Dominari (DOMH) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 14, 2017
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, 2017
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		6,234,898
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 233	$ 134
Marketable securities	4,735	6,025
Prepaid expenses and other assets	42	135
Total current assets	5,010	6,294
Property and equipment, net	4	6
Patent portfolios and patent rights, net	3,924	4,951
Investments at fair value in Hoth	1,020
Deposit	26	26
Total assets	9,984	11,277
Current liabilities
Accounts payable and accrued expenses	48	123
Accrued salaries and benefits	269	446
Warrant liabilities	961	702
Short-term deferred revenue	1,000	1,216
Short-term lease liabilities	94	183
Total current liabilities	2,372	2,670
Long-term deferred revenue	2,530	3,245
Long-term lease liabilities		44
Total liabilities	4,902	5,959
Stockholders' equity
Preferred Stock
Common stock, $0.0001 par value, 100,000,000 shares authorized; 6,229,910 and 4,943,941 shares issued at September 30, 2017 and December 31, 2016, respectively; 6,229,898 and 4,943,929 shares outstanding at September 30, 2017 and December 31, 2016, respectively
Additional paid-in-capital	149,415	147,331
Treasury stock, at cost, 12 shares at September 30, 2017 and December 31, 2016	(264)	(264)
Accumulated deficit	(144,069)	(141,749)
Total stockholders' equity	5,082	5,318
Total liabilities and stockholders' equity	9,984	11,277
Series D Convertible Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series D-1 Convertible Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series H Convertible Preferred Stock [Member]
Stockholders' equity
Preferred Stock
Series K Convertible Preferred Stock [Member]
Stockholders' equity
Preferred Stock

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	6,229,910	4,943,941
Common stock, outstanding	6,229,898	4,943,929
Treasury stock	12	12
Series D Convertible Preferred Stock [Member]
Preferred stock, issued	4,725	4,725
Preferred stock, outstanding	4,725	4,725
liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series D-1 Convertible Preferred Stock [Member]
Preferred stock, issued	834	834
Preferred stock, outstanding	834	834
liquidation preference (in dollars per share)	$ 0.0001	$ 0.0001
Series H Convertible Preferred Stock [Member]
Preferred stock, issued	0	381,967
Preferred stock, outstanding	0	381,967
liquidation preference (in dollars per share)	$ 83.50	$ 83.50
Series K Convertible Preferred Stock [Member]
Preferred stock, issued	0	1,240
Preferred stock, outstanding	0	1,240
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 314	$ 314	$ 952	$ 563
Operating costs and expenses
Amortization of patent portfolio	346	536	1,027	1,598
Compensation and related expenses (including stock-based compensation)	488	836	1,371	1,509
Professional fees	280	343	815	1,872
Rent	21	20	70	65
Other selling, general and administrative	138	65	374	188
Total operating expenses	1,273	1,800	3,657	5,232
Loss from operations	(959)	(1,486)	(2,705)	(4,669)
Other (expenses) income
Other income, net	6	16	299	41
Change in fair value of investment	345		345
Change in fair value of warrant liabilities	1,067	1,024	(259)	2,055
Total other (expenses) income	1,418	1,040	385	2,096
Net income (loss)	459	(446)	(2,320)	(2,573)
Deemed capital contribution on extinguishment of preferred stock				31,480
Net income (loss) attributable to common stockholders	$ 459	$ (446)	$ (2,320)	$ 28,907
Net income (loss) per share attributable to common stockholders, basic and diluted
Basic (in dollars per share)	$ 0.08	$ (0.11)	$ (0.44)	$ 8.72
Diluted (in dollars per share)	$ 0.08	$ (0.11)	$ (0.44)	$ 8.25
Weighted average number of common shares outstanding
Basic (in shares)	5,998,920	4,163,245	5,304,201	3,312,969
Diluted (in shares)	6,009,042	4,163,245	5,304,201	3,503,735

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (2,320)	$ (2,573)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of patent portfolio	1,027	1,598
Change in fair value of investment	(345)
Change in fair value of warrant liabilities	259	(2,055)
Stock-based compensation	13	353
Depreciation expenses	2	1
Realized loss on marketable securities	303
Unrealized gain on marketable securities	(262)	62
Changes in assets and liabilities:
Prepaid expenses and other assets	93	271
Accounts payable and accrued expenses	(75)	(320)
Accrued salaries and benefits	(177)	(111)
Deferred revenue	(932)	3,812
Accrued lease liabilities	(133)	(133)
Net cash (used in) provided by operating activities	(2,547)	905
Cash flows from investing activities
Purchase of marketable securities	(11,283)	(15,707)
Purchase of property and equipment		(3)
Sale of marketable securities	12,533	12,070
Investment in Hoth Therapeutics, Inc.	(675)
Net cash provided by (used in) investing activities	575	(3,640)
Cash flows from financing activities
Cash paid for cancellation of common stock		(4)
Cash from issuance common stock, net of offering cost	2,095	2,140
Proceeds from exercise of warrants		760
Repurchase of restricted stock units to pay for employee withholding taxes	(24)
Net cash provided by financing activities	2,071	2,896
Net increase in cash and cash equivalents	99	161
Cash and cash equivalents, beginning of period	134	142
Cash and cash equivalents, end of period	233	303
Cash paid for interest and taxes	195
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, 2017
Accounting Policies [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. The Company is currently 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, that we manage for others, or that others manage on our behalf. To date, we have generated minimal revenues and no assurance can be provided that our business model will be successful. The Company continually works to enhance its portfolio of intellectual property through acquisitions and strategic partnerships. The Company’s mission is to partner with inventors, or other entities, who own undervalued intellectual property. The Company then works 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 is working together with Equitable to further develop and revise its ongoing litigation plan. See Note 7 for additional details surrounding the Monetization Agreement.

