Dominari (DOMH) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 08, 2016
Document And Entity Information
Entity Registrant Name	SPHERIX INC
Entity Central Index Key	12,239
Document Type	10-Q
Trading Symbol	SPEX
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,820,957
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 303	$ 142
Marketable securities	6,968	3,392
Prepaid expenses and other assets	59	330
Total current assets	7,330	3,864
Property and equipment, net	6	5
Patent portfolios and patent rights, net	8,201	9,799
Deposit	26	26
Total assets	15,563	13,694
Current liabilities
Accounts payable and accrued expenses	64	384
Accrued salaries and benefits	534	645
Warrant liabilities	904	2,959
Short-term deferred revenue	1,246	290
Short-term lease liabilities	182	178
Total current liabilities	2,930	4,456
Long-term deferred revenue	3,529	259
Long-term lease liabilities	92	229
Total liabilities	6,551	4,944
Series I redeemable convertible preferred stock, $0.0001 par value; no shares issued and outstanding at September 30, 2016 and December 31, 2015; liquidation preference of $167 per share
Commitments and contingencies
Stockholders' equity
Common stock, $0.0001 par value, 100,000,000 shares authorized; 4,820,969 and 2,539,859 shares issued at September 30, 2016 and December 31, 2015, respectively; 3,228,600 and 2,539,847 shares outstanding at September 30, 2016 and December 31, 2015, respectively
Additional paid-in-capital	147,122	144,287
Treasury stock, at cost, 12 shares at September 30, 2016 and December 31, 2015	(264)	(264)
Accumulated deficit	(137,846)	(135,273)
Total stockholders' equity	9,012	8,750
Total liabilities and stockholders' equity	15,563	13,694
Series A Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series C Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series D Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series D-1 Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series F-1 Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series H Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series J Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series K Preferred Stock [Member]
Stockholders' equity
Preferred Stock

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0
Preferred stock, authorized	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	4,820,969	2,539,859
Common stock, outstanding	3,228,600	2,539,847
Treasury stock, shares	12	12
Temporary equity, par value (in dollars per share)	$ 0.0001	$ 0.0001
Temporary equity, issued
Temporary equity, outstanding
Temporary equity, liquidation preference (in dollars per share)	$ 167	$ 167
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued
Preferred stock, outstandig
Preferred stock, liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued
Preferred stock, outstandig
Preferred stock, liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series D Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued	4,725	4,725
Preferred stock, outstandig	4,725	4,725
Preferred stock, liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series D-1 Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued	834	834
Preferred stock, outstandig	834	834
Preferred stock, liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series F-1 Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued
Preferred stock, outstandig
Preferred stock, liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series H Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued		381,967
Preferred stock, outstandig		381,967
Preferred stock, liquidation preference (in dollars per share)	$ 83.50	$ 83.50
Series J Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued
Preferred stock, outstandig
Preferred stock, liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series K Preferred Stock [Member]
Preferred stock, par value (in dollars per share)
Preferred stock, issued		1,240
Preferred stock, outstandig		1,240
Preferred stock, liquidation preference (in dollars per share)	$ 1,000	$ 1,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenues	$ 314		$ 563	$ 2
Operating costs and expenses
Amortization of patent portfolio	536	722	1,598	5,594
Compensation and related expenses (including stock-based compensation)	836	336	1,509	1,001
Professional fees	343	787	1,872	2,067
Impairment of goodwill and intangible assets				37,212
Rent	20	22	65	66
Other selling, general and administrative	65	92	188	440
Total operating expenses	1,800	1,959	5,232	46,380
Loss from operations	(1,486)	(1,959)	(4,669)	(46,378)
Other income (expenses)
Other income, net	16	7	41	32
Change in fair value of warrant liabilities	1,024	(774)	2,055	(774)
Total other income (expenses)	1,040	(767)	2,096	(742)
Net loss	(446)	(2,726)	(2,573)	(47,120)
Deemed capital contribution on extinguishment of preferred stock			31,480
Net (loss) income attributable to common stockholders	$ (446)	$ (2,726)	$ 28,907	$ (47,120)
Net (loss) income per share attributable to common stockholders, basic and diluted
Basic (in dollars per share)	$ (0.11)	$ (1.56)	$ 8.72	$ (29.70)
Diluted (in dollars per share)	$ (0.11)	$ (1.56)	$ 8.25	$ (29.70)
Weighted average number of common shares outstanding
Basic (in shares)	4,163,245	1,744,394	3,312,969	1,586,373
Diluted (in shares)	4,163,245	1,744,394	3,503,735	1,586,373

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net loss	$ (2,573)	$ (47,120)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of patent portfolio	1,598	5,594
Change in fair value of warrant liabilities	(2,055)	774
Stock-based compensation	353	223
Depreciation expenses	1	1
Unrealized loss on marketable securities	62	45
Impairment of goodwill and intangible assets		37,212
Changes in assets and liabilities:
Prepaid expenses and other assets	271	87
Accounts payable and accrued expenses	(320)	(287)
Accrued salaries and benefits	(111)	(114)
Deferred revenue	3,812
Accrued lease liabilities	(133)	(129)
Net cash provided by (used in) operating activities	905	(3,714)
Cash flows from investing activities
Purchase of marketable securities	(15,707)	(3,774)
Purchase of property and equipment	(3)
Sale of marketable securities	12,070	6,454
Net cash (used in) provided by investing activities	(3,640)	2,680
Cash flows from financing activities
Cash paid for cancellation of common stocks	(4)
Cash from issuance common stock, net of offering cost	2,140
Proceeds from exercise of warrants	760
Proceeds from issuance of preferred stock, net		1,321
Redemption of Series I redeemable convertible preferred stock		(935)
Net cash provided by financing activities	2,896	386
Net increase (decrease) in cash and cash equivalents	161	(648)
Cash and cash equivalents, beginning of period	142	805
Cash and cash equivalents, end of period	303	157
Cash paid for interest and taxes
Non-cash investing and financing activities
Extinguishment of Series H Convertible Preferred Stock in connection with license agreement	31,480
Recognition of deferred revenue in connection with license agreement	$ 414

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Note 1. Organization and Description of Business 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 focused on generating revenues from the monetization of intellectual property, or 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, or through the settlement and litigation of patents. We intend to generate revenues and related cash flows from the granting of intellectual property rights for the use of patented technologies that we own, or that we manage for others. To date, we have generated minimal revenues and no assurance can be provided that our business model will be successful. The Company continually work to enhance its 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. The Company then work with the inventors or other entities to commercialize the IP. In March 2016, the Company entered into an agreement (which was subsequently amended in April and May 2016) with Equitable IP Corporation (“Equitable”) to facilitate the monetization of its patents (the “Monetization Agreement”). Pursuant to the Monetization Agreement, the Company will work together with Equitable to further develop and revise its ongoing litigation plan. See Note 4 for additional details surrounding the Monetization Agreement. Reverse Stock Split and Amendment to Certificate of Incorporation The Company’s common stock is listed on the NASDAQ Capital Market under the symbol “SPEX.” One of the requirements for continued listing on the NASDAQ Capital Market is maintenance of a minimum closing bid price of $1.00 per share. 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, $0.0001 par value per share (the “Common Stock”) for the 30 consecutive business days preceding receipt of such letter, the Common Stock had no longer met 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 initially 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. On February 26, 2016, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation and authorized the Company’s Board of Directors to effect a reverse stock split of Common Stock at a ratio in the range of 1-for-12 to 1-for-24. The Company implemented this reverse stock split on March 4, 2016 with a ratio of 1-for-19 (the “Reverse Stock Split”). No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who otherwise would have been entitled to receive a fractional share in connection with the Reverse Stock Split received a cash payment in lieu thereof. The par value and other terms of the common stock were not affected by the Reverse Stock Split. In addition, the amendment to the Company’s certificate of incorporation that effected the Reverse Stock Split also simultaneously reduced the number of authorized shares of Common Stock from 200,000,000 to 100,000,000. The Company’s Common Stock began trading at its post-Reverse Stock Split price at the beginning of trading on March 4, 2016. On March 18, 2016, the Company received a letter from NASDAQ indicating that it had regained compliance with the minimum bid price requirement under NASDAQ Listing Rule 5550(a)(2) for continued listing on The NASDAQ Capital Market. The Company’s common stock continues to be listed on the NASDAQ Capital Market. Immediately following the Reverse Stock Split, the number of outstanding shares of Common Stock were reduced from 48,259,430 shares to 2,539,847. All per share amounts and outstanding shares of Common Stock including stock options, restricted stock and warrants, have been retroactively adjusted in these condensed consolidated financial statements for all periods presented to reflect the 1-for-19 Reverse Stock Split. Further, exercise prices of stock options and warrants have been retroactively adjusted in these condensed consolidated financial statements for all periods presented to reflect the 1-for-19 Reverse Stock Split. Numbers of shares of the Company’s preferred stock were not affected by the Reverse Stock Split; however, the conversion ratios have been adjusted to reflect the Reverse Stock Split.

