Dominari (DOMH) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document And Entity Information
Entity Registrant Name	SPHERIX INC
Entity Central Index Key	12,239
Document Type	10-Q
Document Period End Date	Sep. 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		34,459,430
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 157	$ 805
Marketable securities	775	3,500
Prepaid expenses and other assets	20	107
Total current assets	952	4,412
Property and equipment, net	3	4
Patent portfolios, net	$ 13,910	55,004
Goodwill		1,712
Deposit	$ 26	26
Total assets	14,891	61,158
Current liabilities
Accounts payable and accrued expenses	441	728
Accrued salaries and benefits	215	$ 329
Warrant liabilities	1,759
Short-term lease liabilities	177	$ 173
Total current liabilities	2,592	1,230
Long-term lease liabilities	274	407
Total liabilities	2,866	1,637
Series I redeemable preferred stock, $0.0001 par value; 29,940 and 35,541 shares issued and outstanding at September 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; 34,402,991 and 28,609,695 shares issued at September 30, 2015 and December 31, 2014, respectively; 34,402,763 and 28,609,467 shares outstanding at September 30, 2015 and December 31, 2014, respectively	$ 3	$ 3
Additional paid-in-capital	138,214	137,655
Treasury stock, at cost, 228 shares at September 30, 2015 and December 31, 2014, respectively	(264)	(264)
Accumulated deficit	(130,928)	(83,808)
Total stockholders' equity	7,025	53,586
Total liabilities and stockholders' equity	$ 14,891	$ 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	Sep. 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	34,402,991	28,609,695
Common stock, shares outstanding	34,402,763	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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenues		$ 2	$ 2	$ 9
Operating costs and expenses
Amortization of patent portfolio	$ 722	2,476	5,594	7,354
Compensation and related expenses (including stock-based compensation)	336	1,799	1,001	12,532
Professional fees	$ 787	$ 726	2,067	$ 3,692
Impairment of goodwill and intangible assets			37,212
Rent	$ 22	$ 71	66	$ 208
Other selling, general and administrative	92	92	440	979
Total operating expenses	1,959	5,164	46,380	24,765
Loss from operations	(1,959)	(5,162)	(46,378)	(24,756)
Other income (expenses)
Other income, net	7	17	32	34
Change in fair value of warrant liabilities	(774)	1	(774)	47
Total other (expenses) income	(767)	18	(742)	81
Net loss	$ (2,726)	$ (5,144)	$ (47,120)	$ (24,675)
Net loss per share, basic and diluted	$ (0.08)	$ (0.18)	$ (1.56)	$ (1.47)
Weighted average number of common shares outstanding, Basic and diluted	33,143,483	28,065,251	30,141,115	16,735,940

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net loss	$ (47,120,000)	$ (24,675,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of patent portfolio	$ 5,594,000	7,354,000
Non-cash registration rights penalty		654,000
Change in fair value of warrant liabilities	$ 774,000	(47,000)
Stock-based compensation	$ 223,000	11,954,000
Issuance of common stock - financial advisor		$ 225,000
Depreciation expenses	$ 1,000
Unrealized gain on marketable securities	45,000
Impairment of goodwill and intangible assets	37,212,000
Changes in assets and liabilities:
Prepaid expenses and other assets	$ 87,000	$ 83,000
Security deposits		4,000
Accounts payable and accrued expenses	$ (287,000)	(125,000)
Accrued salaries and benefits	(114,000)	$ (194,000)
Accrued lease liabilities	(129,000)
Net cash used in operating activities	(3,714,000)	$ (4,767,000)
Cash flows from investing activities
Purchase of marketable securities	$ (3,774,000)
Purchase of property and equipment		$ (4,000)
Sale of marketable securities	$ 6,454,000
Payment of accrued patent costs		$ (1,000,000)
Net provided by (cash used) in investing activities	$ 2,680,000	(1,004,000)
Cash flows from financing activities
Proceeds from issuance of common stock and warrants, net	$ 1,321,000	3,874,000
Proceeds from issuance of preferred stock, net		18,387,000
Redemption of Series I redeemable convertible preferred stock	$ (935,000)	(14,065,000)
Net cash provided by financing activities	386,000	8,196,000
Net (decrease) increase in cash and cash equivalents	(648,000)	2,425,000
Cash and cash equivalents, beginning of period	805,000	3,125,000
Cash and cash equivalents, end of period	$ 157,000	$ 5,550,000
Cash paid for interest and taxes
Non-cash investing and financing activities
Retirement of treasury stock		$ 201,000
Conversion of preferred stock to common stock		$ 3,000

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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”) notifying the Company 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). In accordance with Nasdaq’s Listing Rule 5810(c)(3)(A), the Company had a period of 180 calendar days, or until September 21, 2015, to regain compliance with the Rule. After determining that it would not be in compliance with the Rule by September 21, 2015, the Company notified Nasdaq and applied for an extension of the cure period, as permitted under the original notification. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq granted a second grace period of 180 calendar days, or until March 21, 2016, 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. Continued listing during this period is also contingent on the Company’s continued compliance with all listing requirements other than for the minimum bid price. If the Company fails to regain compliance by March 21, 2016, the Company’s stock will be subject to delisting by Nasdaq. 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”). 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 (see Note 6).