Liquidity and Financial Conditi

Liquidity and Financial Condition	9 Months Ended
	Sep. 30, 2017
Liquidity And Financial Condition
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 debt and 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. Management believes the Company currently has sufficient funds to meet its operating requirements for at least the next twelve months. The Company’s ultimate success is dependent on its ability to obtain additional financing and generate sufficient cash flows 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 $2.6 million at September 30, 2017, and net income amounted to approximately $0.5 million and net loss approximately $2.3 million for the three and nine months ended September 30, 2017. The Company had an approximately $144.1 million of accumulated deficit as of September 30, 2017. Absent generation of sufficient revenue from the execution of the Company’s long term 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. On July 18, 2017, the Company entered into an underwriting agreement with Laidlaw & Company (UK) Ltd. with respect to the issuance and sale of an aggregate of 1,250,000 shares of the Company’s common stock, par value $0.0001 per share, in a firm commitment underwritten public offering which closed on July 24, 2017. Each share was sold for a price of $2.00 for aggregate gross proceeds of $2.5 million, with net proceeds of approximately $2.1 million, after deducting the underwriting discounts and commissions (equivalent to 8% of gross proceeds) and estimated offering expenses. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Nuta Technology Corp. (“Nuta”), Spherix Portfolio Acquisition II, Inc. (“SPXII”), Guidance IP, LLC (“Guidance”), Directional IP, LLC (“Directional”), Spherix Management Services, LLC (“SMS”) and NNPT, LLC (“NNPT”). All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The accompanying 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, the valuation of investments and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates, including the carrying amount of the intangible assets, could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions. Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of corporate bonds and highly liquid mutual funds and exchange-traded & closed-end funds which are valued at quoted market prices. During the three months ended September 30, 2017 and 2016, the Company incurred realized losses of approximately $174,000 and realized gains of approximately $56,000, respectively, and unrealized gains of approximately $124,000 and $91,000, respectively, on its investments in marketable securities, which are included in other income, net on the consolidated statements of operations. In addition, during the three months ended September 30, 2017 and 2016, the Company earned dividend income of approximately $18,000 and $2,000, respectively, which is included in other income, net on the consolidated statement of operations. During the nine months ended September 30, 2017 and 2016, the Company incurred realized losses of approximately $303,000 and $66,000, respectively, and unrealized gains (losses) of approximately $262,000 and ($62,000), respectively, on its investments in marketable securities, which are included in other income, net on the consolidated statements of operations. In addition, during the nine months ended September 30, 2017 and 2016, the Company earned dividend income of approximately $72,000 and $19,000, respectively, which is included in other income, net on the consolidated statement of operations. The Company reinvested such dividend income into its marketable securities during the nine months ended September 30, 2017 and 2016. The fair values of such marketable securities held as of September 30, 2017 and December 31, 2016 were $4.7 million and $6.0 million, respectively. Investment The Company elected the fair value option for its investment in Hoth Therapeutics, Inc., a Nevada corporation (“Hoth”). As of September 30, 2017, the fair value of this investment was $1,020,000 (see Note 4). The investment was classified as a Level 3 financial instrument at September 30, 2017. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The decision to elect the fair value option, which is irrevocable once elected, is determined on an instrument by instrument basis and applied to an entire instrument. The net gains or losses, if any, on an investment for which the fair value option has been elected, are recognized as an unrealized gain on investment in the Consolidated Statements of Operations. Accounting for Warrants The Company accounts for the issuance of common stock purchase warrants issued in connection with the 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 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 consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 6). 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. Net income (loss) attributable to common stockholders includes the effect of the deemed capital contribution on extinguishment of preferred stock and the deemed dividend related to the immediate accretion of beneficial conversion feature of convertible preferred stock. 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, 2017 2016 2017 2016 Basic earnings per share Numerator: Net income (loss) $ 459 $ (446 ) $ (2,320 ) $ (2,573 ) Deemed capital contribution on extinguishment of preferred stock — — — 31,480 Net income (loss) available to common stockholders $ 459 $ (446 ) $ (2,320 ) $ 28,907 Denominator: Weighted average number of common shares outstanding, 5,998,920 4,163,245 5,304,201 3,312,969 Earnings per basic share: Net income (loss) 0.08 (0.11 ) (0.44 ) (0.78 ) Deemed capital contribution on extinguishment of preferred stock — — — 9.50 Net income (loss) available to common stockholders $ 0.08 $ (0.11 ) $ (0.44 ) $ 8.72 Dilutive earnings per share Numerator: Net income (loss) $ 459 $ (446 ) $ (2,320 ) $ (2,573 ) Deemed capital contribution on extinguishment of preferred stock — — — 31,480 Net income (loss) available to common stockholders $ 459 $ (446 ) $ (2,320 ) $ 28,907 Denominator: Weighted average basic shares outstanding, 5,998,920 4,163,245 5,304,201 3,312,969 Weighted average effect of dilutive securities Employee stock options 7,196 — — 260 Convertible preferred stock 2,926 — — 173,418 Restricted stock units — — — 17,088 Weighted average diluted shares outstanding 6,009,042 4,163,245 5,304,201 3,503,735 Earnings per diluted share: Net income (loss) $ 0.08 $ (0.11 ) $ (0.44 ) $ (0.73 ) Deemed capital contribution on extinguishment of preferred stock — — — 8.98 Net income (loss) available to common stockholders $ 0.08 $ (0.11 ) $ (0.44 ) $ 8.25 Securities that could potentially dilute loss per share in the future as follows: As of September 30, 2017 2016 Convertible preferred stock 2,926 2,926 Warrants to purchase common stock 1,251,709 1,251,709 Non-vested restricted stock units — 59,256 Options to purchase common stock 328,716 289,380 Total 1,583,351 1,603,271 Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB has subsequently issued ASU No. 2016-10, Revenue from Contracts with Customer (Topic 606) Identifying Performance Obligations and Licensing to address issues arising from implementation of the new revenue recognition standard. ASU 2014-09 and ASU 2016-10 are effective for interim and annual periods beginning January 1, 2018, and may be adopted earlier, but not before January 1, 2017. The revenue standards are required to be adopted by taking either a full retrospective or a modified retrospective approach. The Company is currently evaluating the impact that ASU 2014-09 and 2016-10 will have on the Company’s financial statements and determining the transition method, including the period of adoption, that it will apply. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 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 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 In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Goodwill Impairment In May 2017, the Financial Accounting Standards Board (the FASB) issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting

Investment in Hoth Therapeutics

Investment in Hoth Therapeutics, Inc	9 Months Ended
	Sep. 30, 2017
Investment In Hoth Therapeutics Inc
Investment in Hoth Therapeutics, Inc.	Note 4. Investment in Hoth Therapeutics, Inc. On June 30, 2017 (the “Closing Date”), the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Hoth Therapeutics, Inc., a Nevada corporation (“Hoth”), for the purchase of an aggregate of 6,800,000 shares of common stock, par value $0.0001 (the “Shares”), of Hoth, for a purchase price of $675,000. As of the Closing Date, Hoth had a total of 17,000,000 shares of common stock issued and outstanding. Hoth is a development stage biopharmaceutical company focused on unique targeted therapeutics for patients suffering from indications such as atopic dermatitis, also known as eczema. Hoth’s primary asset is a sublicense agreement with Chelexa Biosciences, Inc. (“Chelexa”) pursuant to which Chelexa has granted Hoth an exclusive sublicense to use its BioLexa products for the treatment of eczema. Under the Purchase Agreement, following the occurrence of a Going Public Event (as defined below), Hoth covenants to timely file all reports required to be filed under the Securities Exchange Act of 1934 (the “Exchange Act”) and to take all necessary steps to cause the Shares to be approved for listing or quotation on a trading market such as NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX. A “Going Public Event” means (i) an initial public offering of Hoth’s securities pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), or (ii) Hoth’s entry into a merger, consolidation, transfer or share exchange transaction pursuant to which Hoth becomes subject to the reporting requirements of the Exchange Act. The Company adopted the fair value option for this investment and will record any change in fair value in the statement of operations (see Note 6).