Liquidity and Financial Conditi

Liquidity and Financial Condition	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity and Financial Condition	Note 2. 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. As a result of the Company’s recurring operating losses and net operating cash flow deficits, 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 amounted to approximately $4.4 million at September 30, 2016, and net loss amounted to approximately $0.4 million and $2.6 million for the three and nine months ended September 30, 2016, respectively. The Company had an approximately $137.8 million of accumulated deficit as of September 30, 2016. 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. Public Underwriting On August 8, 2016, the Company closed on an underwritten public offering of 1,592,357 shares of the Company’s common stock at a price to the public of $1.57 per share (the “Offering Price”). Under the terms of the Underwriting Agreement, the Company granted the representative of the underwriters a 30-day option to purchase up to 231,349 additional shares of its common stock (the 30-day underwriters option expired unexercised). The net proceeds to the Company were $2.1 million, after deducting the underwriting discount and other estimated offering expenses payable by the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. 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 2015 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 29, 2016. 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, 2016, and the condensed consolidated results of its operations for the three and nine months ended September 30, 2016 and 2015, and the condensed consolidated results of its cash flows for the nine months ended September 30, 2016 and 2015. This report should be read in conjunction with the Company’s 2015 Annual Report on Form 10-K, which does contain the complete information and disclosure for the year ended December 31, 2015. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). This requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. The Company’s significant estimates and assumptions include the recoverability and useful lives of long-lived assets, stock-based compensation, 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. Reclassification Certain reclassifications have been made to prior year amounts to conform to the current year presentation on the condensed consolidated statements of cash flows. Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of corporate bonds as of September 30, 2016, and consisted of highly liquid mutual funds and exchange-traded & closed-end funds during 2015. During the three months ended September 30, 2016 and 2015, the Company incurred realized gain of approximately $56,000 and $0, respectively, and unrealized losses of approximately $91,000 and $0, respectively, on its investments in marketable securities, which are included in other income, net on the condensed consolidated statements of operations. In addition, during the three months ended September 30, 2016 and 2015, the Company earned dividend income of approximately $2,000 and $7,000, respectively, which is included in other income, net on the condensed consolidated statement of operations. During the nine months ended September 30, 2016 and 2015, the Company incurred realized gain of approximately $66,000 and realized loss of $61,000, respectively, and unrealized losses of approximately $62,000 and unrealized gain of $45,000, respectively, on its investments in marketable securities, which are included in other income, net on the condensed consolidated statements of operations. In addition, during the nine months ended September 30, 2016 and 2015, the Company earned dividend income of approximately $19,000 and $48,000, respectively, which is included in other income, net on the condensed consolidated statement of operations. The fair values of marketable securities held as of September 30, 2016 and December 31, 2015 were approximately $7.0 million and $3.4 million, respectively. Impairment of Long-lived Assets (Including Patent 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. There were no indicators of impairment during the first nine months of 2016. Accounting for Warrants The Company accounts for the issuance of common stock purchase warrants issued in connection with its previously consummated equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (“ASC 815”). The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities. The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability. The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the 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 warrants are exercised or expired, and any change in fair value is recognized as “change in the fair value of warrant liabilities” in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 5). Convertible Preferred Stock The Company has evaluated its convertible preferred stock and warrants in accordance with the provisions of ASC 815, Derivatives and Hedging, including consideration of embedded derivatives requiring bifurcation. The issuance of the convertible preferred stock could generate a beneficial conversion feature (“BCF”), which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The Company recognized the BCF by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the convertible preferred stock. As the convertible preferred stock may be converted immediately, the Company recognized the BCF as a deemed dividend in the condensed consolidated statements of operations. 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. The following table summarizes the earnings (loss) per share calculation (in thousands, except per share amount): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share Numerator: Net Loss $ (446 ) $ (2,726 ) $ (2,573 ) $ (47,120 ) Deemed capital contribution on extinguishment of preferred stock - - 31,480 - Net (loss) income available to common stockholders $ (446 ) $ (2,726 ) $ 28,907 $ (47,120 ) Denominator: Weighted average number of common shares outstanding, 4,163,245 1,744,394 3,312,969 1,586,373 Earnings per basic share: Net Loss (0.11 ) (1.56 ) (0.78 ) (29.70 ) Deemed capital contribution on extinguishment of preferred stock - - 9.50 - Net (loss) income available to common stockholders $ (0.11 ) $ (1.56 ) $ 8.72 $ (29.70 ) Dilutive earnings per share Numerator: Net Loss $ (446 ) $ (2,726 ) $ (2,573 ) $ (47,120 ) Deemed capital contribution on extinguishment of preferred stock - - 31,480 - Net (loss) income available to common stockholders $ (446 ) $ (2,726 ) $ 28,907 $ (47,120 ) Denominator: Weighted average basic shares outstanding, 4,163,245 1,744,394 3,312,969 1,586,373 Weighted average effect of dilutive securities Employee stock options - - 260 - Convertible preferred stock - - 173,418 - Restricted stock units - - 17,088 - Weighted average diluted shares outstanding 4,163,245 1,744,394 3,503,735 1,586,373 Earnings per diluted share: Net Loss $ (0.11 ) $ (1.56 ) $ (0.73 ) $ (29.70 ) Deemed capital contribution on extinguishment of preferred stock - - 8.98 - Net (loss) income available to common stockholders $ (0.11 ) $ (1.56 ) $ 8.25 $ (29.70 ) Securities that could potentially dilute loss per share in the future that were included in the computation of diluted loss per share at September 30, 2016 and 2015 are as follows: As of September 30, 2016 2015 Convertible preferred stock 2,926 265,517 Warrants to purchase common stock 1,251,709 410,780 Non-vested restricted stock awards - - Non-vested restricted stock units 59,256 - Options to purchase common stock 289,380 289,405 Total 1,603,271 965,702 Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 4. Intangible Assets Patent Portfolio and Patent Rights 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, 2016 are as follows ($ in thousands): Net Carrying Amount Weighted average Patent Portfolios and Patent Rights at December 31, 2015, net $ 9,799 4.63 Amortization expenses (1,598 ) Patent Portfolios and Patent Rights at September 30, 2016, net $ 8,201 3.89 The amortization expenses related to acquired intangible assets for the three and nine months ended September 30, 2016 and 2015 are as follows ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, Date Acquired and Description 2016 2015 2016 2015 7/24/13 - Rockstar patent portfolio $ 26 $ 35 $ 78 $ 268 9/10/13 - North South patent portfolio 8 10 23 74 12/31/13 - Rockstar patent portfolio 502 677 1,497 5,252 $ 536 $ 722 $ 1,598 $ 5,594 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, 2016 $ 26 $ 8 $ 502 $ 536 Year Ended December 31, 2017 104 30 1,995 2,129 Year Ended December 31, 2018 104 31 1,995 2,130 Year Ended December 31, 2019 104 31 1,995 2,130 Year Ended December 31, 2020 104 31 995 1,130 Thereafter 110 36 - 146 Total $ 552 $ 167 $ 7,482 $ 8,201 Equitable Agreement In March 2016, the Company entered into an agreement (which was subsequently amended) with Equitable IP Corporation (“Equitable”) to facilitate the monetization of the Company’s patents (the “Monetization Agreement”). Pursuant to the Monetization Agreement, the Company has worked together with Equitable to develop and revise the Company’s ongoing litigation plan. Under the Monetization Agreement, Equitable is obligated to use its best, commercially reasonable efforts to monetize the Company’s patents. To that end, Equitable has filed ten currently pending litigations. The Company will share net monetization revenue derived from all monetization activity equally with Equitable. To facilitate the litigation plan, approximately 186 of over 330 of the Company’s patents and applications have been assigned to Equitable, which will pay all maintenance and prosecution fees going forward. No assigned patents may be transferred by Equitable to a third party without the Company’s consent. In the event that all terms of the Monetization Agreement are met by December 2017, the Company will further assign approximately 140 additional patents and applications to Equitable for monetization. The Company has retained a grant-back license to practice all transferred patents. The Company concluded that the Monetization Agreement did not constitute a sale of the patents. The Company’s retention of the right to use the patents, the requirement for the Company’s consent to any sale, and the significant economic benefits the Company retained with respect to the litigation, licensing, and sale proceeds, did not meet the sale of patent criteria. The Monetization Agreement has been treated as an agreement to outsource its licensing activities to an outside servicer, for contingent fees based on the success of the servicer’s efforts. As such, the Company will not remove the patents from its condensed consolidated balance sheet, and will record its share of litigation, licensing, and sales proceeds, if any, when those proceeds are received, or when due if the other revenue recognition criteria are met under ASC 605, Revenue Recognition