Liquidity and Financial Conditi

Liquidity and Financial Condition	9 Months Ended
	Sep. 30, 2015
Selected Quarterly Financial Information [Abstract]
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 Series I Redeemable Convertible Preferred Stock (the “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 $1.6 million at September 30, 2015, and net loss amounted to approximately $2.7 million and $47.1 million for the three and nine months ended September 30, 2015, primarily due to a $37.2 million non-cash impairment loss on goodwill and intangible assets in the second quarter of 2015 (see Note 4). The Company had a $130.9 million accumulated deficit as of September 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	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies other than described below 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 September 30, 2015, and the condensed consolidated results of its operations for the three and nine-month periods ended September 30, 2015 and 2014, and the condensed consolidated results of its cash flows for the nine-month periods ended September 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. 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. Reclassification Certain reclassifications have been made to prior year amounts to conform to the current year presentation. 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, the valuation of derivative liabilities, 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. 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). There were no indicators of impairment during the third quarter of 2015. Goodwill Goodwill is the excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill is subject to impairment testing at least annually and will be tested for impairment between annual tests if an event occurs or circumstances change that indicate the carrying amount may be impaired. Accounting Standards Codification (“ASC”) Topic 350 provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the two-step impairment test is necessary, a fair-value-based test is applied at the reporting unit level, which is generally one level below the operating segment level. The test compares the fair value of an entity's reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The Company estimated the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach. If the fair value of the reporting unit exceeds its carrying value, then the second step of the impairment test (measurement) does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform the second step of the impairment test. Under the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to an acquisition price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. A significant amount of judgment is required in performing goodwill impairment tests including estimating the fair value of a reporting unit and the implied fair value of goodwill. Refer to Note 4 for further discussion of the interim goodwill impairment test performed by the Company as of June 30, 2015. Warrant Liability The Company accounts for the 7,035,024 common stock warrants issued in connection with its July 21, 2015 offering of units consisting of common stock and warrants for the purchase of common stock (the “July 2015 Financing”) in accordance with the guidance contained in ASC 815-40-15-7D, “Contracts in Entity’s Own Equity”. Under that accounting standard, these warrants (the “July 2015 Warrants”) do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies the July 2015 Warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the July 2015 Warrants are exercised, and any change in fair value is recognized in the Company’s statements of operations. The fair value of the July 2015 Warrants have been estimated using a binomial valuation model (see Note 5). 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 September 30, 2015 and 2014 are as follows: As of September 30, 2015 2014 Convertible preferred stock 5,044,821 5,156,841 Warrants to purchase common stock 7,804,827 775,021 Non-vested restricted stock awards - 15,000 Options to purchase common stock 5,498,701 5,298,877 Total 18,348,349 11,245,739 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 there were no subsequent events or transactions that required recognition or disclosure in the condensed consolidated financial statements, except as disclosed..

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Patent Portfolio 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 September 30, 2015 are as follows (in thousands, except year amounts): September 30, 2015 Weighted average amortization period (years) Patent Portfolios at December 31, 2014, net $ 55,004 5.62 Amortization expenses 5,594 Impairment loss 35,500 Patent Portfolios at September 30, 2015, net $ 13,910 4.88 The accumulated amortization related to acquired intangible assets for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands, except year amounts): Amortization Expense for the Three Months Ended September 30, Amortization Expense for the Nine Months Ended September 30, Date Acquired and Description 2015 2014 2015 2014 7/24/13 - Rockstar patent portfolio $ 35 $ 118 $ 268 $ 351 9/10/13 - North South patent portfolio 10 33 74 97 12/31/13 - Rockstar patent portfolio 677 2,325 5,252 6,906 $ 722 $ 2,476 $ 5,594 $ 7,354 The Company incurred amortization expense associated with its finite-lived intangible assets of $0.7 million and $2.5 million for the three months ended September 30, 2015 and 2014, respectively. The Company incurred amortization expense associated with its finite-lived intangible assets of $5.6 million and $7.4 million for the nine months ended September 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 $14.6 million, which is comparable to the aggregate market capitalization of the Company as of that date. The Company recorded a $35.5 million impairment charge against its patent portfolio in the second quarter of 2015. The new cost basis of the patent portfolio of $14.6 million will be amortized over its weighted average remaining useful life of 5.13 years. There were no indicators of impairment during the third quarter of 2015. 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 Three Months Ended December 31, 2015 $ 35 $ 10 $ 678 $ 723 Year Ended December 31, 2016 139 39 2,696 2,874 Year Ended December 31, 2017 138 40 2,688 2,866 Year Ended December 31, 2018 138 40 2,689 2,867 Year Ended December 31, 2019 138 40 2,688 2,866 Thereafter 285 88 1,341 1,714 Total $ 873 $ 257 $ 12,780 $ 13,910 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 its interim goodwill impairment test 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 July 2015 Financing 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. Most importantly, 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. During the second quarter of 2015, the Company determined that certain events occurred that were indicators of a potential impairment. 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 less than its carrying amount and therefore the second step of the goodwill impairment test was required. In performing the second step of the goodwill impairment test, the Company compared the carrying value of goodwill to its implied fair value. In estimating the implied fair value of goodwill, the Company assigns the fair value of the reporting unit to all of the assets and liabilities associated with the reporting unit as if the reporting unit had been acquired in a business combination. Based on the estimated implied fair value of goodwill, the Company recorded an impairment charge of $1.7 million, to reduce the carrying value of goodwill to its implied fair value, which was determined to be zero. This impairment charge is included in the impairment of goodwill and intangible assets on the condensed consolidated statement of operations for nine months ended September 30, 2015.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Liabilities	Financial instruments, including cash and cash equivalents, accounts and other receivables, accounts payable and accrued liabilities are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions) The following table presents the Company’s assets and liabilities that are measured at fair value at September 30, 2015 and December 31, 2014 (in thousands): Fair value measured at September 30, 2015 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2015 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 775 $ 775 $ - $ - Liabilities Fair value of warrant liabilities $ 1,759 $ - $ - $ 1,759 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 nine months ended September 30, 2015. Level 3 Valuation Techniques Level 3 financial liabilities consist of the warrant liabilities for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. A significant decrease in the volatility or a significant decrease in the Company’s stock price, in isolation, would result in a significantly lower fair value measurement. Changes in the values of the warrant liabilities are recorded in “fair value adjustments for warrant liabilities” in the Company’s condensed consolidated statements of operations. On July 21, 2015, the Company issued the July 2015 Warrants to the investors in the July 2015 Financing to purchase aggregate of 7,035,024 shares of common stock. The July 2015 Warrants become exercisable on January 22, 2016 at an exercise price of $0.43 per share. The warrants require, at the option of the holder, a net-cash settlement following certain fundamental transactions (as defined) at the Company and therefore are classified as liabilities. The July 2015 Warrants have been recorded at their fair value using the binomial valuation model, and will be recorded at their respective fair value at each subsequent balance sheet date. This model incorporates transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as volatility. A summary of quantitative information with respect to the valuation methodology and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy at the date of issuance and as of September 30, 2015 is as follows: Date of valuation July 21, 2015 September 30,2015 Risk-free interest rate 1.69 % 1.37% Expected volatility 100.00 % 100.00% Expected life (in years) 5.5 5.3 Expected dividend yield - - The risk-free interest rate was based on rates established by the Federal Reserve. The expected volatility in the binomial model is based on an expected volatility of 100% which represents the percentage required to be used when valuing the cash settlement feature as contractually stated in the form of warrants. The expected life of the warrants was determined by the expiration date of the warrants. The expected dividend yield was based upon the fact that the Company has not historically paid dividends on its common stock, and does not expect to pay dividends on its common stock in the future. The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis as of September 30, 2015 (in thousands): Beginning balance at January 1, 2015 $ - Recognition of warrant liabilities 985 Fair value adjustment of warrant liabilities 774 Ending balance at September 30, 2015 $ 1,759

