Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 01, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | gluu | ||
Entity Registrant Name | GLU MOBILE INC | ||
Entity Central Index Key | 1366246 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $457,146,820 | ||
Entity Common Stock, Shares Outstanding | 107,800,539 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $70,912 | $28,496 |
Accounts receivable, net | 32,231 | 18,305 |
Prepaid expenses and other | 18,252 | 7,663 |
Total current assets | 121,395 | 54,464 |
Property and equipment, net | 6,116 | 5,096 |
Restricted cash | 1,990 | 1,730 |
Other long-term assets | 6,674 | 637 |
Intangible assets, net | 27,524 | 5,599 |
Goodwill | 87,964 | 19,485 |
Total assets | 251,663 | 87,011 |
Current liabilities: | ||
Accounts payable | 11,685 | 10,657 |
Accrued liabilities | 3,812 | 1,971 |
Accrued compensation | 10,751 | 5,378 |
Accrued royalties | 12,440 | 1,727 |
Deferred revenues | 37,333 | 18,224 |
Total current liabilities | 76,021 | 37,957 |
Other long-term liabilities | 3,936 | 2,357 |
Total liabilities | 79,957 | 40,314 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized at September 30, 2014 and December 31, 2013; no shares issued and outstanding at September 30, 2014 and December 31, 2013 | ||
Common stock, $0.0001 par value: 250,000 shares authorized at September 30, 2014 and December 31, 2013; 106,928 and 78,464 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 11 | 8 |
Additional paid-in capital | 415,766 | 298,593 |
Accumulated other comprehensive (loss)/income | -8 | 307 |
Accumulated deficit | -244,063 | -252,211 |
Total stockholders' equity | 171,706 | 46,697 |
Total liabilities and stockholders' equity | $251,663 | $87,011 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - 10Q (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value | $0.00 | |
Common stock, shares authorized | 250,000,000 | |
Common stock, shares issued | 107,174,000 | 78,464,000 |
Common stock, shares outstanding | 107,174,000 | 78,464,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenues | $223,146 | $105,613 | $108,183 |
Cost of revenues: | |||
Platform commissions, royalties and other | 80,992 | 32,806 | 29,630 |
Impairment of prepaid royalties and guarantees | 257 | 435 | 0 |
Amortization of intangible assets | 4,767 | 4,238 | 3,783 |
Total cost of revenues | 85,759 | 37,044 | 33,413 |
Gross profit | 137,387 | 68,569 | 74,770 |
Operating expenses: | |||
Research and development | 64,284 | 46,877 | 54,275 |
Sales and marketing | 45,076 | 26,120 | 20,893 |
General and administrative | 25,019 | 15,550 | 14,744 |
Amortization of intangible assets | 508 | 1,336 | 1,980 |
Restructuring charge | 435 | 1,448 | 1,371 |
Impairment of goodwill | 3,613 | ||
Total operating expenses | 135,322 | 91,331 | 96,876 |
Loss from operations | 2,065 | -22,762 | -22,106 |
Interest and other income/(expense), net: | |||
Interest income | 30 | 16 | 21 |
Other (expense)/income, net | -1,502 | -6 | -368 |
Interest and other (expense)/income, net | -1,472 | 10 | -347 |
Income/(loss) before income taxes | 593 | -22,752 | -22,453 |
Income tax benefit | 7,555 | 2,843 | 1,994 |
Net income/(loss) | $8,148 | ($19,909) | ($20,459) |
Net income/(loss) per common share: | |||
Basic | $0.09 | ($0.28) | ($0.32) |
Diluted | $0.08 | ($0.28) | ($0.32) |
Weighted average common shares outstanding: | |||
Basic | 91,826 | 71,453 | 64,318 |
Diluted | 96,922 | 71,453 | 64,318 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $8,148 | ($19,909) | ($20,459) | |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | -315 | 378 | -99 | |
Reclassification to net loss (1) | -238 | [1] | ||
Other comprehensive income/(loss) | -315 | 140 | -99 | |
Comprehensive income/(loss) | $7,833 | ($19,769) | ($20,558) | |
[1] | The reclassification to net loss relates to the write-off of cumulative translation adjustment upon substantial liquidation of the Companybs Brazilian entity and is recognized in Restructuring charge in the Companybs consolidated statement of operations for the year ended December 31, 2013. |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-In Capital | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit | Total |
In Thousands | |||||
Beginning balance at Dec. 31, 2011 | $6 | $260,744 | $266 | ($211,843) | $49,173 |
Beginning balances (in shares) at Dec. 31, 2011 | 63,749 | ||||
Net income (loss) | -20,459 | -20,459 | |||
Stock-based compensation expense | 4,271 | 4,271 | |||
Issuance of common stock upon exercise of stock options (in shares) | 806 | 806 | |||
Issuance of common stock upon exercise of stock options | 1,357 | 1,357 | |||
Issuance of common stock upon exercise of warrants (in shares) | 413 | ||||
Issuance of common stock upon exercise of warrants | 619 | 619 | |||
Issuance of common stock as consideration for acquisition (in shares) | 600 | ||||
Issuance of common stock as consideration for acquisition | 2,796 | 2,796 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 454 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 1,229 | 1,229 | |||
Other comprehensive income/(loss) | -99 | -99 | |||
Ending balance at Dec. 31, 2012 | 6 | 271,016 | 167 | -232,302 | 38,887 |
Ending balances (in shares) at Dec. 31, 2012 | 66,022 | ||||
Net income (loss) | -19,909 | -19,909 | |||
Stock-based compensation expense | 4,113 | 4,113 | |||
Issuance of common stock upon exercise of stock options (in shares) | 958 | 957 | |||
Issuance of common stock upon exercise of stock options | 1,295 | 1,295 | |||
Issuance of common stock upon exercise of warrants (in shares) | 2,886 | ||||
Issuance of common stock upon exercise of warrants | 1 | 4,328 | 4,329 | ||
Issuance of common stock as consideration for acquisition (in shares) | 742 | ||||
Issuance of common stock as consideration for acquisition | 2,263 | 2,263 | |||
Issuance of common stock as consideration for property and equipment (in shares) | 89 | ||||
Issuance of common stock as consideration for property and equipment | 189 | 189 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 522 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 978 | 978 | |||
Issuance of common stock as contingent consideration earned | 2,263 | ||||
Shares issued | 7,245 | ||||
Issuance of common stock upon Public Offering, net of issuance costs | 1 | 13,984 | 13,985 | ||
Non-cash warrant expense | 427 | 427 | |||
Other comprehensive income/(loss) | 140 | 140 | |||
Ending balance at Dec. 31, 2013 | 8 | 298,593 | 307 | -252,211 | 46,697 |
Ending balances (in shares) at Dec. 31, 2013 | 78,464 | ||||
Net income (loss) | 8,148 | 8,148 | |||
Stock-based compensation expense | 7,073 | 7,073 | |||
Issuance of common stock upon exercise of stock options (in shares) | 2,867 | 2,867 | |||
Issuance of common stock upon exercise of stock options | 1 | 6,270 | 6,271 | ||
Issuance of common stock upon exercise of warrants (in shares) | 1,191 | ||||
Issuance of common stock upon exercise of warrants | 2,786 | 2,786 | |||
Issuance of common stock as consideration for acquisition (in shares) | 12,832 | ||||
Issuance of common stock as consideration for acquisition | 1 | 61,860 | 61,861 | ||
Taxes paid related to net share settlement of equity awards (in shares) | 348 | ||||
Taxes paid related to net share settlement of equity awards | -896 | -896 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 426 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 1,076 | 1,076 | |||
Issuance of common stock as contingent consideration earned | 5,821 | 5,821 | |||
Issuance of common stock as contingent consideration earned (in shares) | 1,185 | ||||
Shares issued | 9,861 | ||||
Issuance of common stock upon Public Offering, net of issuance costs | 1 | 32,057 | 32,058 | ||
Non-cash warrant expense | 1,126 | 1,126 | |||
Other comprehensive income/(loss) | -315 | -315 | |||
Ending balance at Dec. 31, 2014 | $11 | $415,766 | ($8) | ($244,063) | $171,706 |
Ending balances (in shares) at Dec. 31, 2014 | 107,174 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income/(loss) | $8,148 | ($19,909) | ($20,459) |
Adjustments to reconcile net income/(loss) to net cash used in operating activities: | |||
Depreciation | 2,513 | 2,707 | 2,368 |
Amortization of intangible assets | 5,275 | 5,574 | 5,763 |