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Liabilities	Note 5. 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, 2016 and December 31, 2015 ($ in thousands): Fair value measured at September 30, 2016 Total carrying value at Quoted prices in active Significant other Significant unobservable 2016 (Level 1) (Level 2) (Level 3) Assets Marketable securities - corporate bonds $ 6,968 $ - $ 6,968 $ - Liabilities Fair value of warrant liabilities $ 904 $ - $ - $ 904 Fair value measured at December 31, 2015 Total carrying value at Quoted prices in active Significant other Significant unobservable 2015 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 3,392 $ 3,392 $ - $ - Liabilities Fair value of warrant liabilities $ 2,959 $ - $ - $ 2,959 There were no transfers between Level 1, 2 or 3 during the nine months ended September 30, 2016. 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 warrants to purchase an aggregate of 370,263 shares of common stock (the “July 2015 Warrants”) to the investors in the July 2015 Financing. The July 2015 Warrants became exercisable on January 22, 2016 at an exercise price of $8.17 per share. The warrants require, at the option of the holder, a net-cash settlement following certain fundamental transactions (as defined in the July 2015 Warrants) at the Company and therefore are classified as liabilities. The July 2015 Warrants have been recorded at their fair value using the Black-Scholes 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. On December 7, 2015, the Company issued Series A warrants to purchase up to 1,052,624 shares of common stock and Series B warrants to purchase up to 842,099 shares of common stock contained in December Offering. Series A Warrants have an exercise price of $3.80 per share and are exercisable at any time between December 7, 2015 and May 6, 2016. 852,624 shares of Series A warrants expired on May 24, 2016, and no Series A Warrants remain outstanding as of September 30, 2016. Series B Warrants have an exercise price of $4.75 per share and are exercisable at any time between December 7, 2015 and December 6, 2020. The Warrants require the issuance of registered shares upon exercise, do not expressly preclude an implied right to cash settlement and are therefore accounted for as derivative liabilities. The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability. The Series A and Series B warrants have been recorded at their fair value using the Black-Scholes 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, 2016 is as follows: Date of valuation September 30, 2016 Risk-free interest rate 0.45% - 1.14% Expected volatility 100% - 147.10% Expected life (in years) 0.07 - 4.31 Expected dividend yield - The risk-free interest rate was based on rates established by the Federal Reserve. For the July 2015 Warrants, the expected volatility in the Black-Scholes model is based on an expected volatility of 100% for both periods which represents the percentage required to be used when valuing the cash settlement feature as contractually stated in the form of warrant. The general expected volatility is based on standard deviation of the Company’s underlying stock price's daily logarithmic returns. 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, 2016 and 2015 ($ in thousands): Fair Value of Level 3 financial liabilities September 30, September 30, Beginning balance $ 2,959 $ - Recognition of warrant liabilities - - Fair value adjustment of warrant liabilities (2,055 ) - Ending balance $ 904 $ -

Stockholders' Equity and Redeem

Stockholders' Equity and Redeemable Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity and Redeemable Convertible Preferred Stock	Note 6. Stockholders’ Equity and Redeemable Convertible Preferred Stock Restated Certificate of Incorporation On March 4, 2016, the Company implemented a Reverse Stock Split with a ratio of 1-for-19. The par value and other terms of the common stock were not affected by the Reverse Stock Split. In addition, the amendment to the Company’s certificate of incorporation that effected the Reverse Stock Split simultaneously reduced the number of authorized shares of Common Stock from 200,000,000 to 100,000,000 (see Note 1). Common Stock On August 8, 2016, the Company closed on an underwritten public offering of 1,592,357 shares of the Company’s common stock at a price to the public of $1.57 per share. Under the terms of the Underwriting Agreement, the Company granted the representative of the underwriters a 30-day option to purchase up to 231,349 additional shares of its common stock (the 30-day underwriters option expired unexercised). The net proceeds to the Company were $2.1 million, after deducting the underwriting discount and other estimated offering expenses payable by the Company. Preferred Stock The Company had designated separate series of its capital stock as of September 30, 2016 and December 31, 2015 as summarized below: Number of Shares Issued and Outstanding as of September 30, December 31, Par Value Conversion Ratio Series "A" - - $ 0.0001 N/A Series "C" - - 0.0001 0.05:1 Series “D" 4,725 4,725 0.0001 0.53:1 Series “D-1" 834 834 0.0001 0.53:1 Series “F-1" - - 0.0001 0.05:1 Series “H" - 381,967 0.0001 0.53:1 Series “I” - - 0.0001 1.05:1 Series “J” - - 0.0001 0.05:1 Series “K” - 1,240 0.0001 263.16:1 Series H Convertible Preferred Stock On December 31, 2013, the Company designated 459,043 shares of preferred stock as Series H Preferred Stock. On December 31, 2013, the Company issued approximately $38.3 million of Series H Preferred Stock (or 459,043 shares) to Rockstar. Each share of Series H Preferred Stock is convertible into ten-nineteenths of a share of Common Stock and has a stated value of $83.50. The conversion ratio is subject to adjustment in the event of stock splits, stock dividends, combination of shares and similar recapitalization transactions. The Company is prohibited from effecting the conversion of the Series H Preferred Stock to the extent that, as a result of such conversion, the holder beneficially owns more than 4.99% (which may be increased to 9.99% and subsequently to 19.99%, each upon 61 days’ written notice), in the aggregate, of issued and outstanding shares of Common Stock calculated immediately after giving effect to the issuance of shares of Common Stock upon the conversion of the Series H Preferred Stock. Holders of the Series H Preferred Stock shall be entitled to vote on all matters submitted to the Company’s stockholders and shall be entitled to the number of votes equal to the number of shares of Common Stock into which the shares of Series H Preferred Stock are convertible, subject to applicable beneficial ownership limitations. The Series H Preferred Stock provides a liquidation preference of $83.50 per share. The shares of Series H Preferred Stock were not immediately convertible and did not possess any voting rights until such a time as the Company had obtained stockholder approval of the issuance, pursuant to NASDAQ Listing Rule 5635. On April 16, 2014, the Company obtained the required stockholder approval and, as a result, all outstanding shares of Series H Preferred Stock are convertible and possess voting rights in accordance with its terms. On May 28, 2014, 20,000 shares of Series H Preferred Stock were converted into 10,526 shares of Common Stock. In January 2015, Rockstar transferred its remaining outstanding Series H Preferred Stock to RPX Clearinghouse LLC, an affiliate of RPX, but retained certain recovery benefits set forth in the 2013 Patent Purchase Agreement between the Company and Rockstar. According to the RPX License Agreement disclosed in Note 7, on November 23, 2015, RPX transferred to the Company for cancellation 57,076 shares of Series H Preferred Stock then held by RPX, having a total carrying amount of $4,765,846 at the time the stock was issued to Rockstar. In connection with a second, separate, licensing agreement, on May 23, 2016, RPX transferred to the Company for cancellation of 100% of the remaining 381,967 shares of Series H Preferred Stock held by RPX, having a total carrying amount of $31,894,244 at the time the stock was issued to Rockstar (see Note 7 for further details). As of September 30, 2016, no shares of Series H Preferred Stock remained issued and outstanding. Series K Convertible Preferred Stock On December 2, 2015, the Company designated 1,240 shares of preferred stock as Series K Preferred Stock. On December 7, 2015, the Company issued 1,240 shares of Series K Preferred Stock in December 2015 Offering. Each share of Series K Preferred Stock is convertible into five thousand-nineteenths of a share of Common Stock and has a stated value of $1,000. The conversion ratio is subject to adjustment in the event of stock splits, stock dividends, combination of shares and similar recapitalization transactions. The Series K Preferred does not generally have any voting rights but are convertible into shares of Common Stock. At no time may shares of Series K Preferred Stock be converted if such conversion would cause the holder to hold in excess of 4.99% of the issued and outstanding Common Stock, subject to an increase in such limitation up to 9.99% of the issued and outstanding Common Stock on 61 days’ written notice to the Company by such holder. The conversion ratio of the Series K Preferred Stock is subject to adjustment in the event of stock splits, stock dividends, combination of shares and similar recapitalization transactions. During the nine months ended September 30, 2016, 1,240 shares of Series K Preferred Stock were converted into 326,315 shares of Common Stock. As of September 30, 2016, no shares of Series K Preferred Stock remained issued and outstanding. Warrants A summary of warrant activity for the nine months ended September 30, 2016 is presented below: Warrants Weighted Average Total Intrinsic Value Weighted Average Outstanding as of December 31, 2015 2,304,888 $ 7.98 $ - 2.83 Exercised (200,000 ) 3.80 Expired (853,179 ) - Outstanding as of September 30, 2016 1,251,709 $ 10.15 4.16 Exercisable as of September 30, 2016 1,251,709 $ 10.15 $ - 4.16 Stock Options Also approved by the Company’s Stockholders on February 26, 2016 was an amendment to the Company’s 2014 Equity Incentive Plan, which increased the number of shares of common stock authorized to be issued pursuant to the 2014 Plan from 4,161,892 to 8,250,000 prior to effectuation of the 1:19 reverse stock split, proportionately reducing the total share authorization under the plan to 434,210 shares. During the nine months ended September 30, 2016, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued 19,735 options to five of the Company’s directors. The aggregate grant date fair value of these options was approximately $31,000. A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2016 is presented below: Number of Shares Weighted Average Total Intrinsic Value Weighted Average Outstanding as of December 31, 2015 286,487 $ 89.07 $ - 5.0 Employee options granted 19,735 1.98 - 4.6 Outstanding as of September 30, 2016 306,222 $ 83.46 $ - 4.3 Options vested and expected to vest 306,222 $ 83.46 $ - 4.3 Options vested and exercisable 296,357 $ 86.17 $ - 4.3 A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2016 is presented below: Number of Shares Weighted Average Total Intrinsic Value Weighted Average Outstanding as of December 31, 2015 2,893 $ 98.07 $ - 5.4 Non-employee options granted - - - - Outstanding as of September 30, 2016 2,893 $ 98.07 $ - 4.7 Options vested and expected to vest 2,893 $ 98.07 $ - 4.7 Options vested and exercisable 2,893 $ 98.07 $ - 4.7 Stock-based compensation associated with the amortization of stock option expense was approximately $5,000 and $64,000 for the three months ended September 30, 2016 and 2015, and was approximately $26,000 and $0.2 million for the nine months ended September 30, 2016 and 2015, respectively. Unamortized stock-based compensation expense amounted to approximately $9,000 at September 30, 2016, and will be amortized over 0.59 years. Restricted Stock Awards In December 2015, the Company entered into a consulting agreement with a third party for consulting services. The Company agreed to pay the consultant $50,000 in shares of the Company’s common stock, which were issued in two equal parts. The first $25,000 (8,771 shares) of restricted stock was issued in January 2016, and the second $25,000 (or 10,870 shares) of restricted stock was issued in June 2016. In December 2015, the Company determined to pay each of Mr. Reiner and Mr. Dotson, in accordance with their respective employment agreements, $60,000 in shares of common stock in respect of their performance for the 2015 fiscal year which, as of the closing price of December 21, 2015, would have constituted a total of 42,106 shares. The shares were issued in March 2016. On January 26, 2016, the Company issued 652 shares of restricted common stock to a third party for consulting services. The restricted stock award vested immediately. The grant date fair value of restricted stock was $1,487. On February 4, 2016, the Company entered into a consulting agreement with a third party. The Company has agreed to pay the consultant three cash retainer payments for a total of $70,000, and granted $100,000 in shares of restricted stock. On February 4, 2016, the Company issued 42,445 restricted shares based on the average closing price for the 10 trading days immediately prior to February 4, 2016. The restricted stock award vested immediately. On February 26, 2016, the Company granted each of two consultants 7,895 shares of restricted common stock for consulting services. The restricted stock award vested on March 31, 2016 based upon the closing price on February 26, 2016. The grant date fair value of each restricted stock award was $15,000, respectively. On June 22, 2016, the Company granted two consultants 10,870 and 43,479 shares of restricted common stock for consulting services, respectively. The restricted stock award vested immediately. The grant date fair value of restricted stock was $25,000 and $100,000, respectively. A summary of the restricted stock award activity for the nine months ended September 30, 2016 is as follows: Number of Units Weighted Average Nonvested at December 31, 2015 - $ - Granted 164,113 1.52 Vested (164,113 ) 1.52 Nonvested at September 30, 2016 - $ - Restricted Stock Units On May 20, 2016, Mr. Hayes was granted an award of restricted stock units totaling 118,512 shares of common stock, which will vest upon the achievement of agreed upon performance milestones. A summary of the restricted stock award activity for the nine months ended September 30, 2016 is as follows: Number of Units Weighted Average Nonvested at December 31, 2015 - $ - Granted 118,512 1.52 Vested - - Nonvested at September 30, 2016 118,512 $ 1.52 As of September 30, 2016, the Company had unrecognized stock-based compensation expense related to restricted stock unit awards of approximately $50,000, which is expected to be recognized over the remaining weighted-average vesting period of 0.25 years. Stock-based Compensation Stock-based compensation for the three and nine months ended September 30, 2016 and 2015 was comprised of the following ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Employee restricted stock awards $ - $ - $ - $ 11 Employee restricted stock units 49 - 72 - Employee stock option awards 5 64 26 154 Non-employee restricted stock awards - 25 255 58 Total compensation expense $ 54 $ 89 $ 353 $ 223

