Spark Networks 10-Q 13 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 13, 2013
Document Information [Line Items]	'	'
Entity Registrant Name	'SPARK NETWORKS INC	'
Entity Central Index Key	'0001314475	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	23,920,803

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$17,243	$10,458
Restricted cash	1,320	1,232
Accounts receivable	1,494	1,510
Deferred tax asset, net – current	'	8
Prepaid expenses and other	1,869	861
Total current assets	21,926	14,069
Property and equipment, net	3,969	3,133
Goodwill	9,178	8,861
Intangible assets, net	2,275	2,143
Deferred tax asset, net – non-current	'	5
Other assets	207	153
Total assets	37,555	28,364
Current liabilities:	'	'
Accounts payable	1,343	1,093
Accrued liabilities	5,173	5,339
Deferred revenue	9,271	8,128
Deferred tax liability – current	239	257
Total current liabilities	16,026	14,817
Deferred tax liability – non-current	1,782	1,413
Other liabilities	1,649	588
Total liabilities	19,457	16,818
Commitments and contingencies (Note 9)	'	'
Stockholders’ equity:	'	'
10,000,000 shares of Preferred Stock, $0.001 par value, 450,000 of which are designated as Series C Junior Participating Cumulative Preferred Stock, with no shares of Preferred Stock issued or outstanding	'	'
100,000,000 shares of Common Stock, $0.001 par value, with 23,881,741 and 20,945,364 shares of Common Stock issued and outstanding at September 30, 2013 and December 31, 2012, respectively:	24	21
Additional paid-in-capital	70,192	54,857
Accumulated other comprehensive income	757	712
Accumulated deficit	-52,875	-44,044
Total stockholders’ equity	18,098	11,546
Total liabilities and stockholders’ equity	$37,555	$28,364

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	23,881,741	20,945,364
Common stock, shares outstanding	23,881,741	20,945,364
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Designated as Series C Junior Participating Cumulative Preferred Stock	'	'
Preferred stock, shares authorized	450,000	450,000

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	$17,361	$15,871	$52,205	$45,472
Cost and expenses:	'	'	'	'
Cost of revenue (exclusive of depreciation shown separately below)	13,620	12,901	42,046	35,725
Sales and marketing	1,423	1,020	3,972	2,976
Customer service	746	652	2,136	1,887
Technical operations	288	362	887	1,067
Development	746	859	2,331	2,549
General and administrative	2,496	2,260	7,704	6,550
Depreciation	529	426	1,454	1,242
Amortization of intangible assets	10	'	10	13
Impairment of long-lived assets	'	'	265	'
Total cost and expenses	19,858	18,480	60,805	52,009
Operating loss	-2,497	-2,609	-8,600	-6,537
Interest (income) expense and other, net	-77	-36	-172	-50
Loss before income taxes	-2,420	-2,573	-8,428	-6,487
Provision (benefit) for income taxes	195	-836	403	-2,036
Net loss	-2,615	-1,737	-8,831	-4,451
Net loss per share—basic and diluted	($0.11)	($0.08)	($0.39)	($0.22)
Weighted average shares outstanding – basic and diluted	23,753	20,699	22,410	20,683
Comprehensive loss	($2,592)	($1,731)	($8,786)	($4,454)

Consolidated_Statements_of_Ope1

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock-based compensation:	'	'	'	'
Stock-based compensation	'	'	$576	$599
Cost of revenue	'	'	'	'
Stock-based compensation:	'	'	'	'
Stock-based compensation	'	2	'	6
Sales and marketing	'	'	'	'
Stock-based compensation:	'	'	'	'
Stock-based compensation	36	17	107	55
Customer service	'	'	'	'
Stock-based compensation:	'	'	'	'
Stock-based compensation	'	'	'	1
Technical operations	'	'	'	'
Stock-based compensation:	'	'	'	'
Stock-based compensation	2	29	4	89
Development	'	'	'	'
Stock-based compensation:	'	'	'	'
Stock-based compensation	3	10	10	31
General and administrative	'	'	'	'
Stock-based compensation:	'	'	'	'
Stock-based compensation	$153	$138	$455	$417

