Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TOWERSTREAM CORP | |
Trading Symbol | TWER | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 66,766,261 | |
Amendment Flag | false | |
Entity Central Index Key | 1,349,437 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 26,117,134 | $ 38,027,509 |
Accounts receivable, net | 1,011,670 | 1,310,647 |
Prepaid expenses and other current assets | 1,317,789 | 926,699 |
Total Current Assets | 28,446,593 | 40,264,855 |
Property and equipment, net | 31,522,059 | 33,905,286 |
Intangible assets, net | 2,003,722 | 2,199,858 |
Goodwill | 1,674,281 | 1,674,281 |
Other assets | 3,538,774 | 4,277,558 |
Total Assets | 67,185,429 | 82,321,838 |
Current Liabilities | ||
Accounts payable | 984,047 | 871,251 |
Accrued expenses | 2,474,277 | 2,038,696 |
Deferred revenues | 1,268,442 | 1,384,846 |
Current maturities of capital lease obligations | 1,014,911 | 845,668 |
Other | 65,723 | 57,242 |
Total Current Liabilities | 5,807,400 | 5,197,703 |
Long-Term Liabilities | ||
Long-term debt, net of debt discount of $2,594,452 and $3,194,147, respectively | 33,414,506 | 32,101,409 |
Capital lease obligations, net of current maturities | 1,432,416 | 1,285,858 |
Other | 1,899,356 | 1,774,841 |
Total Long-Term Liabilities | 36,746,278 | 35,162,108 |
Total Liabilities | $ 42,553,678 | $ 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; 66,766,261 and 66,656,789 shares issued and outstanding, respectively | 66,766 | 66,657 |
Additional paid-in-capital | 158,074,791 | 157,631,299 |
Accumulated deficit | (133,509,806) | (115,735,929) |
Total Stockholders' Equity | 24,631,751 | 41,962,027 |
Total Liabilities and Stockholders' Equity | $ 67,185,429 | $ 82,321,838 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Debt discount (in Dollars) | $ 2,594,452 | $ 3,194,147 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 66,766,261 | 66,656,789 |
Common stock, shares outstanding | 66,766,261 | 66,656,789 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 7,857,133 | $ 8,264,848 | $ 15,817,228 | $ 16,644,754 |
Operating Expenses | ||||
Cost of revenues (exclusive of depreciation) | 6,319,537 | 6,101,913 | 12,719,904 | 11,957,856 |
Depreciation and amortization | 3,409,113 | 3,281,062 | 6,788,496 | 6,976,477 |
Customer support services | 1,332,233 | 1,150,905 | 2,573,712 | 2,326,670 |
Sales and marketing | 1,548,480 | 1,399,089 | 2,876,910 | 2,820,688 |
General and administrative | 2,428,153 | 2,666,997 | 5,297,391 | 5,344,937 |
Total Operating Expenses | 15,037,516 | 14,599,966 | 30,256,413 | 29,426,628 |
Operating Loss | (7,180,383) | (6,335,118) | (14,439,185) | (12,781,874) |
Other Income/(Expense) | ||||
Interest expense, net | (1,670,428) | (59,488) | (3,334,692) | (122,539) |
Total Other Income/(Expense) | (1,670,428) | (59,488) | (3,334,692) | (122,539) |
Net Loss | $ (8,850,811) | $ (6,394,606) | $ (17,773,877) | $ (12,904,413) |
Net loss per common share – basic and diluted (in Dollars per share) | $ (0.13) | $ (0.10) | $ (0.26) | $ (0.19) |
Weighted average common shares outstanding – basic and diluted (in Shares) | 67,924,379 | 66,478,686 | 67,890,771 | 66,458,983 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - 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 | |||
Cashless exercise of options | $ 97 | (97) | ||
Cashless exercise of options (in Shares) | 96,594 | 426,530 | ||
Issuance of common stock under employee stock purchase plan | $ 12 | 25,291 | $ 25,303 | |
Issuance of common stock under employee stock purchase plan (in Shares) | 12,878 | |||
Stock-based compensation for options | 418,298 | 418,298 | ||
Net loss | (17,773,877) | (17,773,877) | ||
Balance at Jun. 30, 2015 | $ 66,766 | $ 158,074,791 | $ (133,509,806) | $ 24,631,751 |
Balance (in Shares) at Jun. 30, 2015 | 66,766,261 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | $ (17,773,877) | $ (12,904,413) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for doubtful accounts | 100,000 | 117,000 |
Depreciation for property, plant and equipment | 6,592,360 | 6,283,644 |
Amortization for customer based intangibles | 196,136 | 692,833 |
Amortization of debt issuance costs | 493,950 | |
Amortization of debt discount | 599,695 | |
Stock-based compensation | 422,079 | 555,034 |
Deferred rent | 127,861 | 161,890 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 198,977 | (301,937) |
Prepaid expenses and other current assets | (380,462) | (444,799) |
Other assets | 249,024 | 161,650 |
Accounts payable | 112,796 | 215,882 |
Accrued expenses | 642,467 | (294,303) |
Deferred revenues | (116,404) | (113,036) |
Accrued interest | 713,402 | |
Total Adjustments | 9,951,881 | 7,033,858 |
Net Cash Used In Operating Activities | (7,821,996) | (5,870,555) |
Cash Flows From Investing Activities | ||
Acquisitions of property and equipment | (3,605,994) | (4,930,801) |
Lease incentive payment from landlord | 380,000 | |
Payments of security deposits | (2,189) | (18,721) |
Deferred acquisition payments | (5,492) | (61,946) |
Net Cash Used In Investing Activities | (3,613,675) | (4,631,468) |
Cash Flows From Financing Activities | ||
Payments on capital leases | (496,226) | (408,683) |
Proceeds from the issuance of common stock under employee stock purchase plan | 21,522 | 21,675 |
Fair value of options repurchased | (3,793) | |
Net Cash Used In Financing Activities | (474,704) | (390,801) |
Net Decrease In Cash and Cash Equivalents | (11,910,375) | (10,892,824) |
Cash and Cash Equivalents – Beginning | 38,027,509 | 28,181,531 |
Cash and Cash Equivalents – Ending | 26,117,134 | 17,288,707 |
Cash paid during the periods for: | ||
Interest | 1,559,200 | 137,527 |
Taxes | 21,900 | 41,269 |
Acquisition of property and equipment: | ||
Under capital leases | 810,026 | |
Included in accrued expenses | $ 317,393 | $ 572,004 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 6 Months Ended |