May RPX License Agreement

May RPX License Agreement	9 Months Ended
	Sep. 30, 2016
May Rpx License Agreement
May RPX License Agreement	Note 7. May RPX License Agreement On November 23, 2015, the Company and RPX Corporation (“RPX”) entered into a Patent License Agreement (the “RPX License Agreement”) under which the Company granted RPX the right to sublicense various patent license rights to certain RPX members. The consideration to the Company included: (i) the transfer to the Company for cancellation of its remaining outstanding Series I Redeemable Convertible Preferred Stock (the “Series I Preferred Stock”), as to which a $5,000,000 mandatory redemption payment would have been due from the Company on or by December 31, 2015; (ii) the transfer to the Company for cancellation of 13%, or 57,076 shares, of its Series H Convertible Preferred Stock (the “Series H Preferred Stock”) then held by RPX, having a total carrying amount of $4,765,846 at the time the stock was issued to Rockstar; (iii) cancellation of the only outstanding security interest on 101 of the Company’s patents and patent applications that originated at Nortel Networks (“Nortel”) and were purchased by the Company from Rockstar, which security interest had previously been transferred to RPX by Rockstar (“RPX Security Interest”); and (iv) $300,000 in cash to the Company. While the license granted to RPX is non-exclusive and the duration of the license is for the life of the patents, the Company’s ongoing obligations in the arrangement is to provide certain specific RPX licensors with a non-exclusive license to any new patents that may be acquired by or exclusively licensed to the Company during the two-year period following the effective date of the agreement. Therefore, the Company will recognize $0.6 million revenue ratably over the two-year period that it is obligated to provide these RPX licensees with licenses to such new patents. During the three and nine months ended September 30, 2016, the Company recorded approximately $73,000 and $217,000, respectively, in revenue related to the amortization of the license. On May 23, 2016, the Company, and RPX, entered into a second, separate, Patent License Agreement (the “RPX License”) under which the Company granted RPX the right to sublicense various patent rights only to current RPX clients (as of May 23, 2016). In exchange for the rights granted by the Company under the RPX License, the Company received the following consideration: (i) a cash payment made to the Company in May 2016 in the amount of $4,355,000; and (ii) cancellation of 100% of the remaining 381,967 shares of the Company’s outstanding Series H Convertible Preferred Stock currently held by RPX, having a total carrying amount of $31,894,244 at the time the stock was issued to Rockstar Consortium US LP (“Rockstar”). In consideration of the above, the Company granted RPX the rights to grant to its current clients: (i) a fully paid portfolio license, to the extent such parties did not already have licenses to the Company’s patents; (ii) a covenant-not-to-sue current RPX clients for supply of chipsets; (iii) a standstill of litigation involving any patents acquired in the next five years (“Standstill”). The Company also granted to Alcatel-Lucent a license to the portfolio acquired from the Harris Corporation. Under a separate agreement between the Company and RPX, the Company granted RPX the ability to grant to VTech Telecommunications Ltd. (“VTech”) a sublicense for a fully paid portfolio license in exchange for an additional $20,000 in cash consideration. The license granted under the terms of the RPX License described herein does not extend to entities/companies that are not clients of RPX and provide chipsets or other hardware to current RPX clients. The carrying value of Series H Convertible Preferred Stock on the extinguishment date was estimated at approximately $31.9 million. The fair value on the same date was estimated at approximately $414,000 based upon equivalent common shares that the Series H Convertible Preferred Stock could have converted into at the closing price on May 23, 2016. This resulted in the Company receiving cash from RPX of $4.4 million, a deemed dividend of approximately $31.5 million, short term deferred revenue $1.1 million and long term deferred revenue of $3.7 million. The deferred revenue will be amortized over a 5-year service period as the RPX License includes a standstill agreement which requires Spherix to provide the licensee with the right to use any future acquired patents for five years. During the three and nine months ended September 30, 2016, the Company recorded approximately $241,000 and $346,000, respectively, in revenue related to the amortization of the license. ASC 260-10-S99-2, Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. 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 use 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: 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, we 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, we 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. Fairpoint Communications, Inc., Case No. 1:16-cv-00305-RGA, in the United States District Court for the District of Delaware On April 26, 2016, we initiated litigation against Fairpoint Communications, Inc. in Spherix Incorporated v. Fairpoint Communications, Inc. Spherix Incorporated v. Level 3 Communications, Inc. et al., Case No. 1:16-cv-00307-RGA, in the United States District Court for the Eastern District of Virginia On April 26, 2016, we initiated litigation against Level 3 Communications, Inc. and TW Telecom, Inc. in Spherix Incorporated v. Level 3 Communications, Inc. et al. Counterclaims In the ordinary course of business, we, along with our wholly-owned subsidiaries, will initiate litigation against parties whom we believe have infringed on our 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 case Spherix Incorporated v. Uniden Corporation