Stock-based compensation | 11,633 | 4,285 | 5,822 |
Change in fair value of Blammo earnout | 835 | 7 | 167 |
Non-cash warrant expense | 1,192 | 427 | |
Non-cash foreign currency remeasurement (gain)/loss | 1,495 | 23 | 365 |
Other Noncash Income Tax Expense | 1,531 | ||
Impairment of goodwill | 3,613 | ||
Impairment of prepaid royalties and guarantees | 257 | 435 | 0 |
Non-cash restructuring charges | 244 | ||
Changes in allowance for doubtful accounts | -162 | 27 | 281 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | -9,195 | -6,540 | 2,430 |
Prepaid expenses and other assets | -14,332 | -2,726 | -359 |
Accounts payable | -4,298 | 3,347 | -586 |
Other accrued liabilities | -20 | -157 | -459 |
Accrued compensation | 5,259 | 910 | -1,300 |
Accrued royalties | 10,231 | -1,495 | -1,133 |
Deferred revenues | 18,810 | 6,499 | 680 |
Accrued restructuring | -161 | -883 | |
Other long-term liabilities | -8,598 | -3,075 | -3,059 |
Net cash provided by (used in) operating activities | 30,574 | -9,578 | -6,749 |
Cash flows used in investing activities: | |||
Purchase of property and equipment | -3,292 | -2,722 | -2,014 |
Restricted cash | -60 | -1,730 | |
Other investing activities | -250 | -200 | |
Purchase of intangible assets | -253 | -5,000 | |
Net cash paid for acquisitions | -22,586 | 913 | |
Net cash used in investing activities | -26,188 | -4,905 | -6,101 |
Cash flows from financing activities: | |||
PlayFirst payments on acquired line of credit and term loan | -2,340 | ||
Proceeds from public offering, net | 32,058 | 13,985 | |
Taxes paid related to net share settlement of equity awards | -896 | ||
Proceeds from exercise of stock options and ESPP | 7,347 | 2,273 | 2,586 |
Proceeds from exercise of warrants and issuance of common stock | 2,786 | 4,329 | 619 |
Net cash provided by financing activities | 38,955 | 20,587 | 3,205 |
Effect of exchange rate changes on cash | -925 | 67 | -242 |
Net increase (decrease) in cash and cash equivalents | 42,416 | 6,171 | -9,887 |
Cash and cash equivalents at beginning of period | 28,496 | 22,325 | 32,212 |
Cash and cash equivalents at end of period | 70,912 | 28,496 | 22,325 |
Supplemental disclosure of cash flow information | |||
Common stock issued for acquisitions of PlayFirst and Cie Games | 61,861 | 2,263 | 2,796 |
Common stock issued for property and equipment | 189 | ||
Common stock issued as contingent consideration earned | 5,821 | 2,263 | |
Income taxes paid | $303 | $269 | $394 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
The Company, Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 — THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
The Company | ||||||||||||
Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops, publishes, and markets a portfolio of games designed for users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, Amazon Appstore and others (“Digital Storefronts”). The Company creates games based on its own original brands, as well as third-party licensed brands, properties and other content. | ||||||||||||
The Company has generally incurred losses from operations since inception and had an accumulated deficit of $244,063 as of December 31, 2014. However, for the year ended December 31, 2014, the Company generated net income of $8,148 and generated operating cash flows of $30,574. However, the Company may incur additional losses and negative cash flows in the future. Failure to generate sufficient revenues, reduce spending or raise additional capital could adversely affect the Company’s ability to achieve its intended business objectives. | ||||||||||||
Basis of Presentation | ||||||||||||
The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. | ||||||||||||
Basis of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives that the Company uses for revenue recognition, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, income taxes, fair value of stock awards issued and contingent consideration issued to Blammo shareholders, fair value of warrants issued, accounting for business combinations, and evaluating goodwill and long-lived assets for impairment. Actual results may differ from these estimates and these differences may be material. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company generates revenues through in-app purchases within its games on smartphones and tablets, such as Apple’s iPhone and iPad and mobile devices utilizing Google’s Android operating system. Smartphone and tablet games are distributed primarily through Digital Storefronts. | ||||||||||||
Revenue | ||||||||||||
The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the game for virtual goods. The Company recognizes revenue, when persuasive evidence of an arrangement exists, the service has been provided to the user, the price paid by the user is fixed or determinable, and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied requires judgments that may have a significant impact on the timing and amount of revenue the Company reports in each period. For the purposes of determining when the service has been provided to the player, the Company has determined that an implied obligation exists to the paying user to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game, which represents the Company’s best estimate of the estimated average life of virtual goods. | ||||||||||||
The Company sells both consumable and durable virtual goods and receives reports from the Digital Storefronts, which breakdown the various purchases made from their games over a given time period. The Company reviews these reports to determine on a per-item basis whether the purchase was a consumable virtual good or a durable virtual good. Consumable goods are items that can be purchased directly by the player through the Digital Storefront and are consumed at a predetermined time or otherwise have limitations on repeated use, while durable goods are items accessible to the user over an extended period of time. The Company’s revenues from consumable virtual goods have been insignificant over the previous three years. The Company recognizes the revenues from these items immediately, since it believes that the delivery obligation has been met and there are no further implicit or explicit performance obligations related to the purchase of that consumable virtual good. Revenues from durable virtual goods are generated through the purchase of virtual coins by users through a Digital Storefront. Players convert the virtual coins within the game to durable virtual goods such as weapons, armor or other accessories to enhance their game-playing experience. The durable virtual goods remain in the game for as long as the player continues to play. The Company believes this represents an implied service obligation, and accordingly, recognizes the revenues from the purchase of these durable virtual goods over the estimated average playing period of paying users. Based on the Company’s analysis, the estimated weighted average useful life of a paying user is approximately three months for the majority of our games, except for one game for which the estimated weighted average useful life of a paying user has been determined to be approximately four months. If a new game is launched and only a limited period of paying player data is available, then the Company also considers other quantitative and qualitative factors, such as the playing patterns for paying users for other games with similar characteristics. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future as the games’ operation periods change. Any adjustments arising from changes in the estimates of the lives of these virtual goods would be applied to the current quarter and prospectively on the basis that such changes are caused by new information indicating a change in game player behavior patterns. Any changes in the Company’s estimates of useful lives of these virtual goods may result in revenues being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. | ||||||||||||