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($8,831)	($4,451)
Adjustments to reconcile net loss to cash used in operating activities:	'	'
Depreciation and amortization	1,464	1,255
Foreign exchange loss on intercompany loan	-215	77
Impairment of long-lived assets and other assets	265	'
Stock-based compensation	576	599
Income from asset received from legal judgment	'	-151
Deferred taxes	364	-1,217
Other	66	19
Changes in operating assets and liabilities:	'	'
Accounts receivable	16	-272
Restricted cash	-88	-217
Prepaid expenses and other assets	-421	150
Accounts payable and accrued liabilities	-6	-1,115
Deferred revenue	1,143	2,050
Other liabilities	175	'
Net cash used in operating activities	-5,492	-3,273
Cash flows from investing activities:	'	'
Purchases of property and equipment	-2,150	-1,639
Purchases of intangible assets	-355	-256
Sale of property and other assets	'	520
Net cash used in investing activities	-2,505	-1,375
Cash flows from financing activities:	'	'
Net proceeds from exercise of stock options	2,529	516
Net proceeds from issuance of common stock	12,253	'
Net cash provided by financing activities	14,782	516
Net increase (decrease) in cash	6,785	-4,132
Cash and cash equivalents at beginning of period	10,458	15,106
Cash and cash equivalents at end of period	17,243	10,974
Supplemental disclosure of non-cash investing and activities:	'	'
Operating lease incentives	$821	'

The_Company_and_Summary_of_Sig

The Company and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
The Company and Summary of Significant Accounting Policies	'
	1.              The Company and Summary of Significant Accounting Policies
	The Company
	The common stock of Spark Networks, Inc., a Delaware corporation (the “Company”), is traded on the NYSE MKT.
	The Company is a leading global media business, focused on creating iconic niche-focused brands that build and strengthen the communities they serve. Core properties are primarily online dating websites accessible via desktop and mobile devices that enable adults to meet, participate in a community and form relationships with like-minded individuals by utilizing many features on its websites, such as detailed profiles, onsite email centers, real-time chat rooms, instant messaging services, suggested matches, interactive games and advanced searching tools. Currently, the Company’s largest and most recognizable websites are ChristianMingle.com and JDate.com. The Company also operates several international websites and maintains physical operations in both the United States and Israel.
	Membership on the online dating websites is free and allows registered members to create their own detailed profiles and access searchable databases of member profiles. On the majority of the websites, the ability to initiate most communication with other members requires the payment of monthly subscription fees, which represents the primary source of revenue. The Company offers a variety of subscription plans based upon subscription length and features. Subscriptions renew automatically until subscribers terminate them. The Company also receives incremental revenue from online advertising sales and offline events.
	The Company has evaluated all subsequent events through the date the consolidated financial statements were issued.
	Basis of Presentation
	The accompanying consolidated financial statements include the accounts of the parent company and all of its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
	The accompanying unaudited consolidated interim financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full year or for any future periods.
	The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, cost of revenue, prepaid advertising, website and software development costs, goodwill, intangible and other long-lived assets, accounting for business combinations, legal contingencies, income taxes and stock-based compensation. In addition, the Company uses assumptions when employing the Black-Scholes option valuation model to calculate the fair value of granted stock-based awards. The Company bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results may differ from these estimates.
	The consolidated financial statements on this Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2012.

Adoption_of_New_Accounting_Pri

Adoption of New Accounting Principles	9 Months Ended
	Sep. 30, 2013
Adoption of New Accounting Principles	'
	2.               Adoption of New Accounting Principles
	Effective January 1, 2013, the Company adopted Accounting Standards Update (“ASU”) No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. The adoption of ASU 2013-02 concerns presentation and disclosure only, and did not have an impact on the Company’s consolidated financial position or results of operations.