Compensatory Arrangements

Compensatory Arrangements	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Compensatory Arrangements	Note 9. Compensatory Arrangements On May 20, 2016, the Company entered into a new employment agreement with the Company’s CEO, Anthony Hayes (the “Employment Agreement”) retroactively effective to April 1, 2016. Pursuant to the terms of the Agreement, Mr. Hayes will be paid an annual base salary of $350,000 (“Base Salary”) and a target annual bonus opportunity equal to a maximum of 100% of the Base Salary upon the achievement of certain milestones as agreed to by the Compensation Committee of the Board of Directors. There has been no increase in the dollar amounts of the base salary or maximum target bonus amounts from the prior effective employment agreement of Mr. Hayes. In the event that Mr. Hayes’ employment is terminated by the Company without “cause” or by Mr. Hayes for “good reason” (each as defined in the Employment Agreement), Mr. Hayes will be entitled to receive, subject to his execution and non-revocation of a separation and release agreement, a separation payment in the amount of one year’s base salary at the then-current rate payable, plus any payment on a pro-rated basis for any bonus earned in connection with any bonus plan to which he was a participant at the date of such termination within thirty days of such termination. The employment agreement with Mr. Hayes also contains customary confidentiality, noncompetition, non-solicitation and non-disparagement provisions. In addition, as previously disclosed, Mr. Hayes was granted an award of restricted stock units totaling 118,512 shares of common stock, which will vest upon the achievement of certain agreed upon milestones. On August 24, 2016, the Board of Directors of the Company appointed Mr. Eric Weisblum to serve as director of the Company, effective upon his acceptance of such position. Mr. Weisblum is not currently expected to be appointed as a member of any of the Board committees, although the Board is continuing to evaluate whether Mr. Weisblum may be appointed to a Board committee in the future. There is no written agreement or understanding between Mr. Weisblum and any other person pursuant to which Mr. Weisblum was appointed as a director. Mr. Weisblum is not a party to any transactions that would require disclosure under Item 404(a) of Regulation S-K and has not entered into any material plan, contract, arrangement or amendment in connection with his election to the Board. Mr. Weisblum is eligible to participate in all compensatory arrangements from time to time in effect for the Company’s other Board members.

Assignment and Assumption of Ri

Assignment and Assumption of Rights Agreement with TOI	9 Months Ended
	Sep. 30, 2016
Assignment And Assumption Of Rights Agreement With Toi
Assignment and Assumption of Rights Agreement with TOI	Note 10. Assignment and Assumption of Rights Agreement with TOI On June 16, 2012, the Company and Transfer Online, Inc. (“TOI”) entered into an Assignment and Assumption of Rights Agreement (the “Assignment”) to that certain Rights Agreement, effective January 1, 2013 (valid through December 31, 2017, referred to herein as the “Rights Agreement”) originally entered into between the Company and Equity Stock Transfer (“EST”), and previously filed by the Company on Form 8-K with the Securities and Exchange Commission on January 30, 2013. The Assignment of the Rights Agreement replaced EST as the Rights Agent and to appoint TOI as the successor Rights Agent on July 15, 2016.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
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 2015 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 29, 2016.
Basis of Presentation and Principles of Consolidation	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, 2016, and the condensed consolidated results of its operations for the three and nine months ended September 30, 2016 and 2015, and the condensed consolidated results of its cash flows for the nine months ended September 30, 2016 and 2015. This report should be read in conjunction with the Company’s 2015 Annual Report on Form 10-K, which does contain the complete information and disclosure for the year ended December 31, 2015. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	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.
Reclassification	Reclassification Certain reclassifications have been made to prior year amounts to conform to the current year presentation on the condensed consolidated statements of cash flows.
Marketable Securities	Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of corporate bonds as of September 30, 2016, and consisted of highly liquid mutual funds and exchange-traded & closed-end funds during 2015. During the three months ended September 30, 2016 and 2015, the Company incurred realized gain of approximately $56,000 and $0, respectively, and unrealized losses of approximately $91,000 and $0, respectively, on its investments in marketable securities, which are included in other income, net on the condensed consolidated statements of operations. In addition, during the three months ended September 30, 2016 and 2015, the Company earned dividend income of approximately $2,000 and $7,000, respectively, which is included in other income, net on the condensed consolidated statement of operations. During the nine months ended September 30, 2016 and 2015, the Company incurred realized gain of approximately $66,000 and realized loss of $61,000, respectively, and unrealized losses of approximately $62,000 and unrealized gain of $45,000, respectively, on its investments in marketable securities, which are included in other income, net on the condensed consolidated statements of operations. In addition, during the nine months ended September 30, 2016 and 2015, the Company earned dividend income of approximately $19,000 and $48,000, respectively, which is included in other income, net on the condensed consolidated statement of operations. The fair values of marketable securities held as of September 30, 2016 and December 31, 2015 were approximately $7.0 million and $3.4 million, respectively.
Impairment of Long-lived Assets (Including Patent Assets)	Impairment of Long-lived Assets (Including Patent 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. There were no indicators of impairment during the first nine months of 2016.
Accounting for Warrants	Accounting for Warrants The Company accounts for the issuance of common stock purchase warrants issued in connection with its previously consummated equity offerings in accordance with the provisions of ASC 815, Derivatives and Hedging (“ASC 815”). The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). In addition, Under ASC 815, registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities. The Company classifies these derivative warrant liabilities on the condensed consolidated balance sheet as a current liability. The Company assessed the classification of common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification. Accordingly, the Company classified the 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 warrants are exercised or expired, and any change in fair value is recognized as “change in the fair value of warrant liabilities” in the condensed consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 5).
Convertible Preferred Stock	Convertible Preferred Stock The Company has evaluated its convertible preferred stock and warrants in accordance with the provisions of ASC 815, Derivatives and Hedging, including consideration of embedded derivatives requiring bifurcation. The issuance of the convertible preferred stock could generate a beneficial conversion feature (“BCF”), which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The Company recognized the BCF by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the convertible preferred stock. As the convertible preferred stock may be converted immediately, the Company recognized the BCF as a deemed dividend in the condensed consolidated statements of operations.
Net Loss per Share	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. The following table summarizes the earnings (loss) per share calculation (in thousands, except per share amount): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share Numerator: Net Loss $ (446 ) $ (2,726 ) $ (2,573 ) $ (47,120 ) Deemed capital contribution on extinguishment of preferred stock - - 31,480 - Net (loss) income available to common stockholders $ (446 ) $ (2,726 ) $ 28,907 $ (47,120 ) Denominator: Weighted average number of common shares outstanding, 4,163,245 1,744,394 3,312,969 1,586,373 Earnings per basic share: Net Loss (0.11 ) (1.56 ) (0.78 ) (29.70 ) Deemed capital contribution on extinguishment of preferred stock - - 9.50 - Net (loss) income available to common stockholders $ (0.11 ) $ (1.56 ) $ 8.72 $ (29.70 ) Dilutive earnings per share Numerator: Net Loss $ (446 ) $ (2,726 ) $ (2,573 ) $ (47,120 ) Deemed capital contribution on extinguishment of preferred stock - - 31,480 - Net (loss) income available to common stockholders $ (446 ) $ (2,726 ) $ 28,907 $ (47,120 ) Denominator: Weighted average basic shares outstanding, 4,163,245 1,744,394 3,312,969 1,586,373 Weighted average effect of dilutive securities Employee stock options - - 260 - Convertible preferred stock - - 173,418 - Restricted stock units - - 17,088 - Weighted average diluted shares outstanding 4,163,245 1,744,394 3,503,735 1,586,373 Earnings per diluted share: Net Loss $ (0.11 ) $ (1.56 ) $ (0.73 ) $ (29.70 ) Deemed capital contribution on extinguishment of preferred stock - - 8.98 - Net (loss) income available to common stockholders $ (0.11 ) $ (1.56 ) $ 8.25 $ (29.70 ) Securities that could potentially dilute loss per share in the future that were included in the computation of diluted loss per share at September 30, 2016 and 2015 are as follows: As of September 30, 2016 2015 Convertible preferred stock 2,926 265,517 Warrants to purchase common stock 1,251,709 410,780 Non-vested restricted stock awards - - Non-vested restricted stock units 59,256 - Options to purchase common stock 289,380 289,405 Total 1,603,271 965,702
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of earnings (loss) per share	The following table summarizes the earnings (loss) per share calculation (in thousands, except per share amount): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share Numerator: Net Loss $ (446 ) $ (2,726 ) $ (2,573 ) $ (47,120 ) Deemed capital contribution on extinguishment of preferred stock - - 31,480 - Net (loss) income available to common stockholders $ (446 ) $ (2,726 ) $ 28,907 $ (47,120 ) Denominator: Weighted average number of common shares outstanding, 4,163,245 1,744,394 3,312,969 1,586,373 Earnings per basic share: Net Loss (0.11 ) (1.56 ) (0.78 ) (29.70 ) Deemed capital contribution on extinguishment of preferred stock - - 9.50 - Net (loss) income available to common stockholders $ (0.11 ) $ (1.56 ) $ 8.72 $ (29.70 ) Dilutive earnings per share Numerator: Net Loss $ (446 ) $ (2,726 ) $ (2,573 ) $ (47,120 ) Deemed capital contribution on extinguishment of preferred stock - - 31,480 - Net (loss) income available to common stockholders $ (446 ) $ (2,726 ) $ 28,907 $ (47,120 ) Denominator: Weighted average basic shares outstanding, 4,163,245 1,744,394 3,312,969 1,586,373 Weighted average effect of dilutive securities Employee stock options - - 260 - Convertible preferred stock - - 173,418 - Restricted stock units - - 17,088 - Weighted average diluted shares outstanding 4,163,245 1,744,394 3,503,735 1,586,373 Earnings per diluted share: Net Loss $ (0.11 ) $ (1.56 ) $ (0.73 ) $ (29.70 ) Deemed capital contribution on extinguishment of preferred stock - - 8.98 - Net (loss) income available to common stockholders $ (0.11 ) $ (1.56 ) $ 8.25 $ (29.70 )
Schedule of potentially dilute loss per share	Securities that could potentially dilute loss per share in the future that were included in the computation of diluted loss per share at September 30, 2016 and 2015 are as follows: As of September 30, 2016 2015 Convertible preferred stock 2,926 265,517 Warrants to purchase common stock 1,251,709 410,780 Non-vested restricted stock awards - - Non-vested restricted stock units 59,256 - Options to purchase common stock 289,380 289,405 Total 1,603,271 965,702