Stockholders' Equity and Redeem

Stockholders' Equity and Redeemable Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity and Redeemable Convertible Preferred Stock	Offering of Common Stock and Warrants On July 15, 2015, the Company entered into a placement agency agreement with Chardan Capital Markets, LLC as placement agent (the “Placement Agent”), relating to the July 2015 Financing, which was a registered direct offering to select institutional Investors of 5,719,530 shares of the Company’s Common Stock, $0.0001 par value per share, and Common Stock Purchase Warrants to purchase up to an aggregate of 7,035,024 shares of Common Stock. Pursuant to the Placement Agency Agreement, the Company paid the Placement Agent a cash fee of 8.0% of the gross proceeds from the July 2015 Financing 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. In addition, on July 15, 2015, the Company and the Investors in the July 2015 Financing 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 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. Preferred Stock The Company had designated separate series of its capital stock as of September 30, 2015 and December 31, 2014 as summarized below: Number of Shares Issued and Outstanding as of September 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 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 engages 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. In January 2015, Rockstar transferred its remaining outstanding Series I 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 September 30, 2015, 29,940 shares of Series I Preferred Stock with an aggregate remaining redemption price of $5.0 million remained issued and outstanding. In June 2015, the Company received a letter from RPX alleging that the Company's disclosure relating to the substantial doubt regarding its ability to continue as a going concern in its previously filed Forms 10-K and 10-Q constitutes a default under the Intellectual Property Security Agreement surrounding the Series I Preferred Stock that was entered into with Rockstar in December 2013, which was transferred to RPX in January 2015 as part of the purchase of Rockstar’s assets by RPX. No communications or actions alleging any breach have followed since the date of such initial communication from RPX. The Company strongly believes that there is no merit in the allegation, and no legal basis for the claim. Warrants A summary of warrant activity for the nine months ended September 30, 2015 is presented below: Warrants Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2014 769,803 $ 13.70 $ - 4.03 Issued 7,035,024 0.43 - 5.31 Outstanding as of September 30, 2015 7,804,827 $ 1.74 $ - 5.11 Exercisable as of September 30, 2015 769,803 $ 13.70 $ - 3.28 Stock Options On April 3, 2014, pursuant to and subject to the available number of shares reserved under the Company’s 2014 Equity Incentive 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, director and the 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 nine months ended September 30, 2015. On May 24, 2015, 176 options granted on May 25, 2010 expired. During the third quarter ended September 30, 2015, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued 450,000 options to five of the Company’s directors. These stock options are vested within one year of the date of grant. The aggregate grant date fair value of these options was approximately $69,000. The fair value of stock options granted was determined on the grant date using assumptions for risk free interest rate, the expected term, expected volatility, and expected dividend yield. The fair value of the Company’s common stock was based upon the publicly quoted price on the date that the final approval of the awards was obtained. The Company does not expect to pay dividends in the foreseeable future so therefore the expected dividend yield is 0%. The expected term for stock options granted with service conditions represents the average period the stock options are expected to remain outstanding and is based on the expected term calculated using the approach prescribed by the Securities and Exchange Commission's Staff Accounting Bulletin No. 110 for “plain vanilla” options. The Company obtained the risk-free interest rate from publicly available data published by the Federal Reserve. The volatility rate was computed based on the standard deviation of the Company’s underlying stock price's daily logarithmic returns. The fair value of options granted in 2015 and 2014 was estimated using the following assumptions: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Exercise price $0.22 - $1.73 $1.34 - $1.79 $0.22 - $1.73 $1.34 - $5.83 Expected stock price volatility 117.2% - 130.4% 77.7% - 79.0% 117.2% - 130.4% 77.7% - 90.6% Risk-free rate of interest 0.74% - 1.08% 0.95% - 1.76% 0.74% - 1.08% 0.76% - 1.76% Term (years) 1.9 - 3.0 2.5 - 5.3 1.9 - 3.0 2.5 - 5.5 A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2015 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2014 5,243,877 $ 4.97 $ - 6.0 Employee options granted 450,000 0.50 - 4.7 Employee options forfeited (250,000 ) - - - Employee options expired (176 ) - - - Outstanding as of September 30, 2015 5,443,701 4.69 $ 34,500 5.3 Options vested and expected to vest 5,443,701 4.69 - 5.3 Options vested and exercisable 5,406,076 $ 4.72 $ - 5.3 A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2015 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2014 55,000 $ 5.16 $ - 6.4 Non-employee options granted - - - - Outstanding as of September 30, 2015 55,000 5.16 - 5.7 Options vested and expected to vest 55,000 5.16 - 5.7 Options vested and exercisable 55,000 $ 5.16 $ - 5.7 Stock-based compensation associated with the amortization of stock option expense was approximately $0.1 million and $1.6 million for the three months ended September 30, 2015 and 2014, respectively, and was approximately $0.2 million and $12.0 million for the nine months ended September 30, 2015 and 2014, respectively. Estimated future stock-based compensation expense relating to unvested stock options is approximately $5,000. The weighted average remaining vesting period of options outstanding at September 30, 2015 is approximately 0.9 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. On August 6, 2015, the Company issued 15,625 and 25,641 common shares based on the closing price of Common Stock on June 10, 2015 and July 10, 2015, respectively. On October 6, 2015, the Company issued 41,667 common shares based on the closing price of Common Stock on August 9, 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 vested monthly for each of the three months following the grant date. On August 6, 2015, the Company issued 30,000 common shares and on October 6, 2015, the Company issued the remaining 15,000 shares of Common Stock. A summary of the restricted stock award activity for the nine months ended September 30, 2015 is as follows: Number of Units Weighted Average Grant Day Fair Value Nonvested at December 31, 2014 7,500 $ 2.63 Granted 127,933 0.45 Vested (135,433 ) 0.56 Nonvested at September 30, 2015 - $ - Stock-based Compensation Stock-based compensation for the three months and nine months ended September 30, 2015 and 2014 was comprised of the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Employee restricted stock awards $ - $ 19 $ 11 $ 33 Employee stock option awards 64 1,547 154 11,698 Non-employee restricted stock awards 25 15 58 175 Non-employee option awards - - - 48 Total compensation expense $ 89 $ 1,581 $ 223 $ 11,954

