Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 06, 2016 | |
Entity Registrant Name | TOWERSTREAM CORP | |
Entity Central Index Key | 1,349,437 | |
Trading Symbol | twer | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 66,999,325 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 9,640,720 | $ 15,116,531 |
Accounts receivable, net | 366,426 | 308,551 |
Prepaid expenses and other current assets | 864,281 | 474,029 |
Current assets of discontinued operations | $ 726,746 | 1,248,569 |
Current assets held for sale | 5,315,107 | |
Total Current Assets | $ 11,598,173 | 22,462,787 |
Property and equipment, net | 20,640,877 | 21,235,384 |
Intangible assets, net | 4,906,140 | 1,273,030 |
Goodwill | 1,674,281 | 1,674,281 |
Other assets | 375,306 | 384,357 |
Total Assets | 39,194,777 | 47,029,839 |
Current Liabilities | ||
Accounts payable | 508,030 | 877,134 |
Accrued expenses | 1,650,998 | 1,629,218 |
Deferred revenues | 1,210,828 | 1,486,754 |
Current | 1,003,951 | 992,690 |
Current liabilities of discontinued operations | 3,330,192 | 3,907,368 |
Deferred rent | 60,039 | 63,012 |
Total Current Liabilities | 7,764,038 | 8,956,176 |
Long-Term Liabilities | ||
Long-term debt, net of debt discount and deferred financing costs of $3,293,017 and $3,744,941, respectively | 33,827,458 | 33,003,962 |
Long-term | 677,827 | 932,826 |
Other | 1,046,002 | 1,591,188 |
Total Long-Term Liabilities | 35,551,287 | 35,527,976 |
Total Liabilities | $ 43,315,325 | $ 44,484,152 |
Commitments (Note 14) | ||
Stockholders' Equity (Deficit) | ||
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued | ||
Common stock, par value $0.001; 200,000,000 and 95,000,000 shares authorized, respectively; 66,999,325 and 66,810,149 shares issued and outstanding, respectively | $ 66,999 | $ 66,810 |
Additional paid-in-capital | 159,024,504 | 158,697,608 |
Accumulated deficit | (163,212,051) | (156,218,731) |
Total Stockholders' Equity/(Deficit) | (4,120,548) | 2,545,687 |
Total Liabilities and Stockholders' Equity | $ 39,194,777 | $ 47,029,839 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt discount | $ 3,293,017 | $ 3,744,941 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 95,000,000 |
Common stock, shares issued (in shares) | 66,999,325 | 66,810,149 |
Common stock, shares oustanding (in shares) | 66,999,325 | 66,810,149 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | $ 6,734,090 | $ 7,172,467 |
Operating Expenses | ||
Infrastructure and access | 2,551,727 | 2,498,971 |
Depreciation and amortization | 2,527,647 | 2,347,873 |
Network operations | 1,291,188 | 1,334,432 |
Customer support | 543,191 | 672,883 |
Sales and marketing | 1,494,920 | 1,330,682 |
General and administrative | 1,979,792 | 1,984,072 |
Total Operating Expenses | 10,388,465 | 10,168,913 |
Operating Loss | (3,654,375) | (2,996,446) |
Other Income/(Expense) | ||
Interest expense, net | (1,607,120) | (1,664,264) |
Total Other Income/(Expense) | (1,607,120) | (1,664,264) |
Loss from continuing operations | (5,261,495) | (4,660,710) |
Loss from discontinued operations | ||
Operating loss | (2,909,567) | $ (4,262,356) |
Gain on sale of assets | 1,177,742 | |
Total | (1,731,825) | $ (4,262,356) |
Net Loss | $ (6,993,320) | $ (8,923,066) |
(Loss) gain per share – basic and diluted | ||
Continuing (in dollars per share) | $ (0.08) | $ (0.07) |
Discontinued | ||
Operating (in dollars per share) | (0.04) | $ (0.06) |
Non-operating (in dollars per share) | 0.02 | |
Total (in dollars per share) | (0.02) | $ (0.06) |
Net loss per common share – basic and diluted (in dollars per share) | $ (0.10) | $ (0.13) |
Weighted average common shares outstanding – basic and diluted (in shares) | 68,050,808 | 67,856,789 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 66,810,149 | |||
Balance at Dec. 31, 2015 | $ 66,810 | $ 158,697,608 | $ (156,218,731) | $ 2,545,687 |
Issuance of common stock for consulting services (in shares) | 100,000 | |||
Issuance of common stock for consulting services | $ 100 | 19,900 | 20,000 | |
Issuance of common stock under employee stock purchase plan (in shares) | 89,176 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 89 | 10,611 | 10,700 | |
Stock-based compensation for options (in shares) | ||||
Stock-based compensation for options | 296,385 | 296,385 | ||
Net loss | $ (6,993,320) | (6,993,320) | ||
Balance (in shares) at Mar. 31, 2016 | 66,999,325 | |||
Balance at Mar. 31, 2016 | $ 66,999 | $ 159,024,504 | $ (163,212,051) | $ (4,120,548) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Backhaul Agreement [Member] | ||
Supplemental Disclosures of Cash Flow Information | ||
Fair value of backhaul agreement acquired | $ 3,837,783 | |
Net loss | (6,993,320) | $ (8,923,066) |
Loss from discontinued operations | 1,731,825 | 4,262,356 |
Loss from continuing operations | $ (5,261,495) | (4,660,710) |
Provision for doubtful accounts | 30,000 | |
Depreciation for property, plant and equipment | $ 2,322,974 | 2,249,805 |
Amortization for intangible assets | 204,673 | 98,068 |
Amortization for debt issuance costs | 204,114 | 252,899 |
Amortization for debt discount | 247,810 | 307,040 |
Accrued interest | 371,572 | $ 352,956 |
Loss on property and equipment | 528,364 | |
Stock-based compensation | 318,169 | $ 211,157 |
Deferred rent | (548,161) | 90,649 |
Accounts receivable | (57,875) | (93,434) |
Prepaid expenses and other current assets | (390,252) | (473,830) |
Other assets | (6,588) | 7,173 |
Accounts payable | (369,104) | 139,439 |
Accrued expenses | 51,203 | 493,534 |
Deferred revenues | (275,926) | 139 |
Total Adjustments | 2,600,973 | 3,665,595 |