Net_Loss_Per_Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2013
Net Loss Per Share	'
	3.              Net Loss Per Share
	The Company calculates and presents the net loss per share on both a basic and diluted basis. Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding.
		For the Three Months							For the Nine Months
		Ended September 30,							Ended September 30,
		2013			2012			2013				2012
		(in thousands except per share data)
	Net Loss Per Share of Common Stock – Basic and Diluted
	Net loss applicable to common stock	$	(2,615	)	$	(1,737	)	$		(8,831	)	$	(4,451	)
	Weighted average shares outstanding – basic and diluted		23,753			20,699				22,410			20,683
	Net Loss Per Share – Basic and Diluted	$	(0.11	)	$	(0.08	)	$		(0.39	)	$	(0.22	)
	All stock options for both periods have been excluded from the diluted weighted average shares outstanding calculation because they would have been anti-dilutive.

Revolving_Credit_Facility

Revolving Credit Facility	9 Months Ended
	Sep. 30, 2013
Revolving Credit Facility	'
	4.              Revolving Credit Facility
	As of September 30, 2013, the Company and its wholly-owned subsidiary, Spark Networks USA, LLC have a $15.0 million revolving credit facility with Bank of America, which was entered into on February 14, 2008 with subsequent amendments (the “Credit Agreement”). The Credit Agreement matures on February 14, 2014.
	The per annum interest rate under the Credit Agreement is LIBOR, or the Eurodollar Rate (as defined in the Credit Agreement) under certain circumstances, plus 2%. In the event the Company elects to borrow under a base rate loan, the interest rate is increased to the prime rate plus 1%. The Company pays a 0.25% per annum commitment fee on all funds not utilized under the facility, measured on a daily basis.
	The credit agreement contains financial covenants regarding the requirement to maintain a minimum consolidated adjusted EBITDA, minimum consolidated net liquidity and minimum consolidated revenue during different periods. The Credit Agreement also contains covenants regarding Jewish Networks minimum contribution and the Company’s ability to repurchase or redeem equity interests or issue dividends up to a specified amount, as well as other covenants, with exceptions, including restrictions on debt, liens and investments. A default could cause any outstanding amounts to become immediately due and payable and prohibit the Company from obtaining further credit under the Credit Agreement.
	The Company was compliant with the Credit Agreement’s customary affirmative and negative covenants, as of September 30, 2013.
	As of September 30, 2013, there was no outstanding amount under the Credit Agreement. In connection with the original Credit Agreement and the first five amendments thereto, the Company paid deferred financing costs of approximately $446,000 and $111,000, respectively. Costs associated with both the original Credit Agreement and the first five amendments thereto were included in prepaid expenses and other, and other assets. The deferred financing costs are amortized to interest (income) expense and other, net in the Consolidated Statements of Operations and Comprehensive Loss over the full term of the Credit Agreement. Amortization expense for the deferred financing costs for the three and nine months ended September 30, 2013 were $9,000 and $26,000, respectively. Amortization expense for the deferred financing costs for the three and nine months ended September 30, 2012 were $7,000 and $17,000, respectively.

Impairment_of_Longlived_Assets

Impairment of Long-lived Assets	9 Months Ended
	Sep. 30, 2013
Impairment of Long-lived Assets	'
	5.              Impairment of Long-lived Assets
	In the second quarter of 2013, the Company had an impairment expense of $265,000, representing the full unamortized balance of capitalized software development costs related to certain web-based products that failed to perform to Company standards.