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
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 provides 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. On August 10, 2015, the Company entered into a consulting agreement with Mr. Howard E. Goldberg (d/b/a Forward Vision Associates, of which Mr. Goldberg is the sole proprietor and owner), on an independent contractor basis, pursuant to which Mr. Goldberg will, among other services, provide advisory services to the Company in areas including licensing, litigation and business strategies. The Company will pay Mr. Goldberg an agreed upon quarterly retainer amount of $20,400 (calculated on an hourly basis) and, if applicable, upon exhaustion of each quarterly retainer, at an hourly rate to be paid in equity (for the first 50 hours above the quarterly retainer), and subsequently (if applicable) at an hourly rate thereafter in cash. The Company will reimburse Mr. Goldberg for actual out-of-pocket expenses. The consulting agreement with Mr. Goldberg has an initial term of one year, unless consultant has completed the desired services by an earlier date or unless the agreement is earlier terminated pursuant to its terms. The consulting agreement with Mr. Goldberg may be extended by written agreement of both the Company and consultant. During the three-month period ended September 30, 2015, the Company incurred $20,400 consulting expenses related to this agreement. Mr. Goldberg was also appointed as a director of the Company.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
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 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., Case No. 1:14-cv-00393- SLR, in the United States District Court for the District of Delaware for infringement of U.S. Patent Nos. RE40467; 6,697,325; 6,578,086; 6,222,848; 6,130,877; 5,970,125; 6,807,174; 7,397,763; 7,664,123; 7,385,998; and 8,607,323 (collectively, the “Asserted Patents”). The complaint alleges that Cisco has manufactured, sold, offered for sale and/or imported technology that infringes the Asserted Patents. The Company is seeking relief in the form of a finding of infringement of the Asserted Patents, an accounting of all damages sustained by the Company as a result of Cisco’s infringement, actual damages, enhanced damages under 35 U.S.C. Section 284, attorney’s fees and costs. On July 8, 2014, the Company filed its amended complaint to reflect that certain of the patents asserted were assigned to its wholly-owned subsidiary NNPT LLC (“NNPT”), based in Longview, Texas. By the amended complaint, NNPT was added as a co-plaintiff with the Company. On August 5, 2014, Cisco filed a motion to dismiss certain claims alleged in the amended complaint. On August 26, 2014, the Company and NNPT filed an opposition to Cisco’s motion to dismiss. On September 5, 2014, Cisco filed its reply brief regarding its motion to dismiss. On March 9, 2015, Cisco moved to consolidate certain claims relating to alleged obligations by the Company to license Cisco on two unrelated patents, which Cisco had made against the Company on June 6, 2014 in the pending case 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 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 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, 1:15-cv-00559-SLR, 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 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. On August 28, 2015, the Company filed motions to dismiss the case in light of previously filed case, case No. 1:15-cv-0576-GBL-IDD, in the Eastern District of Virginia, which involves U.S. Patent No. RE45,598. 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.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	There have been no material changes in the Company’s significant accounting policies other than described below 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 September 30, 2015, and the condensed consolidated results of its operations for the three and nine-month periods ended September 30, 2015 and 2014, and the condensed consolidated results of its cash flows for the nine-month periods ended September 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. 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.
Reclassification	Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
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, the valuation of derivative liabilities, 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.
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). There were no indicators of impairment during the third quarter of 2015.
Goodwill	Goodwill is the excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill is subject to impairment testing at least annually and will be tested for impairment between annual tests if an event occurs or circumstances change that indicate the carrying amount may be impaired. Accounting Standards Codification (“ASC”) Topic 350 provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the two-step impairment test is necessary, a fair-value-based test is applied at the reporting unit level, which is generally one level below the operating segment level. The test compares the fair value of an entity's reporting units to the carrying value of those reporting units. This test requires various judgments and estimates. The Company estimated the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach. If the fair value of the reporting unit exceeds its carrying value, then the second step of the impairment test (measurement) does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform the second step of the impairment test. Under the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to an acquisition price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. A significant amount of judgment is required in performing goodwill impairment tests including estimating the fair value of a reporting unit and the implied fair value of goodwill. Refer to Note 4 for further discussion of the interim goodwill impairment test performed by the Company as of June 30, 2015.
Warrant Liability	The Company accounts for the 7,035,024 common stock warrants issued in connection with its July 21, 2015 offering of units consisting of common stock and warrants for the purchase of common stock (the “July 2015 Financing”) in accordance with the guidance contained in ASC 815-40-15-7D, “Contracts in Entity’s Own Equity”. Under that accounting standard, these warrants (the “July 2015 Warrants”) do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies the July 2015 Warrants as a liability at their fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the July 2015 Warrants are exercised, and any change in fair value is recognized in the Company’s statements of operations. The fair value of the July 2015 Warrants have been estimated using a binomial valuation model (see Note 5).
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 September 30, 2015 and 2014 are as follows: As of September 30, 2015 2014 Convertible preferred stock 5,044,821 5,156,841 Warrants to purchase common stock 7,804,827 775,021 Non-vested restricted stock awards - 15,000 Options to purchase common stock 5,498,701 5,298,877 Total 18,348,349 11,245,739
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 there were no subsequent events or transactions that required recognition or disclosure in the condensed consolidated financial statements, except as disclosed..