Jun. 30, 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 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 | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2. Summary of Significant Accounting Policies Basis of Presentation. 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. Concentration of Credit Risk . Accounts Receivable Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Beginning of period $ 71,343 $ 65,719 $ 59,273 $ 81,009 Additions 70,000 107,000 100,000 117,000 Deductions (23,595 ) (10,856 ) (41,525 ) (36,146 ) End of period $ 117,748 $ 161,863 $ 117,748 $ 161,863 Revenue Recognition. Deferred Revenues. Intrinsic Value of Stock Options and Warrants Recent Accounting Pronouncements. The Company is currently evaluating the effect that ASU 2015-03 will have on its condensed consolidated financial statements and related disclosures. Reclassifications. Subsequent Events |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3. Property and Equipment Property and equipment is comprised of: June 30, 2015 December 31, 2014 Network and base station equipment $ 37,820,584 $ 35,836,469 Customer premise equipment 28,574,798 26,511,691 Shared wireless infrastructure 21,027,870 21,044,189 Information technology 4,739,136 4,628,555 Furniture, fixtures and other 1,713,580 1,669,340 Leasehold improvements 1,622,802 1,599,393 95,498,770 91,289,637 Less: accumulated depreciation 63,976,711 57,384,351 Property and equipment, net $ 31,522,059 $ 33,905,286 Property acquired through capital leases included within the Company’s property and equipment consists of the following: June 30 , 201 5 December 31, 201 4 Network and base station equipment $ 1,390,593 $ 1,003,875 Shared wireless infrastructure 1,230,305 1,230,305 Customer premise equipment 669,792 246,484 Information technology 1,860,028 1,860,028 5,150,718 4,340,692 Less: accumulated depreciation 2,599,896 2,135,534 Property acquired through capital leases, net $ 2,550,822 $ 2,205,158 Depreciation expense for the three months ended June 30, 2015 and 2014 was $3,311,045 and $3,173,255, respectively. Depreciation expense for the six months ended June 30, 2015 and 2014 was $6,592,360 and $6,283,644, respectively. |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 4. Intangible Assets Intangible assets consist of the following: June 30, 2015 December 31, 2014 Goodwill $ 1,674,281 $ 1,674,281 Customer relationships $ 11,856,127 $ 11,856,127 Less: accumulated amortization of customer relationships 11,136,960 10,940,824 Customer relationships, net 719,167 915,303 FCC licenses 1,284,555 1,284,555 Intangible assets, net $ 2,003,722 $ 2,199,858 Amortization expense for the three months ended June 30, 2015 and 2014 was $98,068 and $107,807, respectively. Amortization expense for the six months ended June 30, 2015 and 2014 was $196,136 and $692,833, respectively. The customer contracts acquired in the Delos acquisition are being amortized over a 50 month period ending April 2017. As of June 30, 2015, the remaining amortization period for the Delos acquisition was 22 months. Balances related to the Company’s other acquisitions have been fully amortized. Future amortization expense is as follows: Remainder of 2015 $ 196,136 2016 392,272 2017 130,759 $ 719,167 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 | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities Disclosure [Abstract] | |
Accrued Liabilities Disclosure [Text Block] | Note 5. Accrued Expenses Accrued expenses consist of the following: June 30, 2015 December 31, 2014 Payroll and related $ 1,195,878 $ 726,917 Professional services 352,839 256,534 Property and equipment 317,393 524,280 Other 302,340 280,413 Network 224,828 187,440 Marketing 80,999 63,112 Total $ 2,474,277 $ 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 | 6 Months Ended |
Jun. 30, 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: June 30, 2015 December 31, 2014 Current Deferred rent $ 59,690 $ 46,058 Deferred acquisition payments 6,033 11,184 Total $ 65,723 $ 57,242 Long-Term Deferred rent $ 1,498,019 $ 1,373,163 Deferred acquisition payments - 341 Deferred taxes 401,337 401,337 Total $ 1,899,356 $ 1,774,841 Deferred acquisition payments related to Delos Internet totaled $6,033 at June 30, 2015 and bear interest at a rate of 7%. |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 6 Months Ended |
Jun. 30, 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 (the "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 $87,466 and $179,231 in connection with the amortization of this discount for the three and six months ended June 30, 2015, respectively, and the unamortized balance totaled $775,404 at June 30, 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 $720,892 of interest and accrued $360,446 of PIK interest for the three months ended June 30, 2015. The Company paid $1,426,803 of interest and accrued $713,402 of PIK interest for the six months ended June 30, 2015. PIK interest is included in Interest expense in the accompanying condensed consolidated statements of operations. As of June 30, 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 $205,190 and $420,464 in connection with the amortization of this discount for the three and six months ended June 30, 2015, respectively, and the unamortized balance totaled $1,819,048 at June 30, 2015. 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 $241,051 and $493,950 for the three and six months ended June 30, 2015, respectively, and the unamortized balance totaled $2,136,969 at June 30, 2015. |
Note 8 - Stock Options and Warr
Note 8 - Stock Options and Warrants | 6 Months Ended |
