Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TOWERSTREAM CORP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 66,739,898 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1349437 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $32,267,413 | $38,027,509 |
Accounts receivable, net | 1,144,212 | 1,310,647 |
Prepaid expenses and other current assets | 1,384,555 | 926,699 |
Total Current Assets | 34,796,180 | 40,264,855 |
Property and equipment, net | 32,297,557 | 33,905,286 |
Intangible assets, net | 2,101,790 | 2,199,858 |
Goodwill | 1,674,281 | 1,674,281 |
Other assets | 3,896,779 | 4,277,558 |
Total Assets | 74,766,587 | 82,321,838 |
Current Liabilities | ||
Accounts payable | 942,533 | 871,251 |
Accrued expenses | 2,527,664 | 2,038,696 |
Deferred revenues | 1,384,985 | 1,384,846 |
Current maturities of capital lease obligations | 821,121 | 845,668 |
Other | 63,791 | 57,242 |
Total Current Liabilities | 5,740,094 | 5,197,703 |
Long-Term Liabilities | ||
Long-term debt, net of debt discount of $2,887,107 and $3,194,147, respectively | 32,761,404 | 32,101,409 |
Capital lease obligations, net of current maturities | 1,136,927 | 1,285,858 |
Other | 1,866,844 | 1,774,841 |
Total Long-Term Liabilities | 35,765,175 | 35,162,108 |
Total Liabilities | 41,505,269 | 40,359,811 |
Commitments (Note 12) | ||
Stockholders' Equity | ||
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, par value $0.001; 95,000,000 shares authorized; 66,662,876 and 66,656,789 shares issued and outstanding, respectively | 66,663 | 66,657 |
Additional paid-in-capital | 157,853,650 | 157,631,299 |
Accumulated deficit | -124,658,995 | -115,735,929 |
Total Stockholders' Equity | 33,261,318 | 41,962,027 |
Total Liabilities and Stockholders' Equity | $74,766,587 | $82,321,838 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt discount (in Dollars) | $2,887,107 | $3,194,147 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 66,662,876 | 66,656,789 |
Common stock, shares outstanding | 66,662,876 | 66,656,789 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $7,960,095 | $8,379,906 |
Operating Expenses | ||
Cost of revenues (exclusive of depreciation) | 6,400,367 | 5,855,944 |
Depreciation and amortization | 3,379,383 | 3,695,415 |
Customer support services | 1,241,479 | 1,175,765 |
Sales and marketing | 1,328,430 | 1,421,599 |
General and administrative | 2,869,238 | 2,677,939 |
Total Operating Expenses | 15,218,897 | 14,826,662 |
Operating Loss | -7,258,802 | -6,446,756 |
Other Income/(Expense) | ||
Interest expense, net | -1,664,264 | -63,051 |
Total Other Income/(Expense) | -1,664,264 | -63,051 |
Net Loss | ($8,923,066) | ($6,509,807) |
Net loss per common share – basic and diluted (in Dollars per share) | ($0.13) | ($0.10) |
Weighted average common shares outstanding – basic and diluted (in Shares) | 67,856,789 | 66,439,061 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2014 | $66,657 | $157,631,299 | ($115,735,929) | $41,962,027 |
Balance (in Shares) at Dec. 31, 2014 | 66,656,789 | |||
Issuance of common stock under employee stock purchase plan | 6 | 13,142 | 13,148 | |
Issuance of common stock under employee stock purchase plan (in Shares) | 6,087 | |||
Stock-based compensation for options | 209,209 | 209,209 | ||
Net loss | -8,923,066 | -8,923,066 | ||
Balance at Mar. 31, 2015 | $66,663 | $157,853,650 | ($124,658,995) | $33,261,318 |
Balance (in Shares) at Mar. 31, 2015 | 66,662,876 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | ($8,923,066) | ($6,509,807) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for doubtful accounts | 30,000 | 10,000 |
Depreciation for property, plant and equipment | 3,281,315 | 3,110,389 |
Amortization for customer based intangibles | 98,068 | 585,026 |
Amortization of debt issuance costs | 252,899 | |
Amortization of debt discount | 307,040 | |
Stock-based compensation | 211,157 | 292,269 |
Deferred rent | 90,649 | 70,761 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 136,435 | -523,559 |
Prepaid expenses and other current assets | -447,229 | -500,351 |
Other assets | 131,079 | 96,407 |
Accounts payable | 71,282 | -485,532 |
Accrued expenses | 516,458 | -353,797 |
Deferred revenues | 139 | -13,621 |
Accrued interest | 352,956 | |
Total Adjustments | 5,032,248 | 2,287,992 |
Net Cash Used In Operating Activities | -3,890,818 | -4,221,815 |
Cash Flows From Investing Activities | ||
Acquisitions of property and equipment | -1,651,697 | -2,880,139 |
Lease incentive payment from landlord | 380,000 | |
Payments of security deposits | -3,200 | -19,371 |
Deferred acquisition payments | -2,723 | -36,941 |
Net Cash Used In Investing Activities | -1,657,620 | -2,556,451 |
Cash Flows From Financing Activities | ||
Payments on capital leases | -222,858 | -208,289 |
Proceeds from the issuance of common stock under employee stock purchase plan | 11,200 | 10,967 |
Net Cash Used In Financing Activities | -211,658 | -197,322 |
Net Decrease In Cash and Cash Equivalents | -5,760,096 | -6,975,588 |
Cash and Cash Equivalents – Beginning | 38,027,509 | 28,181,531 |
Cash and Cash Equivalents – Ending | 32,267,413 | 21,205,943 |
Cash paid during the periods for: | ||
Interest | 768,520 | 70,471 |
Taxes | 21,900 | 28,257 |
Acquisition of property and equipment: | ||
Under capital leases | 49,380 | |
Included in accrued expenses | $496,789 | $524,529 |
Note_1_Organization_and_Nature
Note 1 - Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | Note 1. Organization and Nature of Business |
Towerstream Corporation (referred to as “Towerstream” or the “Company”) was incorporated in Delaware in December 1999. During its first decade of operations, the Company's business activities were focused on delivering fixed wireless broadband services to commercial customers over a wireless network transmitting over both regulated and unregulated radio spectrum. The Company's fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. The Company provides services to business customers in New York City, Boston, Chicago, Los Angeles, San Francisco, Seattle, Miami, Dallas-Fort Worth, Houston, Philadelphia, Las Vegas-Reno and Providence-Newport. The Company's “Fixed Wireless business” has historically grown both organically and through the acquisition of five other fixed wireless broadband providers in various markets. | |
In January 2013, the Company incorporated a wholly-owned subsidiary, Hetnets Tower Corporation (“Hetnets”). Hetnets was formed to operate a new shared wireless infrastructure platform that emerged from the Company's efforts to identify opportunities to leverage its fixed wireless network in urban markets to provide other wireless technology solutions and services. Hetnets operates a carrier-class network which has been constructed on "street level rooftops" which are closer to the ground (where Wi-Fi and small cell can operate with less interference from the macro cell) than the Company's traditional fixed wireless network. The Company believes that the wireless communications industry is experiencing a fundamental shift from its traditional macro-cellular architecture to densified small cell architecture where existing cell sites will be supplemented by many smaller base stations operating near street level. Hetnets is structured to operate like a tower company and expects to generate rental income from four separate sources including (i) rental of space on street level rooftops for the installation of customer owned small cells which includes Wi-Fi antennae, Distributed Antenna System (“DAS”), and Metro and Pico cells, (ii) rental of a channel on Hetnets’ Wi-Fi network for Internet access and the offloading of mobile data, (iii) rental of a port for backhaul or transport, and (iv) power and other related services. The Company refers to the activities of Hetnets as its “Shared Wireless Infrastructure” (or “Shared Wireless”) business. | |
In June 2013, Hetnets entered into a Wi-Fi service agreement (the “Wi-Fi Agreement”) with a major cable operator (the “Cable Operator”). The Wi-Fi Agreement provides leased access to certain access points, primarily within New York City. The Cable Operator has a limited right to expand access in other Hetnets’ markets. The term of the Wi-Fi Agreement is for an initial three year period and provides for automatic annual renewals for two additional one year periods. | |