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
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 September 30, 2015 and 2014 are as follows: As of September 30, 2015 2014 Convertible preferred stock 5,044,821 5,156,841 Warrants to purchase common stock 7,804,827 775,021 Non-vested restricted stock awards - 15,000 Options to purchase common stock 5,498,701 5,298,877 Total 18,348,349 11,245,739

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization to acquired intangible assets	The gross carrying amounts related to acquired intangible assets as of September 30, 2015 are as follows (in thousands, except year amounts): September 30, 2015 Weighted average amortization period (years) Patent Portfolios at December 31, 2014, net $ 55,004 5.62 Amortization expenses 5,594 Impairment loss 35,500 Patent Portfolios at September 30, 2015, net $ 13,910 4.88 The accumulated amortization related to acquired intangible assets for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands, except year amounts): Amortization Expense for the Three Months Ended September 30, Amortization Expense for the Nine Months Ended September 30, Date Acquired and Description 2015 2014 2015 2014 7/24/13 - Rockstar patent portfolio $ 35 $ 118 $ 268 $ 351 9/10/13 - North South patent portfolio 10 33 74 97 12/31/13 - Rockstar patent portfolio 677 2,325 5,252 6,906 $ 722 $ 2,476 $ 5,594 $ 7,354
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 Three Months Ended December 31, 2015 $ 35 $ 10 $ 678 $ 723 Year Ended December 31, 2016 139 39 2,696 2,874 Year Ended December 31, 2017 138 40 2,688 2,866 Year Ended December 31, 2018 138 40 2,689 2,867 Year Ended December 31, 2019 138 40 2,688 2,866 Thereafter 285 88 1,341 1,714 Total $ 873 $ 257 $ 12,780 $ 13,910

Fair Value of Financial Asset17

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
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 September 30, 2015 and December 31, 2014 (in thousands): Fair value measured at September 30, 2015 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2015 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 775 $ 775 $ - $ - Liabilities Fair value of warrant liabilities $ 1,759 $ - $ - $ 1,759 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 $ - $ -
Significant assumptions used in the valuations	A summary of quantitative information with respect to the valuation methodology and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy at the date of issuance and as of September 30, 2015 is as follows: Date of valuation July 21, 2015 September 30,2015 Risk-free interest rate 1.69 % 1.37% Expected volatility 100.00 % 100.00% Expected life (in years) 5.5 5.3 Expected dividend yield - -
Changes in the fair value of the Company's Level 3 inputs	The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis as of September 30, 2015 (in thousands): Beginning balance at January 1, 2015 $ - Recognition of warrant liabilities 985 Fair value adjustment of warrant liabilities 774 Ending balance at September 30, 2015 $ 1,759

