 7 months 6 days
Options vested and expected to vest		5 years 7 months 6 days
Options vested and exercisable		5 years 7 months 6 days

Stockholders' Equity and Rede31

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 3) - Non-Employee [Member] - USD ($) None in scaling factor is -9223372036854775296	6 Months Ended
	Jun. 30, 2015
Number of Shares
Outstanding at beginning of year	55,000
Options granted
Outstanding at end of year	55,000
Options vested and expected to vest	55,000
Options vested and exercisable	55,000
Weighted Average Exercise Price
Outstanding at beginning of year	$ 5.16
Options granted
Outstanding at end of year	$ 5.16
Options vested and expected to vest	5.16
Options vested and exercisable	$ 5.16
Total Intrinsic Value
Outstanding at beginning of year
Outstanding at end of year
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life Outstanding, Beginning Balance	6 years 4 months 24 days
Weighted average remaining contractual life Outstanding, Ending Balance	5 years 10 months 24 days
Options vested and expected to vest	5 years 10 months 24 days
Options vested and exercisable	5 years 10 months 24 days

Stockholders' Equity and Rede32

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 4) - 6 months ended Jun. 30, 2015 - Restricted Stock [Member] - $ / shares	Total
Nonvested Beginning Balance, Shares	7,500
Granted, Shares	60,625
Vested, Shares	(23,125)
Nonvested Ending Balance, Shares	45,000
Nonvested Beginning Balance, Weighted Average Grant Day Fair Value	$ 2.63
Granted, Weighted Average Grant Day Fair Value	0.61
Vested, Weighted Average Grant Day Fair Value	$ 1.23
Nonvested Ending Balance, Weighted Average Grant Day Fair Value

Stockholders' Equity and Rede33

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Total compensation expense	$ 47	$ 6,992	$ 134	$ 10,388
Employee restricted stock awards [Member]
Total compensation expense		12	11	14
Employee stock option awards [Member]
Total compensation expense	$ 14	6,757	90	10,150
Non-employee restricted stock awards [Member]
Total compensation expense	$ 33	175	$ 33	176
Non-employee stock option awards [Member]
Total compensation expense		$ 48		$ 48

Stockholders' Equity and Rede34

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
	Jun. 15, 2015	May. 24, 2015	Apr. 03, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 10, 2015	Jan. 05, 2015	Dec. 31, 2014	Dec. 31, 2013
Series I redeemable preferred stock, shares issued				29,940		29,940				35,541
Series I redeemable preferred stock, shares outstanding				29,940		29,940				35,541
Preferred stock redemption amount				$ 5,000		$ 5,000				$ 5,935
Stock-based compensation expenses				10	$ 6,800	100	$ 10,200
Issuance of non qualified stock option			500,000
Issuance of non qualified stock option, exercise price			$ 2.86
Percentage of stock option vested			50.00%
Gross Proceeds			$ 30,000
Options Forfeited			250,000
Options expired		176
Reverse of option expense			$ 400
Unamortized compensation cost				$ 10		$ 10
Amortized period						1 month 6 days
Series I Preferred Stock [Member]
Preferred stock redemption price											$ 5,000
Preferred stock redemption amount											$ 20,000
Preferred stock redemption term						The Company and Rockstar entered into a series of agreements which require the Company to redeem $20 million of stated value of Series I Convertible Preferred Stock in $5 million increments on each of the 6, 12, 18 and 24 months anniversary of the purchase.
Series I Preferred Stock [Member] | Rockstar [Member]
Stock redeemed, shares					84,219
Stock redeemed, value					$ 14,100
Series I Preferred Stock [Member] | RPX [Member]
Stock redeemed, shares				5,601
Stock redeemed, value				$ 940
Restricted Stock [Member]
Options granted						60,625
Issuance of fully vested common shares									2,500
Restricted Stock [Member] | Consulting Agreement [Member]
Monthly consulting fee	$ 5,000							$ 10,000
Options granted	45,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Accrued salaries and benefits				$ (64)	$ (192)
Chief Financial Officer [Member]
Reduced monthly fee		$ 10		10
Base Fees				20
Interim Chief Financial Officer [Member]
Base salary		235		235
Increased base salary		271		$ 271
Target Bonus [Member]
Accrued salaries and benefits	$ 350		$ 350
Accrued Bonus [Member]
Reversed benefits		$ 350

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Jul. 15, 2015	Jun. 30, 2015	Dec. 31, 2014
Common stock issued		28,612,195	28,609,695
Subsequent Event [Member]
Purchase price per unit	$ 0.256
Warrants exercise price	$ 0.43
Subsequent Event [Member] | Placement Agency Agreement [Member]
Expenses related to public offering	$ 25,000
Placement agent fee	8.00%
Proceeds from warrants exercise price	$ 1,300
Subsequent Event [Member] | Placement Agency Agreement [Member] | Offered Shares [Member]
Common stock issued	5,719,530
Common stock par value	$ 0.0001
Additional common stock and warrant held percentage right	4.99%
Subsequent Event [Member] | Placement Agency Agreement [Member] | Warrants
Common stock issued	7,035,024
Additional common stock and warrant held percentage right	4.99%