In August 2014, the Company executed a master licensing agreement ("MLA") with a carrier for small cell deployments. The MLA establishes the detailed terms and conditions under which individual orders are governed, and are generally designed to expedite the deployment process. The term of this agreement is for 25 years. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Significant Accounting Policies [Text Block] | Note 2. Summary of Significant Accounting Policies | ||||||||
Basis of Presentation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and with Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of March 31, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full fiscal year for any future period. | |||||||||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q. | |||||||||
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses. Actual results could differ from those estimates. | |||||||||
Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||||||||
Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents. At times, our cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of March 31, 2015, the Company had cash and cash equivalent balances of approximately $31,815,000 in excess of the federally insured limit of $250,000. | |||||||||
Accounts Receivable. Accounts receivable are stated at cost less an allowance for doubtful accounts which reflects the Company’s estimate of balances that will be not collected. The allowance is based on the history of past write-offs, the aging of balances, collections experience and current credit conditions. Additions include provisions for doubtful accounts and deductions include customer write-offs. Changes in the allowance for doubtful accounts were as follows: | |||||||||
Three Months Ended March | |||||||||
31, | |||||||||
2015 | 2014 | ||||||||
Beginning of period | $ | 59,273 | $ | 81,009 | |||||
Additions | 30,000 | 10,000 | |||||||
Deductions | (17,930 | ) | (25,290 | ) | |||||
End of period | $ | 71,343 | $ | 65,719 | |||||
Revenue Recognition. The Company normally enters into contractual agreements with its customers for periods ranging between one to three years. The Company recognizes the total revenue provided under a contract ratably over the contract period, including any periods under which the Company has agreed to provide services at no cost. The Company applies the revenue recognition principles set forth under the United States Securities and Exchange Commission Staff Accounting Bulletin 104, (“SAB 104”) which provides for revenue to be recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery or installation has been completed, (iii) the customer accepts and verifies receipt, and (iv) collectability is reasonably assured. | |||||||||
Deferred Revenues. Customers are billed monthly in advance. Deferred revenues are recognized for that portion of monthly charges not yet earned as of the end of the reporting period. Deferred revenues are also recognized for certain customers who pay for their services in advance. | |||||||||
Goodwill. Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired in an acquisition. Goodwill is not amortized but rather is reviewed annually for impairment, or whenever events or circumstances indicate that the carrying value may not be recoverable. The Company initially performs a qualitative assessment of goodwill which considers macro-economic conditions, industry and market trends, and the current and projected financial performance of the reporting unit. No further analysis is required if it is determined that there is a less than 50 percent likelihood that the carrying value is greater than the fair value. | |||||||||
Intrinsic Value of Stock Options and Warrants. The Company calculates the intrinsic value of stock options and warrants as the difference between the closing price of the Company’s common stock at the end of the reporting period and the exercise price of the stock options and warrants. | |||||||||
Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” which requires an entity to recognize revenue representing the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 is intended to establish principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenues and cash flows arising from the entity’s contracts with customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The original standard was effective for the Company on January 1, 2017, however, in April 2015, the FASB proposed a one-year deferral of this standard with a new effective date for the Company of January 1, 2018. Early application is not permitted. The Company is currently evaluating the effect that ASU 2014-09 will have on its condensed consolidated financial statements and related disclosures. | |||||||||
In April 2015, the FASB issued ASU No. 2015-03 (”ASU 2015-03”), “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts, instead of being presented as an asset. ASU 2015-03 is effective for the Company on January 1, 2016. Once adopted, entities are required to apply the new guidance retrospectively to all prior periods presented. The retrospective application represents a change in accounting principle. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the effect that ASU 2015-03 will have on its condensed consolidated financial statements and related disclosures. | |||||||||
Reclassifications. Certain accounts in the prior year’s condensed consolidated financial statements have been reclassified for comparative purposes to conform to the presentation in the current year’s condensed consolidated financial statements. These reclassifications have no effect on the previously reported net loss. | |||||||||
Subsequent Events. Subsequent events have been evaluated through the date of this filing. |
Note_3_Property_and_Equipment
Note 3 - Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | Note 3. Property and Equipment | ||||||||
Property and equipment is comprised of: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Network and base station equipment | $ | 36,522,349 | $ | 35,836,469 | |||||
Customer premise equipment | 27,345,815 | 26,511,691 | |||||||
Shared wireless infrastructure | 21,076,722 | 21,044,189 | |||||||
Information technology | 4,691,363 | 4,628,555 | |||||||
Furniture, fixtures and other | 1,710,445 | 1,669,340 | |||||||
Leasehold improvements | 1,616,529 | 1,599,393 | |||||||
92,963,223 | 91,289,637 | ||||||||
Less: accumulated depreciation | 60,665,666 | 57,384,351 | |||||||
Property and equipment, net | $ | 32,297,557 | $ | 33,905,286 | |||||
Property acquired through capital leases included within the Company’s property and equipment consists of the following: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Network and base station equipment | $ | 1,053,255 | $ | 1,003,875 | |||||
Shared wireless infrastructure | 1,230,305 | 1,230,305 | |||||||
Customer premise equipment | 246,484 | 246,484 | |||||||
Information technology | 1,860,028 | 1,860,028 | |||||||
4,390,072 | 4,340,692 | ||||||||
Less: accumulated depreciation | 2,355,038 | 2,135,534 | |||||||
Property acquired through capital leases, net | $ | 2,035,034 | $ | 2,205,158 | |||||
Note_4_Intangible_Assets
Note 4 - Intangible Assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Intangible Assets Disclosure [Text Block] | Note 4. Intangible Assets | ||||||||
Intangible assets consist of the following: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Goodwill | $ | 1,674,281 | $ | 1,674,281 | |||||
Customer relationships | $ | 11,856,127 | $ | 11,856,127 | |||||
Less: accumulated amortization of customer relationships | 11,038,892 | 10,940,824 | |||||||
Customer relationships, net | 817,235 | 915,303 | |||||||
FCC licenses | 1,284,555 | 1,284,555 | |||||||
Intangible assets, net | $ | 2,101,790 | $ | 2,199,858 | |||||
Amortization expense for the three months ended March 31, 2015 and 2014 was $98,068 and $585,026, respectively. The customer contracts acquired in the Delos acquisition are being amortized over a 50 month period ending April 2017. As of March 31, 2015, the remaining amortization period for the Delos acquisition was 25 months. Balances related to the Company’s other acquisitions have been fully amortized. Future amortization expense is as follows: | |||||||||
Remainder of 2015 | $ | 294,204 | |||||||
2016 | 392,272 | ||||||||
2017 | 130,759 | ||||||||
$ | 817,235 | ||||||||
The Company’s licenses with the Federal Communications Commission (the “FCC”) are not subject to amortization as they have an indefinite useful life. |
Note_5_Accrued_Expenses
Note 5 - Accrued Expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accrued Liabilities Disclosure [Abstract] | |||||||||
Accrued Liabilities Disclosure [Text Block] | Note 5. Accrued Expenses | ||||||||