Stockholders' Equity and Rede18

Stockholders' Equity and Redeemable Convertible Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Preferred Stock	The Company had designated separate series of its capital stock as of September 30, 2015 and December 31, 2014 as summarized below: Number of Shares Issued and Outstanding as of September 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 nine months ended September 30, 2015 is presented below: Warrants Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2014 769,803 $ 13.70 $ - 4.03 Issued 7,035,024 0.43 - 5.31 Outstanding as of September 30, 2015 7,804,827 $ 1.74 $ - 5.11 Exercisable as of September 30, 2015 769,803 $ 13.70 $ - 3.28
Fair value of options granted	The fair value of options granted in 2015 and 2014 was estimated using the following assumptions: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Exercise price $0.22 - $1.73 $1.34 - $1.79 $0.22 - $1.73 $1.34 - $5.83 Expected stock price volatility 117.2% - 130.4% 77.7% - 79.0% 117.2% - 130.4% 77.7% - 90.6% Risk-free rate of interest 0.74% - 1.08% 0.95% - 1.76% 0.74% - 1.08% 0.76% - 1.76% Term (years) 1.9 - 3.0 2.5 - 5.3 1.9 - 3.0 2.5 - 5.5
Summary of option activity	A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2015 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2014 5,243,877 $ 4.97 $ - 6.0 Employee options granted 450,000 0.50 - 4.7 Employee options forfeited (250,000 ) - - - Employee options expired (176 ) - - - Outstanding as of September 30, 2015 5,443,701 4.69 $ 34,500 5.3 Options vested and expected to vest 5,443,701 4.69 - 5.3 Options vested and exercisable 5,406,076 $ 4.72 $ - 5.3 A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2015 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2014 55,000 $ 5.16 $ - 6.4 Non-employee options granted - - - - Outstanding as of September 30, 2015 55,000 5.16 - 5.7 Options vested and expected to vest 55,000 5.16 - 5.7 Options vested and exercisable 55,000 $ 5.16 $ - 5.7
Summary of the restricted stock award activity	A summary of the restricted stock award activity for the nine months ended September 30, 2015 is as follows: Number of Units Weighted Average Grant Day Fair Value Nonvested at December 31, 2014 7,500 $ 2.63 Granted 127,933 0.45 Vested (135,433 ) 0.56 Nonvested at September 30, 2015 - $ -
Stock-based compensation expense	Stock-based compensation for the three months and nine months ended September 30, 2015 and 2014 was comprised of the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Employee restricted stock awards $ - $ 19 $ 11 $ 33 Employee stock option awards 64 1,547 154 11,698 Non-employee restricted stock awards 25 15 58 175 Non-employee option awards - - - 48 Total compensation expense $ 89 $ 1,581 $ 223 $ 11,954

Organization and Description 19

Organization and Description of Business (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 15, 2015	Sep. 21, 2015	Mar. 24, 2015	Sep. 30, 2015	Aug. 06, 2015	Dec. 31, 2014
Common stock shares issued				34,402,991	15,625	28,609,695
Common stock shares par value per share				$ 0.0001		$ 0.0001
First Grace Period [Member]
Common stock bid price per share			$ 1
Common stock bid price grace period			30 days
Second Grace Period [Member]
Common stock bid price per share		$ 1
Common stock bid price grace period		10 days
Placement Agency Agreement [Member] | Capital Markets, LLC [Member]
Common stock shares issued	5,719,530
Common stock shares par value per share	$ 0.0001
Common stock warrants purchase	7,035,024
Common stock warrants exercised	$ 1,300
Common stock warrants closed date	Jul. 21, 2015

Liquidity and Financial Condi20

Liquidity and Financial Condition (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014
working capital deficiency	$ 1,600			$ 1,600
Net loss	2,726	$ 5,144		47,120	$ 24,675
Accumulated deficit	$ 130,928			$ 130,928			$ 83,808
Non-cash impairment loss on intangible assets			$ 37,200
Series I Redeemable Convertible Preferred Stock [Member]
Outstanding shares redeemed			5,601
Outstanding shares redemption price			$ 935,297
Series I Redeemable Convertible Preferred Stock [Member] | Subsequent Event [Member]
Outstanding shares redeemed						29,940
Outstanding shares redemption price						$ 5,000

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Potentially dilute securities excluded from calculation	18,348,349	11,245,739
Convertible preferred stock [Member]
Potentially dilute securities excluded from calculation	5,044,821	5,156,841
Warrants to purchase common stock [Member]
Potentially dilute securities excluded from calculation	7,804,827	775,021
Non-vested restricted stock awards [Member]
Potentially dilute securities excluded from calculation		15,000
Options to purchase common stock [Member]
Potentially dilute securities excluded from calculation	5,498,701	5,298,877

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2015	Jul. 21, 2015	Dec. 31, 2014
Marketable securities	$ 775		$ 3,500
July 2015 Financing [Member]
Common stock warrants issued		7,035,024

Goodwill and Intangible Asset23

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Patent Portfolios at December 31, 2014, net			$ 55,004
Amortization expenses	$ 722	$ 2,476	5,594	$ 7,354
Impairment loss			37,212
Patent Portfolios at September 30, 2015, net	$ 13,910		13,910		$ 55,004
Patents [Member]
Patent Portfolios at December 31, 2014, net			55,004
Amortization expenses			5,594
Impairment loss			35,500
Patent Portfolios at September 30, 2015, net	$ 13,910		$ 13,910		$ 55,004
Weighted average amortization period			4 years 10 months 17 days		5 years 7 months 13 days

Goodwill and Intangible Asset24

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Amortization expenses	$ 722	$ 2,476	$ 5,594	$ 7,354
7/24/13 - Rockstar Patent Portfolio Acquired [Member]
Amortization expenses	35	118	268	351
9/10/13 - North South patent portfolio Acquired [Member]
Amortization expenses	10	33	74	97
12/31/13 - Rockstar Patent Portfolio Acquired [Member]
Amortization expenses	$ 677	$ 2,325	$ 5,252	$ 6,906