Income_on_Possession_of_Assets

Income on Possession of Assets	9 Months Ended
	Sep. 30, 2013
Income on Possession of Assets	'
	6.              Income on Possession of Assets
	In the third quarter of 2011, the Company became the record title owner of real property purchased in a sheriff’s sale to partially satisfy the Company’s outstanding judgment against Will Knedlik.
	On June 15, 2012, the Company sold the real property. Based upon the net proceeds of the transaction, the Company realized a total gain of $398,000, with $247,000 of the gain being recognized in the third quarter of 2011 and $151,000 upon the sale of the real property, in the second quarter of 2012.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity	'
	7.              Stockholders’ Equity
	On May 7, 2013, the Company issued 2,140,000 shares of its common stock at $6.25 per share in an underwritten public offering. The proceeds to the Company, net of $1.1 million of underwriting fees and offering expenses, were $12.3 million.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation	'
	8.              Stock-Based Compensation
	Re-Pricing of Employees Options
	In 2009, the Company offered to re-price options for certain employees. These employees could surrender their existing options in exchange for a like number of options with a new grant date, a lower exercise price, a lower number of vested options and a modified vesting schedule. The exchange of options was treated as a synthetic re-pricing, which includes a cancellation and replacement of equity instruments. The incremental expense was approximately $1.0 million and was being recognized over the four year vesting term of the newly issued options. The incremental expense recognized for the three and nine months ended September 30, 2012 was $43,000 and $129,000, respectively. The incremental expense was fully amortized as of December 31, 2012.
	Employee Stock Option Plans
	On July 9, 2007, the Company adopted the Spark Networks, Inc. 2007 Omnibus Incentive Plan (the “2007 Plan”) originally authorizing and reserving 2.5 million options with annual increases.
	Awards under the 2007 Plan may include incentive stock options, nonqualified stock options, stock appreciation rights, restricted shares of common stock, restricted stock units, performance stock or unit awards, other stock-based awards and cash-based incentive awards.
	The Compensation Committee may grant an award to a participant. The terms and conditions of the award, including the quantity, price, vesting periods and other conditions on exercise may be determined by the Compensation Committee.
	The exercise price for stock options may be determined by the Compensation Committee in its discretion, but may not be lower than the closing sale price of one share of the Company’s common stock on the NYSE MKT (or any other applicable exchange on which the stock is listed) on the date when the stock option is granted. Additionally, in the case of incentive stock options granted to a holder of more than 10% of the total combined voting power of all classes of stock of the Company on the date of grant, the exercise price may not be less than 110% of the closing sale price of one share of common stock on the date the stock option is granted.
	As of September 30, 2013, total unrecognized compensation cost related to non-vested stock options was $1.3 million. This cost is expected to be recognized over a weighted-average period of 3 years.
	The following table describes option activity for the three and nine months ended September 30, 2013:
		Number of			Weighted
		Shares			Average
					Price per Share
		(in thousands)
	Outstanding at December 31, 2012		3,829		$	3.88
	Granted		100			7.25
	Exercised		(52	)		3.19
	Forfeited		(15	)		7.28
	Expired		(3	)		3.00
	Outstanding at March 31, 2013		3,859		$	3.96
	Granted		42			7.90
	Exercised		(437	)		3.34
	Forfeited		—			—
	Expired		—			—
	Outstanding at June 30, 2013		3,464		$	4.09
	Granted		—			—
	Exercised		(343	)		3.38
	Forfeited		(20	)		7.90
	Expired		—			—
	Outstanding at September 30, 2013		3,101		$	4.14
	Stockholder Rights Plan
	In July 2007, the Company adopted a stockholder rights plan. The rights accompany each share of common stock of the Company and are evidenced by ownership of common stock. The rights are not exercisable except upon the occurrence of certain takeover-related events. Once triggered, the rights would entitle the stockholders, other than a person qualifying as an “Acquiring Person” pursuant to the rights plan, to purchase additional common stock at a 50% discount to their fair market value. The rights issued under the Rights Plan may be redeemed by the board of directors at a nominal redemption price of $0.001 per right, and the board of directors may amend the rights in any respect until the rights are triggered.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2013
Accumulated Other Comprehensive Income	'
	9.              Accumulated Other Comprehensive Income
	The following table summarizes the changes in accumulated balances of other comprehensive income for the three and nine months ended September 30, 2013.
		Foreign Currency
		Translation
		(all balances are in
		thousands, net of $0 tax)
	Balance at December 31, 2012	$	712
	Other comprehensive income before reclassifications		20
	Amounts reclassified from accumulated other comprehensive income		—
	Balance at March 31, 2013	$	732
	Other comprehensive income before reclassifications		2
	Amounts reclassified from accumulated other comprehensive income		—
	Balance at June 30, 2013	$	734
	Other comprehensive income before reclassifications		23
	Amounts reclassified from accumulated other comprehensive income		-
	Balance at September 30, 2013		757
	There were no reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2013.