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 5. 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 carrying amounts related to acquired intangible assets as of September 30, 2017 are as follows ($ in thousands): Net Carrying Amount Weighted average Patent Portfolios and Patent Rights at $ 4,951 3.65 Amortization expenses (1,027 ) Patent Portfolios and Patent Rights at $ 3,924 2.91 The amortization expenses related to acquired intangible assets for the nine months ended September 30, 2017 and 2016 are as follows ($ in thousands): Amortization Expense for the Three Months Ended September 30, Amortization Expense for the Nine Months Ended September 30, Date Acquired and Description 2017 2016 2017 2016 7/24/13 - Rockstar patent portfolio $ 18 $ 26 $ 53 $ 78 9/10/13 - North South patent portfolio 5 8 16 23 12/31/13 - Rockstar patent portfolio 323 502 958 1,497 $ 346 $ 536 $ 1,027 $ 1,598 The future amortization of these intangible assets was based on the adjusted carrying amount. Future amortization of all patents is as follows ($ in thousands): Rockstar North South Rockstar Portfolio Portfolio Portfolio Acquired Acquired Acquired Total 24-Jul-13 10-Sep-13 31-Dec-13 Amortization Six Months Ended December 31, 2017 18 6 323 347 Year Ended December 31, 2018 71 22 1,280 1,373 Year Ended December 31, 2019 71 22 1,280 1,373 Year Ended December 31, 2020 71 22 638 731 Year Ended December 31, 2021 71 22 — 93 Thereafter 4 3 — 7 Total $ 306 $ 97 $ 3,521 $ 3,924 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 refine 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 several litigations, one of which is currently pending. 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 has 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 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, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Liabilities	Note 6. Fair Value of Financial Assets and Liabilities Financial instruments, including cash and cash equivalents, accounts and other receivables, marketable securities, 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, 2017 and December 31, 2016 ($ in thousands): Fair value measured at September 30, 2017 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2017 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 4,735 $ — $ 4,735 $ — Investment in Hoth $ 1,020 $ — $ — $ 1,020 Liabilities Fair value of warrant liabilities $ 961 $ — $ — $ 961 Fair value measured at December 31, 2016 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2016 (Level 1) (Level 2) (Level 3) Assets Marketable securities - corporate bonds $ 6,025 $ 211 $ 5,814 $ — Liabilities Fair value of warrant liabilities $ 702 $ — $ — $ 702 There were no transfers between Level 1, 2 or 3 during the nine months ended September 30, 2017. Level 2 Valuation Techniques The fair values of Level 2 marketable securities are determined using one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly . 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. Financial assets consist of the Company’s investment in Hoth. 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 “change in fair value of warrant liabilities” in the Company’s consolidated statements of operations. On July 21, 2015, the Company issued the July 2015 Warrants to purchase an aggregate of 370,263 shares of common stock to the investors in the July 2015 Financing. The July 2015 Warrants became exercisable on January 22, 2016 for a period of 5 years 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 such offering. Series A Warrants had an exercise price of $3.80 per share and were exercisable at any time between December 7, 2015 and May 6, 2016. 852,624 shares of Series A warrants expired unexercised on May 24, 2016, and no Series A Warrants remain outstanding as of December 31, 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 consolidated balance sheet as a current liability. The 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, 2017 is as follows: Date of valuation September 30, 2017 December 31, 2016 Risk-free interest rate 1.62% 1.93% Expected volatility 100.00% - 134.57% 100% - 133.79% Expected life (in years) 3.19 - 3.31 3.93 - 4.06 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 for the nine months ended September 30, 2017 and 2016 that are measured at fair value on a recurring basis ($ in thousands): Fair Value of Level 3 financial liabilities September 30, September 30, Beginning balance $ 702 $ 2,959 Fair value adjustment of warrant liabilities 259 (2,055 ) Ending balance $ 961 $ 904 The value of the Company’s investment in Hoth was determined based on a valuation which takes into consideration, when applicable, cash received, cost of the investment, market participant inputs, estimated cash flows based on entity specific criteria, purchase multiples paid in other comparable third-party transactions, market conditions, liquidity, operating results and other qualitative and quantitative factors. The values at which the Company’s investment in Hoth is carried on its books are adjusted to estimated fair value at the end of each quarter taking into account general economic and stock market conditions and those characteristics specific to Hoth. The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial assets that are measured at fair value on a recurring basis: Fair Value of Level 3 financial liabilities September 30, 2017 Beginning balance $ — Fair value of Hoth upon issuance 675 Change in fair value of Hoth 345 Ending balance $ 1,020 While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The decision to elect the fair value option, which is irrevocable once elected, is determined on an instrument by instrument basis and applied to an entire instrument. The net gains or losses, if any, on an investment for which the fair value option has been elected, are recognized as an unrealized gain on investment in the Consolidated Statements of Operations. The fair value of the investment in Hoth at September 30, 2017 was approximately $1.0 million. The underlying stock price of Hoth was estimated to be $0.15 per share based on Hoth’s fundraising activity and the Option Pricing Method Backsolve in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issues as Compensation. The valuation of the underlying shares included the following assumptions: risk-free rate – 1.39%, company volatility - 75%, expected term or time to maturity – 1.5 years.

RPX License Agreement

RPX License Agreement	9 Months Ended
	Sep. 30, 2017
Rpx License Agreement
RPX License Agreement	Note 7. 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 clients. 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 years ended December 31, 2016 and 2015, the Company recorded approximately $290,000 and $31,000, 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. During the three and nine months ended September 30, 2017, the Company recorded approximately $314,000 and $932,000, respectively, in revenue related to the amortization of the license. Under a separate agreement between the Company and RPX, dated May 23, 2016, 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 capital contribution of approximately $31.5 million, short term deferred revenue $1.1 million and long term deferred revenue of $3.7 million. A summary of information with respect the RPX transaction on May 23, 2016 is as follows: Stock price on May 22, 2016 $ 2.06 Series H Assumptions Series H Shares 381,967 Series H - Liquidation preference $ 83.50 Series H -Carrying value $ 31,894,245 Equivalent common shares - Series H 201,035 Fair Value of Series H preferred $ 414,133 Contribution/Deemed dividend $ 31,480,112 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. ASC 260-10-S99-2, Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock

Stockholders' Equity and Redeem

Stockholders' Equity and Redeemable Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity and Redeemable Convertible Preferred Stock	Note 8. 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. Common Stock On July 18, 2017, the Company entered into an underwriting agreement with Laidlaw & Company (UK) Ltd. with respect to the issuance and sale of an aggregate of 1,250,000 shares of the Company’s common stock, par value $0.0001 per share, in a firm commitment underwritten public offering which closed on July 24, 2017. Each share was sold for a price of $2.00 for aggregate gross proceeds of $2,500,000, with net proceeds of approximately $2.1 million, after deducting the underwriting discounts and commissions (equivalent to 8% of gross proceeds) and estimated offering expenses. Preferred Stock The Company had designated separate series of its capital stock as of September 30, 2017 and December 31, 2016 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" — — 0.0001 0.53:1 Series “I” — — 0.0001 1.05:1 Series “J” — — 0.0001 0.05:1 Series “K” — — 0.0001 263.16:1 Warrants A summary of warrant activity for the nine months ended September 30, 2017 is presented below: Warrants Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life Outstanding as of December 31, 2016 1,250,311 $ 9.21 $ — 3.91 Expired (557 ) Outstanding as of September 30, 2017 1,249,754 $ 8.98 3.17 Exercisable as of September 30, 2017 1,249,754 $ 8.98 $ — 3.17 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. As a result of the split, the total share authorization under the plan was reduced to 434,210 shares. During the second quarter ended June 30, 2017, pursuant to and subject to the available number of shares reserved under the 2014 Plan, the Company issued an aggregate of 15,788 options to purchase common stock of the Company to four of its directors. The aggregate grant date fair value of these options was approximately $12,000. These stock options vest over one year. A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2017 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2016 310,091 $ 82.25 $ — 4.1 Employee options granted 15,788 1.02 7,420 4.7 Employee options expired (176 ) — — — Outstanding as of September 30, 2017 325,703 $ 78.24 $ 7,697 3.5 Options vested and expected to vest 325,703 $ 78.24 $ 7,697 3.5 Options vested and exercisable 317,811 $ 80.15 $ 3,987 3.4 A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2017 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2016 2,893 $ 98.07 $ — 4.4 Non-employee options granted — — — — Outstanding as of September 30, 2017 2,893 $ 98.07 $ — 3.7 Options vested and expected to vest 2,893 $ 98.07 $ — 3.7 Options vested and exercisable 2,893 $ 98.07 $ — 3.7 Stock-based compensation associated with the amortization of stock option expense was approximately $2,000 and $5,000 for the three months ended September 30, 2017 and 2016, and was approximately $13,000 and $26,000 for the nine months ended September 30, 2017 and 2016, respectively. Restricted Stock Units On March 14, 2017, 35,969 restricted stock units (“RSUs”) were delivered to Anthony Hayes. 23,287 shares of common stock were withheld (at the closing price of the Company's common stock on the NASDAQ Capital Market on March 14, 2017) to satisfy the tax obligation relating to the vesting of the RSUs. Stock-based Compensation Stock-based compensation for the three and nine months ended September 30, 2017 and 2016 was comprised of the following ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Employee stock option awards $ 2 $ 5 $ 13 26 Non-employee restricted stock awards — — — 255 Employee restricted stock units — 49 — 72 Total compensation expense $ 2 $ 54 $ 13 $ 353 Stock-based compensation was approximately $2,000 and $54,000 for the three months ended September 30, 2017 and 2016, and was approximately $13,000 and $0.4 million for the nine months ended September 30, 2017 and 2016, respectively. Unamortized stock-based compensation expense was immaterial at September 30, 2017.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9. 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 patented 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. 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 International License Exchange of America, LLC 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. International License Exchange of America, LLC Litigations Under our Monetization Agreement with Equitable, ILEA has filed the patent infringement litigations listed below. ● On August 12, 2016, litigation against Cincinnati Bell, Inc., case number 1:16-cv-00715-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of U.S. Patent No. RE40,999 (“the ’999 patent”), U.S. Patent No. 6,970,461, and U.S. Patent No. 7,478,167. On March 8, 2017, Cincinnati Bell filed a motion to dismiss, alleging lack of personal jurisdiction and improper venue. On March 29, 2017, the parties filed a joint motion to stay all deadlines until April 29, 2017, stating that the parties have reached an agreement in principal to resolve all claims asserted in the case. On April 3, 2017, the court granted the parties motion to stay all deadlines until April 29, 2017. On May 5, 2017, the Court ordered the parties to file a joint status report by three days from the date of the order. On May 5, 2017, the parties filed a joint stipulation of dismissal and the Court terminated the case. ● On August 12, 2016, litigation against Frontier Communications Corporation, case number 1:16-cv-00714-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On May 16, 2017, ILEA filed an agreed motion to stay all deadlines in the case, stating that the parties had reached an agreement in principal in the case and needed time to finalize the written agreement. On May 19, 2017, the Court granted the motion and stayed all deadlines until June 19, 2017. On June 19, 2017, ILEA filed a notice of voluntary dismissal and the Court terminated the case. ● On August 12, 2016, litigation against Echostar Corporation, case number 1:16-cv-00716-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On April 17, 2017, ILEA filed a notice of voluntary dismissal of the case, and on April 18, 2017, the Court closed the case. ● On August 15, 2016, litigation against ATN International, Inc. Commnet Wireless, LLC Choice Communications LLC, and Choice Communications, LLC (“Choice Wireless”), case number: 1:16-cv-00718-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On April 12, 2017, the parties jointly dismissed the case by filing a stipulation dismissing the case with prejudice. ● On August 15, 2016, litigation against Sprint Corporation and Clearwire Corporation case number 1:16-cv-00719-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On May 1, 2017, ILEA filed a notice of voluntary dismissal of the case, and the court closed the case on May 2, 2017. ● On August 16, 2016, litigation against ViaSat, Inc., case number 1:16-cv-00720-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On March 7, 2017, ViaSat filed a motion to dismiss, alleging failure to state a plausible claim of patent infringement. On March 21, 2017, ILEA filed its brief in opposition to the motion to dismiss. On March 28, 2017, ViaSat filed its reply brief on the motion to dismiss. On May 19, 2017, the Court issued an order granting ViaSat’s motion to dismiss, but granted ILEA leave to amend the complaint no later than three weeks from the date of the order. On May 30, 2017, ILEA filed its amended complaint. On July 24, 2017, the parties filed a joint motion to dismiss the case. On July 25, 2017, the Court granted the motion and closed the case. ● On September 9, 2016, litigation against Fortinet Inc., case number 1:16-cv-00795-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On March 7, 2017, Fortinet filed its answer to the Complaint. On June 14, 2017, the Court ordered the parties to file a status report within three days of the order. On June 16, 2017, the parties filed the joint status report stating that the parties have executed a written settlement agreement resolving the case. On July 6, 2017, ILEA filed a stipulation of dismissal with prejudice and the Court closed the case. ● On September 9, 2016, litigation against GTT Communications, Inc., case number 1:16-cv-00796-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent. On May 19, 2017, the parties filed a motion to extend time to answer the complaint until June 5, 2017. On May, 22, 2017, the Court granted the motion. On June 5, 2017, ILEA filed a notice of voluntary dismissal and the Court terminated the case. ● On November 22, 2016, litigation against Alcatel-Lucent SA and Alcatel-Lucent USA Inc., case number 1:16-cv-01077-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ’999 patent and U.S. Patent Nos. 7,158,515; 6,222,848; 6,578,086; and 6,697,325. On March 28, 2017, ILEA filed a notice of voluntary dismissal of the case and on that date the court closed the case. ● On May 4, 2017, litigation against NTT Communications ICT Solutions Pty Ltd., NTT America, Inc., and NTT Security (US) Inc., case number 1:17-cv-00508-UNA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ‘999 patent and the ‘990 patent. On November 8, 2017, ILEA filed a notice of voluntary dismissal of the case. ● On May 15, 2017, litigation against ADTRAN, Inc. case number 1:17-cv-00562-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the ‘999 patent and U.S. Patent Nos. 5,959,990; 6.970,461; 7,478,167; 7,274,704; and 7,277,533. The current deadline for filing an answer is December 6, 2017. In July 2016, a lawsuit relating to the ’999 Patent was dismissed in anticipation of settlement with the counterparty. In May 2017, settlement was reached, pursuant to which the counterparty granted to Equitable the right to monetize a portfolio of 112 patents (the “Settlement Patents”). Pursuant to the Company’s Monetization Agreement with Equitable, the Company is entitled to receive a portion of the net revenue generated by Equitable’s monetization of the Settlement Patents. Counterclaims In the ordinary course of business, we, or with our wholly-owned subsidiaries or monetization partners, 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, there are no counterclaims pending against us. In the event such counterclaims are filed, we can provide no assurance that the outcome of these claims will not have a material adverse effect on our financial position and results from operations.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Nuta Technology Corp. (“Nuta”), Spherix Portfolio Acquisition II, Inc. (“SPXII”), Guidance IP, LLC (“Guidance”), Directional IP, LLC (“Directional”), Spherix Management Services, LLC (“SMS”) and NNPT, LLC (“NNPT”). All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The accompanying 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, the valuation of investments and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates, including the carrying amount of the intangible assets, could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions.
Marketable Securities	Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of corporate bonds and highly liquid mutual funds and exchange-traded & closed-end funds which are valued at quoted market prices. During the three months ended September 30, 2017 and 2016, the Company incurred realized losses of approximately $174,000 and realized gains of approximately $56,000, respectively, and unrealized gains of approximately $124,000 and $91,000, respectively, on its investments in marketable securities, which are included in other income, net on the consolidated statements of operations. In addition, during the three months ended September 30, 2017 and 2016, the Company earned dividend income of approximately $18,000 and $2,000, respectively, which is included in other income, net on the consolidated statement of operations. During the nine months ended September 30, 2017 and 2016, the Company incurred realized losses of approximately $303,000 and $66,000, respectively, and unrealized gains (losses) of approximately $262,000 and ($62,000), respectively, on its investments in marketable securities, which are included in other income, net on the consolidated statements of operations. In addition, during the nine months ended September 30, 2017 and 2016, the Company earned dividend income of approximately $72,000 and $19,000, respectively, which is included in other income, net on the consolidated statement of operations. The Company reinvested such dividend income into its marketable securities during the nine months ended September 30, 2017 and 2016. The fair values of such marketable securities held as of September 30, 2017 and December 31, 2016 were $4.7 million and $6.0 million, respectively.
Investment	Investment The Company elected the fair value option for its investment in Hoth Therapeutics, Inc., a Nevada corporation (“Hoth”). As of September 30, 2017, the fair value of this investment was $1,020,000 (see Note 4). The investment was classified as a Level 3 financial instrument at September 30, 2017. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The decision to elect the fair value option, which is irrevocable once elected, is determined on an instrument by instrument basis and applied to an entire instrument. The net gains or losses, if any, on an investment for which the fair value option has been elected, are recognized as an unrealized gain on investment in the Consolidated Statements of Operations.
Accounting for Warrants	Accounting for Warrants The Company accounts for the issuance of common stock purchase warrants issued in connection with the 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 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 consolidated statements of operations. The fair value of the warrants has been estimated using a Black-Scholes valuation model (see Note 6).
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. Net income (loss) attributable to common stockholders includes the effect of the deemed capital contribution on extinguishment of preferred stock and the deemed dividend related to the immediate accretion of beneficial conversion feature of convertible preferred stock. 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, 2017 2016 2017 2016 Basic earnings per share Numerator: Net income (loss) $ 459 $ (446 ) $ (2,320 ) $ (2,573 ) Deemed capital contribution on extinguishment of preferred stock — — — 31,480 Net income (loss) available to common stockholders $ 459 $ (446 ) $ (2,320 ) $ 28,907 Denominator: Weighted average number of common shares outstanding, 5,998,920 4,163,245 5,304,201 3,312,969 Earnings per basic share: Net income (loss) 0.08 (0.11 ) (0.44 ) (0.78 ) Deemed capital contribution on extinguishment of preferred stock — — — 9.50 Net income (loss) available to common stockholders $ 0.08 $ (0.11 ) $ (0.44 ) $ 8.72 Dilutive earnings per share Numerator: Net income (loss) $ 459 $ (446 ) $ (2,320 ) $ (2,573 ) Deemed capital contribution on extinguishment of preferred stock — — — 31,480 Net income (loss) available to common stockholders $ 459 $ (446 ) $ (2,320 ) $ 28,907 Denominator: Weighted average basic shares outstanding, 5,998,920 4,163,245 5,304,201 3,312,969 Weighted average effect of dilutive securities Employee stock options 7,196 — — 260 Convertible preferred stock 2,926 — — 173,418 Restricted stock units — — — 17,088 Weighted average diluted shares outstanding 6,009,042 4,163,245 5,304,201 3,503,735 Earnings per diluted share: Net income (loss) $ 0.08 $ (0.11 ) $ (0.44 ) $ (0.73 ) Deemed capital contribution on extinguishment of preferred stock — — — 8.98 Net income (loss) available to common stockholders $ 0.08 $ (0.11 ) $ (0.44 ) $ 8.25 Securities that could potentially dilute loss per share in the future as follows: As of September 30, 2017 2016 Convertible preferred stock 2,926 2,926 Warrants to purchase common stock 1,251,709 1,251,709 Non-vested restricted stock units — 59,256 Options to purchase common stock 328,716 289,380 Total 1,583,351 1,603,271
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB has subsequently issued ASU No. 2016-10, Revenue from Contracts with Customer (Topic 606) Identifying Performance Obligations and Licensing to address issues arising from implementation of the new revenue recognition standard. ASU 2014-09 and ASU 2016-10 are effective for interim and annual periods beginning January 1, 2018, and may be adopted earlier, but not before January 1, 2017. The revenue standards are required to be adopted by taking either a full retrospective or a modified retrospective approach. The Company is currently evaluating the impact that ASU 2014-09 and 2016-10 will have on the Company’s financial statements and determining the transition method, including the period of adoption, that it will apply. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 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 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 In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Goodwill Impairment In May 2017, the Financial Accounting Standards Board (the FASB) issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 2017 2016 Basic earnings per share Numerator: Net income (loss) $ 459 $ (446 ) $ (2,320 ) $ (2,573 ) Deemed capital contribution on extinguishment of preferred stock — — — 31,480 Net income (loss) available to common stockholders $ 459 $ (446 ) $ (2,320 ) $ 28,907 Denominator: Weighted average number of common shares outstanding, 5,998,920 4,163,245 5,304,201 3,312,969 Earnings per basic share: Net income (loss) 0.08 (0.11 ) (0.44 ) (0.78 ) Deemed capital contribution on extinguishment of preferred stock — — — 9.50 Net income (loss) available to common stockholders $ 0.08 $ (0.11 ) $ (0.44 ) $ 8.72 Dilutive earnings per share Numerator: Net income (loss) $ 459 $ (446 ) $ (2,320 ) $ (2,573 ) Deemed capital contribution on extinguishment of preferred stock — — — 31,480 Net income (loss) available to common stockholders $ 459 $ (446 ) $ (2,320 ) $ 28,907 Denominator: Weighted average basic shares outstanding, 5,998,920 4,163,245 5,304,201 3,312,969 Weighted average effect of dilutive securities Employee stock options 7,196 — — 260 Convertible preferred stock 2,926 — — 173,418 Restricted stock units — — — 17,088 Weighted average diluted shares outstanding 6,009,042 4,163,245 5,304,201 3,503,735 Earnings per diluted share: Net income (loss) $ 0.08 $ (0.11 ) $ (0.44 ) $ (0.73 ) Deemed capital contribution on extinguishment of preferred stock — — — 8.98 Net income (loss) available to common stockholders $ 0.08 $ (0.11 ) $ (0.44 ) $ 8.25
Schedule of potentially dilute loss per share	Securities that could potentially dilute loss per share in the future as follows: As of September 30, 2017 2016 Convertible preferred stock 2,926 2,926 Warrants to purchase common stock 1,251,709 1,251,709 Non-vested restricted stock units — 59,256 Options to purchase common stock 328,716 289,380 Total 1,583,351 1,603,271