Accrued expenses consist of the following: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Payroll and related | $ | 842,499 | $ | 726,917 | |||||
Property and equipment | 496,789 | 524,280 | |||||||
Professional services | 486,168 | 256,534 | |||||||
Other | 381,701 | 280,413 | |||||||
Network | 235,824 | 187,440 | |||||||
Marketing | 84,683 | 63,112 | |||||||
Total | $ | 2,527,664 | $ | 2,038,696 | |||||
Network represents costs incurred to provide services to the Company’s customers including tower rentals, bandwidth, troubleshooting and gear removal. |
Note_6_Other_Liabilities
Note 6 - Other Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |||||||||
Other Liabilities Disclosure [Text Block] | Note 6. Other Liabilities | ||||||||
Other liabilities consist of the following: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Current | |||||||||
Deferred rent | $ | 54,989 | $ | 46,058 | |||||
Deferred acquisition payments | 8,802 | 11,184 | |||||||
Total | $ | 63,791 | $ | 57,242 | |||||
Long-Term | |||||||||
Deferred rent | $ | 1,465,507 | $ | 1,373,163 | |||||
Deferred acquisition payments | - | 341 | |||||||
Deferred taxes | 401,337 | 401,337 | |||||||
Total | $ | 1,866,844 | $ | 1,774,841 | |||||
Deferred acquisition payments related to Delos Internet totaled $8,802 at March 31, 2015 and bear interest at a rate of 7%. |
Note_7_Longterm_Debt
Note 7 - Long-term Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 7. Long-Term Debt |
In October 2014, the Company entered into a loan agreement (the "Loan Agreement") with Melody Business Finance, LLC (the "Lender") which provided the Company with a five-year $35 million term loan (then "Financing" or "Note"). The Note was issued at a 3% discount totaling $1,050,000 which is being amortized over the term of the Note. The Company recognized interest expense of $91,765 in connection with the amortization of this discount for the three months ended March 31, 2015, and the unamortized balance totaled $862,870 at March 31, 2015. | |
The Note bears interest payable in cash at a rate equal to the greater of (i) the sum of the one month Libor rate on each payment date plus 7% or (ii) 8% per annum, and additional paid in kind (“PIK”), or deferred, interest that accrues at 4% per annum. The Company paid $705,911 of interest and accrued $352,956 of PIK interest for the three months ended March 31, 2015. | |
In October 2019, the Company must repay the principal amount outstanding plus all accrued interest. The Company has the option of prepaying the Note (i) on or before October 16, 2016 (the “Second Anniversary”), but only in full, and (ii) at any time after the Second Anniversary, in the minimum principal amount of $5,000,000 or in full if the balance outstanding is less. All optional prepayments are subject to certain premiums. Mandatory prepayments are required upon the occurrence of certain events, including but not limited to the (i) sale, lease, conveyance or transfer of certain assets, (ii) issuance or incurrence of indebtedness other than certain permitted debt, (iii) issuance of capital stock redeemable for cash or convertible into debt securities and (iv) any change of control. As further set forth in a security agreement (the “Security Agreement”), repayment of the Note is secured by a first priority lien and security interest in all of the assets of the Company and its subsidiaries, excluding capital stock of the Company, and certain capital leases, contracts and assets secured by purchase money security interests. | |
The Loan Agreement also contains representations and warranties by the Company and the Lender, certain indemnification provisions in favor of the Lender and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in the Lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). Upon the occurrence of an event of default, an additional 5% interest rate will be applied to the outstanding loan balances, and the Lender may terminate its lending commitment, declare all outstanding obligations immediately due and payable, and take such other actions as set forth in the Loan Agreement. As of March 31, 2015, the Company was in compliance with all of the debt covenants. | |
In connection with the Loan Agreement and pursuant to a Warrant and Registration Rights Agreement, the Company issued warrants (the “Warrants”) to purchase 3,600,000 shares of common stock of which two-thirds have an exercise price of $1.26 and one-third have an exercise price of $0.01, subject to customary adjustments under certain circumstances. The Warrants have a term of seven and a half years. The fair value of the warrants granted to the Lender of $2,463,231 was calculated using the Black-Scholes option pricing model and recorded as a debt discount. The debt discount is being amortized over the term of the Note using the effective interest rate. The Company recognized interest expense of $215,275 in connection with the amortization of this discount for the three months ended March 31, 2015, and the unamortized balance totaled $2,024,237 at March 31, 2015. | |
The warrant holders have piggyback registration rights requiring the inclusion of the shares of common stock issuable upon exercise of the Warrants (the “Warrant Shares”) in any registration statement filed by the Company. In addition, the Company has agreed to file a registration statement to register for resale all of the Warrant Shares and cause the registration statement to become effective by October 16, 2015 (the “Required Registration Statement”). If the Required Registration Statement is not declared effective by the required date, then (i) the Warrants may be exercised on a cashless basis until the Required Registration Statement becomes effective and the Warrant Shares are listed for trading and (ii) the Company shall pay the holders liquidated damages in the aggregate amount of $5,000 per month, up to $50,000 in total, until both the Required Registration Statement has become effective and the Warrant Shares are listed. | |
The Company incurred costs, primarily professional services, of approximately $2,900,000 related to the Loan Agreement. These costs were recorded as other assets in the Company’s consolidated balance sheet and are being amortized over the term of the Loan Agreement using the effective interest rate. Amortization expense totaled $252,899 for the three months ended March 31, 2015, and the unamortized balance totaled $2,378,020 at March 31, 2015. |
Note_8_Stock_Options_and_Warra
Note 8 - Stock Options and Warrants | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8. Stock Options and Warrants | ||||||||
Stock Options | |||||||||
The Company uses the Black-Scholes option pricing model on the date of grant to value options issued to employees, directors and consultants. Compensation expense, including the effect of forfeitures, is recognized over the period of service, generally the vesting period. There were no stock options granted during the three months ended March 31, 2015 and 2014, respectively. Stock-based compensation was $209,209 and $290,351 for the three months ended March 31, 2015 and 2014, respectively, and is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized amount of stock options expense totaled $849,297 as of March 31, 2015 which will be recognized over a weighted-average period of 1.5 years. | |||||||||
Option transactions under the stock option plans during the three months ended March 31, 2015 were as follows: | |||||||||
Number | Weighted Average Exercise Price | ||||||||
Outstanding as of January 1, 2015 | 3,997,695 | $ | 2.73 | ||||||
Granted during 2015 | - | $ | - | ||||||
Exercised | - | $ | - | ||||||
Forfeited /expired | (24,290 | ) | $ | 1.75 | |||||
Outstanding as of March 31, 2015 | 3,973,405 | $ | 2.74 | ||||||
Exercisable as of March 31, 2015 | 2,811,295 | $ | 2.83 | ||||||
Cancellations for the three months ended March 31, 2015 included 24,290 options related to employee terminations. | |||||||||
The weighted average remaining contractual life of the outstanding options as of March 31, 2015 was 6.0 years. | |||||||||
The aggregate intrinsic value associated with the options outstanding and exercisable as of March 31, 2015 was $1,188,962 and $718,014, respectively. The closing price of the Company’s common stock at March 31, 2015 was $2.16 per share. | |||||||||
Stock Warrants | |||||||||
There were 4,050,000 warrants outstanding and exercisable at March 31, 2015 with a weighted average exercise price of $1.31 per share. The weighted average remaining contractual life of the warrants was 6.4 years. | |||||||||