Goodwill and Intangible Asset25

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Three Months Ended December 31, 2015	$ 723
Year Ended December 31, 2016	2,874
Year Ended December 31, 2017	2,866
Year Ended December 31, 2018	2,867
Year Ended December 31, 2019	2,866
Thereafter	1,714
Total	13,910	$ 55,004
7/24/13 - Rockstar Patent Portfolio Acquired [Member]
Three Months Ended December 31, 2015	35
Year Ended December 31, 2016	139
Year Ended December 31, 2017	138
Year Ended December 31, 2018	138
Year Ended December 31, 2019	138
Thereafter	285
Total	873
9/10/13 - North South patent portfolio Acquired [Member]
Three Months Ended December 31, 2015	10
Year Ended December 31, 2016	39
Year Ended December 31, 2017	40
Year Ended December 31, 2018	40
Year Ended December 31, 2019	40
Thereafter	88
Total	257
12/31/13 - Rockstar Patent Portfolio Acquired [Member]
Three Months Ended December 31, 2015	678
Year Ended December 31, 2016	2,696
Year Ended December 31, 2017	2,688
Year Ended December 31, 2018	2,689
Year Ended December 31, 2019	2,688
Thereafter	1,341
Total	$ 12,780

Goodwill and Intangible Asset26

Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Event requiring that goodwill be tested for impairment			The market price of the Common Stock decreased from $1.13 to $0.48
Finite-lived intangible assets amortization expense	$ 700	$ 2,500		$ 5,600	$ 7,400
Weighted average life in years of patent portfolios				5 years 1 month 17 days
Fair value of the patent portfolio	$ 9,800		$ 14,600	$ 9,800
Impairment charge of patent portfolio			$ 35,500	$ 1,700

Fair Value of Financial Asset27

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Marketable securities - mutual funds	$ 775	$ 3,500
Liabilities
Fair value of warrant liabilities	1,759
Level 1 [Member]
Assets
Marketable securities - mutual funds	$ 775	$ 3,500
Liabilities
Fair value of warrant liabilities
Level 2 [Member]
Assets
Marketable securities - mutual funds
Liabilities
Fair value of warrant liabilities
Level 3 [Member]
Assets
Marketable securities - mutual funds
Liabilities
Fair value of warrant liabilities	$ 1,759

Fair Value of Financial Asset28

Fair Value of Financial Assets and Liabilities (Details 1)	1 Months Ended	9 Months Ended
	Jul. 21, 2015	Sep. 30, 2015
Valuation methodology and significant unobservable inputs
Risk-free interest rate	1.69%	1.37%
Expected volatility	100.00%	100.00%
Expected life (in years)	5 years 6 months	5 years 3 months 18 days
Expected dividend yield

Fair Value of Financial Asset29

Fair Value of Financial Assets and Liabilities (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair value adjustment of warrant liabilities	$ 774	$ (1)	$ 774	$ (47)
Level 3 [Member]
Beginning balance at January 1, 2015
Recognition of warrant liabilities			$ 985
Fair value adjustment of warrant liabilities			774
Ending balance at September 30, 2015	$ 1,759		$ 1,759

Fair Value of Financial Asset30

Fair Value of Financial Assets and Liabilities (Details Narrative) - $ / shares	1 Months Ended	9 Months Ended
	Jul. 21, 2015	Sep. 30, 2015
Binomial model based on expected volatility	100.00%	100.00%
July 2015 Financing [Member]
Common stock warrants purchase	7,035,024
Warrants exercisable date	Jan. 22, 2016
Warrants exercise price per share	$ 0.43

Stockholders' Equity and Rede31

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details) - $ / shares	9 Months Ended
	Sep. 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 Redeemable Convertible 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 Rede32

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 1) - Warrants - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Warrants
Outstanding at beginning of year	769,803
Issued	7,035,024
Outstanding at end of year	7,804,827	769,803
Exercisable as of September 30, 2015	769,803
Weighted Average Exercise Price
Outstanding at beginning of year	$ 13.70
Issued	0.43
Outstanding at end of year	1.74	$ 13.70
Exercisable as of September 30, 2015	$ 13.70
Total Intrinsic Value
Outstanding at beginning of year	$ 0
Outstanding at end of year	0	$ 0
Exercisable as of September 30, 2015	$ 0
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life Outstanding	5 years 1 month 10 days	4 years 11 days
Weighted average remaining contractual life, Issued	5 years 3 months 22 days
Exercisable as of September 30, 2015	3 years 3 months 11 days

Stockholders' Equity and Rede33

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 2) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Minimum [Member]
Exercise price	$ 0.22	$ 1.34	$ 0.22	$ 1.34
Expected stock price volatility	117.20%	77.70%	117.20%	77.70%
Risk-free rate of interest	0.74%	0.95%	0.74%	0.76%
Term (years)	1 year 10 months 24 days	2 years 6 months	1 year 10 months 24 days	2 years 6 months
Maximum [Member]
Exercise price	$ 1.73	$ 1.79	$ 1.73	$ 1.79
Expected stock price volatility	130.40%	79.00%	130.40%	90.60%
Risk-free rate of interest	1.08%	1.76%	1.08%	1.76%
Term (years)	3 years	5 years 3 months 18 days	3 years	5 years 6 months