Segment_Information

Segment Information	9 Months Ended
	Sep. 30, 2013
Segment Information	'
	10.              Segment Information
	The Company has four operating segments: (1) Jewish Networks, which consists of JDate.com, JDate.co.uk, JDate.fr, JDate.co.il, Cupid.co.il and their respective co-branded websites; (2) Christian Networks, which consists of ChristianMingle.com, ChristianMingle.co.uk, ChristianMingle.com.au, Believe.com, ChristianCards.net, DailyBibleVerse.com and Faith.com; (3) Other Networks, which consists of Spark.com and related other general market websites, as well as other properties which are primarily composed of sites targeted towards various religious, ethnic, geographic and special interest groups; and (4) Offline & Other Businesses, which consists of revenue generated from offline activities and HurryDate events and subscriptions.
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
	(in thousands)	2013			2012			2013			2012
	Revenue
	Jewish Networks	$	6,433		$	6,385		$	19,345		$	19,417
	Christian Networks		10,088			8,495			30,256			22,853
	Other Networks		715			903			2,305			2,929
	Offline & Other Businesses		125			88			299			273
	Total revenue	$	17,361		$	15,871		$	52,205		$	45,472
	Direct marketing expenses
	Jewish Networks	$	822		$	829		$	2,349		$	2,277
	Christian Networks		11,659			10,920			36,247			29,920
	Other Networks		123			213			474			776
	Offline & Other Businesses		30			29			87			96
	Total direct marketing expenses	$	12,634		$	11,991		$	39,157		$	33,069
	Unallocated operating expenses		7,224			6,489			21,648			18,940
	Operating loss	$	(2,497	)	$	(2,609	)	$	(8,600	)	$	(6,537	)
	Due to the Company’s integrated business structure, cost and expenses, other than direct marketing expenses, are not allocated to the individual reporting segments. As such, the Company does not measure operating profit or loss by segment for internal reporting purposes. Assets are not allocated to the different business segments for internal reporting purposes.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies	'
	11.              Commitments and Contingencies
	Legal Proceedings
	Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and 2013 Form 10-Q filings for a description of litigation and claims.
	Operating Leases
	On February 1, 2013, the Company entered into an office lease for its Los Angeles location, which expires on October 31, 2018. The Company relocated to the new office space during the second quarter of 2013. Free rent, scheduled rent increases and rent credits are accounted for on a straight-line basis through the life of the lease. Lease incentives, including tenant improvements and parking credits, were capitalized and are amortized on a straight-line basis through the life of the lease. As of September 30, 2013, the remaining commitment under the lease was $2.4 million.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
	12.              Income Taxes
	The Company did not recognize tax benefit for losses incurred in the nine months ended September 30, 2013, as the Company recorded a valuation allowance against deferred tax assets. The Company recorded a provision for income tax of $403,000 for the nine months ended September 30, 2013 which consists of $287,000 of deferred tax related to an increase in the deferred tax liability associated with tax deductible amortization of goodwill and other indefinite lived intangibles, $50,000 of foreign and state current tax and $66,000 related to interest accrued on its unrecognized tax benefits.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Related Party Transactions	'
	13.              Related Party Transactions
	Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and the Company’s Quarterly Reports on Form 10-Q for a description of related parties transactions.