Jun. 30, 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 to value options issued to employees, directors and consultants. Compensation expense, including on the date of grant the effect of forfeitures, is recognized over the period of service, generally the vesting period. Stock compensation expense and the weighted average assumptions used to calculate the fair values of stock options granted during the periods indicated were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Risk-free interest rate 1.6 % 1.6 % 1.6 % 1.6 % Expected volatility 59 % 47 % 59 % 47 % Expected life (in years) 4.1 5.3 4.1 5.3 Expected dividend yield - - - - Weighted average per share grant date fair value $ 0.95 $ 0.84 $ 0.95 $ 0.84 Stock-based compensation $ 209,089 $ 260,882 $ 418,298 $ 551,233 The risk-free interest rate was based on rates established by the Federal Reserve. The Company’s expected volatility was based upon the historical volatility for its common stock. The expected life of the Company’s options was determined using the simplified method as a result of limited historical data regarding the Company’s activity. Beginning in the fourth quarter of 2014, the Company began utilizing its historical data regarding the Company’s activity as it relates to the expected life of stock options. The dividend yield is based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the foreseeable future. Stock-based compensation is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized amount of stock options expense totaled $823,508 as of June 30, 2015 which will be recognized over a weighted-average period of 1.2 years. Option transactions under the stock option plans during the six months ended June 30, 2015 were as follows: Number Weighted Average Exercise Price Outstanding as of January 1, 2015 3,997,695 $ 2.73 Granted during 2015 200,000 $ 2.07 Exercised (426,530 ) $ 1.58 Cancelled /expired (59,124 ) $ 1.82 Outstanding as of June 30, 2015 3,712,041 $ 2.74 Exercisable as of June 30, 2015 2,460,068 $ 3.05 In June 2015, the Company made its annual grant to the Board of Directors consisting of 200,000 options with an exercise price of $2.07 vesting monthly through May 2016. A total of 426,530 options were exercised on a cashless basis during the six months ended June 30, 2015 resulting in the net issuance of 96,594 shares. Cancellations for the six months ended June 30, 2015 were 31,624. Cancellations related to employee terminations except for 27,500 options which expired during the six months ended June 30, 2015. The weighted average remaining contractual life of the outstanding options as of June 30, 2015 was 6.7 years. The aggregate intrinsic value associated with the options outstanding and exercisable as of June 30, 2015 was $501,101 and $228,886, respectively. The closing price of the Company’s common stock at June 30, 2015 was $1.79 per share. Stock Warrants There were 4,050,000 warrants outstanding and exercisable at June 30, 2015 with a weighted average exercise price of $1.31 per share. The weighted average remaining contractual life of the warrants was 6.2 years. The aggregate intrinsic value associated with the warrants outstanding and exercisable as of June 30, 2015 was $3,408,000. The closing price of the Company’s common stock at June 30, 2015 was $1.79 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 market price of the Company’s common stock on the date of exercise. |
Note 9 - Employee Stock Purchas
Note 9 - Employee Stock Purchase Plan | 6 Months Ended |
Jun. 30, 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 124,458 shares have been issued to date and 75,542 shares are available for future issuance. During the three and six months ended June 30, 2015, a total of 6,791 and 12,878 shares were issued under the ESPP Plan with a fair value of $12,156 and $25,303, respectively. The Company recognized $1,833 and $3,781 of stock-based compensation related to the 15% discount for the three and six months ended June 30, 2015, respectively. The Company recognized $1,882 and $3,801 of stock-based compensation related to the 15% discount for the three and six months ended June 30, 2014, respectively. |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurement | 6 Months Ended |
Jun. 30, 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 June 30, 2015. Total Carrying Value Quoted prices in active markets Significant Significant June 30, 2015 $ 26,117,134 $ 26,117,134 $ - $ - December 31, 2014 $ 38,027,509 $ 38,027,509 $ - $ - |
Note 11 - Net Loss Per Common S
Note 11 - Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 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 the inclusion of 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 June 30, 2015 would dilute earnings per share if the Company becomes profitable in the future. The exercise of these stock options and warrants could potentially generate proceeds up to approximately $16 million if exercised by the holder for cash. Stock options 3,712,041 Warrants 2,850,000 Total 6,562,041 |
Note 12 - Commitments
Note 12 - Commitments | 6 Months Ended |
Jun. 30, 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 April 2025. 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 June 30, 2015, total future operating lease obligations were as follows: Remainder of 2015 $ 10,779,421 2016 19,342,274 2017 13,801,840 2018 6,395,904 2019 2,842,743 Thereafter 1,047,538 $ 54,209,720 Rent expenses were as follows: Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Points of Presence $ 2,009,366 $ 1,948,102 $ 4,095,064 $ 3,793,348 Street level rooftops 3,397,290 3,263,423 6,858,788 6,392,916 Corporate offices 96,669 84,109 188,861 168,219 Other 100,605 95,219 188,940 185,717 $ 5,603,930 $ 5,390,853 $ 11,331,653 $ 10,540,200 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 June 2018. As of June 30, 2015, total future capital lease obligations were as follows: Remainder of 2015 $ 631,822 2016 1,110,428 2017 837,811 2018 143,796 $ 2,723,857 Less: interest expense 276,530 Total capital lease obligations $ 2,447,327 Current $ 1,014,911 Long-term $ 1,432,416 Other Under the terms of a one year information technology support agreement, the Company is making quarterly payments of approximately $68,000 through the first quarter of 2016. |
Note 13 - Segment Information
Note 13 - Segment Information | 6 Months Ended |