Net Cash Used In Continuing Operating Activities | (2,660,522) | (995,115) |
Net Cash Used In Discontinued Operating Activities | (2,094,260) | (2,895,703) |
Net Cash Used In Operating Activities | (4,754,782) | (3,890,818) |
Acquisitions of property and equipment | (625,976) | (1,533,227) |
Change in security deposits | $ 15,639 | (4,200) |
Deferred acquisition payments | (2,723) | |
Net Cash Used In Continuing Investing Activities | $ (610,337) | (1,540,150) |
Net Cash Provided By (Used In) Discontinued Investing Activities | 124,130 | (117,470) |
Net Cash Used In Investing Activities | (486,207) | (1,657,620) |
Repayment of capital leases | (243,738) | (222,858) |
Issuance of common stock under employee stock purchase plan | 8,916 | 11,200 |
Net Cash Used In Continuing Financing Activities | $ (234,822) | $ (211,658) |
Net Cash Used In Discontinued Financing Activities | ||
Net Cash Used In Financing Activities | $ (234,822) | $ (211,658) |
Continuing Operations | (3,505,681) | (2,746,923) |
Discontinued Operations | (1,970,130) | (3,013,173) |
Net Decrease In Cash and Cash Equivalents | (5,475,811) | (5,760,096) |
Cash and Cash Equivalents – Beginning | 15,116,531 | 38,027,509 |
Cash and Cash Equivalents – Ending | 9,640,720 | 32,267,413 |
Interest | 778,971 | 768,520 |
Taxes | $ 11,780 | 21,900 |
Under capital leases | 49,380 | |
Included in accrued expenses | $ 148,712 | $ 496,789 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
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”), to operate a new business designed to leverage its fixed wireless network in urban markets to provide other wireless technology solutions and services. Hetnets built a carrier-class network which offered a shared wireless infrastructure platform, primarily for (i) co-location of customer owned antenna and related equipment and (ii) Wi-Fi access and offloading. The Company referred to this as its “Shared Wireless Infrastructure” or “Shared Wireless” business. During the fourth quarter of 2015, the Company determined to exit this business and curtailed activities in its smaller markets. The remaining network, located in New York City (or “NYC”), was the largest and had a lease access contract with a major cable company. As a result, the Company explored opportunities during the fourth quarter of 2015 and continuing into the first quarter of 2016 to sell the New York City network. On March 9, 2016, the Company completed a sale and transfer of certain assets pursuant to an Asset Purchase Agreement (the "Agreement") with a large cable company (the "Buyer"). Under the terms of the Agreement, the Buyer assumed certain rooftop leases and acquired ownership of and the right to operate the Wi-Fi access point and related equipment associated with such leases. The Company retained ownership of all backhaul and related equipment, and the parties entered into an agreement under which the Company provides backhaul services to the Buyer. The agreement is for a three year period with two, one year renewals and is cancellable by the Buyer on sixty days’ notice. During the first quarter of 2016, the Company determined that it would not be able to sell the remainder of the New York City network, and accordingly, all remaining assets were redeployed into the fixed wireless network or written off. The operating results and cash flows for Hetnets have been reclassified and presented as discontinued operating results for all periods presented in these condensed consolidated financial statements. |
Note 2 - Liquidity and Manageme
Note 2 - Liquidity and Management Plans | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Liquidity and Management Plans [Text Block] | Note 2. Liquidity and Management Plans The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of March 31, 2016, the Company had cash and cash equivalents of approximately $9.6 million and working capital of approximately $3.8 million. The Company incurred significant operating losses since inception and continues to generate losses from operations and as of March 31, 2016, the Company has an accumulated deficit of $163.2 million. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Historically, the Company has financed its operation through private and public placement of equity securities, as well as debt financing and capital leases. The Company’s ability to fund its longer term cash requirements is subject to multiple risks, many of which are beyond its control. The Company intends to raise additional capital, either through debt or equity financings or through the potential sale of the Company’s assets in order to achieve its business plan objectives. Management believes that it can be successful in obtaining additional capital; however, no assurance can be provided that the Company will be able to do so. There is no assurance that any funds raised will be sufficient to enable the Company to attain profitable operations or continue as a going concern. To the extent that the Company is unsuccessful, the Company may need to curtail or cease its operations and implement a plan to extend payables or reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3. 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, 2015. 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, 2015, and updated, as necessary, in this Quarterly Report on Form 10-Q. Use of Estimates. - Concentration of Credit Risk . Accounts Receivable Three Months Ended March 31, 201 6 201 5 Beginning of period $ 92,864 $ 59,273 Additions - 30,000 Deductions (10,915 ) (17,930 ) End of period $ 81,949 $ 71,343 Revenue Recognition. Deferred Revenues. Intrinsic Value of Stock Options and Warrants Reclassifications. Segments Subsequent Events |