The aggregate intrinsic value associated with the warrants outstanding and exercisable as of March 31, 2015 was $4,740,000. The closing price of the Company’s common stock at March 31, 2015 was $2.16 per share. | |||||||||
Cashless Exercises | |||||||||
The number of shares issuable upon the exercise of an option or a warrant will be lower if a holder exercises on a cashless basis. Under a cashless exercise, the holder uses a portion of the shares that would otherwise be issuable upon exercise, rather than cash, as consideration for the exercise. The amount of net shares issuable in connection with a cashless exercise will vary based on the exercise price of the option or warrant compared to the current market price of the Company’s common stock on the date of exercise. |
Note_9_Employee_Stock_Purchase
Note 9 - Employee Stock Purchase Plan | 3 Months Ended |
Mar. 31, 2015 | |
Employee Stock Purchase Plan Disclosure [Abstract] | |
Employee Stock Purchase Plan Disclosure [Text Block] | Note 9. Employee Stock Purchase Plan |
Under the Company’s 2010 Employee Stock Purchase Plan (“ESPP Plan”), participants can purchase shares of the Company’s stock at a 15% discount. A maximum of 200,000 shares of common stock can be issued under the ESPP Plan of which 117,667 shares have been issued to date and 82,333 shares are available for future issuance. During the three months ended March 31, 2015, a total of 6,087 shares were issued under the ESPP Plan with a fair value of $13,148. The Company recognized $1,948 and $1,918 of stock-based compensation related to the 15% discount for the three months ended March 31, 2015 and 2014, respectively. |
Note_10_Fair_Value_Measurement
Note 10 - Fair Value Measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | Note 10. Fair Value Measurement | ||||||||||||||||
Valuation Hierarchy | |||||||||||||||||
The accounting standard of the FASB for fair value measurements establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
Cash and cash equivalents are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. The carrying amounts of accounts receivable, accounts payable and accrued liabilities approximate their fair value due to their short maturities. There were no changes in the valuation techniques during the three months ended March 31, 2015. | |||||||||||||||||
Total | Quoted prices | Significant | Significant | ||||||||||||||
Carrying | in active | other | unobservable | ||||||||||||||
Value | markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
31-Mar-15 | $ | 32,267,413 | $ | 32,267,413 | $ | - | $ | - | |||||||||
31-Dec-14 | $ | 38,027,509 | $ | 38,027,509 | $ | - | $ | - | |||||||||
Note_11_Net_Loss_Per_Common_Sh
Note 11 - Net Loss Per Common Share | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||
Earnings Per Share [Text Block] | Note 11. Net Loss Per Common Share | ||||
Basic and diluted net loss per share has been calculated by dividing net loss by the weighted average number of common shares outstanding during the period and 1,200,000 warrants to purchase shares of common stock at an exercise price of $0.01. The following common stock equivalents were excluded from the computation of diluted net loss per common share because they were anti-dilutive. The exercise or issuance of these common stock equivalents outstanding at March 31, 2015 would dilute earnings per share if the Company becomes profitable in the future. The exercise of the outstanding stock options and warrants could potentially generate proceeds up to approximately $16 million if exercised by the holder for cash. | |||||
Stock options | 3,973,405 | ||||
Warrants | 2,850,000 | ||||
Total | 6,823,405 | ||||
Note_12_Commitments
Note 12 - Commitments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Commitments Disclosure [Text Block] | Note 12. Commitments | ||||||||
Operating Lease Obligations | |||||||||
The Company has entered into operating leases related to roof rights, cellular towers, office space, and equipment leases under various non-cancelable agreements expiring through August 2023. Certain of these operating leases include extensions, at the Company's option, for additional terms ranging from 1 to 25 years. Amounts associated with the extension periods have not been included in the table below as it is not presently determinable which options, if any, the Company will elect to exercise. As of March 31, 2015, total future operating lease obligations were as follows: | |||||||||
Remainder of 2015 | $ | 16,456,000 | |||||||
2016 | 19,727,967 | ||||||||
2017 | 13,906,886 | ||||||||
2018 | 6,325,425 | ||||||||
2019 | 2,783,906 | ||||||||
Thereafter | 1,033,205 | ||||||||
$ | 60,233,389 | ||||||||
Rent expenses were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Points of Presence | $ | 2,085,698 | $ | 1,845,246 | |||||
Street level rooftops | 3,461,498 | 3,129,493 | |||||||
Corporate offices | 92,193 | 84,109 | |||||||
Other | 88,336 | 90,498 | |||||||
$ | 5,727,725 | $ | 5,149,346 | ||||||
Rent expenses related to Points of Presence, street level rooftops and other were included in cost of revenues in the Company’s condensed consolidated statements of operations. Rent expense related to our corporate offices was included in general and administrative expenses in the Company’s condensed consolidated statements of operations. | |||||||||
In September 2013, the Company entered into a new lease agreement for its corporate offices and new warehouse space. The lease commenced on January 1, 2014 and expires on December 31, 2019 with an option to renew for an additional five year term through December 31, 2024. The Company spent approximately $600,000 in leasehold improvements in connection with consolidating its corporate based employees from two buildings into one building. The Landlord agreed to contribute $380,000 in funding towards qualified leasehold improvements and made such payment to the Company in February 2014. Total annual rent payments began at $359,750 for 2014 and escalate by 3% annually reaching $416,970 for 2019. | |||||||||
In December 2014, the Company entered into a new lease agreement in Florida, primarily for a second sales center. The lease commenced in February 2015 for 38 months with an option to renew for an additional 60 month period. Total annual rent payments begin at $53,130 and escalate by 3% annually. | |||||||||
Capital Lease Obligations | |||||||||
The Company has entered into capital leases to acquire property and equipment expiring through March 2018. As of March 31, 2015, total future capital lease obligations were as follows: | |||||||||
Remainder of 2015 | $ | 773,879 | |||||||
2016 | 809,816 | ||||||||
2017 | 537,199 | ||||||||
2018 | 57,168 | ||||||||
$ | 2,178,062 | ||||||||
Less: interest expense | 220,014 | ||||||||
Total capital lease obligations | $ | 1,958,048 | |||||||
Current | $ | 821,121 | |||||||
Long-term | $ | 1,136,927 | |||||||
Other | |||||||||
During the first quarter of 2015, the Company renewed a one year information technology infrastructure support agreement. The agreement became effective at the end of the first quarter of 2015. Payments of approximately $68,000 are due quarterly through the first quarter of 2016. |
Note_13_Segment_Information
Note 13 - Segment Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Note 13. Segment Information | ||||||||||||||||||||
The Company has two reportable segments: Fixed Wireless and Shared Wireless Infrastructure. Management evaluates performance and allocates resources based on the operating performance of each segment as well as the long-term growth potential for each segment. Costs reported for each segment include costs directly associated with a segment’s operations. Intersegment revenues and expenses are eliminated in consolidation. | |||||||||||||||||||||
The balance of the Company’s operations is in the Corporate group which includes centralized operations. This group includes operations related to corporate overhead and centralized activities which support our overall operations. Corporate overhead includes administrative personnel, including executive management, and other support functions such as information technology and facilities. Centralized operations include network operations, customer care, and the management of network assets. The Corporate group is treated as a separate segment consistent with how management monitors and analyzes financial results. Corporate costs are not allocated to the segments because such costs are managed and controlled on a functional basis that encompasses all markets, with centralized, functional management held accountable for corporate results. Management also believes that not allocating these centralized costs provides a better reflection of the direct operating performance of each segment. The table below presents information about our operating segments: | |||||||||||||||||||||