The Company also has relationships with certain advertising service providers for advertisements within smartphone games and revenue from these advertising providers is generated through impressions, clickthroughs, banner ads and offers. Revenue is recognized as advertisements are delivered and reported to the Company, an executed contract exists, the price is fixed or determinable and collectability has been reasonably assured. Delivery generally occurs when the advertisement has been displayed or the offer has been completed by the user. The fee received for certain offer advertisements that result in the user receiving virtual currency for redemption within a game are deferred and recognized over the average playing period of paying users. | ||||||||||||
Other Estimates and Judgments | ||||||||||||
The Company estimates revenues from Digital Storefronts in the current period when reasonable estimates of these amounts can be made. Certain Digital Storefronts provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenues and therefore to recognize revenues during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company’s estimates. When the Company receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any differences between estimated revenues and actual revenues in the reporting period when the Company determines the actual amounts. Historically, the revenues on the final revenue report have not differed significantly from the reported revenues for the period. | ||||||||||||
Principal Agent Considerations | ||||||||||||
In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, the Company evaluates its Digital Storefront and advertising service provider agreements in order to determine whether or not it is acting as the principal or as an agent when selling its games or when selling advertisements within its games, which it considers in determining if revenue should be reported gross or net. The Company primarily uses Digital Storefronts for distributing its smartphone games and advertising service providers for serving advertisements within its games. Key indicators that the Company evaluates to reach this determination include: | ||||||||||||
· | the terms and conditions of the Company’s contracts with the Digital Storefronts and advertising service providers; | |||||||||||
· | the party responsible for billing and collecting fees from the end-users, including the resolution of billing disputes; | |||||||||||
· | whether the Company is paid a fixed percentage of the arrangement’s consideration or a fixed fee for each game, transaction, or advertisement; | |||||||||||
· | the party which sets the pricing with the end-user, has the credit risk and provides customer support; and | |||||||||||
· | the party responsible for the fulfillment of the game or serving of advertisements and that determines the specifications of the game or advertisement. | |||||||||||
Based on the evaluation of the above indicators, the Company has determined that it is generally acting as a principal and is the primary obligor to end-users for smartphone games distributed through digital storefronts and advertisements served through our advertising service providers. Therefore, the Company recognizes revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts and advertising service providers. | ||||||||||||
Deferred Platform Commissions and Royalties | ||||||||||||
Digital Storefronts retain platform commissions and fees on each purchase made by the paying players through the Digital Storefront. The Company is also obligated to pay ongoing licensing fees in the form of royalties related to the games developed based on or significantly incorporating licensed brands, properties or other content, and we plan to incorporate additional licensed content in even our own originally branded games. Additionally, certain smartphone games sold through digital storefronts require the revenue to be deferred due to an implied obligation to the paying player to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game. As revenues from sales to paying players through Digital Storefronts are deferred, the related direct and incremental platform commissions and fees as well as third party royalties are also deferred and reported in “Prepaid expenses and other” on the consolidated balance sheets. The deferred platform commissions and royalties are recognized in the consolidated statements of operations in “Cost of revenues” in the period in which the related sales are recognized as revenues. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company considers all investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Deposits held with financial institutions often exceed the amount of insurance on these deposits. | ||||||||||||
Restricted Cash | ||||||||||||
Restricted cash consists of deposits related to letters of credit to secure obligations under the Company’s operating lease agreements. | ||||||||||||
Concentration of Credit Risk | ||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. | ||||||||||||
The Company derives its accounts receivable from revenues earned from customers or through Digital Storefronts located in the U.S. and other locations outside of the U.S. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and, generally, requires no collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. It reviews all other balances quarterly. The Company charges off accounts receivable balances against the allowance when it determines that the amount will not be recovered. | ||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenues: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Apple | 52.2 | % | 50.1 | % | 41.3 | % | ||||||
24.8 | 19.2 | 20.3 | ||||||||||
Tapjoy | - | - | 10.7 | |||||||||
At December 31, 2014, Apple Inc. (“Apple”) accounted for 55.0% and Google Inc. (“Google”) accounted for 15.2% of total accounts receivable. At December 31, 2013, Apple accounted for 46.3%, and Jirbo (dba AdColony) and Google each accounted for 11.1% of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. | ||||||||||||
Fair Value | ||||||||||||
The Company accounts for fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||
The first two levels in the hierarchy are considered observable inputs and the last is considered unobservable. The Company’s cash and cash equivalents, which were held in operating bank accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Please refer to Note 4 for further details. | ||||||||||||
Prepaid or Guaranteed Licensor Royalties | ||||||||||||
The Company’s royalty expenses consist of fees that it pays to content owners for the use of their brands, properties and other licensed content, including trademarks and copyrights, in the development of the Company’s games. Royalty-based obligations are either paid in advance and capitalized on the balance sheet as prepaid royalties or accrued as incurred and subsequently paid. These royalty-based obligations are expensed to cost of revenues at the greater of the revenues derived from the relevant game multiplied by the applicable contractual rate or an effective royalty rate based on expected net product sales. Advanced license payments that are not recoupable against future royalties are capitalized and amortized over the lesser of the estimated life of the title incorporating licensed content or the term of the license agreement. | ||||||||||||
The Company’s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of sales to end users. In accordance with ASC 460-10-15, Guarantees (“ASC 460”), the Company recorded a minimum guaranteed liability of $1,434 and $433 as of December 31, 2014 and 2013, respectively. When no significant performance remains with the licensor, the Company initially records each of these guarantees as an asset and as a liability at the contractual amount. The Company believes that the contractual amount represents the fair value of the liability. When significant performance remains with the licensor, the Company records royalty payments as an asset when actually paid and as a liability when incurred, rather than upon execution of the contract. The Company classifies minimum royalty payment obligations as current liabilities to the extent they are contractually due within the next twelve months. | ||||||||||||