Note 4 - Discontinued Operation
Note 4 - Discontinued Operations | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4 . Discontinued Operations During the fourth quarter of 2015, the Company determined to exit the business conducted by Hetnets and curtailed activities in its smaller markets. The remaining network, located in New York City (or “NYC”), was the largest and had a lease access contract with a major cable company. As a result, the Company explored opportunities during the fourth quarter of 2015 and continuing into the first quarter of 2016 to sell the New York City network. On March 9, 2016, the Company completed a sale and transfer of certain assets pursuant to an Asset Purchase Agreement (the "Agreement") with a large cable company (the "Buyer"). Under the terms of the Agreement, the Buyer assumed certain rooftop leases and acquired ownership of and the right to operate the Wi-Fi access point and related equipment associated with such leases. The Company retained ownership of all backhaul and related equipment, and the parties entered into an agreement under which the Company provides backhaul services to the Buyer. The agreement is for a three year period with two, one year renewals and is cancellable by the Buyer on sixty days’ notice. The Company recognized a gain of $1,177,742 as the net present value of the backhaul agreement of $3,837,783, which has been recorded as an intangible asset, exceeded the net book value of the network assets transferred to the Buyer which totaled $2,660,041. - The Company has determined that it will not be able to sell the remaining network locations in New York City. As a result, the Company recognized charges totaling $1,585,319 in the first quarter of 2016 which included $453,403 representing the estimated cost to settle lease obligations, $528,364 to write off network assets which could not be redeployed into the fixed wireless network, $110,500 related to security deposits which are not expected to be recovered, and $493,052 related to the accelerated expensing of deferred acquisition costs. These costs were partially offset by a $1,244,284 reduction in the accrual for terminated lease obligations that was recorded in the fourth quarter of 2015. This reduction reflects the outcome of settlements negotiated in the first quarter of 2016 with certain landlords. The operating results and cash flows for Hetnets have been reclassified and presented as discontinued operations in these condensed consolidated financial statements for all periods presented. Discontinued Operations A more detailed presentation of loss from discontinued operations is set forth below. There has been no allocation of consolidated interest expense to discontinued operations. Three Months Ended March 31 , 2016 2015 Revenues $ 553,302 $ 787,628 Operating expenses: Infrastructure and access 2,523,222 3,697,156 Depreciation 638,681 1,031,510 Network operations 183,583 195,394 Customer support services 69,804 82,312 Sales and marketing 246 43,612 General and administrative 47,333 - Total operating expenses 3,462,869 5,049,984 Net operating loss (2,909,567 ) (4,262,356 ) Gain on sale of assets 1,177,742 - Net Loss $ (1,731,825 ) $ (4,262,356 ) The components of the balance sheet accounts presented as discontinued operations were as follows: March 31, 2016 December 31, 2015 Assets: Accounts receivable, net $ 494,768 $ 715,993 Prepaid expenses and other current assets - 278,891 Deferred acquisitions costs - 253,685 Security deposits 231,978 - Total Current Assets $ 726,746 $ 1,248,569 Liabilities: Accounts payable $ 806,606 $ 556,800 Accrued expenses 30,000 66,101 Accrued expenses - leases 2,493,586 3,284,467 Total Current Liabilities $ 3,330,192 $ 3,907,368 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5. Property and Equipment Property and equipment is comprised of: March 31, 2016 December 31, 2015 Network and base station equipment $ 40,467,952 $ 38,351,119 Customer premise equipment 33,578,392 30,910,874 Information technology 4,828,479 4,810,865 Furniture, fixtures and other 1,713,430 1,713,722 Leasehold improvements 1,625,910 1,623,559 82,214,163 77,410,139 Less: accumulated depreciation 61,573,286 56,174,755 Property and equipment, net $ 20,640,877 $ 21,235,384 TOWERSTREAM CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Property acquired through capital leases included within the Company’s property and equipment consists of the following: March 31 , 201 6 December 31, 201 5 Network and base station equipment $ 2,620,898 $ 2,620,898 Customer premise equipment 669,792 669,792 Information technology 1,860,028 1,860,028 5,150,718 5,150,718 Less: accumulated depreciation 3,372,504 3,114,968 Property acquired through capital leases, net $ 1,778,214 $ 2,035,750 |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6. Intangible Assets Intangible assets consist of the following: March 31, 2016 December 31, 2015 Customer relationships $ 11,856,126 $ 11,856,126 Backhaul agreement 3,837,783 - FCC licenses 750,000 750,000 16,443,909 12,606,126 Less: accumulated amortization of customer relationships 11,537,769 11,333,096 Intangible assets, net $ 4,906,140 $ 1,273,030 Amortization expense for the three months ended March 31, 2016 and 2015 was $204,673 and $98,068, respectively. The customer contracts acquired in the Delos acquisition are being amortized over a 50 month period in quarterly amounts of $98,068 ending April 2017. The backhaul agreement acquired in the Time Warner Cable (“TWC”) transaction is being amortized over a 36 month period in quarterly amounts of $319,815 ending in March 2019. The TWC transaction closed in March 2016 so only a partial quarterly expense of $106,605 was recognized in the quarter ended March 31, 2016. The Company’s licenses with the Federal Communications Commission (the “FCC”) are not subject to amortization as they have an indefinite useful life. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Accrued Liabilities Disclosure [Text Block] | Note 7. Accrued Expenses Accrued expenses consist of the following: March 31, 2016 December 31, 2015 Payroll and related $ 717,613 $ 551,448 Professional services 403,444 427,932 Other 317,388 339,680 Property and equipment 148,712 176,614 Network 63,841 133,544 Total $ 1,650,998 $ 1,629,218 Network represents costs incurred to provide services to the Company’s customers including tower rentals, bandwidth, troubleshooting and gear removal. |
Note 8 - Other Liabilities
Note 8 - Other Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | Note 8. Other Liabilities Other liabilities consist of the following: March 31, 2016 December 31, 2015 Current Deferred rent $ 60,039 $ 63,012 Long-Term Deferred rent $ 682,228 $ 1,227,414 Deferred taxes 363,774 363,774 Total $ 1,046,002 $ 1,591,188 |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9. 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 $74,063 and $91,765 in connection with the amortization of this discount for the three months ended March 31, 2016 and 2015, respectively. The unamortized balance totaled $539,673 at March 31, 2016 and $613,736 at December 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 $743,144 and $705,911 of interest, and accrued $371,572 and $352,956 of PIK interest for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, 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 $173,747 and $215,275 in connection with the amortization of this discount for the three months ended March 31, 2016 and 2015, respectively. The unamortized balance totaled $1,266,038 at March 31, 2016 and $1,439,785 at December 31, 2015. The Company incurred costs, primarily professional services, of approximately $2,900,000 related to the Loan Agreement. These costs were recorded as a liability in the Company’s condensed consolidated balance sheet and are being amortized over the term of the Loan Agreement using the effective interest rate. Amortization expense totaled $204,114 and $252,899 for the three months ended March 31, 2016 and 2015, respectively. The unamortized balance totaled $1,487,307 at March 31, 2016 and $1,691,421 at December 31, 2015. |
Note 10 - Stock Options and War
Note 10 - Stock Options and Warrants | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 10 . 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 the estimated 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 March 31 , 2016 2015 Risk-free interest rate 1.2% - 1.4% - Expected volatility 77.6% - 82.1% - Expected life (in years) 4.2 - Expected dividend yield - - Weighted average per share grant date fair value $ 0.14 $ - Stock-based compensation $ 296,385 $ 209,209 The risk-free interest rate was based on rates established by the Federal Reserve. The expected volatility was based upon the historical volatility for the Company’s common stock. The Company utilized historical data to determine the expected life of stock options. The dividend yield reflected 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 $391,761 as of March 31, 2016 which will be recognized over a weighted-average period of 0.8 years. Option transactions under the stock option plans during the three months ended March 31, 2016 were as follows: Number Weighted Average Exercise Price Outstanding as of January 1, 2016 4,340,042 $ 2.61 Granted during 2016 825,000 0.24 Exercised - - Cancelled /expired 89,500 1.48 Outstanding as of March 31, 2016 5,075,542 $ 2.24 Exercisable as of March 31, 2016 3,946,080 $ 2.57 - In February 2016, the Company granted a consultant 100,000 options with an exercise price of $0.20 which vested immediately. In March 2016, the Company granted its newly appointed interim Chief Executive Officer 100,000 options with an exercise price of $0.25 and 25,000 options with an exercise price of $0.12 both of which vested immediately, and its newly appointed Chief Operating Officer 600,000 options with an exercise price of $0.25 which vest quarterly over a two year period. The aggregate fair value of the options granted was $116,210 for the three months ended March 31, 2016. Cancellations for the three months ended March 31, 2016 related to employee terminations. The weighted average remaining contractual life of the outstanding options as of March 31, 2016 was 7 .0 years. There was no aggregate intrinsic value associated with the options outstanding and exercisable as of March 31, 2016. The closing price of the Company’s common stock at March 31, 2016 was $0.12 per share. Stock Warrants There were 4,050,000 warrants outstanding and exercisable at March 31, 2016 with a weighted average exercise price of $1.31 per share. The weighted average remaining contractual life of the warrants was 5.4 years. No stock warrants were issued, exercised, expired or cancelled during the three months ended March 31, 2016. The aggregate intrinsic value associated with the warrants outstanding and exercisable as of March 31, 2016 was $132,000. 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 11 - Employee Stock Purcha