Jun. 30, 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 June 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 7,080,474 $ 826,226 $ - $ (49,567 ) $ 7,857,133 Operating Expenses Cost of revenues (exclusive of depreciation) 2,683,920 3,672,380 12,804 (49,567 ) 6,319,537 Depreciation and amortization 2,175,665 1,015,859 217,589 - 3,409,113 Customer support services 360,919 196,226 775,088 - 1,332,233 Sales and marketing 1,427,790 43,299 77,391 - 1,548,480 General and administrative 180,565 95,189 2,152,399 - 2,428,153 Total Operating Expenses 6,828,859 5,022,953 3,235,271 (49,567 ) 15,037,516 Operating Income (Loss) $ 251,615 $ (4,196,727 ) $ (3,235,271 ) $ - $ (7,180,383 ) Capital expenditures $ 2,422,143 $ 56,223 $ 57,181 $ - $ 2,535,547 Three Months Ended June 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 7,572,447 $ 738,370 $ - $ (45,969 ) $ 8,264,848 Operating Expenses Cost of revenues (exclusive of depreciation) 2,620,460 3,513,341 14,081 (45,969 ) 6,101,913 Depreciation and amortization 2,080,501 977,960 222,601 - 3,281,062 Customer support services 271,591 178,774 700,540 - 1,150,905 Sales and marketing 1,252,124 62,862 84,103 - 1,399,089 General and administrative 202,053 157,636 2,307,308 - 2,666,997 Total Operating Expenses 6,426,729 4,890,573 3,328,633 (45,969 ) 14,599,966 Operating Income (Loss) $ 1,145,718 $ (4,152,203 ) $ (3,328,633 ) $ - $ (6,335,118 ) Capital expenditures $ 1,403,404 $ 490,399 $ 204,334 $ - $ 2,098,137 Six Months Ended June 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 14,298,205 $ 1,613,854 $ - $ (94,831 ) $ 15,817,228 Operating Expenses Cost of revenues (exclusive of depreciation) 5,405,816 7,378,763 30,156 (94,831 ) 12,719,904 Depreciation and amortization 4,302,453 2,047,369 438,674 - 6,788,496 Customer support services 687,007 356,361 1,530,344 - 2,573,712 Sales and marketing 2,638,075 86,911 151,924 - 2,876,910 General and administrative 300,894 203,533 4,792,964 - 5,297,391 Total Operating Expenses 13,334,245 10,072,937 6,944,062 (94,831 ) 30,256,413 Operating Income (Loss) $ 963,960 $ (8,459,083 ) $ (6,944,062 ) $ - $ (14,439,185 ) Capital expenditures $ 3,856,210 $ 174,693 $ 178,230 $ - $ 4,209,133 As of June 30, 201 5 Property and equipment, net $ 20,977,133 $ 8,694,622 $ 1,850,304 $ - $ 31,522,059 Total assets $ 25,486,114 $ 10,789,654 $ 30,909,661 $ - $ 67,185,429 Six Months Ended June 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 15,257,973 $ 1,478,719 $ - $ (91,938 ) $ 16,644,754 Operating Expenses Cost of revenues (exclusive of depreciation) 5,119,152 6,902,292 28,350 (91,938 ) 11,957,856 Depreciation and amortization 4,618,374 1,918,898 439,205 - 6,976,477 Customer support services 543,736 354,964 1,427,970 - 2,326,670 Sales and marketing 2,515,261 139,612 165,815 - 2,820,688 General and administrative 310,479 304,164 4,730,294 - 5,344,937 Total Operating Expenses 13,107,002 9,619,930 6,791,634 (91,938 ) 29,426,628 Operating Income (Loss) $ 2,150,971 $ (8,141,211 ) $ (6,791,634 ) $ - $ (12,781,874 ) Capital expenditures $ 2,889,854 $ 1,428,452 $ 317,188 $ - $ 4,635,494 As of June 30, 2014 Property and equipment, net $ 21,966,834 $ 12,377,471 $ 2,492,402 $ - $ 36,836,707 Total assets $ 27,442,263 $ 14,839,751 $ 19,888,452 $ - $ 62,170,466 |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 14. Subsequent Events In the third quarter of 2015, the Company's wholly owned subsidiary, Hetnets Tower Corporation ("Hetnets"), signed contracts with a leading carrier for the colocation of small cell equipment on Hetnets' wireless infrastructure. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation. 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. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk . |
Receivables, Policy [Policy Text Block] | Accounts Receivable Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Beginning of period $ 71,343 $ 65,719 $ 59,273 $ 81,009 Additions 70,000 107,000 100,000 117,000 Deductions (23,595 ) (10,856 ) (41,525 ) (36,146 ) End of period $ 117,748 $ 161,863 $ 117,748 $ 161,863 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Intrinsic Value of Stock Options and Warrants |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. 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. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Note 2 - Summary of Significa22
Note 2 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts Receivable [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Beginning of period $ 71,343 $ 65,719 $ 59,273 $ 81,009 Additions 70,000 107,000 100,000 117,000 Deductions (23,595 ) (10,856 ) (41,525 ) (36,146 ) End of period $ 117,748 $ 161,863 $ 117,748 $ 161,863 |
Note 3 - Property and Equipme23
Note 3 - Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | June 30, 2015 December 31, 2014 Network and base station equipment $ 37,820,584 $ 35,836,469 Customer premise equipment 28,574,798 26,511,691 Shared wireless infrastructure 21,027,870 21,044,189 Information technology 4,739,136 4,628,555 Furniture, fixtures and other 1,713,580 1,669,340 Leasehold improvements 1,622,802 1,599,393 95,498,770 91,289,637 Less: accumulated depreciation 63,976,711 57,384,351 Property and equipment, net $ 31,522,059 $ 33,905,286 |
Schedule of Capital Leased Assets [Table Text Block] | June 30 , 201 5 December 31, 201 4 Network and base station equipment $ 1,390,593 $ 1,003,875 Shared wireless infrastructure 1,230,305 1,230,305 Customer premise equipment 669,792 246,484 Information technology 1,860,028 1,860,028 5,150,718 4,340,692 Less: accumulated depreciation 2,599,896 2,135,534 Property acquired through capital leases, net $ 2,550,822 $ 2,205,158 |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | June 30, 2015 December 31, 2014 Goodwill $ 1,674,281 $ 1,674,281 Customer relationships $ 11,856,127 $ 11,856,127 Less: accumulated amortization of customer relationships 11,136,960 10,940,824 Customer relationships, net 719,167 915,303 FCC licenses 1,284,555 1,284,555 Intangible assets, net $ 2,003,722 $ 2,199,858 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of 2015 $ 196,136 2016 392,272 2017 130,759 $ 719,167 |
Note 5 - Accrued Expenses (Tabl
Note 5 - Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2015 December 31, 2014 Payroll and related $ 1,195,878 $ 726,917 Professional services 352,839 256,534 Property and equipment 317,393 524,280 Other 302,340 280,413 Network 224,828 187,440 Marketing 80,999 63,112 Total $ 2,474,277 $ 2,038,696 |
Note 6 - Other Liabilities (Tab