Each quarter, the Company evaluates the realization of its prepaid and guaranteed royalties as well as any unrecognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenues, cash flows and net margins to evaluate the future realization of prepaid royalties and guarantees. This evaluation considers multiple factors, including the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices for the Company and its competitors and/or other game platforms (e.g., consoles, personal computers and Internet) utilizing the intellectual property and whether there are any future planned theatrical releases or television series based on the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenues in the period that impairment is indicated. The Company recorded impairment charges to cost of revenues of $257, $435, and zero during the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Goodwill and Intangible Assets | ||||||||||||
In accordance with ASC 350, Intangibles-Goodwill and Other (“ASC 350”), the Company’s goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Under ASC 350, the Company performs the annual impairment review of its goodwill balance as of September 30. This impairment review involves a multiple-step process as follows: | ||||||||||||
Step — 0 The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the two-step goodwill impairment test. | ||||||||||||
Step — 1 The Company compares the fair value of each of its reporting units to the carrying value including goodwill of that unit. For each reporting unit where the carrying value, including goodwill, exceeds the unit’s fair value, the Company moves on to step 2. If a unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. | ||||||||||||
Step — 2 The Company performs an allocation of the fair value of the reporting unit to its identifiable tangible and intangible assets (other than goodwill) and liabilities. This allows the Company to derive an implied fair value for the unit’s goodwill. The Company then compares the implied fair value of the reporting unit’s goodwill with the carrying value of the unit’s goodwill. If the carrying amount of the unit’s goodwill is greater than the implied fair value of its goodwill, an impairment charge would be recognized for the excess. | ||||||||||||
In 2014 and 2013, the Company did not record any goodwill impairment charges as the fair values of the reporting units exceeded their respective carrying values. In 2012, the Company concluded that a portion of the goodwill attributed to the APAC reporting unit was impaired and recorded a $3,613 impairment charge. | ||||||||||||
Purchased intangible assets with finite lives are amortized using the straight-line method over their useful lives ranging from one to nine years and are reviewed for impairment in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). | ||||||||||||
Long-Lived Assets | ||||||||||||
The Company evaluates its long-lived assets, including property and equipment and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable in accordance with ASC 360. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, significant negative industry or economic trends, and a significant decline in the Company’s stock price for a sustained period of time. The Company recognizes impairment based on the difference between the fair value of the asset and its carrying value. Fair value is generally measured based on either quoted market prices, if available, or a discounted cash flow analysis. | ||||||||||||
Property and Equipment | ||||||||||||
The Company states property and equipment at cost. The Company computes depreciation or amortization using the straight-line method over the estimated useful lives of the respective assets or, in the case of leasehold improvements, the lease term of the respective assets, whichever is shorter. | ||||||||||||
The depreciation and amortization periods for the Company’s property and equipment are as follows: | ||||||||||||
Computer equipment | Three years | |||||||||||
Computer software | Three years | |||||||||||
Furniture and fixtures | Three years | |||||||||||
Leasehold improvements | Shorter of the estimated useful life or remaining term of lease | |||||||||||
Research and Development Costs | ||||||||||||
The Company charges costs related to research, design and development of products to research and development expense as incurred. The types of costs included in research and development expenses include salaries, contractor fees and allocated facilities costs. | ||||||||||||
Software Development Costs | ||||||||||||
The Company applies the principles of ASC 985-20, Software-Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed (“ASC 985-20”). ASC 985-20 requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs must be capitalized and reported at the lower of unamortized cost or net realizable value of the related product. The Company has adopted the “tested working model” approach to establishing technological feasibility for its games. Under this approach, the Company does not consider a game in development to have passed the technological feasibility milestone until the Company has completed a model of the game that contains essentially all the functionality and features of the final game and has tested the model to ensure that it works as expected. To date, the Company has not incurred significant costs between the establishment of technological feasibility and the release of a game for sale; thus, the Company has expensed all software development costs as incurred. The Company considers the following factors in determining whether costs can be capitalized: the uncertainty regarding a game’s revenue-generating potential and its historical practice of canceling games at any stage of the development process. | ||||||||||||
Internal Use Software | ||||||||||||
The Company recognizes internal use software development costs in accordance with ASC 350-40, Intangibles-Goodwill and Other-Internal Use Software (“ASC 350-40”). Thus, the Company capitalizes software development costs, including costs incurred to purchase third-party software, beginning when it determines certain factors are present including, among others, that technology exists to achieve the performance requirements and/or buy versus internal development decisions have been made. The Company capitalized certain internal use software costs totaling approximately $2,165, $249 and $1,598 during the years ended December 31, 2014, 2013, and 2012, respectively. The estimated useful life of costs capitalized is generally three years. During the years ended December 31, 2014, 2013 and 2012, the amortization of capitalized software costs totaled approximately $950, $1,097 and $1,014, respectively. Capitalized internal use software development costs are included in property and equipment, net. | ||||||||||||
Income Taxes | ||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. Under ASC 740, the Company determines deferred tax assets and liabilities based on the temporary difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which it expects the differences to reverse. The Company establishes valuation allowances when necessary to reduce deferred tax assets to the amount it expects to realize. | ||||||||||||
The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. | ||||||||||||
Restructuring | ||||||||||||