Note 11 - Employee Stock Purchase Plan | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Employee Stock Purchase Plan Disclosure [Text Block] | Note 11. 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. During the three months ended March 31, 2016 and 2015, a total of 89,176 and 6,087 shares were issued under the ESPP Plan with a fair value of $10,700 and $13,148, respectively. The Company recognized $1,784 and $1,948 of stock-based compensation related to the 15% discount for the three months ended March 31, 2016 and 2015, respectively. |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurement | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 12. 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. The carrying amounts of cash and cash equivalents, 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, 2016. |
Note 13 - Net Loss Per Common S
Note 13 - Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 13. 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. For the three ended March 31, 2016 and 2015, 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, 2016 and 2015 would dilute earnings per share if the Company becomes profitable in the future. Three Months Ended March 31, 2016 2015 Stock options 5,075,542 3,973,405 Warrants 2,850,000 2,850,000 Total 7,925,542 6,823,405 |
Note 14 - Commitments
Note 14 - Commitments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 14. 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 March 31, 2016, total future operating lease obligations were as follows: Remainder of 2016 $ 9,474,143 2017 8,829,245 2018 4,389,155 2019 2,721,992 2020 623,067 Thereafter 95,371 $ 26,132,973 Rent expenses were as follows: Three Months Ended March 31 , 201 6 201 5 Points of Presence $ 2,075,658 $ 2,085,698 Street level rooftops 1,900,791 3,461,498 Corporate offices 149,147 92,193 Other 121,489 88,336 $ 4,247,085 $ 5,727,725 Rent expenses related to Points of Presence and other were included in infrastructure and access 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 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 started at $53,130 and escalated by 3% annually. In April 2016, the Company terminated the Florida lease. Under the terms of the agreement, the Company forfeited its security deposit of $26,648 and agreed to make a termination payment of $25,000. Capital Lease Obligations The Company has entered into capital leases to acquire property and equipment expiring through June 2018. As of March 31, 2016, total future capital lease obligations were as follows: Remainder of 2016 $ 837,468 2017 837,811 2018 143,796 $ 1,819,075 Less: interest expense 137,297 Total capital lease obligations $ 1,681,778 Current $ 1,003,951 Long-term $ 677,827 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015. 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, 2015, 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 March 31, 201 6 201 5 Beginning of period $ 92,864 $ 59,273 Additions - 30,000 Deductions (10,915 ) (17,930 ) End of period $ 81,949 $ 71,343 |
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 |
Reclassification, Policy [Policy Text Block] | Reclassifications. |
Segment Reporting, Policy [Policy Text Block] | Segments |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Note 3 - Summary of Significa22
Note 3 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Beginning of period $ 92,864 $ 59,273 Additions - 30,000 Deductions (10,915 ) (17,930 ) End of period $ 81,949 $ 71,343 |
Note 4 - Discontinued Operati23
Note 4 - Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule Of Components Of Loss From Discontinued Operations [Table Text Block] | Three Months Ended March 31 , 2016 2015 Revenues $ 553,302 $ 787,628 Operating expenses: Infrastructure and access 2,523,222 3,697,156 Depreciation 638,681 1,031,510 Network operations 183,583 195,394 Customer support services 69,804 82,312 Sales and marketing 246 43,612 General and administrative 47,333 - Total operating expenses 3,462,869 5,049,984 Net operating loss (2,909,567 ) (4,262,356 ) Gain on sale of assets 1,177,742 - Net Loss $ (1,731,825 ) $ (4,262,356 ) |
Discontinued Operation, Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | March 31, 2016 December 31, 2015 Assets: Accounts receivable, net $ 494,768 $ 715,993 Prepaid expenses and other current assets - 278,891 Deferred acquisitions costs - 253,685 Security deposits 231,978 - Total Current Assets $ 726,746 $ 1,248,569 Liabilities: Accounts payable $ 806,606 $ 556,800 Accrued expenses 30,000 66,101 Accrued expenses - leases 2,493,586 3,284,467 Total Current Liabilities $ 3,330,192 $ 3,907,368 |
Note 5 - Property and Equipme24
Note 5 - Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | March 31, 2016 December 31, 2015 Network and base station equipment $ 40,467,952 $ 38,351,119 Customer premise equipment 33,578,392 30,910,874 Information technology 4,828,479 4,810,865 Furniture, fixtures and other 1,713,430 1,713,722 Leasehold improvements 1,625,910 1,623,559 82,214,163 77,410,139 Less: accumulated depreciation 61,573,286 56,174,755 Property and equipment, net $ 20,640,877 $ 21,235,384 |
Schedule of Capital Leased Assets [Table Text Block] | March 31 , 201 6 December 31, 201 5 Network and base station equipment $ 2,620,898 $ 2,620,898 Customer premise equipment 669,792 669,792 Information technology 1,860,028 1,860,028 5,150,718 5,150,718 Less: accumulated depreciation 3,372,504 3,114,968 Property acquired through capital leases, net $ 1,778,214 $ 2,035,750 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | March 31, 2016 December 31, 2015 Customer relationships $ 11,856,126 $ 11,856,126 Backhaul agreement 3,837,783 - FCC licenses 750,000 750,000 16,443,909 12,606,126 Less: accumulated amortization of customer relationships 11,537,769 11,333,096 Intangible assets, net $ 4,906,140 $ 1,273,030 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | March 31, 2016 December 31, 2015 Payroll and related $ 717,613 $ 551,448 Professional services 403,444 427,932 Other 317,388 339,680 Property and equipment 148,712 176,614 Network 63,841 133,544 Total $ 1,650,998 $ 1,629,218 |