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The carrying amounts related to acquired intangible assets as of September 30, 2017 are as follows ($ in thousands): Net Carrying Amount Weighted average Patent Portfolios and Patent Rights at $ 4,951 3.65 Amortization expenses (1,027 ) Patent Portfolios and Patent Rights at $ 3,924 2.91
Schedule of amortization to acquired intangible assets	The amortization expenses related to acquired intangible assets for the nine months ended September 30, 2017 and 2016 are as follows ($ in thousands): Amortization Expense for the Three Months Ended September 30, Amortization Expense for the Nine Months Ended September 30, Date Acquired and Description 2017 2016 2017 2016 7/24/13 - Rockstar patent portfolio $ 18 $ 26 $ 53 $ 78 9/10/13 - North South patent portfolio 5 8 16 23 12/31/13 - Rockstar patent portfolio 323 502 958 1,497 $ 346 $ 536 $ 1,027 $ 1,598
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 Six Months Ended December 31, 2017 18 6 323 347 Year Ended December 31, 2018 71 22 1,280 1,373 Year Ended December 31, 2019 71 22 1,280 1,373 Year Ended December 31, 2020 71 22 638 731 Year Ended December 31, 2021 71 22 — 93 Thereafter 4 3 — 7 Total $ 306 $ 97 $ 3,521 $ 3,924