The Company accounts for costs associated with employee terminations and other exit activities in accordance with ASC 420, Exit or Disposal Cost Obligations (“ASC 420”). The Company records employee termination benefits as an operating expense when it communicates the benefit arrangement to the employee and it requires no significant future services, other than a minimum retention period, from the employee to earn the termination benefits. In addition, termination benefits related to international employees are recognized when the amount of such termination benefits becomes estimable and payment is probable. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company applies the fair value provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options and restricted stock units (“RSUs”). ASC 718 requires companies to estimate the fair value of stock-option awards on the grant date using an option pricing model. The fair value of stock options and stock purchase rights granted pursuant to the Company’s equity incentive plans and 2007 Employee Stock Purchase Plan (“ESPP”), respectively, is determined using the Black-Scholes valuation model. The determination of fair value is affected by the stock price, as well as assumptions regarding subjective and complex variables such as expected employee exercise behavior and expected stock price volatility over the expected term of the award. Generally, these assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. Employee stock-based compensation expense is calculated based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment to stock-based compensation expense will be recognized at that time. Changes to the assumptions used in the Black-Scholes option valuation calculation and the forfeiture rate, as well as future equity granted or assumed through acquisitions could significantly impact the compensation expense the Company recognizes. The cost of RSUs is determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant, and is reduced for estimated forfeitures. The compensation cost for all share-based payment awards is amortized on a straight-line basis over the requisite service period. | ||||||||||||
The Company has elected to use the “with and without” approach as described in determining the order in which tax attributes are utilized. As a result, the Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through its statement of operations. | ||||||||||||
The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 718 and ASC 505-50. | ||||||||||||
Advertising Expenses | ||||||||||||
The Company expenses the production costs of advertising, including direct response advertising, the first time the advertising takes place. Advertising expense was $35,169, $18,308 and $12,124 in the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Comprehensive Income/(loss) | ||||||||||||
Comprehensive income/(loss) consists of two components, net income/(loss) and other comprehensive income/(loss). Other comprehensive income/(loss) refers to revenues, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income/(loss). The Company’s other comprehensive income/(loss) included foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, and a reclassification to net loss from the write-off of cumulative translation adjustment. | ||||||||||||
Foreign Currency Translation | ||||||||||||
In preparing its consolidated financial statements, the Company translates the financial statements of its foreign subsidiaries from their functional currencies, the local currency, into U.S. Dollars. This process resulted in unrealized exchange gains and losses, which are included as a component of accumulated other comprehensive loss within stockholders’ deficit. However, if the functional currency is deemed to be the U.S. Dollar, any gain or loss associated with the translation of these financial statements would be included within the Company’s consolidated statements of operations. | ||||||||||||
Cumulative foreign currency translation adjustments include any gain or loss associated with the translation of a subsidiary’s financial statements when the functional currency of a subsidiary is the local currency. If the Company disposes of any of its subsidiaries, any cumulative translation gains or losses would be realized and recorded within the Company’s consolidated statement of operations in the period during which the disposal occurs. If the Company determines that there has been a change in the functional currency of a subsidiary relative to the U.S. Dollar, any translation gains or losses arising after the date of change would be included within the Company’s consolidated statement of operations. | ||||||||||||
Business Combination | ||||||||||||
The Company applies the accounting standard related to business combinations, ASC 805, Business Combinations (“ASC 805’). The standard requires recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date with subsequent changes recognized in earnings; requires acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and development to be capitalized at fair value as an indefinite-lived intangible asset until completion or abandonment; and requires that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. | ||||||||||||
The Company accounts for acquisitions of entities or assets that include inputs and processes and have the ability to create outputs as business combinations. The purchase price of the acquisition is allocated to tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, the Company records adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in its operating results in the period in which the adjustments were determined. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This accounting guidance did not have a material impact on the Company’s consolidated financial statements once adopted. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for the Company beginning January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | ||||||||||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. | ||||||||||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Net Income (Loss) Per Share | NOTE 2 — NET INCOME/(LOSS) PER SHARE | |||||||||
The Company computes basic net income/(loss) per share by dividing its net income/(loss) for the period by the weighted average number of common shares outstanding during the period less the weighted average common shares subject to restrictions imposed by the Company. Diluted net income/(loss) per share reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans (including stock options, RSUs and common stock issuable through the Company’s employee stock purchase plan), warrants and contingently issuable shares by application of the treasury stock method. | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net income/(loss) | $ | 8,148 | $ | -19,909 | $ | -20,459 | ||||
Shares used to compute net income/(loss) per share: | ||||||||||
Weighted average common shares outstanding | 93,575 | 71,543 | 64,932 | |||||||
Weighted average common shares subject to restrictions | -1,749 | -90 | -614 | |||||||
Weighted average shares used to compute basic net income/(loss) per share | 91,826 | 71,453 | 64,318 | |||||||
Dilutive potential common shares | 5,096 | - | - | |||||||
Weighted average shares used to compute diluted net income/(loss) per share | 96,922 | 71,453 | 64,318 | |||||||
Basic net income/(loss) per share | $ | 0.09 | $ | -0.28 | $ | -0.32 | ||||
Diluted net income/(loss) per share | $ | 0.08 | $ | -0.28 | $ | -0.32 | ||||
The following weighted average options to purchase common stock, warrants to purchase common stock, shares of common stock subject to restrictions, shares contingently issuable in connection with the Blammo earnout (as described below in Note 4 – Fair Value Measurements), and RSUs have been excluded from the computation of diluted net income/(loss) per share of common stock for the periods presented because including them would have had an anti-dilutive effect: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Options to purchase common stock | 6,347 | 10,646 | 10,321 | |||||||
Warrants to purchase common stock | 2,362 | 3,310 | 4,187 | |||||||
RSUs | 2,746 | 936 | - | |||||||
Common shares subject to restrictions | 1,596 | 90 | 614 | |||||||
13,051 | 14,982 | 15,122 | ||||||||
Business_Combinations
Business Combinations | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Business Combinations | |||||||
NOTE 3 — BUSINESS COMBINATIONS | |||||||
Cie Games, Inc. | |||||||
On August 20, 2014, the Company completed its acquisition of Cie Games, Inc. (“Cie Games”), a developer of racing genre mobile games based in Long Beach, California. The Company acquired Cie Games’ to leverage its racing genre expertise, assembled workforce and existing mobile games in order to expand the Company’s game offerings on smartphones and tablets. The purchase price consideration included 9,983 shares of the Company’s common stock valued at $5.09 per share as of the closing date of the acquisition, for an aggregate of $50,813 in share consideration. In addition, the Company agreed to pay approximately $29,495 in cash consideration, for total overall consideration paid of $80,308. The Company is holding back in escrow approximately 2,139 of the share consideration for 18 months from the closing date to satisfy potential indemnification claims under the Merger Agreement. In addition, $280 of the cash consideration was held back and may be released to the former stockholders of Cie Games to the extent the Company receives a tax refund relating to Cie Games’ operations from January 1, 2014 through August 20, 2014, $250 of cash consideration that had been held back to satisfy potential working capital shortfalls, was paid by the Company to the former Cie Games stockholders during the fourth quarter of 2014. All outstanding Cie Games capital stock and stock options were cancelled at the closing of the acquisition. | |||||||