The_Company_and_Summary_of_Sig1

The Company and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Basis of Presentation	'
	Basis of Presentation
	The accompanying consolidated financial statements include the accounts of the parent company and all of its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
	The accompanying unaudited consolidated interim financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full year or for any future periods.
	The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, cost of revenue, prepaid advertising, website and software development costs, goodwill, intangible and other long-lived assets, accounting for business combinations, legal contingencies, income taxes and stock-based compensation. In addition, the Company uses assumptions when employing the Black-Scholes option valuation model to calculate the fair value of granted stock-based awards. The Company bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results may differ from these estimates.
	The consolidated financial statements on this Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2012.

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Net loss per share of both basic and diluted	'
	The Company calculates and presents the net loss per share on both a basic and diluted basis. Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding.
		For the Three Months							For the Nine Months
		Ended September 30,							Ended September 30,
		2013			2012			2013				2012
		(in thousands except per share data)
	Net Loss Per Share of Common Stock – Basic and Diluted
	Net loss applicable to common stock	$	(2,615	)	$	(1,737	)	$		(8,831	)	$	(4,451	)
	Weighted average shares outstanding – basic and diluted		23,753			20,699				22,410			20,683
	Net Loss Per Share – Basic and Diluted	$	(0.11	)	$	(0.08	)	$		(0.39	)	$	(0.22	)

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Stock options activity	'
	The following table describes option activity for the three and nine months ended September 30, 2013:
		Number of			Weighted
		Shares			Average
					Price per Share
		(in thousands)
	Outstanding at December 31, 2012		3,829		$	3.88
	Granted		100			7.25
	Exercised		(52	)		3.19
	Forfeited		(15	)		7.28
	Expired		(3	)		3.00
	Outstanding at March 31, 2013		3,859		$	3.96
	Granted		42			7.90
	Exercised		(437	)		3.34
	Forfeited		—			—
	Expired		—			—
	Outstanding at June 30, 2013		3,464		$	4.09
	Granted		—			—
	Exercised		(343	)		3.38
	Forfeited		(20	)		7.90
	Expired		—			—
	Outstanding at September 30, 2013		3,101		$	4.14

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2013
Summary of Changes in Accumulated Balances of Other Comprehensive Income	'
	The following table summarizes the changes in accumulated balances of other comprehensive income for the three and nine months ended September 30, 2013.
		Foreign Currency
		Translation
		(all balances are in
		thousands, net of $0 tax)
	Balance at December 31, 2012	$	712
	Other comprehensive income before reclassifications		20
	Amounts reclassified from accumulated other comprehensive income		—
	Balance at March 31, 2013	$	732
	Other comprehensive income before reclassifications		2
	Amounts reclassified from accumulated other comprehensive income		—
	Balance at June 30, 2013	$	734
	Other comprehensive income before reclassifications		23
	Amounts reclassified from accumulated other comprehensive income		-
	Balance at September 30, 2013		757

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2013
Summary of Segment Information	'
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
	(in thousands)	2013			2012			2013			2012
	Revenue
	Jewish Networks	$	6,433		$	6,385		$	19,345		$	19,417
	Christian Networks		10,088			8,495			30,256			22,853
	Other Networks		715			903			2,305			2,929
	Offline & Other Businesses		125			88			299			273
	Total revenue	$	17,361		$	15,871		$	52,205		$	45,472
	Direct marketing expenses
	Jewish Networks	$	822		$	829		$	2,349		$	2,277
	Christian Networks		11,659			10,920			36,247			29,920
	Other Networks		123			213			474			776
	Offline & Other Businesses		30			29			87			96
	Total direct marketing expenses	$	12,634		$	11,991		$	39,157		$	33,069
	Unallocated operating expenses		7,224			6,489			21,648			18,940
	Operating loss	$	(2,497	)	$	(2,609	)	$	(8,600	)	$	(6,537	)