Note 6 - Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities [Table Text Block] | June 30, 2015 December 31, 2014 Current Deferred rent $ 59,690 $ 46,058 Deferred acquisition payments 6,033 11,184 Total $ 65,723 $ 57,242 Long-Term Deferred rent $ 1,498,019 $ 1,373,163 Deferred acquisition payments - 341 Deferred taxes 401,337 401,337 Total $ 1,899,356 $ 1,774,841 |
Note 8 - Stock Options and Wa27
Note 8 - Stock Options and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Risk-free interest rate 1.6 % 1.6 % 1.6 % 1.6 % Expected volatility 59 % 47 % 59 % 47 % Expected life (in years) 4.1 5.3 4.1 5.3 Expected dividend yield - - - - Weighted average per share grant date fair value $ 0.95 $ 0.84 $ 0.95 $ 0.84 Stock-based compensation $ 209,089 $ 260,882 $ 418,298 $ 551,233 |
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 200,000 $ 2.07 Exercised (426,530 ) $ 1.58 Cancelled /expired (59,124 ) $ 1.82 Outstanding as of June 30, 2015 3,712,041 $ 2.74 Exercisable as of June 30, 2015 2,460,068 $ 3.05 |
Note 10 - Fair Value Measurem28
Note 10 - Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Total Carrying Value Quoted prices in active markets Significant Significant June 30, 2015 $ 26,117,134 $ 26,117,134 $ - $ - December 31, 2014 $ 38,027,509 $ 38,027,509 $ - $ - |
Note 11 - Net Loss Per Common29
Note 11 - Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Stock options 3,712,041 Warrants 2,850,000 Total 6,562,041 |
Note 12 - Commitments (Tables)
Note 12 - Commitments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Remainder of 2015 $ 10,779,421 2016 19,342,274 2017 13,801,840 2018 6,395,904 2019 2,842,743 Thereafter 1,047,538 $ 54,209,720 |
Schedule of Rent Expense [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Points of Presence $ 2,009,366 $ 1,948,102 $ 4,095,064 $ 3,793,348 Street level rooftops 3,397,290 3,263,423 6,858,788 6,392,916 Corporate offices 96,669 84,109 188,861 168,219 Other 100,605 95,219 188,940 185,717 $ 5,603,930 $ 5,390,853 $ 11,331,653 $ 10,540,200 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Remainder of 2015 $ 631,822 2016 1,110,428 2017 837,811 2018 143,796 $ 2,723,857 Less: interest expense 276,530 Total capital lease obligations $ 2,447,327 Current $ 1,014,911 Long-term $ 1,432,416 |
Note 13 - Segment Information (
Note 13 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 7,080,474 $ 826,226 $ - $ (49,567 ) $ 7,857,133 Operating Expenses Cost of revenues (exclusive of depreciation) 2,683,920 3,672,380 12,804 (49,567 ) 6,319,537 Depreciation and amortization 2,175,665 1,015,859 217,589 - 3,409,113 Customer support services 360,919 196,226 775,088 - 1,332,233 Sales and marketing 1,427,790 43,299 77,391 - 1,548,480 General and administrative 180,565 95,189 2,152,399 - 2,428,153 Total Operating Expenses 6,828,859 5,022,953 3,235,271 (49,567 ) 15,037,516 Operating Income (Loss) $ 251,615 $ (4,196,727 ) $ (3,235,271 ) $ - $ (7,180,383 ) Capital expenditures $ 2,422,143 $ 56,223 $ 57,181 $ - $ 2,535,547 Three Months Ended June 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 7,572,447 $ 738,370 $ - $ (45,969 ) $ 8,264,848 Operating Expenses Cost of revenues (exclusive of depreciation) 2,620,460 3,513,341 14,081 (45,969 ) 6,101,913 Depreciation and amortization 2,080,501 977,960 222,601 - 3,281,062 Customer support services 271,591 178,774 700,540 - 1,150,905 Sales and marketing 1,252,124 62,862 84,103 - 1,399,089 General and administrative 202,053 157,636 2,307,308 - 2,666,997 Total Operating Expenses 6,426,729 4,890,573 3,328,633 (45,969 ) 14,599,966 Operating Income (Loss) $ 1,145,718 $ (4,152,203 ) $ (3,328,633 ) $ - $ (6,335,118 ) Capital expenditures $ 1,403,404 $ 490,399 $ 204,334 $ - $ 2,098,137 Six Months Ended June 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 14,298,205 $ 1,613,854 $ - $ (94,831 ) $ 15,817,228 Operating Expenses Cost of revenues (exclusive of depreciation) 5,405,816 7,378,763 30,156 (94,831 ) 12,719,904 Depreciation and amortization 4,302,453 2,047,369 438,674 - 6,788,496 Customer support services 687,007 356,361 1,530,344 - 2,573,712 Sales and marketing 2,638,075 86,911 151,924 - 2,876,910 General and administrative 300,894 203,533 4,792,964 - 5,297,391 Total Operating Expenses 13,334,245 10,072,937 6,944,062 (94,831 ) 30,256,413 Operating Income (Loss) $ 963,960 $ (8,459,083 ) $ (6,944,062 ) $ - $ (14,439,185 ) Capital expenditures $ 3,856,210 $ 174,693 $ 178,230 $ - $ 4,209,133 As of June 30, 201 5 Property and equipment, net $ 20,977,133 $ 8,694,622 $ 1,850,304 $ - $ 31,522,059 Total assets $ 25,486,114 $ 10,789,654 $ 30,909,661 $ - $ 67,185,429 Six Months Ended June 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 15,257,973 $ 1,478,719 $ - $ (91,938 ) $ 16,644,754 Operating Expenses Cost of revenues (exclusive of depreciation) 5,119,152 6,902,292 28,350 (91,938 ) 11,957,856 Depreciation and amortization 4,618,374 1,918,898 439,205 - 6,976,477 Customer support services 543,736 354,964 1,427,970 - 2,326,670 Sales and marketing 2,515,261 139,612 165,815 - 2,820,688 General and administrative 310,479 304,164 4,730,294 - 5,344,937 Total Operating Expenses 13,107,002 9,619,930 6,791,634 (91,938 ) 29,426,628 Operating Income (Loss) $ 2,150,971 $ (8,141,211 ) $ (6,791,634 ) $ - $ (12,781,874 ) Capital expenditures $ 2,889,854 $ 1,428,452 $ 317,188 $ - $ 4,635,494 As of June 30, 2014 Property and equipment, net $ 21,966,834 $ 12,377,471 $ 2,492,402 $ - $ 36,836,707 Total assets $ 27,442,263 $ 14,839,751 $ 19,888,452 $ - $ 62,170,466 |
Note 1 - Organization and Nat32
Note 1 - Organization and Nature of Business (Details) | 1 Months Ended |
Aug. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Master Licensing Agreement, Term | 25 years |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies (Details) | Jun. 30, 2015USD ($) |
Accounting Policies [Abstract] | |
Cash, Uninsured Amount | $ 25,596,000 |
Cash, FDIC Insured Amount | $ 250,000 |
Note 2 - Summary of Significa34
Note 2 - Summary of Significant Accounting Policies (Details) - Changes in Allowance for Doubtful Accounts - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in Allowance for Doubtful Accounts [Abstract] | ||||