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The gross carrying amounts related to acquired intangible assets as of September 30, 2016 are as follows ($ in thousands): Net Carrying Amount Weighted average Patent Portfolios and Patent Rights at December 31, 2015, net $ 9,799 4.63 Amortization expenses (1,598 ) Patent Portfolios and Patent Rights at September 30, 2016, net $ 8,201 3.89
Schedule of amortization expenses intangible assets	The amortization expenses related to acquired intangible assets for the three and nine months ended September 30, 2016 and 2015 are as follows ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, Date Acquired and Description 2016 2015 2016 2015 7/24/13 - Rockstar patent portfolio $ 26 $ 35 $ 78 $ 268 9/10/13 - North South patent portfolio 8 10 23 74 12/31/13 - Rockstar patent portfolio 502 677 1,497 5,252 $ 536 $ 722 $ 1,598 $ 5,594
Schedule of future amortization of intangible assets	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, 2016 $ 26 $ 8 $ 502 $ 536 Year Ended December 31, 2017 104 30 1,995 2,129 Year Ended December 31, 2018 104 31 1,995 2,130 Year Ended December 31, 2019 104 31 1,995 2,130 Year Ended December 31, 2020 104 31 995 1,130 Thereafter 110 36 - 146 Total $ 552 $ 167 $ 7,482 $ 8,201

Fair Value of Financial Asset19

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value assets and liabilities	The following table presents the Company’s assets and liabilities that are measured at fair value at September 30, 2016 and December 31, 2015 ($ in thousands): Fair value measured at September 30, 2016 Total carrying value at Quoted prices in active Significant other Significant unobservable 2016 (Level 1) (Level 2) (Level 3) Assets Marketable securities - corporate bonds $ 6,968 $ - $ 6,968 $ - Liabilities Fair value of warrant liabilities $ 904 $ - $ - $ 904 Fair value measured at December 31, 2015 Total carrying value at Quoted prices in active Significant other Significant unobservable 2015 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 3,392 $ 3,392 $ - $ - Liabilities Fair value of warrant liabilities $ 2,959 $ - $ - $ 2,959
Schedule of fair value assumptions	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, 2016 is as follows: Date of valuation September 30, 2016 Risk-free interest rate 0.45% - 1.14% Expected volatility 100% - 147.10% Expected life (in years) 0.07 - 4.31 Expected dividend yield -
Schedule of fair value of the company's level 3 financial liabilities	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, 2016 and 2015 ($ in thousands): Fair Value of Level 3 financial liabilities September 30, September 30, Beginning balance $ 2,959 $ - Recognition of warrant liabilities - - Fair value adjustment of warrant liabilities (2,055 ) - Ending balance $ 904 $ -

Stockholders' Equity and Rede20

Stockholders' Equity and Redeemable Convertible Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Schedule of designated separate series of capital stock	The Company had designated separate series of its capital stock as of September 30, 2016 and December 31, 2015 as summarized below: Number of Shares Issued and Outstanding as of September 30, December 31, Par Value Conversion Ratio Series "A" - - $ 0.0001 N/A Series "C" - - 0.0001 0.05:1 Series “D" 4,725 4,725 0.0001 0.53:1 Series “D-1" 834 834 0.0001 0.53:1 Series “F-1" - - 0.0001 0.05:1 Series “H" - 381,967 0.0001 0.53:1 Series “I” - - 0.0001 1.05:1 Series “J” - - 0.0001 0.05:1 Series “K” - 1,240 0.0001 263.16:1
Schedule of warrant activity	A summary of warrant activity for the nine months ended September 30, 2016 is presented below: Warrants Weighted Average Total Intrinsic Value Weighted Average Outstanding as of December 31, 2015 2,304,888 $ 7.98 $ - 2.83 Exercised (200,000 ) 3.80 Expired (853,179 ) - Outstanding as of September 30, 2016 1,251,709 $ 10.15 4.16 Exercisable as of September 30, 2016 1,251,709 $ 10.15 $ - 4.16
Schedule of option activity	A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2016 is presented below: Number of Shares Weighted Average Total Intrinsic Value Weighted Average Outstanding as of December 31, 2015 286,487 $ 89.07 $ - 5.0 Employee options granted 19,735 1.98 - 4.6 Outstanding as of September 30, 2016 306,222 $ 83.46 $ - 4.3 Options vested and expected to vest 306,222 $ 83.46 $ - 4.3 Options vested and exercisable 296,357 $ 86.17 $ - 4.3 A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2016 is presented below: Number of Shares Weighted Average Total Intrinsic Value Weighted Average Outstanding as of December 31, 2015 2,893 $ 98.07 $ - 5.4 Non-employee options granted - - - - Outstanding as of September 30, 2016 2,893 $ 98.07 $ - 4.7 Options vested and expected to vest 2,893 $ 98.07 $ - 4.7 Options vested and exercisable 2,893 $ 98.07 $ - 4.7
Schedule of restricted stock award activity	A summary of the restricted stock award activity for the nine months ended September 30, 2016 is as follows: Number of Units Weighted Average Nonvested at December 31, 2015 - $ - Granted 164,113 1.52 Vested (164,113 ) 1.52 Nonvested at September 30, 2016 - $ -
Schedule of restricted stock units activity	A summary of the restricted stock award activity for the nine months ended September 30, 2016 is as follows: Number of Units Weighted Average Nonvested at December 31, 2015 - $ - Granted 118,512 1.52 Vested - - Nonvested at September 30, 2016 118,512 $ 1.52
Schedule of stock-based compensation	Stock-based compensation for the three and nine months ended September 30, 2016 and 2015 was comprised of the following ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Employee restricted stock awards $ - $ - $ - $ 11 Employee restricted stock units 49 - 72 - Employee stock option awards 5 64 26 154 Non-employee restricted stock awards - 25 255 58 Total compensation expense $ 54 $ 89 $ 353 $ 223

Organization and Description 21

Organization and Description of Business (Details Narrative)	Mar. 04, 2016	Feb. 26, 2016shares	Sep. 30, 2016Number$ / sharesshares	Dec. 31, 2015shares
Description of reverse stock split	1-for-19	1-for-12 to 1-for-24
Common stock, authorized		100,000,000	100,000,000	100,000,000
Common stock, authorized previously		200,000,000
Common stock, outstanding		2,539,847	3,228,600	2,539,847
Common stock, outstanding previously		48,259,430
Minimum [Member]
Closing bid price | $ / shares			$ 1
Patents [Member]
Number of patents owned | Number			330

Liquidity and Financial Condi22

Liquidity and Financial Condition (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Aug. 08, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Working capital deficit				$ 4,400
Net loss		$ (446)	$ (2,726)	(2,573)	$ (47,120)
Accumulated deficits		$ (137,846)		$ (137,846)		$ (135,273)
Underwriting Agreement [Member] | IPO [Member]
Number of shares issued	1,592,357
Shares issued price per share	$ 1.57
Additional shares	231,349
Value of shares issued	$ 2,100