Three Months Ended March 31, 2015 (Unaudited) | |||||||||||||||||||||
Fixed | Shared Wireless Infrastructure | Corporate | Eliminations | Total | |||||||||||||||||
Wireless | |||||||||||||||||||||
Revenues | $ | 7,217,731 | $ | 787,628 | $ | - | $ | (45,264 | ) | $ | 7,960,095 | ||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation) | 2,721,896 | 3,706,383 | 17,352 | (45,264 | ) | 6,400,367 | |||||||||||||||
Depreciation and amortization | 2,126,788 | 1,031,510 | 221,085 | - | 3,379,383 | ||||||||||||||||
Customer support services | 326,088 | 160,135 | 755,256 | - | 1,241,479 | ||||||||||||||||
Sales and marketing | 1,210,285 | 43,612 | 74,533 | - | 1,328,430 | ||||||||||||||||
General and administrative | 120,329 | 108,344 | 2,640,565 | - | 2,869,238 | ||||||||||||||||
Total Operating Expenses | 6,505,386 | 5,049,984 | 3,708,791 | (45,264 | ) | 15,218,897 | |||||||||||||||
Operating Income (Loss) | $ | 712,345 | $ | (4,262,356 | ) | $ | (3,708,791 | ) | $ | - | $ | (7,258,802 | ) | ||||||||
Capital expenditures | $ | 1,434,067 | $ | 118,470 | $ | 121,049 | $ | - | $ | 1,673,586 | |||||||||||
As of March 31, 2015 | |||||||||||||||||||||
Property and equipment, net | $ | 20,527,511 | $ | 9,759,333 | $ | 2,010,713 | $ | - | $ | 32,297,557 | |||||||||||
Total assets | $ | 25,257,562 | $ | 11,978,212 | $ | 37,530,813 | $ | - | $ | 74,766,587 | |||||||||||
Three Months Ended March 31, 2014 (Unaudited) | |||||||||||||||||||||
Fixed Wireless | Shared Wireless Infrastructure | Corporate | Eliminations | Total | |||||||||||||||||
Revenues | $ | 7,685,526 | $ | 740,349 | $ | - | $ | (45,969 | ) | $ | 8,379,906 | ||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation) | 2,498,693 | 3,388,951 | 14,269 | (45,969 | ) | 5,855,944 | |||||||||||||||
Depreciation and amortization | 2,537,873 | 940,938 | 216,604 | - | 3,695,415 | ||||||||||||||||
Customer support services | 272,145 | 176,190 | 727,430 | - | 1,175,765 | ||||||||||||||||
Sales and marketing | 1,263,137 | 76,750 | 81,712 | - | 1,421,599 | ||||||||||||||||
General and administrative | 108,425 | 146,528 | 2,422,986 | - | 2,677,939 | ||||||||||||||||
Total Operating Expenses | 6,680,273 | 4,729,357 | 3,463,001 | (45,969 | ) | 14,826,662 | |||||||||||||||
Operating Income (Loss) | $ | 1,005,253 | $ | (3,989,008 | ) | $ | (3,463,001 | ) | $ | - | $ | (6,446,756 | ) | ||||||||
Capital expenditures | $ | 1,486,450 | $ | 938,053 | $ | 112,854 | $ | - | $ | 2,537,357 | |||||||||||
As of March 31, 2014 | |||||||||||||||||||||
Property and equipment, net | $ | 22,570,307 | $ | 12,832,453 | $ | 2,509,066 | $ | - | $ | 37,911,826 | |||||||||||
Total assets | $ | 28,562,095 | $ | 15,336,248 | $ | 23,822,352 | $ | - | $ | 67,720,695 | |||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and with Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of March 31, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full fiscal year for any future period. | ||||||||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q. | |||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses. Actual results could differ from those estimates. | ||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents. At times, our cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of March 31, 2015, the Company had cash and cash equivalent balances of approximately $31,815,000 in excess of the federally insured limit of $250,000. | ||||||||
Receivables, Policy [Policy Text Block] | Accounts Receivable. Accounts receivable are stated at cost less an allowance for doubtful accounts which reflects the Company’s estimate of balances that will be not collected. The allowance is based on the history of past write-offs, the aging of balances, collections experience and current credit conditions. Additions include provisions for doubtful accounts and deductions include customer write-offs. Changes in the allowance for doubtful accounts were as follows: | ||||||||
Three Months Ended March | |||||||||
31, | |||||||||
2015 | 2014 | ||||||||
Beginning of period | $ | 59,273 | $ | 81,009 | |||||
Additions | 30,000 | 10,000 | |||||||
Deductions | (17,930 | ) | (25,290 | ) | |||||
End of period | $ | 71,343 | $ | 65,719 | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition. The Company normally enters into contractual agreements with its customers for periods ranging between one to three years. The Company recognizes the total revenue provided under a contract ratably over the contract period, including any periods under which the Company has agreed to provide services at no cost. The Company applies the revenue recognition principles set forth under the United States Securities and Exchange Commission Staff Accounting Bulletin 104, (“SAB 104”) which provides for revenue to be recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery or installation has been completed, (iii) the customer accepts and verifies receipt, and (iv) collectability is reasonably assured. | ||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues. Customers are billed monthly in advance. Deferred revenues are recognized for that portion of monthly charges not yet earned as of the end of the reporting period. Deferred revenues are also recognized for certain customers who pay for their services in advance. | ||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill. Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired in an acquisition. Goodwill is not amortized but rather is reviewed annually for impairment, or whenever events or circumstances indicate that the carrying value may not be recoverable. The Company initially performs a qualitative assessment of goodwill which considers macro-economic conditions, industry and market trends, and the current and projected financial performance of the reporting unit. No further analysis is required if it is determined that there is a less than 50 percent likelihood that the carrying value is greater than the fair value. | ||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Intrinsic Value of Stock Options and Warrants. The Company calculates the intrinsic value of stock options and warrants as the difference between the closing price of the Company’s common stock at the end of the reporting period and the exercise price of the stock options and warrants. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” which requires an entity to recognize revenue representing the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 is intended to establish principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenues and cash flows arising from the entity’s contracts with customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The original standard was effective for the Company on January 1, 2017, however, in April 2015, the FASB proposed a one-year deferral of this standard with a new effective date for the Company of January 1, 2018. Early application is not permitted. The Company is currently evaluating the effect that ASU 2014-09 will have on its condensed consolidated financial statements and related disclosures. | ||||||||
In April 2015, the FASB issued ASU No. 2015-03 (”ASU 2015-03”), “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts, instead of being presented as an asset. ASU 2015-03 is effective for the Company on January 1, 2016. Once adopted, entities are required to apply the new guidance retrospectively to all prior periods presented. The retrospective application represents a change in accounting principle. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the effect that ASU 2015-03 will have on its condensed consolidated financial statements and related disclosures. | |||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications. Certain accounts in the prior year’s condensed consolidated financial statements have been reclassified for comparative purposes to conform to the presentation in the current year’s condensed consolidated financial statements. These reclassifications have no effect on the previously reported net loss. | ||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent Events. Subsequent events have been evaluated through the date of this filing. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of Allowance for Doubtful Accounts Receivable [Table Text Block] | Three Months Ended March | ||||||||