Note 8 - Other Liabilities (Tab
Note 8 - Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Other Liabilities [Table Text Block] | March 31, 2016 December 31, 2015 Current Deferred rent $ 60,039 $ 63,012 Long-Term Deferred rent $ 682,228 $ 1,227,414 Deferred taxes 363,774 363,774 Total $ 1,046,002 $ 1,591,188 |
Note 10 - Stock Options and W28
Note 10 - Stock Options and Warrants (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended March 31 , 2016 2015 Risk-free interest rate 1.2% - 1.4% - Expected volatility 77.6% - 82.1% - Expected life (in years) 4.2 - Expected dividend yield - - Weighted average per share grant date fair value $ 0.14 $ - Stock-based compensation $ 296,385 $ 209,209 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average Exercise Price Outstanding as of January 1, 2016 4,340,042 $ 2.61 Granted during 2016 825,000 0.24 Exercised - - Cancelled /expired 89,500 1.48 Outstanding as of March 31, 2016 5,075,542 $ 2.24 Exercisable as of March 31, 2016 3,946,080 $ 2.57 |
Note 13 - Net Loss Per Common29
Note 13 - Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, 2016 2015 Stock options 5,075,542 3,973,405 Warrants 2,850,000 2,850,000 Total 7,925,542 6,823,405 |
Note 14 - Commitments (Tables)
Note 14 - Commitments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Remainder of 2016 $ 9,474,143 2017 8,829,245 2018 4,389,155 2019 2,721,992 2020 623,067 Thereafter 95,371 $ 26,132,973 |
Schedule of Rent Expense [Table Text Block] | Three Months Ended March 31 , 201 6 201 5 Points of Presence $ 2,075,658 $ 2,085,698 Street level rooftops 1,900,791 3,461,498 Corporate offices 149,147 92,193 Other 121,489 88,336 $ 4,247,085 $ 5,727,725 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Remainder of 2016 $ 837,468 2017 837,811 2018 143,796 $ 1,819,075 Less: interest expense 137,297 Total capital lease obligations $ 1,681,778 Current $ 1,003,951 Long-term $ 677,827 |
Note 2 - Liquidity and Manage31
Note 2 - Liquidity and Management Plans (Details Textual) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents, at Carrying Value | $ 9,640,720 | $ 15,116,531 | $ 32,267,413 | $ 38,027,509 |
Working Capital | $ 3,800,000 |
Note 3 - Summary of Significa32
Note 3 - Summary of Significant Accounting Policies (Details Textual) | Mar. 31, 2016USD ($) |
Cash, Uninsured Amount | $ 9,121,000 |
Cash, FDIC Insured Amount | $ 250,000 |
Note 3 - Changes in Allowance f
Note 3 - Changes in Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Beginning of period | $ 92,864 | $ 59,273 |
Additions | 30,000 | |
Deductions | $ (10,915) | (17,930) |
End of period | $ 81,949 | $ 71,343 |
Note 4 - Discontinued Operati34
Note 4 - Discontinued Operations (Details Textual) | Mar. 09, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) |
Shared Wireless Business [Member] | |||
Asset Purchase Agreement, Term | 3 years | ||
Asset Purchase Agreement, Number of One Year Renewals | 2 | ||
Asset Purchase Agreement, Renewal Term | 1 year | ||
Asset Purchase Agreement, Cancellation Notice | 60 days | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 1,177,742 | ||
Disposal Group, Including Discontinued Operation, Consideration | 3,837,783 | ||
Disposal Group, Including Discontinued Operation, Assets | $ 2,660,041 | ||
Asset Impairment and Other Charges | $ 1,585,319 | ||
Estimated Costs to Settle Lease Obligations | 453,403 | ||
Impairment of Long-Lived Assets Held-for-use | 528,364 | ||
Write off of Security Deposits | 110,500 | ||
Accelerated Expensing of Deferred Acquistion Costs | 493,052 | ||
Reduction in Accrual for Terminated Lease Obligations | 1,244,284 | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 1,177,742 |
Note 4 - Loss from Discontinued
Note 4 - Loss from Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | $ 553,302 | $ 787,628 |
Infrastructure and access | 2,523,222 | 3,697,156 |
Depreciation | 638,681 | 1,031,510 |
Network operations | 183,583 | 195,394 |
Customer support services | 69,804 | 82,312 |
Sales and marketing | 246 | $ 43,612 |
General and administrative | 47,333 | |
Total operating expenses | 3,462,869 | $ 5,049,984 |
Net operating loss | (2,909,567) | $ (4,262,356) |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 1,177,742 | |
Net Loss | $ (1,731,825) | $ (4,262,356) |
Note 4 - Components of Balance
Note 4 - Components of Balance Sheet Accounts (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Network [Member] | ||
Liabilities: | ||
Accrued expenses | $ 2,493,586 | $ 3,284,467 |
Accrued expenses | 2,493,586 | 3,284,467 |
Accounts receivable, net | $ 494,768 | 715,993 |
Prepaid expenses and other current assets | 278,891 | |
Deferred acquisitions costs | $ 253,685 | |
Security deposits | $ 231,978 | |
Total Current Assets | 726,746 | $ 1,248,569 |
Accounts payable | 806,606 | 556,800 |
Accrued expenses | 30,000 | 66,101 |
Accrued expenses | 30,000 | 66,101 |
Total Current Liabilities | $ 3,330,192 | $ 3,907,368 |
Note 5 - Property and Equipme37
Note 5 - Property and Equipment (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Network and Base Station Equipment [Member] | ||
Property, Plant, and Equipment Gross | $ 40,467,952 | $ 38,351,119 |