Fair Value of Financial Asset18

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016 ($ in thousands): Fair value measured at September 30, 2017 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2017 (Level 1) (Level 2) (Level 3) Assets Marketable securities - mutual funds $ 4,735 $ — $ 4,735 $ — Investment in Hoth $ 1,020 $ — $ — $ 1,020 Liabilities Fair value of warrant liabilities $ 961 $ — $ — $ 961 Fair value measured at December 31, 2016 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2016 (Level 1) (Level 2) (Level 3) Assets Marketable securities - corporate bonds $ 6,025 $ 211 $ 5,814 $ — Liabilities Fair value of warrant liabilities $ 702 $ — $ — $ 702
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, 2017 is as follows: Date of valuation September 30, 2017 December 31, 2016 Risk-free interest rate 1.62% 1.93% Expected volatility 100.00% - 134.57% 100% - 133.79% Expected life (in years) 3.19 - 3.31 3.93 - 4.06 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 for the nine months ended September 30, 2017 and 2016 that are measured at fair value on a recurring basis ($ in thousands): Fair Value of Level 3 financial liabilities September 30, September 30, Beginning balance $ 702 $ 2,959 Fair value adjustment of warrant liabilities 259 (2,055 ) Ending balance $ 961 $ 904
Schedule of fair value of the Company's Level 3 financial assets	The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial assets that are measured at fair value on a recurring basis: Fair Value of Level 3 financial liabilities September 30, Beginning balance $ — Fair value of Hoth upon issuance 675 Change in fair value of Hoth 345 Ending balance $ 1,020

RPX License Agreement (Tables)

RPX License Agreement (Tables)	9 Months Ended
	Sep. 30, 2017
Rpx License Agreement
Schedule of licence agreement	A summary of information with respect the RPX transaction on May 23, 2016 is as follows: Stock price on May 22, 2016 $ 2.06 Series H Assumptions Series H Shares 381,967 Series H - Liquidation preference $ 83.50 Series H -Carrying value $ 31,894,245 Equivalent common shares - Series H 201,035 Fair Value of Series H preferred $ 414,133 Contribution/Deemed dividend $ 31,480,112

Stockholders' Equity and Rede20

Stockholders' Equity and Redeemable Convertible Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016 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" — — 0.0001 0.53:1 Series “I” — — 0.0001 1.05:1 Series “J” — — 0.0001 0.05:1 Series “K” — — 0.0001 263.16:1
Schedule of warrant activity	A summary of warrant activity for the nine months ended September 30, 2017 is presented below: Warrants Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life Outstanding as of December 31, 2016 1,250,311 $ 9.21 $ — 3.91 Expired (557 ) Outstanding as of September 30, 2017 1,249,754 $ 8.98 3.17 Exercisable as of September 30, 2017 1,249,754 $ 8.98 $ — 3.17
Schedule of fair value of options granted	A summary of option activity under the Company’s employee stock option plan for the nine months ended September 30, 2017 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2016 310,091 $ 82.25 $ — 4.1 Employee options granted 15,788 1.02 7,420 4.7 Employee options expired (176 ) — — — Outstanding as of September 30, 2017 325,703 $ 78.24 $ 7,697 3.5 Options vested and expected to vest 325,703 $ 78.24 $ 7,697 3.5 Options vested and exercisable 317,811 $ 80.15 $ 3,987 3.4 A summary of option activity under the Company’s non-employee stock option plan for the nine months ended September 30, 2017 is presented below: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2016 2,893 $ 98.07 $ — 4.4 Non-employee options granted — — — — Outstanding as of September 30, 2017 2,893 $ 98.07 $ — 3.7 Options vested and expected to vest 2,893 $ 98.07 $ — 3.7 Options vested and exercisable 2,893 $ 98.07 $ — 3.7
Schedule of option activity	Stock-based compensation for the three and nine months ended September 30, 2017 and 2016 was comprised of the following ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Employee stock option awards $ 2 $ 5 $ 13 26 Non-employee restricted stock awards — — — 255 Employee restricted stock units — 49 — 72 Total compensation expense $ 2 $ 54 $ 13 $ 353

Liquidity and Financial Condi21

Liquidity and Financial Condition (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 24, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Working capital deficit				$ (2,600)
Net loss		$ 459	$ (446)	(2,320)	$ (2,573)
Accumulated deficits		$ (144,069)		(144,069)		$ (141,749)
Gross proceeds from issuance of stock				$ 2,095	$ 2,140
Common stock, par value (in dollars per share)		$ 0.0001		$ 0.0001		$ 0.0001
Underwriting Agreement [Member] | Laidlaw & Company (UK) Ltd. [Member]
Gross proceeds from issuance of stock	$ 2,500
Net proceeds from issuance of stock	$ 2,100
Issuance and sale of common stock	1,250,000
Share price	$ 2
Common stock, par value (in dollars per share)	$ 0.0001
Percentage of estimated offering expenses	8.00%