Beginning of period | $ 71,343 | $ 65,719 | $ 59,273 | $ 81,009 |
Additions | 70,000 | 107,000 | 100,000 | 117,000 |
Deductions | (23,595) | (10,856) | (41,525) | (36,146) |
End of period | $ 117,748 | $ 161,863 | $ 117,748 | $ 161,863 |
Note 3 - Property and Equipme35
Note 3 - Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 3,311,045 | $ 3,173,255 | $ 6,592,360 | $ 6,283,644 |
Note 3 - Property and Equipme36
Note 3 - Property and Equipment (Details) - Property and Equipment - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | $ 95,498,770 | $ 91,289,637 | |
Less: accumulated depreciation | 63,976,711 | 57,384,351 | |
Property and equipment, net | 31,522,059 | 33,905,286 | $ 36,836,707 |
Network and Base Station Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 37,820,584 | 35,836,469 | |
Customer Premise Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 28,574,798 | 26,511,691 | |
Shared Wireless Infrastructure [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 21,027,870 | 21,044,189 | |
Information Technology [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 4,739,136 | 4,628,555 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 1,713,580 | 1,669,340 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | $ 1,622,802 | $ 1,599,393 |
Note 3 - Property and Equipme37
Note 3 - Property and Equipment (Details) - Property Acquired Through Capital Leases - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 5,150,718 | $ 4,340,692 |
Less: accumulated depreciation | 2,599,896 | 2,135,534 |
Property acquired through capital leases, net | 2,550,822 | 2,205,158 |
Network and Base Station Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 1,390,593 | 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 | 669,792 | 246,484 |
Information Technology [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 1,860,028 | $ 1,860,028 |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Note 4 - Intangible Assets (Details) [Line Items] | ||||
Amortization of Intangible Assets | $ 98,068 | $ 107,807 | $ 196,136 | $ 692,833 |
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 | 22 months |
Note 4 - Intangible Assets (D39
Note 4 - Intangible Assets (Details) - Intangible Assets - USD ($) | Jun. 30, 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 | 11,136,960 | 10,940,824 |
Customer relationships, net | 719,167 | 915,303 |
FCC licenses | 1,284,555 | 1,284,555 |
Intangible assets, net | $ 2,003,722 | $ 2,199,858 |
Note 4 - Intangible Assets (D40
Note 4 - Intangible Assets (Details) - Future Amortization Expense - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Future Amortization Expense [Abstract] | ||
Remainder of 2015 | $ 196,136 | |
2,016 | 392,272 | |
2,017 | 130,759 | |
$ 719,167 | $ 915,303 |
Note 5 - Accrued Expenses (Deta
Note 5 - Accrued Expenses (Details) - Accrued Expenses - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | $ 2,474,277 | $ 2,038,696 |
Payroll and Related [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 1,195,878 | 726,917 |
Professional Services [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 352,839 | 256,534 |
Property and Equipment [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 317,393 | 524,280 |
Other Accrued Liabilities [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 302,340 | 280,413 |
Network [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | 224,828 | 187,440 |
Marketing [Member] | ||
Note 5 - Accrued Expenses (Details) - Accrued Expenses [Line Items] | ||
Accrued Liabilities, Current | $ 80,999 | $ 63,112 |
Note 6 - Other Liabilities (Det
Note 6 - Other Liabilities (Details) - Jun. 30, 2015 - Delos Internet [Member] - USD ($) | Total |
Note 6 - Other Liabilities (Details) [Line Items] | |
Deferred Acquisition Payments, Gross | $ 6,033 |
Delos Interest Rate | 7.00% |
Note 6 - Other Liabilities (D43
Note 6 - Other Liabilities (Details) - Other Liabilities - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current | ||
Deferred rent | $ 59,690 | $ 46,058 |
Deferred acquisition payments | 6,033 | 11,184 |
Total | 65,723 | 57,242 |
Long-Term | ||
Deferred rent | 1,498,019 | 1,373,163 |
Deferred acquisition payments | 341 | |
Deferred taxes | 401,337 | 401,337 |
Total | $ 1,899,356 | $ 1,774,841 |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details) - USD ($) | Oct. 16, 2014 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Note 7 - Long-term Debt (Details) [Line Items] | ||||
Debt Instrument, Unamortized Discount | $ 2,594,452 | $ 2,594,452 | $ 3,194,147 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 1.31 | $ 1.31 | ||
Amortization of Financing Costs | $ 493,950 | |||
Deferred Finance Costs, Net | $ 2,136,969 | 2,136,969 | ||
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 | $ 1,050,000 | 775,404 | 775,404 | |
Interest Expense, Debt | $ 87,466 | $ 179,231 | ||
Paid-in-Kind Interest, Stated Rate | 4.00% | 4.00% | ||
Interest Paid | $ 720,892 | $ 1,426,803 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 3,600,000 | 3,600,000 | ||
Warrants and Rights Outstanding | $ 2,463,231 | $ 2,463,231 | ||
Amortization of Financing Costs | $ 241,051 | $ 493,950 | ||
Melody Business Finance, LLC [Member] | Secured Debt [Member] | If Rate is Greater than LIBOR Rate [Member] | ||||
Note 7 - Long-term Debt (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||
Melody Business Finance, LLC [Member] | Secured Debt [Member] | First Two-thirds of Shares Under Warrants [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 | $ 1.26 | ||
Melody Business Finance, LLC [Member] | Secured Debt [Member] | Remaining One-Third of Shares Under Warrants [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 | 1,200,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 0.01 | $ 0.01 | ||
Melody Business Finance, LLC [Member] | Secured Debt [Member] | Warrant [Member] | ||||
Note 7 - Long-term Debt (Details) [Line Items] | ||||
Interest Expense, Debt | $ 205,190 | |||
Melody Business Finance, LLC [Member] | Secured Debt [Member] | Interest Expense [Member] | ||||
Note 7 - Long-term Debt (Details) [Line Items] | ||||
Paid-in-Kind Interest | 360,446 | $ 713,402 | ||