Stockholders' Equity and Rede34

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 3) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	May. 24, 2015	Sep. 30, 2015
Number of Shares
Options expired	(176)
Employee
Number of Shares
Outstanding at beginning of year		5,243,877
Options granted		450,000
Options forfeited		(250,000)
Options expired		(176)
Outstanding at end of year		5,443,701
Options vested and expected to vest		5,443,701
Options vested and exercisable		5,406,076
Weighted Average Exercise Price
Outstanding at beginning of year		$ 4.97
Options granted		0.50
Options forfeited		0
Options expired		0
Outstanding at end of year		4.69
Options vested and expected to vest		4.69
Options vested and exercisable		$ 4.72
Total Intrinsic Value
Outstanding at beginning of year		$ 0
Outstanding at end of year		$ 34,500
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life Outstanding, Beginning Balance		6 years
Options granted		4 years 8 months 12 days
Weighted average remaining contractual life Outstanding, Ending Balance		5 years 3 months 18 days
Options vested and expected to vest		5 years 3 months 18 days
Options vested and exercisable		5 years 3 months 18 days

Stockholders' Equity and Rede35

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 4) - Non-Employee [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Number of Shares
Outstanding at beginning of year	55,000
Options granted	0
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 | $ / shares	$ 5.16
Options granted | $ / shares	0
Outstanding at end of year | $ / shares	5.16
Options vested and expected to vest | $ / shares	5.16
Options vested and exercisable | $ / shares	$ 5.16
Total Intrinsic Value
Outstanding at beginning of year | $	$ 0
Outstanding at end of year | $	$ 0
Weighted Average Remaining Contractual Life (in years)
Weighted average remaining contractual life Outstanding, Beginning Balance	6 years 4 months 24 days
Options granted	0 years
Weighted average remaining contractual life Outstanding, Ending Balance	5 years 8 months 12 days
Options vested and expected to vest	5 years 8 months 12 days
Options vested and exercisable	5 years 8 months 12 days

Stockholders' Equity and Rede36

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 5) - Restricted Stock [Member] - $ / shares	Jan. 05, 2015	Sep. 30, 2015
Nonvested Beginning Balance, Shares	7,500	7,500
Granted, Shares		127,933
Vested, Shares	(2,500)	(135,433)
Nonvested Ending Balance, Shares		0
Nonvested Beginning Balance, Weighted Average Grant Day Fair Value	$ 2.63	$ 2.63
Granted, Weighted Average Grant Day Fair Value		0.45
Vested, Weighted Average Grant Day Fair Value		0.56
Nonvested Ending Balance, Weighted Average Grant Day Fair Value		$ 0

Stockholders' Equity and Rede37

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 6) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Total compensation expense	$ 89	$ 1,581		$ 223	$ 11,954
Employee restricted stock awards [Member]
Total compensation expense	0		$ 19	11	33
Employee stock option awards [Member]
Total compensation expense	64		1,547	154	11,698
Non-employee restricted stock awards [Member]
Total compensation expense	25		15	58	175
Non-employee option awards [Member]
Total compensation expense	$ 0		$ 0	$ 0	$ 48

Stockholders' Equity and Rede38

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 15, 2015	Jan. 05, 2015	Jun. 15, 2015	May. 24, 2015	Apr. 03, 2014	Dec. 31, 2013	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2015	Oct. 06, 2015	Aug. 06, 2015	Jun. 10, 2015	Dec. 31, 2014
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							100		$ 1,600		200	$ 12,000
Estimated future stock-based compensation expense relating to unvested stock options							$ 5				$ 5
Estimated future stock-based compensation expense relating to unvested stock options, period											10 months 24 days
Expected dividend yield											0.00%
Common stock shares issued							34,402,991				34,402,991				15,625		28,609,695
Common stock shares par value per share							$ 0.0001				$ 0.0001						$ 0.0001
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
Series I Redeemable Convertible Preferred Stock [Member]
Stock redeemed, shares										5,601
Stock redeemed, value										$ 935,297
Preferred stock redemption price						$ 5,000
Interest rate						15.00%
Proceeds from Convertible Preferred Stock						$ 7,500
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 Redeemable Convertible Preferred Stock [Member] | RPX [Member]
Stock redeemed, shares								5,601
Stock redeemed, value								$ 940
Restricted Stock [Member]
Options granted											127,933
Options fully vested common shares		2,500									135,433
Consulting Agreement [Member] | Restricted Stock [Member]
Monthly consulting fee			$ 5													$ 10
Options granted			45,000
Director [Member]
Options granted							50,000
Options term							5 years
Grant date fair value of options							$ 69,000
Transaction One [Member]
Common stock shares issued															25,641
Transaction Two [Member]
Common stock shares issued															30,000
Subsequent Event [Member]
Common stock shares issued														41,667
Subsequent Event [Member] | Series I Redeemable Convertible Preferred Stock [Member]
Stock redeemed, shares													29,940
Stock redeemed, value													$ 5,000
Subsequent Event [Member] | Transaction One [Member]
Common stock shares issued														15,000
Placement Agency Agreement [Member] | Capital Markets, LLC [Member]
Expenses related to offering of common stock and warrants	$ 25
Cash fee to placement agent	8.00%
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1.23
Purchase price per unit of warrants	$ 0.256
Exercise price of warrants	$ 0.43
Warrants term	5 years
Number of shares of common stock own	4.99%
Increase limitation, percentage	9.99%
Subsequent financing common stock, percentage	100.00%
Proceeds from exercise of Warrants	$ 1,300
Common stock shares issued	5,719,530
Common stock shares par value per share	$ 0.0001
Common stock warrants purchase	7,035,024
Gross Proceeds	$ 25,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	Aug. 10, 2015	Feb. 28, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accrued salaries and benefits							$ (114)	$ (194)
Consulting expenses			$ 787			$ 726	2,067	$ 3,692
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
Mr. Goldberg [Member]
Quarterly retainer amount	$ 20
Consulting expenses	$ 20
Target Bonus [Member]
Accrued salaries and benefits		$ 350			$ 350
Accrued Bonus [Member]
Reversed benefits				$ 350