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income (loss)	$ 459	$ (446)	$ (2,320)	$ (2,573)
Deemed capital contribution on extinguishment of preferred stock				31,480
Net income (loss) available to common stockholders	$ 459	$ (446)	$ (2,320)	$ 28,907
Denominator:
Weighted average number of common shares outstanding,	5,998,920	4,163,245	5,304,201	3,312,969
Earnings per basic share:
Net income (loss)	$ 0.08	$ (0.11)	$ (0.44)	$ (0.78)
Deemed capital contribution on extinguishment of preferred stock				9.50
Net income (loss) available to common stockholders	$ 0.08	$ (0.11)	$ (0.44)	$ 8.72
Numerator:
Net income (loss)	$ 459	$ (446)	$ (2,320)	$ (2,573)
Deemed capital contribution on extinguishment of preferred stock				31,480
Net income (loss) available to common stockholders	$ 459	$ (446)	$ (2,320)	$ 28,907
Denominator:
Weighted average basic shares outstanding,	5,998,920	4,163,245	5,304,201	3,312,969
Weighted average effect of dilutive securities
Employee stock options	7,196			260
Convertible preferred stock	2,926			173,418
Restricted stock units				17,088
Weighted average diluted shares outstanding	6,009,042	4,163,245	5,304,201	3,503,735
Earnings per diluted share:
Net Loss	$ 0.08	$ (0.11)	$ (0.44)	$ (0.73)
Deemed capital contribution on extinguishment of preferred stock				8.98
Net income (loss) available to common stockholders	$ 0.08	$ (0.11)	$ (0.44)	$ 8.25

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details 1) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Potentially dilute securities excluded from calculation	1,583,351	1,603,271
Convertible preferred stock [Member]
Potentially dilute securities excluded from calculation	2,926	2,926
Warrants to purchase common stock [Member]
Potentially dilute securities excluded from calculation	1,251,709	1,251,709
Non-vested restricted stock units [Member]
Potentially dilute securities excluded from calculation		59,256
Options to purchase common stock [Member]
Potentially dilute securities excluded from calculation	328,716	289,380

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Accounting Policies [Abstract]
Realized gain (loss) on marketable securities	$ (174)	$ 56	$ (303)
Unrealized gain (loss) on marketable securities	124	91	262	(62)
Dividend income	18	$ 2	72	$ 19
Fair value of marketable securities	4,735		4,735		$ 6,025
Fair value of investment	$ 1,020		$ 1,020

Investment in Hoth Therapeuti25

Investment in Hoth Therapeutics, Inc (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Common stock, outstanding		6,229,898	4,943,929
Common stock, issued		6,229,910	4,943,941
Hoth Therapeutics, Inc [Member] | Securities Purchase Agreement [Member]
Share price (in dollars per share)	$ 0.0001
Number of common shares issued	6,800,000
Purchase price	$ 675
Common stock, outstanding	17,000,000
Common stock, issued	17,000,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-lived Intangible Assets [Roll Forward]
Patent Portfolios and Patent Rights at beginning			$ 4,951
Amortization expenses	$ (346)	$ (536)	(1,027)	$ (1,598)
Patent Portfolios and Patent Rights at ending	3,924		3,924		$ 4,951
Patents [Member]
Finite-lived Intangible Assets [Roll Forward]
Patent Portfolios and Patent Rights at beginning			4,951
Amortization expenses			(1,027)
Patent Portfolios and Patent Rights at ending	$ 3,924		$ 3,924		$ 4,951
Weighted average amortization period (years)			2 years 10 months 28 days		3 years 7 months 24 days

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Amortization expenses	$ 346	$ 536	$ 1,027	$ 1,598
7/24/13 - Rockstar Patent Portfolio Acquired [Member]
Amortization expenses	18	26	53	78
9/10/13 - North South patent portfolio Acquired [Member]
Amortization expenses	5	8	16	23
12/31/13 - Rockstar Patent Portfolio Acquired [Member]
Amortization expenses	$ 323	$ 502	$ 958	$ 1,497

Intangible Assets (Details 2)

Intangible Assets (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Six Months Ended December 31, 2017	$ 347
Year Ended December 31, 2018	1,373
Year Ended December 31, 2019	1,373
Year Ended December 31, 2020	731
Year Ended December 31, 2021	93
Thereafter	7
Total	3,924	$ 4,951
7/24/13 - Rockstar Patent Portfolio Acquired [Member]
Six Months Ended December 31, 2017	18
Year Ended December 31, 2018	71
Year Ended December 31, 2019	71
Year Ended December 31, 2020	71
Year Ended December 31, 2021	71
Thereafter	4
Total	306
9/10/13 - North South patent portfolio Acquired [Member]
Six Months Ended December 31, 2017	6
Year Ended December 31, 2018	22
Year Ended December 31, 2019	22
Year Ended December 31, 2020	22
Year Ended December 31, 2021	22
Thereafter	3
Total	97
12/31/13 - Rockstar Patent Portfolio Acquired [Member]
Six Months Ended December 31, 2017	323
Year Ended December 31, 2018	1,280
Year Ended December 31, 2019	1,280
Year Ended December 31, 2020	638
Year Ended December 31, 2021
Thereafter
Total	$ 3,521

Fair Value of Financial Asset29

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Marketable securities - corporate bonds and mutual funds	$ 4,735	$ 6,025
Investment in Hoth	1,020
Liabilities
Fair value of warrant liabilities	961	702
Quoted prices in active markets (Level 1) [Member]
Assets
Marketable securities - corporate bonds and mutual funds		211
Significant other observable inputs (Level 2) [Member]
Assets
Marketable securities - corporate bonds and mutual funds	4,735	5,814
Significant unobservable inputs (Level 3) [Member]
Assets
Marketable securities - corporate bonds and mutual funds
Investment in Hoth	1,020
Liabilities
Fair value of warrant liabilities	$ 961	$ 702

Fair Value of Financial Asset30

Fair Value of Financial Assets and Liabilities (Details 1)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Risk-free interest rate	1.62%	1.93%
Expected dividend yield
Minimum [Member]
Expected volatility	100.00%	100.00%
Expected life (in years)	3 years 2 months 8 days	3 years 11 months 5 days
Maximum [Member]
Expected volatility	134.57%	133.79%
Expected life (in years)	3 years 3 months 22 days	4 years 22 days

Fair Value of Financial Asset31

Fair Value of Financial Assets and Liabilities (Details 2) - Significant unobservable inputs (Level 3) [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 702	$ 2,959
Fair value adjustment of warrant liabilities	259	(2,055)
Ending balance	$ 961	$ 904

Fair Value of Financial Asset32

Fair Value of Financial Assets and Liabilities (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Beginning balance
Change in fair value of Hoth	$ 345		345
Ending balance	1,020		1,020
Significant unobservable inputs (Level 3) [Member]
Fair value of Hoth upon issuance			675
Change in fair value of Hoth			345
Ending balance	$ 1,020		$ 1,020