Melody Business Finance, LLC [Member] | Other Assets [Member] | Secured Debt [Member] | ||||
Note 7 - Long-term Debt (Details) [Line Items] | ||||
Debt Issuance Cost | $ 2,900,000 | |||
Melody Business Finance, LLC [Member] | Warrant [Member] | Secured Debt [Member] | ||||
Note 7 - Long-term Debt (Details) [Line Items] | ||||
Debt Instrument, Unamortized Discount | $ 1,819,048 | 1,819,048 | ||
Interest Expense, Debt | $ 420,464 | |||
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% |
Note 8 - Stock Options and Wa45
Note 8 - Stock Options and Warrants (Details) - Jun. 30, 2015 - USD ($) | Total | Total |
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 426,530 | |
Stock Issued During Period Shares Stock Options Exercised Net of Shares in Lieu of Cash | 96,594 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 31,624 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 27,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 255 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | $ 501,101 | $ 501,101 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | $ 228,886 | $ 228,886 |
Class of Warrant or Right, Outstanding | 4,050,000 | 4,050,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 1.31 | $ 1.31 |
Class of Warrant or Right, Warrants Exercisable, Weighted Average Remaining Contractual Life | 6 years 73 days | |
Share Price (in Dollars per share) | $ 1.79 | $ 1.79 |
Board of Directors [Member] | ||
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $ 2.07 | $ 2.07 |
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 (in Dollars) | $ 3,408,000 | $ 3,408,000 |
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 (in Dollars) | $ 823,508 | $ 823,508 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 73 days | |
Cashless Exercise of Options [Member] | ||
Note 8 - Stock Options and Warrants (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 426,530 |
Note 8 - Stock Options and Wa46
Note 8 - Stock Options and Warrants (Details) - Black-Scholes Option Pricing Model Assumptions - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Black-Scholes Option Pricing Model Assumptions [Abstract] | ||||
Risk-free interest rate | 1.60% | 1.60% | 1.60% | 1.60% |
Expected volatility | 59.00% | 47.00% | 59.00% | 47.00% |
Expected life (in years) | 4 years 36 days | 5 years 109 days | 4 years 36 days | 5 years 109 days |
Weighted average per share grant date fair value (in Dollars per share) | $ 0.95 | $ 0.84 | $ 0.95 | $ 0.84 |
Stock-based compensation (in Dollars) | $ 209,089 | $ 260,882 | $ 418,298 | $ 551,233 |
Note 8 - Stock Options and Wa47
Note 8 - Stock Options and Warrants (Details) - Option Transactions Under the Stock Option Plans - Jun. 30, 2015 - $ / shares | Total |
Option Transactions Under the Stock Option Plans [Abstract] | |
Outstanding | 3,997,695 |
Weighted average exercise price | $ 2.73 |
Exercisable as of June 30, 2015 | 2,460,068 |
Exercisable as of June 30, 2015 | $ 3.05 |
Granted during 2015 | 200,000 |
Granted during 2015 | $ 2.07 |
Exercised | (426,530) |
Exercised | $ 1.58 |
Cancelled /expired | (59,124) |
Cancelled /expired | $ 1.82 |
Outstanding | 3,712,041 |
Weighted average exercise price | $ 2.74 |
Note 9 - Employee Stock Purch48
Note 9 - Employee Stock Purchase Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 54 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | |
Note 9 - Employee Stock Purchase Plan (Details) [Line Items] | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 25,303 | ||||
Allocated Share-based Compensation Expense | $ 209,089 | $ 260,882 | $ 418,298 | $ 551,233 | |
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 (in Shares) | 200,000 | 200,000 | 200,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares) | 6,791 | 12,878 | 124,458 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 75,542 | 75,542 | 75,542 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 12,156 | $ 25,303 | |||
Allocated Share-based Compensation Expense | $ 1,833 | $ 1,882 | $ 3,781 | $ 3,801 |
Note 10 - Fair Value Measurem49
Note 10 - Fair Value Measurement (Details) - Fair Value of Assets and Liabilities - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Note 10 - Fair Value Measurement (Details) - Fair Value of Assets and Liabilities [Line Items] | ||
Cash and cash equivalents | $ 26,117,134 | $ 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 | $ 26,117,134 | $ 38,027,509 |
Note 11 - Net Loss Per Common50
Note 11 - Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2015 | Jun. 30, 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 | |
Secured Debt [Member] | Melody Business Finance, LLC [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 | |
Secured Debt [Member] | Melody Business Finance, LLC [Member] | Remaining One-Third of Shares Under Warrants [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 |
Note 11 - Net Loss Per Common51
Note 11 - Net Loss Per Common Share (Details) - Anti-dilutive Securities | 6 Months Ended |
Jun. 30, 2015shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 6,562,041 |
Employee Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities | 3,712,041 |
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 ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Feb. 28, 2014 | |
Note 12 - Commitments (Details) [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 5,603,930 | $ 5,390,853 | $ 11,331,653 | $ 10,540,200 | ||||
Information Technology Infrastructure Support Agreement, Term | 1 year | |||||||
Other Obligations Quarterly Payments | $ 68,000 | |||||||
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 | $ 96,669 | $ 84,109 | 188,861 | $ 168,219 | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | |||||||
Corporate Offices [Member] | Due in 2014 [Member] | ||||||||
Note 12 - Commitments (Details) [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 359,750 | |||||||
Corporate Offices [Member] | Due in 2019 [Member] | ||||||||
Note 12 - Commitments (Details) [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 416,970 | |||||||
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 | |||||||