Customer Premise Equipment [Member] | ||
Property, Plant, and Equipment Gross | 33,578,392 | 30,910,874 |
Information Technology [Member] | ||
Property, Plant, and Equipment Gross | 4,828,479 | 4,810,865 |
Furniture and Fixtures [Member] | ||
Property, Plant, and Equipment Gross | 1,713,430 | 1,713,722 |
Leasehold Improvements [Member] | ||
Property, Plant, and Equipment Gross | 1,625,910 | 1,623,559 |
Property, Plant, and Equipment Gross | 82,214,163 | 77,410,139 |
Less: accumulated depreciation | 61,573,286 | 56,174,755 |
Property and equipment, net | $ 20,640,877 | $ 21,235,384 |
Note 5 - Property Acquired Thro
Note 5 - Property Acquired Through Capital Leases (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Network and Base Station Equipment [Member] | ||
Capital Leased Assets Gross | $ 2,620,898 | $ 2,620,898 |
Customer Premise Equipment [Member] | ||
Capital Leased Assets Gross | 669,792 | 669,792 |
Information Technology [Member] | ||
Capital Leased Assets Gross | 1,860,028 | 1,860,028 |
Capital Leased Assets Gross | 5,150,718 | 5,150,718 |
Less: accumulated depreciation | 3,372,504 | 3,114,968 |
Property acquired through capital leases, net | $ 1,778,214 | $ 2,035,750 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016 | Feb. 28, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | |
Delos Internet [Member] | Customer Relationships [Member] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 60 days | |||
Quarterly Amortization Amount | $ 98,068 | |||
Time Warner Cable [Member] | Backhaul Agreement [Member] | ||||
Amortization of Intangible Assets | $ 106,605 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
Quarterly Amortization Amount | $ 319,815 | |||
Amortization of Intangible Assets | $ 204,673 | $ 98,068 |
Note 6 - Intangible Assets and
Note 6 - Intangible Assets and Goodwill (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Customer relationships | $ 11,856,126 | $ 11,856,126 |
Backhaul agreement | 3,837,783 | |
FCC licenses | 750,000 | $ 750,000 |
16,443,909 | 12,606,126 | |
Less: accumulated amortization of customer relationships | 11,537,769 | 11,333,096 |
Intangible assets, net | $ 4,906,140 | $ 1,273,030 |
Note 7 - Accrued Expenses (Deta
Note 7 - Accrued Expenses (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Payroll and Related [Member] | ||
Accrued Liabilities, Current | $ 717,613 | $ 551,448 |
Professional Services [Member] | ||
Accrued Liabilities, Current | 403,444 | 427,932 |
Other Accrued Liabilities [Member] | ||
Accrued Liabilities, Current | 317,388 | 339,680 |
Property and Equipment [Member] | ||
Accrued Liabilities, Current | 148,712 | 176,614 |
Network [Member] | ||
Accrued Liabilities, Current | 63,841 | 133,544 |
Accrued Liabilities, Current | $ 1,650,998 | $ 1,629,218 |
Note 8 - Other Liabilities, Cur
Note 8 - Other Liabilities, Current and Noncurrent (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred rent | $ 60,039 | $ 63,012 |
Deferred rent | 682,228 | 1,227,414 |
Deferred taxes | 363,774 | 363,774 |
Total | $ 1,046,002 | $ 1,591,188 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Melody Business Finance LLC [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | If Rate Is Greater Than LIBOR Rate [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | First Two Thirds Of Shares Under Warrants [Member] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.26 | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Remaining One Third Of Shares Under Warrants [Member] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |||
Class of Warrant or Right, Warrant Term | 7 years 182 days | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Warrant [Member] | ||||
Debt Instrument, Unamortized Discount | $ 1,266,038 | $ 1,439,785 | ||
Interest Expense, Debt | 173,747 | $ 215,275 | ||
Melody Business Finance LLC [Member] | Secured Debt [Member] | ||||
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 | 539,673 | $ 613,736 | |
Interest Expense, Debt | 74,063 | 91,765 | ||
Paid In Kind Interest Stated Rate | 4.00% | |||
Interest Paid | 743,144 | 705,911 | ||
Increase (Decrease) in Interest Payable, Net | $ 371,572 | 352,956 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,600,000 | 1,200,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |||
Warrants and Rights Outstanding | $ 2,463,231 | |||
Debt Issuance Costs, Gross | $ 2,900,000 | |||
Amortization of Debt Issuance Costs | $ 204,114 | 252,899 | ||
Debt Issuance Costs, Net | 1,487,307 | $ 1,691,421 | ||
Debt Instrument, Unamortized Discount | 3,293,017 | $ 3,744,941 | ||
Increase (Decrease) in Interest Payable, Net | $ 371,572 | 352,956 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.31 | |||
Amortization of Debt Issuance Costs | $ 204,114 | $ 252,899 |
Note 10 - Stock Options and W44
Note 10 - Stock Options and Warrants (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2016 | Feb. 29, 2016 | Mar. 31, 2016 | |
Employee Stock Option [Member] | Consultant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.20 | ||
Employee Stock Option [Member] | Chief Executive Officer [Member] | Exercise Price of $0.25 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.25 | ||
Employee Stock Option [Member] | Chief Executive Officer [Member] | Exercise Price of $0.12 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 25,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.12 | ||
Employee Stock Option [Member] | Chief Operating Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 600,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.25 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Granted in Period, Fair Value | $ 116,210 | ||