Fair Value of Financial Asset33

Fair Value of Financial Assets and Liabilities (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Dec. 07, 2015	Jul. 21, 2015	Sep. 30, 2017	Dec. 31, 2016	May 24, 2016
Investment in Hoth			$ 1,020
Risk free interest rate			1.62%	1.93%
Significant unobservable inputs (Level 3) [Member]
Investment in Hoth			$ 1,020
Exercise price			$ 0.15
Risk free interest rate			1.39%
Volatility rate			75.00%
Expected term			1 year 6 months
July 2015 Financing [Member]
Common stock warrants purchase		370,263
Warrants exercisable date		Jan. 22, 2016
Warrants exercise price per share		$ 8.17
Exercise period		5 years
Series B [Member]
Common stock warrants purchase	842,099
Warrants exercisable date	Dec. 6, 2020
Warrants exercise price per share	$ 4.75
Series A [Member]
Common stock warrants purchase	1,052,624
Warrants exercisable date	May 6, 2016
Warrants exercise price per share	$ 3.80
Number of warrants expired					852,624

RPX License Agreement (Details)

RPX License Agreement (Details) - USD ($) $ / shares in Units, $ in Thousands	May 23, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Series H Assumptions
Contribution/Deemed dividend					$ (31,480)
RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
Series H Assumptions
Series H - Liquidation preference	$ 83.50
Contribution/Deemed dividend	$ 31,480,112
Second Patent License Agreement [Member] | RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
Stock price on May 22, 2016	$ 2.06
Series H Assumptions
Series H Shares	381,967
Series H -Carrying value	$ 31,894,245
Equivalent common shares - Series H	201,035
Fair Value of Series H preferred	$ 414,133

RPX License Agreement (Details

RPX License Agreement (Details Narative)	May 23, 2016USD ($)shares	Nov. 23, 2015USD ($)Numbershares	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Extinguishment preferred stock						$ 31,480,000
Capital contribution						$ (31,480,000)
Long term deferred revenue			2,530,000		2,530,000		$ 3,245,000
RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
License revenue			314,000		932,000
Extinguishment preferred stock					31,900,000
Fair value of preferred stock					414,000
Cash received from related party					4,400,000
Capital contribution					31,500,000
Short term deferred revenue			1,100,000		1,100,000
Long term deferred revenue			$ 3,700,000		$ 3,700,000
Deferred revenue amortized service period					5 years
Patent License Agreement [Member] | RPX Corporation [Member]
Number of patent | Number		101
Cash to acquire business		$ 300,000
Agreement term		2 years
License revenue		$ 600,000					$ 290,000	$ 31,000
Patent License Agreement [Member] | RPX Corporation [Member] | Series I Redeemable Convertible Preferred Stock [Member]
Mandatory redemption payment		$ 5,000,000
Patent License Agreement [Member] | RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
Number of shares cancelled | shares		57,076
Value of shares cancelled		$ 4,765,846
Percentage of shares cancellation		13.00%
Second Patent License Agreement [Member] | RPX Corporation [Member]
License revenue	$ 4,355,000
Second Patent License Agreement [Member] | RPX Corporation [Member] | Series H Convertible Preferred Stock [Member]
Number of shares cancelled | shares	381,967
Value of shares cancelled	$ 31,894,244
Percentage of shares cancellation	100.00%
Separate Agreement [Member] | RPX Corporation [Member] | VTech Telecommunications Ltd. [Member]
License revenue	$ 20,000

Stockholders' Equity and Rede36

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
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 Rede37

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 1) - Warrant [Member]	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at beginnning	1,250,311
Expired	(557)
Outstanding at ending	1,249,754
Exercisable at ending	1,249,754
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	$ 9.21
Outstanding at ending | $ / shares	8.98
Exercisable at ending | $ / shares	$ 8.98
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	3 years 10 months 28 days
Outstanding at ending	3 years 2 months 1 day
Exercisable at ending	3 years 2 months 1 day

Stockholders' Equity and Rede38

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 2) - Stock Option [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number of Shares [Roll Forward]
Outstanding at beginning | shares	310,091
Employee options granted | shares	15,788
Employee options expired | shares	(176)
Outstanding at ending | shares	325,703
Options vested and expected to vest | shares	325,703
Options vested and exercisable | shares	317,811
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 82.25
Employee options granted | $ / shares	1.02
Employee options expired | $ / shares
Outstanding at ending | $ / shares	78.24
Options vested and expected to vest | $ / shares	78.24
Options vested and exercisable | $ / shares	$ 80.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Total Intrinsic Value [Roll Forward]
Outstanding at beginning | $
Employee options granted | $	7,420
Employee options expired | $
Outstanding at ending | $	7,697
Options vested and expected to vest | $	7,697
Options vested and exercisable | $	$ 3,987
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward]
Outstanding at beginning	4 years 1 month 6 days
Employee options granted	4 years 8 months 12 days
Outstanding at ending	3 years 6 months
Options vested and expected to vest	3 years 6 months
Options vested and exercisable	3 years 4 months 24 days
Non-Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number of Shares [Roll Forward]
Outstanding at beginning | shares	2,893
Employee 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
Employee 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, Total Intrinsic Value [Roll Forward]
Outstanding at beginning | $
Employee 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	4 years 4 months 24 days
Outstanding at ending	3 years 8 months 12 days
Options vested and expected to vest	3 years 8 months 12 days
Options vested and exercisable	3 years 8 months 12 days

Stockholders' Equity and Rede39

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Total compensation expense	$ 2	$ 54	$ 13	$ 353
Stock Option [Member]
Total compensation expense	2	54	13	400
Stock Option [Member] | Employee [Member]
Total compensation expense	2	5	13	26
Restricted Stock [Member] | Employee [Member]
Total compensation expense		49		72
Restricted Stock [Member] | Non-Employee [Member]
Total compensation expense				$ 255

Stockholders' Equity and Rede40

Stockholders' Equity and Redeemable Convertible Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 24, 2017	Mar. 14, 2017	Mar. 04, 2016	Feb. 26, 2016	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Feb. 25, 2016
Reverse Stock Split			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.
Common stock, shares authorized			200,000,000		100,000,000		100,000,000	100,000,000	100,000,000	100,000,000
Gross proceeds from issuance of stock								$ 2,095	$ 2,140
Common stock, par value (in dollars per share)					$ 0.0001			$ 0.0001		$ 0.0001
Share-based compensation expences					$ 2		$ 54	$ 13	353
Stock Option [Member]
Allocated stock based compensation					2		5	13	26
Share-based compensation expences					$ 2		$ 54	$ 13	$ 400
Laidlaw & Company (UK) Ltd. [Member] | Underwriting Agreement [Member]
Gross proceeds from issuance of stock	$ 2,500
Net proceeds from issuance of stock	$ 2,100
Issuance and sale of common stock	1,250,000
Share price	$ 2
Common stock, par value (in dollars per share)	$ 0.0001
Percentage of estimated offering expenses	8.00%
Anthony Hayes [Member] | Restricted Stock Units [Member]
Restricted stock units delivered		35,969
Number of common stock held for RSU		23,287
2014 Equity Incentive Plan [Member]
Number of shares available for grant				8,250,000							4,161,892
Total share authorization				434,210
Reverse Stock Split				Effectuation of the 1:19 reverse stock split.
2014 Equity Incentive Plan [Member] | Four Directors [Member]
Shares reserved for future issuance						15,788
Vesting period						1 year
Granted in period fair value						$ 12