The allocation of the purchase price is preliminary and based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its preliminary estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||||
Assets acquired: | |||||||
Cash | $ | 5,281 | |||||
Accounts receivable, net | 4,624 | ||||||
Restricted Cash | 200 | ||||||
Other current assets | 422 | ||||||
Property and equipment | 519 | ||||||
Intangible assets: | |||||||
Titles, content and technology | 19,200 | ||||||
Customer contract and related relationships | 4,300 | ||||||
Goodwill | 57,247 | ||||||
Total assets acquired | 91,793 | ||||||
Liabilities assumed: | |||||||
Accounts payable | -2,317 | ||||||
Other accrued liabilities | -2,053 | ||||||
Deferred revenue | -294 | ||||||
Deferred tax liability | -6,821 | ||||||
Total liabilities acquired | -11,485 | ||||||
Net acquired assets | $ | 80,308 | |||||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives of three to five years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Of the total purchase price, $23,500 was allocated to identifiable intangible assets. Pursuant to ASC 805, the Company incurred and expensed a total of $513 in acquisition and transitional costs associated with the acquisition of Cie Games during the year ended December 31, 2014, which were primarily general and administrative related. | |||||||
The Company allocated the residual value of $57,247 to goodwill, which includes a valuation allowance adjustment for change in enacted tax rate that was recorded in fourth quarter of 2014. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the Cie Games acquisition is not deductible for tax purposes. | |||||||
PlayFirst, Inc. | |||||||
On May 14, 2014, the Company completed the acquisition of PlayFirst, Inc. (“PlayFirst”), a developer of casual games for smartphones and tablets based in San Francisco, California. The Company acquired PlayFirst to leverage its casual game expertise, assembled workforce and existing mobile games in order to expand the Company’s game offerings on smartphones and tablets. | |||||||
The purchase price consideration was $11,553, representing 2,955 shares of the Company’s common stock valued at $3.91 per share as of the closing date of the acquisition. The number of shares comprising the purchase price consideration was reduced from 3,000 shares to 2,955 shares due to a working capital adjustment. In addition, the Company withheld a total of 106 shares to cover stockholders’ agent expenses and tax obligations of certain PlayFirst stockholders, which resulted in the Company issuing a total of 2,849 shares valued at $11,141 and paying $412 in cash. Of the 2,849 shares issued in the acquisition, 1,500 are being held in escrow and will be retained by the Company for 24 months to satisfy potential indemnification claims under the PlayFirst merger agreement. In addition, the Company assumed approximately $3,480 of PlayFirst net liabilities. All outstanding PlayFirst capital stock, stock options and warrants were cancelled at the closing of the PlayFirst acquisition. | |||||||
During the third quarter of 2014, approximately 24 shares that were being held back pursuant to the PlayFirst merger agreement were cancelled to satisfy a net working capital adjustment and a corresponding adjustment of $93 was made to goodwill representing the fair value of the shares on the date of acquisition. | |||||||
The allocation of the purchase price is preliminary and based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its preliminary estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||||
Assets acquired: | |||||||
Cash | $ | 123 | |||||
Accounts receivable, net | 736 | ||||||
Other current assets | 145 | ||||||
Property and equipment | 15 | ||||||
Intangible assets: | |||||||
Titles, content and technology | 2,200 | ||||||
In Process Research and Development | 800 | ||||||
Customer contract and related relationships | 700 | ||||||
Goodwill | 11,241 | ||||||
Total assets acquired | 15,960 | ||||||
Liabilities assumed: | |||||||
Accounts payable | -1,509 | ||||||
Other accrued liabilities | -651 | ||||||
Line of credit | -890 | ||||||
Term loan | -1,450 | ||||||
Total liabilities acquired | -4,500 | ||||||
Net acquired assets | $ | 11,460 | |||||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives of three to five years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Of the total purchase price, $3,700 was allocated to identifiable intangible assets. Pursuant to ASC 805, the Company incurred and expensed a total of $917 in acquisition and transitional costs associated with the acquisition of PlayFirst during the year ended December 31, 2014, respectively, which were primarily general and administrative related. | |||||||
The Company allocated the residual value of $11,241 to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with ASC 350, goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the PlayFirst acquisition is not deductible for tax purposes. | |||||||
Acquisition of GameSpy Industries, Inc. | |||||||
On August 2, 2012, the Company completed the acquisition of GameSpy Industries, Inc. (“GameSpy”) pursuant to an Agreement and Plan of Merger (the “GameSpy Merger Agreement”) by and among the Company, Galileo Acquisition Corp., a California corporation and wholly owned subsidiary of the Company (“Galileo”), IGN Entertainment, Inc. (“IGN”) and GameSpy. GameSpy, which is based in California, provides technology and services for multiplayer and server-based gaming. The Company acquired GameSpy as part of its efforts to enhance the monetization and retention of the Company’s players by incorporating GameSpy’s expertise in community functionality, synchronous multiplayer and asynchronous player versus player mechanics into the Company’s games. | |||||||
Pursuant to the terms of the GameSpy Merger Agreement, the Company issued to IGN, as GameSpy’s sole shareholder, in exchange for all of the issued and outstanding shares of GameSpy capital stock, a total of 600 shares of the Company’s common stock, for consideration of approximately $2,796, based on the $4.66 closing price of the Company’s common stock on The NASDAQ Global Market on August 2, 2012. In addition, the Company, GameSpy and IGN entered into a Transition Services Agreement, pursuant to which IGN provided to the Company and GameSpy certain backend data center transition services related to GameSpy’s private cloud storage infrastructure through August 2, 2014. | |||||||
The allocation of the GameSpy purchase price was based upon valuations for certain assets acquired and liabilities assumed. The valuation was based upon calculations and valuations, and the Company’s estimates and assumptions are subject to change as the Company obtains additional information for its estimates during the respective measurement periods (up to one year from the acquisition date). The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||||
Assets acquired: | |||||||
Cash | $ | 913 | |||||
Accounts receivable, net | 1,695 | ||||||
Property and equipment | 485 | ||||||
Intangible assets: | |||||||
Customer contracts and related relationships | 250 | ||||||
Titles, content and technology | 1,300 | ||||||
Goodwill | 1,096 | ||||||
Total assets acquired | 5,739 | ||||||
Liabilities assumed: | |||||||
Other accrued liabilities | -689 | ||||||
Deferred revenue | -1,684 | ||||||
Deferred tax liability | -570 | ||||||
Total liabilities acquired | -2,943 | ||||||
Net acquired assets | $ | 2,796 | |||||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives of two to three years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. | |||||||