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net Loss	$ (446)	$ (2,726)	$ (2,573)	$ (47,120)
Deemed capital contribution on extinguishment of preferred stock			31,480
Net (loss) income available to common stockholders	$ (446)	$ (2,726)	$ 28,907	$ (47,120)
Denominator:
Weighted average number of common shares outstanding,	4,163,245	1,744,394	3,312,969	1,586,373
Earnings per basic share:
Net Loss	$ (0.11)	$ (1.56)	$ (0.78)	$ (29.70)
Deemed capital contribution on extinguishment of preferred stock			9.5
Net (loss) income available to common stockholders	$ (0.11)	$ (1.56)	$ 8.72	$ (29.70)
Numerator:
Net Loss	$ (446)	$ (2,726)	$ (2,573)	$ (47,120)
Deemed capital contribution on extinguishment of preferred stock			31,480
Net (loss) income available to common stockholders	$ (446)	$ (2,726)	$ 28,907	$ (47,120)
Denominator:
Weighted average basic shares outstanding,	4,163,245	1,744,394	3,312,969	1,586,373
Weighted average effect of dilutive securities
Employee stock options			260
Convertible preferred stock			173,418
Restricted stock units			17,088
Weighted average diluted shares outstanding	4,163,245	1,744,394	3,503,735	1,586,373
Earnings per diluted share:
Net Loss	$ (0.11)	$ (1.56)	$ (0.73)	$ (29.70)
Deemed capital contribution on extinguishment of preferred stock			8.98
Net (loss) income available to common stockholders	$ (0.11)	$ (1.56)	$ 8.25	$ (29.70)

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details 1) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Total	1,603,271	965,702
Convertible Preferred Stock [Member]
Total	2,926	265,517
Warrants To Purchase Common Stock [Member]
Total	1,251,709	410,780
Non-Vested Restricted Stock Awards [Member]
Total
Non-Vested Restricted Stock Units [Member]
Total	59,256
Options To Purchase Common Stock [Member]
Total	289,380	289,405

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounting Policies [Abstract]
Realized gain (loss) on marketable securities	$ 56	$ 0	$ 66	$ (61)
Unealized losses on marketable securities	91	0	62	(45)
Dividend income	2	$ 7	19	$ 48
Fair value marketable securities	$ 7,000		$ 7,000		$ 3,400

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Finite-lived Intangible Assets, Net Carrying Amount [Roll Forward]
Patent Portfolios and Patent Rights at beginning			$ 9,799
Amortization expenses	$ (536)	$ (722)	(1,598)	$ (5,594)
Patent Portfolios and Patent Rights at ending	$ 8,201		$ 8,201
Finite-lived Intangible Assets, Weighted Average Amortization Period [Roll Forward]
Patent Portfolios and Patent Rights at beginning			4 years 7 months 17 days
Patent Portfolios and Patent Rights at ending			3 years 10 months 20 days

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Amortization expenses	$ 536	$ 722	$ 1,598	$ 5,594
Rockstar Patent Portfolio Acquired 7/24/13 [Member]
Amortization expenses	26	35	78	268
North South Patent Portfolio Acquired 9/10/13 [Member]
Amortization expenses	8	10	23	74
Rockstar Patent Portfolio Acquired 12/31/13 [Member]
Amortization expenses	$ 502	$ 677	$ 1,497	$ 5,252

Intangible Assets (Details 2)

Intangible Assets (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Three Months Ended December 31, 2016	$ 536
Year Ended December 31, 2017	2,129
Year Ended December 31, 2018	2,130
Year Ended December 31, 2019	2,130
Year Ended December 31, 2020	1,130
Thereafter	146
Total	8,201	$ 9,799
Rockstar Patent Portfolio Acquired 7/24/13 [Member]
Three Months Ended December 31, 2016	26
Year Ended December 31, 2017	104
Year Ended December 31, 2018	104
Year Ended December 31, 2019	104
Year Ended December 31, 2020	104
Thereafter	110
Total	552
North South Patent Portfolio Acquired 9/10/13 [Member]
Three Months Ended December 31, 2016	8
Year Ended December 31, 2017	30
Year Ended December 31, 2018	31
Year Ended December 31, 2019	31
Year Ended December 31, 2020	31
Thereafter	36
Total	167
Rockstar Patent Portfolio Acquired 12/31/13 [Member]
Three Months Ended December 31, 2016	502
Year Ended December 31, 2017	1,995
Year Ended December 31, 2018	1,995
Year Ended December 31, 2019	1,995
Year Ended December 31, 2020	995
Thereafter
Total	$ 7,482

Fair Value of Financial Asset29

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Marketable securities - corporate bonds	$ 6,968
Marketable securities - mutual funds		$ 3,392
Liabilities
Fair value of warrant liabilities	904	2,959
Quoted Prices In Active Markets (Level 1) [Member]
Assets
Marketable securities - corporate bonds
Marketable securities - mutual funds		3,392
Liabilities
Fair value of warrant liabilities
Significant Other Observable Inputs (Level 2) [Member]
Assets
Marketable securities - corporate bonds	6,968
Marketable securities - mutual funds
Liabilities
Fair value of warrant liabilities
Significant Unobservable Inputs (Level 3) [Member]
Assets
Marketable securities - corporate bonds
Marketable securities - mutual funds
Liabilities
Fair value of warrant liabilities	$ 904	$ 2,959

Fair Value of Financial Asset30

Fair Value of Financial Assets and Liabilities (Details 1)	9 Months Ended
	Sep. 30, 2016
Expected dividend yield	0.00%
Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member]
Risk-free interest rate	0.45%
Expected volatility	100.00%
Expected life (in years)	25 days
Significant Unobservable Inputs (Level 3) [Member] | Maximum [Member]
Risk-free interest rate	1.14%
Expected volatility	147.10%
Expected life (in years)	4 years 3 months 22 days

Fair Value of Financial Asset31

Fair Value of Financial Assets and Liabilities (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,959
Fair value adjustment of warrant liabilities	(2,055)
Ending balance	$ 904

Fair Value of Financial Asset32

Fair Value of Financial Assets and Liabilities (Details Narrative) - $ / shares	Dec. 07, 2015	Jul. 21, 2015	May 24, 2016
July 2015 Warrants [Member] | Investor [Member]
Number of common shares purchased		370,263
Exercise price (in dollars per share)		$ 8.17
Exercise date		Jan. 22, 2016
Series A Warrants [Member]
Number of common shares purchased	1,052,624
Exercise price (in dollars per share)	$ 3.80
Number of shares expired			852,624
Series A Warrants [Member] | Minimum [Member]
Exercise date	Dec. 7, 2015
Series A Warrants [Member] | Maximum [Member]
Exercise date	May 6, 2016
Series B Warrants [Member]
Number of common shares purchased	842,099
Exercise price (in dollars per share)	$ 4.75
Series B Warrants [Member] | Minimum [Member]
Exercise date	Dec. 7, 2015
Series B Warrants [Member] | Maximum [Member]
Exercise date	Dec. 6, 2020

Stockholders' Equity and Rede33

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details) - $ / shares	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dolars per share)	$ 0.0001	$ 0
Series "A" [Member]
Preferred stock, issued
Preferred stock,outstandig
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	-
Series "C" [Member]
Preferred stock, issued
Preferred stock,outstandig
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	0.05:1
Series "D" [Member]
Preferred stock, issued	4,725	4,725
Preferred stock,outstandig	4,725	4,725
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	0.53:1
Series "D-1" [Member]
Preferred stock, issued	834	834
Preferred stock,outstandig	834	834
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	0.53:1
Series "F-1" [Member]
Preferred stock, issued
Preferred stock,outstandig
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	0.05:1
Series H Convertible Preferred Stock [Member]
Preferred stock, issued		381,967
Preferred stock,outstandig		381,967
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	0.53:1
Series "I" [Member]
Preferred stock, issued
Preferred stock,outstandig
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	1.05:1
Series "J" [Member]
Preferred stock, issued
Preferred stock,outstandig
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	0.05:1
Series K Convertible Preferred Stock [Member]
Preferred stock, issued		1,240
Preferred stock,outstandig		1,240
Preferred stock, par value (in dolars per share)	$ 0.0001
Conversion Ratio	263.16:1

Stockholders' Equity and Rede34

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 1) - Warrant [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at beginnning	2,304,888
Exercised	(200,000)
Expired	(853,179)
Outstanding at ending	1,251,709
Exercisable at ending	1,251,709
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding at beginnning | $ / shares	$ 7.98
Exercised | $ / shares	3.8
Outstanding at ending | $ / shares	10.15
Exercisable at ending | $ / shares	$ 10.15
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Roll Forward]
Outstanding at beginnning | $
Outstanding at ending | $
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Remaining Contractual Life [Roll Forward]
Outstanding at beginnning	2 years 9 months 29 days
Outstanding at ending	4 years 1 month 28 days
Exercisable at ending	4 years 1 month 28 days