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Loss Per Share of Common Stock – Basic and Diluted	'	'	'	'
Net loss applicable to common stock	($2,615)	($1,737)	($8,831)	($4,451)
Weighted average shares outstanding – basic and diluted	23,753	20,699	22,410	20,683
Net Loss Per Share – Basic and Diluted	($0.11)	($0.08)	($0.39)	($0.22)

Revolving_Credit_Facility_Deta

Revolving Credit Facility (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revolving Credit Facility (Additional Textual) [Abstract]	'	'	'	'
Revolving credit facility	$15,000,000	'	$15,000,000	'
Credit facility initiation date	'	'	14-Feb-08	'
Maturity date of credit agreement	'	'	14-Feb-14	'
Variable interest rate on credit agreement	'	'	2.00%	'
Interest rate on base rate loan	'	'	1.00%	'
Commitment fee per annum	'	'	0.25%	'
Per annum interest rate under credit agreement	'	'	'LIBOR, or Eurodollar Rate plus 2%	'
Base rate loan, Interest Rate Description	'	'	'prime rate plus 1%	'
Outstanding amounts under credit agreement	0	'	0	'
Amortization expense	9,000	7,000	26,000	17,000
Original Credit Agreement	'	'	'	'
Revolving Credit Facility (Textual) [Abstract]	'	'	'	'
Deferred financing costs	446,000	'	446,000	'
Credit Agreement Amendment	'	'	'	'
Revolving Credit Facility (Textual) [Abstract]	'	'	'	'
Deferred financing costs	$111,000	'	$111,000	'

Impairment_of_Longlived_Assets1

Impairment of Long-lived Assets (Details Textual) (USD $)	3 Months Ended
	Jun. 30, 2013
Asset Impairment Charges [Abstract]	'
Impairment expense of Capitalized software development costs	$265,000

Income_on_Possession_of_Assets1

Income on Possession of Assets (Details Textual) (USD $)	3 Months Ended
	Jun. 30, 2012	Sep. 30, 2011	Jun. 15, 2012
Income on Possession of Assets (Textual) [Abstract]	'	'	'
Total gain	'	'	$398,000
Partial gain recognized	$151,000	$247,000	'

Stockholders_Equity_Details_Te

Stockholders' Equity (Details Textual) (USD $)	1 Months Ended		9 Months Ended
	31-May-13	7-May-13	Sep. 30, 2013
Stockholders' Equity (Textual) [Abstract]	'	'	'
Common stock share issued in an underwritten public offering	'	2,140,000	'
Common stock issued price per share in an underwritten public offering	'	$6.25	'
Underwriting fees and offering expenses for Common stock issued	'	$1,100,000	'
Net proceeds from issuance of common stock	$12,300,000	'	$12,253,000

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Stock options activity	'	'	'
Beginning Balance, Number of Shares	3,464	3,859	3,829
Granted, Number of Shares	'	42	100
Exercised, Number of Shares	-343	-437	-52
Forfeited, Number of Shares	-20	'	-15
Expired, Number of Shares	'	'	-3
Ending Balance, Number of Shares	3,101	3,464	3,859
Beginning Balance, Weighted Average Price per Share	$4.09	$3.96	$3.88
Granted, Weighted Average Price per Share	'	$7.90	$7.25
Exercised, Weighted Average Price per Share	$3.38	$3.34	$3.19
Forfeited, Weighted Average Price per Share	$7.90	'	$7.28
Expired, Weighted Average Price per Share	'	'	$3
Ending Balance, Weighted Average Price per Share	$4.14	$4.09	$3.96