31, | |||||||||
2015 | 2014 | ||||||||
Beginning of period | $ | 59,273 | $ | 81,009 | |||||
Additions | 30,000 | 10,000 | |||||||
Deductions | (17,930 | ) | (25,290 | ) | |||||
End of period | $ | 71,343 | $ | 65,719 |
Note_3_Property_and_Equipment_
Note 3 - Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||||
Network and base station equipment | $ | 36,522,349 | $ | 35,836,469 | |||||
Customer premise equipment | 27,345,815 | 26,511,691 | |||||||
Shared wireless infrastructure | 21,076,722 | 21,044,189 | |||||||
Information technology | 4,691,363 | 4,628,555 | |||||||
Furniture, fixtures and other | 1,710,445 | 1,669,340 | |||||||
Leasehold improvements | 1,616,529 | 1,599,393 | |||||||
92,963,223 | 91,289,637 | ||||||||
Less: accumulated depreciation | 60,665,666 | 57,384,351 | |||||||
Property and equipment, net | $ | 32,297,557 | $ | 33,905,286 | |||||
Schedule of Capital Leased Assets [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||||
Network and base station equipment | $ | 1,053,255 | $ | 1,003,875 | |||||
Shared wireless infrastructure | 1,230,305 | 1,230,305 | |||||||
Customer premise equipment | 246,484 | 246,484 | |||||||
Information technology | 1,860,028 | 1,860,028 | |||||||
4,390,072 | 4,340,692 | ||||||||
Less: accumulated depreciation | 2,355,038 | 2,135,534 | |||||||
Property acquired through capital leases, net | $ | 2,035,034 | $ | 2,205,158 |
Note_4_Intangible_Assets_Table
Note 4 - Intangible Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||||
Goodwill | $ | 1,674,281 | $ | 1,674,281 | |||||
Customer relationships | $ | 11,856,127 | $ | 11,856,127 | |||||
Less: accumulated amortization of customer relationships | 11,038,892 | 10,940,824 | |||||||
Customer relationships, net | 817,235 | 915,303 | |||||||
FCC licenses | 1,284,555 | 1,284,555 | |||||||
Intangible assets, net | $ | 2,101,790 | $ | 2,199,858 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | |||||||||
Remainder of 2015 | $ | 294,204 | |||||||
2016 | 392,272 | ||||||||
2017 | 130,759 | ||||||||
$ | 817,235 |
Note_5_Accrued_Expenses_Tables
Note 5 - Accrued Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accrued Liabilities Disclosure [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||||
Payroll and related | $ | 842,499 | $ | 726,917 | |||||
Property and equipment | 496,789 | 524,280 | |||||||
Professional services | 486,168 | 256,534 | |||||||
Other | 381,701 | 280,413 | |||||||
Network | 235,824 | 187,440 | |||||||
Marketing | 84,683 | 63,112 | |||||||
Total | $ | 2,527,664 | $ | 2,038,696 |
Note_6_Other_Liabilities_Table
Note 6 - Other Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |||||||||
Other Liabilities [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||||
Current | |||||||||
Deferred rent | $ | 54,989 | $ | 46,058 | |||||
Deferred acquisition payments | 8,802 | 11,184 | |||||||
Total | $ | 63,791 | $ | 57,242 | |||||
Long-Term | |||||||||
Deferred rent | $ | 1,465,507 | $ | 1,373,163 | |||||
Deferred acquisition payments | - | 341 | |||||||
Deferred taxes | 401,337 | 401,337 | |||||||
Total | $ | 1,866,844 | $ | 1,774,841 |
Note_8_Stock_Options_and_Warra1
Note 8 - Stock Options and Warrants (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number | Weighted Average Exercise Price | |||||||
Outstanding as of January 1, 2015 | 3,997,695 | $ | 2.73 | ||||||
Granted during 2015 | - | $ | - | ||||||
Exercised | - | $ | - | ||||||
Forfeited /expired | (24,290 | ) | $ | 1.75 | |||||
Outstanding as of March 31, 2015 | 3,973,405 | $ | 2.74 | ||||||
Exercisable as of March 31, 2015 | 2,811,295 | $ | 2.83 |
Note_10_Fair_Value_Measurement1
Note 10 - Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | |||||||||||||||||
Total | Quoted prices | Significant | Significant | ||||||||||||||
Carrying | in active | other | unobservable | ||||||||||||||
Value | markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
31-Mar-15 | $ | 32,267,413 | $ | 32,267,413 | $ | - | $ | - | |||||||||
31-Dec-14 | $ | 38,027,509 | $ | 38,027,509 | $ | - | $ | - |
Note_11_Net_Loss_Per_Common_Sh1
Note 11 - Net Loss Per Common Share (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Stock options | 3,973,405 | |||
Warrants | 2,850,000 | ||||
Total | 6,823,405 |
Note_12_Commitments_Tables
Note 12 - Commitments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | |||||||||
Remainder of 2015 | $ | 16,456,000 | |||||||
2016 | 19,727,967 | ||||||||
2017 | 13,906,886 | ||||||||
2018 | 6,325,425 | ||||||||
2019 | 2,783,906 | ||||||||
Thereafter | 1,033,205 | ||||||||
$ | 60,233,389 | ||||||||
Schedule of Rent Expense [Table Text Block] | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Points of Presence | $ | 2,085,698 | $ | 1,845,246 | |||||
Street level rooftops | 3,461,498 | 3,129,493 | |||||||
Corporate offices | 92,193 | 84,109 | |||||||
Other | 88,336 | 90,498 | |||||||
$ | 5,727,725 | $ | 5,149,346 | ||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Remainder of 2015 | $ | 773,879 | ||||||
2016 | 809,816 | ||||||||
2017 | 537,199 | ||||||||
2018 | 57,168 | ||||||||
$ | 2,178,062 | ||||||||
Less: interest expense | 220,014 | ||||||||
Total capital lease obligations | $ | 1,958,048 | |||||||
Current | $ | 821,121 | |||||||
Long-term | $ | 1,136,927 |
Note_13_Segment_Information_Ta
Note 13 - Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2015 (Unaudited) | ||||||||||||||||||||
Fixed | Shared Wireless Infrastructure | Corporate | Eliminations | Total | |||||||||||||||||
Wireless | |||||||||||||||||||||
Revenues | $ | 7,217,731 | $ | 787,628 | $ | - | $ | (45,264 | ) | $ | 7,960,095 | ||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation) | 2,721,896 | 3,706,383 | 17,352 | (45,264 | ) | 6,400,367 | |||||||||||||||
Depreciation and amortization | 2,126,788 | 1,031,510 | 221,085 | - | 3,379,383 | ||||||||||||||||
Customer support services | 326,088 | 160,135 | 755,256 | - | 1,241,479 | ||||||||||||||||
Sales and marketing | 1,210,285 | 43,612 | 74,533 | - | 1,328,430 | ||||||||||||||||
General and administrative | 120,329 | 108,344 | 2,640,565 | - | 2,869,238 | ||||||||||||||||
Total Operating Expenses | 6,505,386 | 5,049,984 | 3,708,791 | (45,264 | ) | 15,218,897 | |||||||||||||||
Operating Income (Loss) | $ | 712,345 | $ | (4,262,356 | ) | $ | (3,708,791 | ) | $ | - | $ | (7,258,802 | ) | ||||||||
Capital expenditures | $ | 1,434,067 | $ | 118,470 | $ | 121,049 | $ | - | $ | 1,673,586 | |||||||||||
As of March 31, 2015 | |||||||||||||||||||||
Property and equipment, net | $ | 20,527,511 | $ | 9,759,333 | $ | 2,010,713 | $ | - | $ | 32,297,557 | |||||||||||
Total assets | $ | 25,257,562 | $ | 11,978,212 | $ | 37,530,813 | $ | - | $ | 74,766,587 | |||||||||||
Three Months Ended March 31, 2014 (Unaudited) | |||||||||||||||||||||
Fixed Wireless | Shared Wireless Infrastructure | Corporate | Eliminations | Total | |||||||||||||||||
Revenues | $ | 7,685,526 | $ | 740,349 | $ | - | $ | (45,969 | ) | $ | 8,379,906 | ||||||||||
Operating Expenses | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation) | 2,498,693 | 3,388,951 | 14,269 | (45,969 | ) | 5,855,944 | |||||||||||||||
Depreciation and amortization | 2,537,873 | 940,938 | 216,604 | - | 3,695,415 | ||||||||||||||||
Customer support services | 272,145 | 176,190 | 727,430 | - | 1,175,765 | ||||||||||||||||
Sales and marketing | 1,263,137 | 76,750 | 81,712 | - | 1,421,599 | ||||||||||||||||
General and administrative | 108,425 | 146,528 | 2,422,986 | - | 2,677,939 | ||||||||||||||||
Total Operating Expenses | 6,680,273 | 4,729,357 | 3,463,001 | (45,969 | ) | 14,826,662 | |||||||||||||||
Operating Income (Loss) | $ | 1,005,253 | $ | (3,989,008 | ) | $ | (3,463,001 | ) | $ | - | $ | (6,446,756 | ) | ||||||||
Capital expenditures | $ | 1,486,450 | $ | 938,053 | $ | 112,854 | $ | - | $ | 2,537,357 | |||||||||||
As of March 31, 2014 | |||||||||||||||||||||
Property and equipment, net | $ | 22,570,307 | $ | 12,832,453 | $ | 2,509,066 | $ | - | $ | 37,911,826 | |||||||||||
Total assets | $ | 28,562,095 | $ | 15,336,248 | $ | 23,822,352 | $ | - | $ | 67,720,695 |
Note_1_Organization_and_Nature1
Note 1 - Organization and Nature of Business (Details) | 1 Months Ended | |
Aug. 31, 2014 | Jun. 30, 2013 | |
Disclosure Text Block [Abstract] | ||
Wi-Fi Service Agreement, Term | 3 years | |
Wi-Fi Service Agreement, Term, Number of Additional Renewals | 2 | |
Wi-Fi Service Agreement, Renewal Term | 1 year | |
Master Licensing Agreement, Term | 25 years |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2015 |