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 391,761 | $ 391,761 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 292 days | ||
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 132,000 | $ 132,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 825,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.24 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years | ||
Share Price | $ 0.12 | $ 0.12 | |
Class of Warrant or Right, Outstanding | 4,050,000 | 4,050,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.31 | $ 1.31 | |
Class Of Warrant Or Right Weighted Warrants Exercisable, Average Remaining Contractual Life | 5 years 146 days | ||
Class of Warrant or Right, Issued During Period | 0 | ||
Class of Warrant or Right, Exercised During Period | 0 | ||
Class of Warrant or Right, Expired During Period | 0 | ||
Class of Warrant or Right, Cancelled During Period | 0 |
Note 10 - Black-Scholes Option
Note 10 - Black-Scholes Option Pricing Model Assumptions (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Minimum [Member] | ||
Risk-free interest rate | 1.20% | |
Expected volatility | 77.60% | |
Maximum [Member] | ||
Risk-free interest rate | 1.40% | |
Expected volatility | 82.10% | |
Expected life (in years) | 4 years 73 days | |
Expected dividend yield | ||
Weighted average per share grant date fair value (in dollars per share) | $ 0.14 | |
Stock-based compensation | $ 296,385 | $ 209,209 |
Note 10 - Option Transactions U
Note 10 - Option Transactions Under the Stock Option Plans (Details) - $ / shares | 3 Months Ended |
Mar. 31, 2016 | |
Outstanding (in shares) | 4,340,042 |
Outstanding (in dollars per share) | $ 2.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 825,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.24 |
Exercised (in shares) | |
Exercised (in dollars per share) | |
Cancelled /expired (in shares) | 89,500 |
Cancelled /expired (in dollars per share) | $ 1.48 |
Outstanding (in shares) | 5,075,542 |
Outstanding (in dollars per share) | $ 2.24 |
Exercisable as of March 31, 2016 (in shares) | 3,946,080 |
Exercisable as of March 31, 2016 (in dollars per share) | $ 2.57 |
Note 11 - Employee Stock Purc47
Note 11 - Employee Stock Purchase Plan (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
2010 Employee Stock Purchase Plan [Member] | ||
Percentage Of Discount Allowed For Shares Issued Under Employee Stock Purchase Plan | 15.00% | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 89,176 | 6,087 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 10,700 | $ 13,148 |
Defined Contribution Plan, Cost Recognized | 1,784 | $ 1,948 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 10,700 |
Note 13 - Net Loss Per Common48
Note 13 - Net Loss Per Common Share (Details Textual) - $ / shares | Mar. 31, 2016 | Oct. 31, 2014 |
Melody Business Finance LLC [Member] | Secured Debt [Member] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,200,000 | 3,600,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.31 |
Note 13 - Antidilutive Shares E
Note 13 - Antidilutive Shares Excluded from Computation of EPS (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 5,075,542 | 3,973,405 |
Warrant [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 2,850,000 | 2,850,000 |
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 7,925,542 | 6,823,405 |
Note 14 - Commitments (Details
Note 14 - Commitments (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2016 | Dec. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2016 | Feb. 28, 2014 | |
Minimum [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | ||||
Maximum [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 25 years | ||||
Corporate Offices [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||||
Leasehold Improvements, Gross | $ 600,000 | ||||
Operating Lease, Leasehold Improvements to be Made by Lessor | $ 380,000 | ||||
Operating Lease, Annual Rent Two Years Ago | $ 359,750 | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | ||||
Operating Lease Annual Rent in Three Years | $ 416,970 | ||||
Sales Center [Member] | Subsequent Event [Member] | |||||
Security Deposit Forfeited | $ 26,648 | ||||
Termination Payment of Lease | $ 25,000 | ||||
Sales Center [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | ||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years 60 days | ||||
Operating Lease, Annual Rent | $ 53,130 |
Note 14 - Total Future Operatin
Note 14 - Total Future Operating Lease Obligations (Details) | Mar. 31, 2016USD ($) |
Remainder of 2016 | $ 9,474,143 |
2,017 | 8,829,245 |
2,018 | 4,389,155 |
2,019 | 2,721,992 |
2,020 | 623,067 |
Thereafter | 95,371 |
$ 26,132,973 |
Note 14 - Rent Expenses (Detail
Note 14 - Rent Expenses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Points of Presence [Member] | ||
Lease and Rental Expense | $ 2,075,658 | $ 2,085,698 |
Street Level Rooftops [Member] | ||
Lease and Rental Expense | 1,900,791 | 3,461,498 |
Corporate Offices [Member] | ||
Lease and Rental Expense | 149,147 | 92,193 |
Other Leased Property [Member] | ||
Lease and Rental Expense | 121,489 | 88,336 |
Lease and Rental Expense | $ 4,247,085 | $ 5,727,725 |
Note 14 - Total Future Capital
Note 14 - Total Future Capital Lease Obligations (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Remainder of 2016 | $ 837,468 | |
2,017 | 837,811 | |
2,018 | 143,796 | |
1,819,075 | ||
Less: interest expense | 137,297 | |
Total capital lease obligations | 1,681,778 | |
Current | 1,003,951 | $ 992,690 |
Long-term | $ 677,827 | $ 932,826 |