In connection with the acquisition of GameSpy, the Company recorded net deferred tax liabilities of $570, with a corresponding adjustment to goodwill. These deferred taxes were primarily related to identifiable intangible assets and net operating losses. | |||||||
The Company allocated the residual value of $1,096 to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the GameSpy acquisition is not deductible for tax purposes. | |||||||
Valuation Methodology | |||||||
The Company engaged a third-party valuation firm to aid management in its analyses of the fair value of Cie Games, PlayFirst, and GameSpy. All estimates, key assumptions and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation firm, the fair value analyses and related valuations represent the conclusions of management and not the conclusions or statements of any third party. | |||||||
The Company valued titles, content and technology, and in-process research and development using the Multi-Period Excess Earnings (“MPEE”) method of the income approach and key assumptions used included: projected revenue, cost of goods sold, and operating expenses for PlayFirst’s and Cie Games’ legacy titles, the future amortization tax benefit of the legacy titles, and a discount rate of between 20% and 35%. | |||||||
As of the valuation date, PlayFirst was in the process of developing a game, which was launched in the fourth quarter of 2014, and the Company has estimated the majority of the revenues associated with this game will be generated in 2015. | |||||||
The Company valued customer relationships using the replacement cost method of the cost approach and based on the perceived value that a market participant would ascribe to the PlayFirst and Cie Games customer relationships, which include existing relationships with Amazon, Apple and Google. Key assumptions used in valuing customer relationships included legal fees and opportunity costs in re-establishing such relationships. | |||||||
In the valuation of GameSpy customer contracts, these contracts were valued over their remaining terms, which included consideration of moderate anticipated renewals and is consistent with market participant considerations. These contracts were fair valued using the MPEE method of the income approach and key assumptions used included: projected revenue and operating expenses for GameSpy’s remaining contracts, the remaining contractual period of the contracts and a discount rate of 14%. The Company valued developed technology using the replacement cost method of the cost approach and based on the perceived value that a market participant would ascribe to the GameSpy technology, which allows for hosting multi-player games on mobile devices and other platforms. Key assumptions used included fully burdened headcount spending information. As of the valuation date, the fair value of GameSpy’s deferred revenue was $1,684, which reflects the costs including hosting fees, salaries and benefits, equipment and facilities to support the contractual obligations associated with these revenues, plus a market participant margin. The deferred revenue will be recognized on a straight-line basis over 24 months. | |||||||
Pro Forma Financial Information | |||||||
The results of operations for PlayFirst and Cie Games and the estimated fair market values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since their respective dates of acquisition. For the year ended December 31, 2014 and since the dates of their respective acquisition, PlayFirst and Cie Games contributed approximately $13,601 to the Company’s gross revenue and increased net losses by $315. The unaudited pro forma financial information in the table below summarizes the combined results of the Company’s operations and those of PlayFirst and Cie Games for the periods shown as if the acquisition of PlayFirst and Cie Games had each occurred on January 1, 2013. The pro forma financial information includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions and other uncertainties. In addition, the pro forma financial information presented below does not include the unaudited financial information of GameSpy, since these were not material. | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Total pro forma revenues | $ | 243,971 | $ | 137,095 | |||
Pro forma net income/ (loss) | 2,800 | -33,009 | |||||
Pro forma net income/ (loss) per share - basic | $ | 0.03 | $ | -0.41 | |||
Pro forma net income/ (loss) per share - diluted | $ | 0.03 | $ | -0.41 | |||
All of the goodwill related to the Cie Games, PlayFirst and GameSpy transactions was assigned to the Company’s Americas reporting unit. See Note 6 for additional information related to the changes in the carrying amount of goodwill. | |||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value Measurements | NOTE 4 — FAIR VALUE MEASUREMENTS | ||||||||||
Fair Value Measurements | |||||||||||
The Company accounts for fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||
Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||
The first two levels in the hierarchy are considered observable inputs and the last is considered unobservable. The Company’s cash and cash equivalents, which were held in operating bank accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. As of December 31, 2014 and December 31, 2013, the Company had $70,912 and $28,496, respectively, in cash and cash equivalents. In addition, the Company’s restricted cash is classified within Level 1 of the fair value hierarchy. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected receipt of payment or cash. | |||||||||||
Liabilities for Contingent Consideration | |||||||||||
On August 1, 2011, the Company completed the acquisition of Blammo Games Inc. (“Blammo”), by entering into a Share Purchase Agreement (the “Share Purchase Agreement”) by and among the Company, Blammo and each of the owners of the outstanding share capital of Blammo (the “Sellers”). Blammo was a developer of free-to-play games for Digital Storefronts located in Toronto, Canada. Pursuant to the terms of the Share Purchase Agreement, the Company agreed to issue to the Sellers, in the aggregate, 1,000 shares of the Company’s common stock plus up to an additional 3,313 shares of the Company’s common stock (the “Additional Shares”) if Blammo achieved certain Net Revenue (as such term is defined in the Share Purchase Agreement) targets during the fiscal years ending March 31, 2013, March 31, 2014 and March 31, 2015. | |||||||||||
The Company issued 742 shares of common stock in May 2013 and 435 shares of common stock in May 2014 to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal years ended March 31, 2013 and 2014, respectively. Since the contingency related to the number of shares earned in connection with the earnout targets for these fiscal years was resolved and the number of shares became fixed, the fair values of these shares have been presented in additional paid-in capital in the Company’s consolidated balance sheet since March 31, 2013 and 2014, respectively. In July 2014, the Company and the former Blammo shareholders entered into a formal agreement to change the vesting condition of the last tranche of earnout shares. Pursuant to this agreement, the Company agreed to issue to the former Blammo shareholders 750 Additional Shares in lieu of the opportunity to earn up to 1,154 Additional Shares for the year ending March 31, 2015 (“Fiscal 2015”) if Blammo were to generate $15,000 in Net Revenues during Fiscal 2015. Since the contingency related to the number of shares to be earned in connection with the target for Fiscal 2015 was resolved as of June 30, 2014, and the number of shares has become fixed, the fair value of these shares in the amount of $3,750 has been presented in additional paid-in capital on the Company’s consolidated balance sheet since June 30, 2014. | |||||||||||