Corporate Offices [Member] | ||||||||
Note 12 - Commitments (Details) [Line Items] | ||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||||
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 (Detail53
Note 12 - Commitments (Details) - Total Future Operating Lease Obligations | Jun. 30, 2015USD ($) |
Total Future Operating Lease Obligations [Abstract] | |
Remainder of 2015 | $ 10,779,421 |
2,016 | 19,342,274 |
2,017 | 13,801,840 |
2,018 | 6,395,904 |
2,019 | 2,842,743 |
Thereafter | 1,047,538 |
$ 54,209,720 |
Note 12 - Commitments (Detail54
Note 12 - Commitments (Details) - Rent Expenses - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||||
Lease and Rental Expense | $ 5,603,930 | $ 5,390,853 | $ 11,331,653 | $ 10,540,200 |
Points of Presence [Member] | ||||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||||
Lease and Rental Expense | 2,009,366 | 1,948,102 | 4,095,064 | 3,793,348 |
Street Level Rooftops [Member] | ||||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||||
Lease and Rental Expense | 3,397,290 | 3,263,423 | 6,858,788 | 6,392,916 |
Corporate Offices [Member] | ||||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||||
Lease and Rental Expense | 96,669 | 84,109 | 188,861 | 168,219 |
Other Leased Property [Member] | ||||
Note 12 - Commitments (Details) - Rent Expenses [Line Items] | ||||
Lease and Rental Expense | $ 100,605 | $ 95,219 | $ 188,940 | $ 185,717 |
Note 12 - Commitments (Detail55
Note 12 - Commitments (Details) - Total Future Capital Lease Obligations - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Total Future Capital Lease Obligations [Abstract] | ||
Remainder of 2015 | $ 631,822 | |
2,016 | 1,110,428 | |
2,017 | 837,811 | |
2,018 | 143,796 | |
2,723,857 | ||
Less: interest expense | 276,530 | |
Total capital lease obligations | 2,447,327 | |
Current | 1,014,911 | $ 845,668 |
Long-term | $ 1,432,416 | $ 1,285,858 |
Note 13 - Segment Information56
Note 13 - Segment Information (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 13 - Segment Information57
Note 13 - Segment Information (Details) - Segment Information - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 7,857,133 | $ 8,264,848 | $ 15,817,228 | $ 16,644,754 | |
Operating Expenses | |||||
Cost of revenues (exclusive of depreciation) | 6,319,537 | 6,101,913 | 12,719,904 | 11,957,856 | |
Depreciation and amortization | 3,409,113 | 3,281,062 | 6,788,496 | 6,976,477 | |
Customer support services | 1,332,233 | 1,150,905 | 2,573,712 | 2,326,670 | |
Sales and marketing | 1,548,480 | 1,399,089 | 2,876,910 | 2,820,688 | |
General and administrative | 2,428,153 | 2,666,997 | 5,297,391 | 5,344,937 | |
Total Operating Expenses | 15,037,516 | 14,599,966 | 30,256,413 | 29,426,628 | |
Operating Income (Loss) | (7,180,383) | (6,335,118) | (14,439,185) | (12,781,874) | |
Capital expenditures | 2,535,547 | 2,098,137 | 4,209,133 | 4,635,494 | |
As of June 30, 2015 | |||||
Property and equipment, net | 31,522,059 | 36,836,707 | 31,522,059 | 36,836,707 | $ 33,905,286 |
Total assets | 67,185,429 | 62,170,466 | 67,185,429 | 62,170,466 | $ 82,321,838 |
Corporate, Non-Segment [Member] | |||||
Operating Expenses | |||||
Cost of revenues (exclusive of depreciation) | 12,804 | 14,081 | 30,156 | 28,350 | |
Depreciation and amortization | 217,589 | 222,601 | 438,674 | 439,205 | |
Customer support services | 775,088 | 700,540 | 1,530,344 | 1,427,970 | |
Sales and marketing | 77,391 | 84,103 | 151,924 | 165,815 | |
General and administrative | 2,152,399 | 2,307,308 | 4,792,964 | 4,730,294 | |
Total Operating Expenses | 3,235,271 | 3,328,633 | 6,944,062 | 6,791,634 | |
Operating Income (Loss) | (3,235,271) | (3,328,633) | (6,944,062) | (6,791,634) | |
Capital expenditures | 57,181 | 204,334 | 178,230 | 317,188 | |
As of June 30, 2015 | |||||
Property and equipment, net | 1,850,304 | 2,492,402 | 1,850,304 | 2,492,402 | |
Total assets | 30,909,661 | 19,888,452 | 30,909,661 | 19,888,452 | |
Consolidation, Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (49,567) | (45,969) | (94,831) | (91,938) | |
Operating Expenses | |||||
Cost of revenues (exclusive of depreciation) | (49,567) | (45,969) | (94,831) | (91,938) | |
Total Operating Expenses | (49,567) | (45,969) | (94,831) | (91,938) | |
Fixed Wireless [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,080,474 | 7,572,447 | 14,298,205 | 15,257,973 | |
Operating Expenses | |||||
Cost of revenues (exclusive of depreciation) | 2,683,920 | 2,620,460 | 5,405,816 | 5,119,152 | |
Depreciation and amortization | 2,175,665 | 2,080,501 | 4,302,453 | 4,618,374 | |
Customer support services | 360,919 | 271,591 | 687,007 | 543,736 | |
Sales and marketing | 1,427,790 | 1,252,124 | 2,638,075 | 2,515,261 | |
General and administrative | 180,565 | 202,053 | 300,894 | 310,479 | |
Total Operating Expenses | 6,828,859 | 6,426,729 | 13,334,245 | 13,107,002 | |
Operating Income (Loss) | 251,615 | 1,145,718 | 963,960 | 2,150,971 | |
Capital expenditures | 2,422,143 | 1,403,404 | 3,856,210 | 2,889,854 | |
As of June 30, 2015 | |||||
Property and equipment, net | 20,977,133 | 21,966,834 | 20,977,133 | 21,966,834 | |
Total assets | 25,486,114 | 27,442,263 | 25,486,114 | 27,442,263 | |
Shared Wireless Infrastructure [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 826,226 | 738,370 | 1,613,854 | 1,478,719 | |
Operating Expenses | |||||
Cost of revenues (exclusive of depreciation) | 3,672,380 | 3,513,341 | 7,378,763 | 6,902,292 | |
Depreciation and amortization | 1,015,859 | 977,960 | 2,047,369 | 1,918,898 | |
Customer support services | 196,226 | 178,774 | 356,361 | 354,964 | |
Sales and marketing | 43,299 | 62,862 | 86,911 | 139,612 | |
General and administrative | 95,189 | 157,636 | 203,533 | 304,164 | |
Total Operating Expenses | 5,022,953 | 4,890,573 | 10,072,937 | 9,619,930 | |
Operating Income (Loss) | (4,196,727) | (4,152,203) | (8,459,083) | (8,141,211) | |
Capital expenditures | 56,223 | 490,399 | 174,693 | 1,428,452 | |
As of June 30, 2015 | |||||
Property and equipment, net | 8,694,622 | 12,377,471 | 8,694,622 | 12,377,471 | |
Total assets | $ 10,789,654 | $ 14,839,751 | $ 10,789,654 | $ 14,839,751 |