StockBased_Compensation_Detail1

Stock-Based Compensation (Details Textual) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended
Share data in Millions, except Per Share data, unless otherwise specified	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2009	Jul. 09, 2007
Stock-Based Compensation (Additional Textual) [Abstract]	'	'	'	'	'
Incremental expense	'	'	'	$1,000,000	'
Incremental expense, period recognized	'	'	'	'4 years	'
Incremental expense recognized	43,000	'	129,000	'	'
Options authorized and reserved	'	'	'	'	2.5
Conditions for fixing minimum exercise price for stock options	'	'Not be lower than the closing sale price	'	'	'
Minimum voting power for fixing desired exercise price for incentive stock options	'	'More than 10% of the total combined voting power	'	'	'
Conditions for fixing minimum exercise price for incentive stock options	'	'Price may not be less than 110% of the closing sale price	'	'	'
Unrecognized compensation cost related to non-vested stock options	'	$1,300,000	'	'	'
Compensation cost expected to be recognized	'	'3 years	'	'	'
Discount on purchase of additional common shares	'	50.00%	'	'	'
Redemption price per right	'	$0.00	'	'	'
Minimum	'	'	'	'	'
Stock-Based Compensation (Textual) [Abstract]	'	'	'	'	'
Percentage of incentive stock options granted	'	10.00%	'	'	'
Percentage of exercise price	'	110.00%	'	'	'

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Income (Details) (USD $)	9 Months Ended	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
		Accumulated Translation Adjustment	Accumulated Translation Adjustment	Accumulated Translation Adjustment
Summary of changes in accumulated balances of other comprehensive income	'	'	'	'
Beginning Balance	$712	$734	$732	$712
Other comprehensive income before reclassifications	'	23	2	20
Amounts reclassified from accumulated other comprehensive income	0	'	'	'
Ending Balance	$757	$757	$734	$732

Accumulated_Other_Comprehensiv3

Accumulated Other Comprehensive Income (Details Textual) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Accumulated Other Comprehensive Income (Textual) [Abstract]	'
Amounts reclassified from accumulated other comprehensive income	$0

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Summary of segment information	'	'	'	'
Total revenue	$17,361	$15,871	$52,205	$45,472
Total direct marketing expenses	12,634	11,991	39,157	33,069
Unallocated operating expenses	7,224	6,489	21,648	18,940
Operating loss	-2,497	-2,609	-8,600	-6,537
Operating Segments | Jewish Networks	'	'	'	'
Summary of segment information	'	'	'	'
Total revenue	6,433	6,385	19,345	19,417
Total direct marketing expenses	822	829	2,349	2,277
Operating Segments | Christian Networks	'	'	'	'
Summary of segment information	'	'	'	'
Total revenue	10,088	8,495	30,256	22,853
Total direct marketing expenses	11,659	10,920	36,247	29,920
Operating Segments | Other Networks	'	'	'	'
Summary of segment information	'	'	'	'
Total revenue	715	903	2,305	2,929
Total direct marketing expenses	123	213	474	776
Operating Segments | Offline and Other Businesses	'	'	'	'
Summary of segment information	'	'	'	'
Total revenue	125	88	299	273
Total direct marketing expenses	$30	$29	$87	$96

Segment_Information_Details_Te

Segment Information (Details Textual)	9 Months Ended
	Sep. 30, 2013
	Segments
Segment Information (Textual) [Abstract]	'
Number of separate reportable segments	4

Commitments_and_Contingencies_

Commitments and Contingencies (Details Textual) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013
Commitments and Contingencies (Textual) [Abstract]	'
Operating lease commitments	$2.40
Lease for office space expires	31-Oct-18

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Taxes (Textual) [Abstract]	'	'	'	'
Provision for Income tax	$195,000	($836,000)	$403,000	($2,036,000)
Deferred tax	'	'	287,000	'
Current income tax	'	'	50,000	'
Income tax related to interest accrued on its unrecognized tax benefits	$66,000	'	$66,000	'