Stockholders' Equity and Rede35

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 2) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning | shares	286,487
Options granted | shares	19,735
Outstanding at ending | shares	306,222
Options vested and expected to vest | shares	306,222
Options vested and exercisable | shares	296,357
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 89.07
Options granted | $ / shares	1.98
Outstanding at ending | $ / shares	83.46
Options vested and expected to vest | $ / shares	83.46
Options vested and exercisable | $ / shares	$ 86.17
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Roll Forward]
Outstanding at beginning | $
Options granted | $
Outstanding at ending | $
Options vested and expected to vest | $
Options vested and exercisable | $
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward]
Outstanding at beginning	5 years
Options granted	4 years 7 months 6 days
Outstanding at ending	4 years 3 months 18 days
Options vested and expected to vest	4 years 3 months 18 days
Options vested and exercisable	4 years 3 months 18 days
Non-Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning | shares	2,893
Options granted | shares
Outstanding at ending | shares	2,893
Options vested and expected to vest | shares	2,893
Options vested and exercisable | shares	2,893
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 98.07
Options granted | $ / shares
Outstanding at ending | $ / shares	98.07
Options vested and expected to vest | $ / shares	98.07
Options vested and exercisable | $ / shares	$ 98.07
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value [Roll Forward]
Outstanding at beginning | $
Options granted | $
Outstanding at ending | $
Options vested and expected to vest | $
Options vested and exercisable | $
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward]
Outstanding at beginning	5 years 4 months 24 days
Outstanding at ending	4 years 8 months 12 days
Options vested and expected to vest	4 years 8 months 12 days
Options vested and exercisable	4 years 8 months 12 days

Stockholders' Equity and Rede36

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 3) - $ / shares	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning
Granted	164,113
Vested	(164,113)
Nonvested at ending
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested at beginning
Granted	1.52
Vested	1.52
Nonvested at ending
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning
Granted	118,512
Vested
Nonvested at ending	118,512
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested at beginning	$ 1.52
Granted	1.52
Vested
Nonvested at ending	$ 1.52

Stockholders' Equity and Rede37

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Total compensation expense	$ 54	$ 89	$ 353	$ 223
Restricted Stock [Member] | Employee [Member]
Total compensation expense				11
Restricted Stock [Member] | Non-Employee [Member]
Total compensation expense		25	255	58
Restricted Stock Units [Member] | Employee [Member]
Total compensation expense	49		72
Stock Option [Member] | Employee [Member]
Total compensation expense	$ 5	$ 64	$ 26	$ 154

Stockholders' Equity and Rede38

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands

Aug. 08, 2016

May 23, 2016

Mar. 04, 2016

Feb. 26, 2016

Dec. 07, 2015

Dec. 02, 2015

Nov. 23, 2015

May 28, 2014

Sep. 30, 2016

Sep. 30, 2015

Dec. 31, 2013

Dec. 31, 2015

Description of reverse stock split

1-for-19

1-for-12 to 1-for-24

Common stock, authorized

100,000,000

100,000,000

100,000,000

Common stock, authorized previously

200,000,000

Number of preferred stock authorized

50,000,000

50,000,000

Cash proceeds from warrants exercised

$ 760

Underwriting Agreement [Member] | IPO [Member]

Number of shares issued

1,592,357

Value of shares issued

$ 2,100

Shares issued price per share

$ 1.57

Additional shares

231,349

Series H Convertible Preferred Stock [Member]

Number of preferred stock authorized

459,043

Number of shares issued

459,043

Value of shares issued

$ 38,300

Description of stock conversion terms

Each share of Series H Preferred Stock is convertible into ten-nineteenths of a share of Common Stock.

Preferred stock liquidation preference (in dollars per share)

$ 83.50

Description of prefered stock voting rights

Holders of the Series H Preferred Stock shall be entitled to vote on all matters submitted to the Company’s stockholders and shall be entitled to the number of votes equal to the number of shares of Common Stock into which the shares of Series H Preferred Stock are convertible, subject to applicable beneficial ownership limitations.

Number of shares converted

20,000

Number of preferred stock converted

10,526

Preferred stock issued

381,967

Preferred stock outstanding

381,967

Series H Convertible Preferred Stock [Member] | Patent License Agreement [Member] | RPX Corporation [Member]

Number of shares cancelled

57,076

Number of shares cancelled,value

$ 4,765,846

Series H Convertible Preferred Stock [Member] | Second Patent License Agreement [Member] | RPX Corporation [Member]

Number of shares cancelled

381,967

Number of shares cancelled,value

$ 31,894,244

Series K Convertible Preferred Stock [Member]

Number of preferred stock authorized

1,240

Number of shares issued

1,240

Description of stock conversion terms

Each share of Series K Preferred Stock is convertible into five thousand-nineteenths of a share of Common Stock.

Preferred stock liquidation preference (in dollars per share)

$ 1,000

Description of prefered stock voting rights

The Series K Preferred does not generally have any voting rights but are convertible into shares of Common Stock.

Number of preferred stock converted

326,315

Preferred stock issued

1,240

Preferred stock outstanding

1,240

Stockholders' Equity and Rede39

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details Narative 1) - USD ($) $ in Thousands	Jun. 22, 2016	May 20, 2016	Feb. 26, 2016	Feb. 04, 2016	Jan. 26, 2016	Jun. 30, 2016	Jan. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Common stock, authorized previously			200,000,000
Stock based compensation											$ 353	$ 223
2014 Equity Incentive Plan [Member]
Number of shares authorized			8,250,000
Common stock, authorized previously			4,161,892
Reducing the total share			434,210
Stock based compensation									$ 5	$ 64	26	$ 200
Unamortized stock-based compensation expense									9		$ 9
Amortized period											7 months 2 days
2014 Equity Incentive Plan [Member] | Five Directors [Member]
Number of shares granted											19,735
Aggregate grant date fair value											$ 31,000
Restricted Stock Units [Member]
Amortized period											3 months
Non-option unamortized stock-based compensation expense									$ 50		$ 50
Restricted Stock Units [Member] | Mr. Anthony Hayes [Member] | Consulting Agreement [Member]
Number of non-option shares granted		118,512
Restricted Stock [Member] | Third Party [Member] | Consulting Agreement [Member]
Value of shares issued for services				$ 100		$ 25	$ 25	$ 50
Number of non-option shares granted				42,445	652	10,870	8,771
Non-option grant date fair value					$ 1,487
Cash retainer payments				$ 70
Restricted Stock [Member] | Mr. Frank Reiner [Member] | Consulting Agreement [Member]
Value of shares issued for services								$ 60
Number of non-option shares granted								42,106
Restricted Stock [Member] | Mr. Darrell Dotson [Member] | Consulting Agreement [Member]
Value of shares issued for services								$ 60
Number of non-option shares granted								42,106
Restricted Stock [Member] | Consultant One [Member]
Number of non-option shares granted	10,870		7,895
Non-option grant date fair value	$ 25		$ 15
Restricted Stock [Member] | Consultant Two [Member]
Number of non-option shares granted	43,479		7,895
Non-option grant date fair value	$ 100		$ 15

May RPX License Agreement (Deta

May RPX License Agreement (Details Narative) $ in Thousands	May 23, 2016USD ($)shares	Nov. 23, 2015USD ($)Numbershares	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Extinguishment preferred stock					$ 31,480
Short term deferred revenue			1,246		1,246		$ 290
Long term deferred revenue			3,529		3,529		$ 259
RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
License revenue			241		346
Extinguishment preferred stock					31,900
Fair value of preferred stock					414
Cash received from related party					4,400
Deemed dividend					31,500
Short term deferred revenue			1,100		1,100
Long term deferred revenue			3,700		$ 3,700
Deferred revenue amortized service period					5 years
Patent License Agreement [Member] | RPX Corporation [Member]
Number of patent | Number		101
Cash to acquire business		$ 300
Agreement term		2 years
License revenue		$ 600	$ 73		$ 217
Patent License Agreement [Member] | RPX Corporation [Member] | Series I Redeemable Convertible Preferred Stock [Member]
Mandatory redemption payment		$ 5,000
Patent License Agreement [Member] | RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
Number of shares cancelled | shares		57,076
Number of shares cancelled,value		$ 4,765,846
Percentage of shares cancellation		13.00%
Second Patent License Agreement [Member] | RPX Corporation [Member]
License revenue	$ 4,355
Second Patent License Agreement [Member] | RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
Number of shares cancelled | shares	381,967
Number of shares cancelled,value	$ 31,894,244
Percentage of shares cancellation	100.00%
Separate Agreement [Member] | RPX Corporation [Member] | VTech Telecommunications Ltd. [Member]
License revenue	$ 20

Compensatory Arrangements (Deta

Compensatory Arrangements (Details Narrative) - Mr. Anthony Hayes [Member] - USD ($) $ in Thousands	May 20, 2016	Sep. 30, 2016
New Employment Agreement [Member]
Annual base salary	$ 350
Percentage of target bonus	100.00%
Prior Employment Agreement [Member]
Number of non-option shares granted		118,512