Accounting Policies [Abstract] | |
Cash, Uninsured Amount | $31,815,000 |
Cash, FDIC Insured Amount | $250,000 |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Changes in Allowance for Doubtful Accounts (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Changes in Allowance for Doubtful Accounts [Abstract] | ||
Beginning of period | $59,273 | $81,009 |
Additions | 30,000 | 10,000 |
Deductions | -17,930 | -25,290 |
End of period | $71,343 | $65,719 |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment (Details) - Property and Equipment (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | $92,963,223 | $91,289,637 | |
Less: accumulated depreciation | 60,665,666 | 57,384,351 | |
Property and equipment, net | 32,297,557 | 33,905,286 | 37,911,826 |
Network and Base Station Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 36,522,349 | 35,836,469 | |
Customer Premise Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 27,345,815 | 26,511,691 | |
Shared Wireless Infrastructure [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 21,076,722 | 21,044,189 | |
Information Technology [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 4,691,363 | 4,628,555 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 1,710,445 | 1,669,340 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | $1,616,529 | $1,599,393 |
Note_3_Property_and_Equipment_2
Note 3 - Property and Equipment (Details) - Property Acquired Through Capital Leases (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $4,390,072 | $4,340,692 |
Less: accumulated depreciation | 2,355,038 | 2,135,534 |
Property acquired through capital leases, net | 2,035,034 | 2,205,158 |
Network and Base Station Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 1,053,255 | 1,003,875 |
Shared Wireless Infrastructure [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 1,230,305 | 1,230,305 |
Customer Premise Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 246,484 | 246,484 |
Information Technology [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $1,860,028 | $1,860,028 |
Note_4_Intangible_Assets_Detai
Note 4 - Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Note 4 - Intangible Assets (Details) [Line Items] | |||
Amortization of Intangible Assets | $98,068 | $585,026 | $585,026 |
Delos Internet [Member] | |||
Note 4 - Intangible Assets (Details) [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 50 months | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 25 months |
Note_4_Intangible_Assets_Detai1
Note 4 - Intangible Assets (Details) - Intangible Assets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Intangible Assets [Abstract] | ||
Goodwill | $1,674,281 | $1,674,281 |
Customer relationships | 11,856,127 | 11,856,127 |
Less: accumulated amortization of customer relationships | 11,038,892 | 10,940,824 |
Customer relationships, net | 817,235 | 915,303 |
FCC licenses | 1,284,555 | 1,284,555 |
Intangible assets, net | $2,101,790 | $2,199,858 |
Note_4_Intangible_Assets_Detai2
Note 4 - Intangible Assets (Details) - Future Amortization Expense (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Future Amortization Expense [Abstract] | ||
Remainder of 2015 | $294,204 | |
2016 | 392,272 | |
2017 | 130,759 | |
$817,235 | $915,303 |
Note_5_Accrued_Expenses_Detail
Note 5 - Accrued Expenses (Details) - Accrued Expenses (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | $2,527,664 | $2,038,696 |
Payroll and Related [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 842,499 | 726,917 |
Property and Equipment [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 496,789 | 524,280 |
Professional Services [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 486,168 | 256,534 |
Other Accrued Liabilities [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 381,701 | 280,413 |
Network [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 235,824 | 187,440 |
Marketing [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | $84,683 | $63,112 |
Note_6_Other_Liabilities_Detai
Note 6 - Other Liabilities (Details) (Delos Internet [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Delos Internet [Member] | |
Note 6 - Other Liabilities (Details) [Line Items] | |
Deferred Acquisition Payments, Gross | $8,802 |
Delos Interest Rate | 7.00% |
Note_6_Other_Liabilities_Detai1
Note 6 - Other Liabilities (Details) - Other Liabilities (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current | ||
Deferred rent | $54,989 | $46,058 |
Deferred acquisition payments | 8,802 | 11,184 |
Total | 63,791 | 57,242 |
Long-Term | ||
Deferred rent | 1,465,507 | 1,373,163 |
Deferred acquisition payments | 341 | |
Deferred taxes | 401,337 | 401,337 |
Total | $1,866,844 | $1,774,841 |
Note_7_Longterm_Debt_Details
Note 7 - Long-term Debt (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Oct. 16, 2014 | Dec. 31, 2014 | |
Note 7 - Long-term Debt (Details) [Line Items] | |||
Debt Instrument, Unamortized Discount | $2,887,107 | $3,194,147 | |
Increase (Decrease) in Interest Payable, Net | 352,956 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $1.31 | ||
Amortization of Financing Costs | 252,899 | ||
If Rate is Greater than LIBOR Rate [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||
First Two-thirds of Shares Under Warrants [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $1.26 | ||
Remaining One-Third of Shares Under Warrants [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 1,200,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.01 | ||
Warrant [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Debt Instrument, Unamortized Discount | 2,024,237 | ||
Warrant [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Interest Expense, Debt | 215,275 | ||
Other Assets [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Debt Issuance Cost | 2,900,000 | ||
Melody Business Finance, LLC [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||
Melody Business Finance, LLC [Member] | Secured Debt [Member] | |||
Note 7 - Long-term Debt (Details) [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Debt Instrument, Face Amount | 35,000,000 | ||
Debt Instrument, Discount Rate | 3.00% | ||
Debt Instrument, Unamortized Discount | 862,870 | 1,050,000 | |
Interest Expense, Debt | 91,765 | ||
Paid-in-Kind Interest, Stated Rate | 4.00% | ||
Interest Paid | 705,911 | ||
Increase (Decrease) in Interest Payable, Net | 352,956 | ||
Debt Instrument, Prepayment, Minimum Principal Amount | 5,000,000 | ||
Debt Instrument, Additional Interest Rate in the Event of Default | 5.00% | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 3,600,000 | ||
Warrants and Rights Outstanding | 2,463,231 | ||
Class of Warrant or Right, Monthly Liquidated Damages | 5,000 | ||
Class of Warrant or Right, Maximum Liquidated Damages | 50,000 | ||
Amortization of Financing Costs | 252,899 | ||
Deferred Finance Costs, Net | $2,378,020 |
Note_8_Stock_Options_and_Warra2
Note 8 - Stock Options and Warrants (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in Shares) | 24,290 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $1,188,962 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 718,014 | |
Share Price (in Dollars per share) | $2.16 | |
Class of Warrant or Right, Outstanding (in Shares) | 4,050,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $1.31 | |
Class of Warrant or Right, Warrants Exercisable, Weighted Average Remaining Contractual Life | 6 years 146 days | |
Employee Stock Option [Member] | General and Administrative Expense [Member] | ||
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Allocated Share-based Compensation Expense | 209,209 | 290,351 |
Employee Stock Option [Member] | ||
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 849,297 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | |
Warrant [Member] | ||
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $4,740,000 |
Note_8_Stock_Options_and_Warra3
Note 8 - Stock Options and Warrants (Details) - Option Transactions Under the Stock Option Plans (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Option Transactions Under the Stock Option Plans [Abstract] | |
Outstanding | 3,997,695 |
Weighted average exercise price | $2.73 |
Exercisable as of March 31, 2015 | 2,811,295 |
Exercisable as of March 31, 2015 | $2.83 |
Forfeited /expired | -24,290 |
Forfeited /expired | $1.75 |
Outstanding | 3,973,405 |
Weighted average exercise price | $2.74 |
Note_9_Employee_Stock_Purchase1
Note 9 - Employee Stock Purchase Plan (Details) (USD $) | 3 Months Ended | 51 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | |
Note 9 - Employee Stock Purchase Plan (Details) [Line Items] | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan (in Dollars) | $13,148 | |||
2010 Employee Stock Purchase Plan [Member] | ||||
Note 9 - Employee Stock Purchase Plan (Details) [Line Items] | ||||
Percentage Of Discount Allowed For Shares Issued Under Employee Stock Purchase Plan | 15.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 200,000 | 200,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 6,087 | 117,667 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 82,333 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan (in Dollars) | 13,148 | |||
Allocated Share-based Compensation Expense (in Dollars) | $1,948 | $1,918 |
Note_10_Fair_Value_Measurement2
Note 10 - Fair Value Measurement (Details) - Fair Value of Assets and Liabilities (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Note 10 - Fair Value Measurement (Details) - Fair Value of Assets and Liabilities [Line Items] | ||
Cash and cash equivalents | $32,267,413 | $38,027,509 |
Fair Value, Inputs, Level 1 [Member] | ||
Note 10 - Fair Value Measurement (Details) - Fair Value of Assets and Liabilities [Line Items] | ||
Cash and cash equivalents | $32,267,413 | $38,027,509 |
Note_11_Net_Loss_Per_Common_Sh2
Note 11 - Net Loss Per Common Share (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Note 11 - Net Loss Per Common Share (Details) [Line Items] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1.31 |
Maximum Potential Proceeds from Stock Option and Warrant Exercises | $16 |
Remaining One-Third of Shares Under Warrants [Member] | Melody Business Finance, LLC [Member] | Secured Debt [Member] | |
Note 11 - Net Loss Per Common Share (Details) [Line Items] | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,200,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.01 |
Melody Business Finance, LLC [Member] | Secured Debt [Member] | |
Note 11 - Net Loss Per Common Share (Details) [Line Items] | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,600,000 |
Note_11_Net_Loss_Per_Common_Sh3
Note 11 - Net Loss Per Common Share (Details) - Anti-dilutive Securities | 3 Months Ended |
Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 6,823,405 |
Employee Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 3,973,405 |
Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 2,850,000 |
Note_12_Commitments_Details
Note 12 - Commitments (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Feb. 28, 2014 | |
Note 12 - Commitments (Details) [Line Items] | ||||||
Operating Leases, Rent Expense | $5,727,725 | $5,149,346 | ||||
Information Technology Infrastructure Support Agreement, Term | 1 year | |||||
Other Obligations Quarterly Payments | 68,000 | |||||
Due in 2014 [Member] | Corporate Offices [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Operating Leases, Rent Expense | 359,750 | |||||
Due in 2019 [Member] | Corporate Offices [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Operating Leases, Rent Expense | 416,970 | |||||
Corporate Offices [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||
Corporate Offices [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Leasehold Improvements, Gross | 600,000 | |||||
Operating Lease, Leasehold Improvements to be Made by Lessor | 380,000 | |||||
Operating Leases, Rent Expense | 92,193 | 84,109 | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | |||||
Sales Center [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 60 months | |||||
Operating Leases, Rent Expense | $53,130 | |||||
Annual Increase in Operating Lease Rent Expense | 3.00% | |||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 38 months | |||||
Minimum [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | |||||
Maximum [Member] | ||||||
Note 12 - Commitments (Details) [Line Items] | ||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 25 years |
Note_12_Commitments_Details_To
Note 12 - Commitments (Details) - Total Future Operating Lease Obligations (USD $) | Mar. 31, 2015 |
Total Future Operating Lease Obligations [Abstract] | |
Remainder of 2015 | $16,456,000 |
2016 | 19,727,967 |
2017 | 13,906,886 |
2018 | 6,325,425 |
2019 | 2,783,906 |
Thereafter | 1,033,205 |
$60,233,389 |
Note_12_Commitments_Details_Re
Note 12 - Commitments (Details) - Rent Expenses (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||
Lease and Rental Expense | $5,727,725 | $5,149,346 |
Points of Presence [Member] | ||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||
Lease and Rental Expense | 2,085,698 | 1,845,246 |
Street Level Rooftops [Member] | ||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||
Lease and Rental Expense | 3,461,498 | 3,129,493 |
Corporate Offices [Member] | ||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||
Lease and Rental Expense | 92,193 | 84,109 |
Other Leased Property [Member] | ||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||
Lease and Rental Expense | $88,336 | $90,498 |
Note_12_Commitments_Details_To1
Note 12 - Commitments (Details) - Total Future Capital Lease Obligations (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Total Future Capital Lease Obligations [Abstract] | ||
Remainder of 2015 | $773,879 | |
2016 | 809,816 | |
2017 | 537,199 | |
2018 | 57,168 | |
2,178,062 | ||
Less: interest expense | 220,014 | |
Total capital lease obligations | 1,958,048 | |
Current | 821,121 | 845,668 |
Long-term | $1,136,927 | $1,285,858 |
Note_13_Segment_Information_De
Note 13 - Segment Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note_13_Segment_Information_De1
Note 13 - Segment Information (Details) - Segment Information (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenues | $7,960,095 | $8,379,906 | |
Operating Expenses | |||
Cost of revenues (exclusive of depreciation) | 6,400,367 | 5,855,944 | |
Depreciation and amortization | 3,379,383 | 3,695,415 | |
Customer support services | 1,241,479 | 1,175,765 | |
Sales and marketing | 1,328,430 | 1,421,599 | |
General and administrative | 2,869,238 | 2,677,939 | |
Total Operating Expenses | 15,218,897 | 14,826,662 | |
Operating Income (Loss) | -7,258,802 | -6,446,756 | |
Capital expenditures | 1,673,586 | 2,537,357 | |
As of March 31, 2015 | |||
Property and equipment, net | 32,297,557 | 37,911,826 | 33,905,286 |
Total assets | 74,766,587 | 67,720,695 | 82,321,838 |
Fixed Wireless [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,217,731 | 7,685,526 | |
Operating Expenses | |||
Cost of revenues (exclusive of depreciation) | 2,721,896 | 2,498,693 | |
Depreciation and amortization | 2,126,788 | 2,537,873 | |
Customer support services | 326,088 | 272,145 | |
Sales and marketing | 1,210,285 | 1,263,137 | |
General and administrative | 120,329 | 108,425 | |
Total Operating Expenses | 6,505,386 | 6,680,273 | |
Operating Income (Loss) | 712,345 | 1,005,253 | |
Capital expenditures | 1,434,067 | 1,486,450 | |
As of March 31, 2015 | |||
Property and equipment, net | 20,527,511 | 22,570,307 | |
Total assets | 25,257,562 | 28,562,095 | |
Shared Wireless Infrastructure [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 787,628 | 740,349 | |
Operating Expenses | |||
Cost of revenues (exclusive of depreciation) | 3,706,383 | 3,388,951 | |
Depreciation and amortization | 1,031,510 | 940,938 | |
Customer support services | 160,135 | 176,190 | |
Sales and marketing | 43,612 | 76,750 | |
General and administrative | 108,344 | 146,528 | |
Total Operating Expenses | 5,049,984 | 4,729,357 | |
Operating Income (Loss) | -4,262,356 | -3,989,008 | |
Capital expenditures | 118,470 | 938,053 | |
As of March 31, 2015 | |||
Property and equipment, net | 9,759,333 | 12,832,453 | |
Total assets | 11,978,212 | 15,336,248 | |
Corporate, Non-Segment [Member] | |||
Operating Expenses | |||
Cost of revenues (exclusive of depreciation) | 17,352 | 14,269 | |
Depreciation and amortization | 221,085 | 216,604 | |
Customer support services | 755,256 | 727,430 | |
Sales and marketing | 74,533 | 81,712 | |
General and administrative | 2,640,565 | 2,422,986 | |
Total Operating Expenses | 3,708,791 | 3,463,001 | |
Operating Income (Loss) | -3,708,791 | -3,463,001 | |
Capital expenditures | 121,049 | 112,854 | |
As of March 31, 2015 | |||
Property and equipment, net | 2,010,713 | 2,509,066 | |
Total assets | 37,530,813 | 23,822,352 | |
Consolidation, Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | -45,264 | -45,969 | |
Operating Expenses | |||
Cost of revenues (exclusive of depreciation) | -45,264 | -45,969 | |
Total Operating Expenses | ($45,264) | ($45,969) |