Three of the five Sellers were also employees of Blammo. The fair value of the contingent consideration issued to the three Sellers who were also employees of Blammo was not considered part of the purchase price, since vesting was contingent upon these employees’ continued service during the earn-out periods. In accordance with ASC 805, Business Combinations, non-employee contingent consideration issued to the two Sellers who are not employees of Blammo was recorded as part of the purchase accounting and was fair valued at each subsequent reporting period. During the year ended December 31, 2014, 2013, and 2012, the Company recorded fair value benefit adjustments of $835, $7, and $167, respectively, which represent the changes in fair value of the non-employee contingent consideration for all respective periods. In accordance with ASC 805, changes in the fair value of non-employee contingent consideration are recognized in general and administrative expense in the Company’s consolidated statements of operations. | |||||||||||
Level 3 liabilities consist of acquisition-related liabilities for contingent consideration (i.e., earnouts) related to the acquisition of Blammo. As of December 31, 2014, the Company recorded no contingent consideration liability, as the final tranche of Blammo earnout shares had been earned and recorded in additional paid-in capital. As of December 31, 2013, the Company recorded a contingent consideration liability of $427, of which $329 was recorded as a current liability in accrued compensation as settlement was less than one year. The Company used a risk-neutral framework to estimate the probability of achieving the revenue targets set forth above for each year. The fair value of the contingent consideration was determined using a digital option, which captures the present value of the expected payment multiplied by the probability of reaching the revenue targets for each year. Key assumptions for the years ended December 31, 2014, 2013, and 2012, are shown in the table below. | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Discount rate | 35 | % | 35 | % | 35 | % | |||||
Risk-free interest rate minimum | 0.13 | % | 0.07 | % | 0.05 | % | |||||
Risk-free interest rate maximum | 0.13 | % | 0.19 | % | 0.28 | % | |||||
Expected volatility | 42 | % | 35 | % | 38 | % | |||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||
Balance Sheet Components | NOTE 5 — BALANCE SHEET COMPONENTS | ||||||||||||
Accounts Receivable | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable | $ | 32,528 | $ | 18,764 | |||||||||
Less: Allowance for doubtful accounts | -297 | -459 | |||||||||||
$ | 32,231 | $ | 18,305 | ||||||||||
Accounts receivable include amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions to our digital storefronts. | |||||||||||||
The movement in the Company’s allowance for doubtful accounts is as follows: | |||||||||||||
Balance at | Balance at | ||||||||||||
Beginning of | End of | ||||||||||||
Description | Year | Additions | Deductions | Year | |||||||||
Year ended December 31, 2014 | $ | 459 | $ | 219 | $ | 381 | $ | 297 | |||||
Year ended December 31, 2013 | $ | 432 | $ | 51 | $ | 24 | $ | 459 | |||||
Year ended December 31, 2012 | $ | 800 | $ | 202 | $ | 570 | $ | 432 | |||||
The Company had no significant write-offs or recoveries during the years ended December 31, 2014, 2013, and 2012. | |||||||||||||
Prepaid expenses and other | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred platform commission fees | 9,776 | 4,516 | |||||||||||
Deferred royalties | 3,739 | - | |||||||||||
Deferred tax asset | 921 | 108 | |||||||||||
Prepaid royalties | 864 | 740 | |||||||||||
Other | 2,952 | 2,299 | |||||||||||
$ | 18,252 | 7,663 | |||||||||||
Property and Equipment | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Computer equipment | $ | 6,721 | $ | 6,134 | |||||||||
Furniture and fixtures | 949 | 862 | |||||||||||
Software | 8,504 | 6,290 | |||||||||||
Leasehold improvements | 3,381 | 2,768 | |||||||||||
19,555 | 16,054 | ||||||||||||
Less: Accumulated depreciation and amortization | -13,439 | -10,958 | |||||||||||
$ | 6,116 | $ | 5,096 | ||||||||||
Depreciation and amortization for the years ended December 31, 2014, 2013 and 2012 was $2,513, $2,707 and $2,368, respectively. | |||||||||||||
Other long-term assets | |||||||||||||
As of December 31, 2014 and December 31, 2013, respectively, other long-term assets include $5,870 and zero of prepaid minimum guarantees for certain license agreements. These amounts are recoupable against future revenues expected to be generated greater than one year from the balance sheet date. | |||||||||||||
Other Long-Term Liabilities | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred rent | $ | 1,001 | $ | 1,131 | |||||||||
Uncertain tax position obligations | 977 | 890 | |||||||||||
Accrued royalties | 870 | - | |||||||||||
Deferred tax liability | 842 | 122 | |||||||||||
Other | 246 | 214 | |||||||||||
$ | 3,936 | $ | 2,357 | ||||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | NOTE 6 — GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||
The Company’s intangible assets were acquired primarily in connection with the acquisitions of Macrospace in 2004, iFone in 2006, MIG in 2007, Superscape in 2008, Griptonite and Blammo in 2011, GameSpy in 2012 and PlayFirst and Cie Games in 2014, as well as in connection with the purchase of the Deer Hunter trademark and brand assets from Atari, Inc. in 2012. The carrying amounts and accumulated amortization expense of the acquired intangible assets, including the impact of foreign currency exchange translation, at December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||
Value | Expense | Value | Value | Expense | Value | |||||||||||||||||||||
(Including | (Including | (Including | (Including | (Including | (Including | |||||||||||||||||||||
Estimated | Impact of | Impact of | Impact of | Impact of | Impact of | Impact of | ||||||||||||||||||||
Useful | Foreign | Foreign | Foreign | Foreign | Foreign | Foreign | ||||||||||||||||||||
Life | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | ||||||||||||||||||||
Intangible assets amortized to cost of revenues: | ||||||||||||||||||||||||||
Titles, content and technology | 3 yrs | $ | 34,095 | $ | -15,214 | $ | 18,881 | $ | 12,851 | $ | -12,165 | $ | 686 | |||||||||||||
Catalogs | 1 yr | 1,208 | -1,208 | - | 1,283 | -1,283 | - | |||||||||||||||||||
ProvisionX Technology | 6 yrs | 199 | -199 | - | 211 | -211 | - | |||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 24,794 | -20,192 | 4,602 | 19,940 | -19,645 | 295 | |||||||||||||||||||
Licensed content | 5 yrs | 3,012 | -3,012 | - | 3,040 | -3,040 | - | |||||||||||||||||||
Service provider license | 9 yrs | 479 | -375 | 104 | 482 | -324 | 158 | |||||||||||||||||||
In-process research and development | 3 yrs | 800 | -100 | 700 | - | - | - | |||||||||||||||||||
Trademarks | 7 yrs | 5,226 | -2,190 | 3,036 | 5,230 | -1,480 | 3,750 | |||||||||||||||||||
69,813 | -42,490 | 27,323 | 43,037 | -38,148 | 4,889 | |||||||||||||||||||||
Other intangible assets amortized to operating expenses: | ||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,289 | -1,289 | - | 1,368 | -1,368 | - | |||||||||||||||||||
Noncompete agreement | 4 yrs | 5,417 | -5,216 | 201 | 5,452 | -4,742 | 710 | |||||||||||||||||||
6,706 | -6,505 | 201 | 6,820 | -6,110 | 710 | |||||||||||||||||||||
Total intangibles assets, net | $ | 76,519 | $ | -48,995 | $ | 27,524 | $ | 49,857 | $ | -44,258 | $ | 5,599 | ||||||||||||||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenues. The Company has included amortization of acquired intangible assets not directly attributable to revenue-generating activities in operating expenses. As of December 31, 2014, the Company acquired $27,200 of identifiable intangible assets from its acquisition of PlayFirst and Cie Games, and approximately $1,550 of intangible assets as part of the GameSpy acquisition in the third quarter of 2012; see Note 3 for further details. | ||||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recorded amortization expense in the amounts of $4,767, $4,238 and $3,783, respectively, in cost of revenues. During the years ended December 31, 2014, 2013 and 2012, the Company recorded amortization expense in the amounts of $508, $1,336 and $1,980, respectively, in operating expenses. The Company recorded no impairment charges during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||
As of December 31, 2014, the total expected future amortization related to intangible assets was as follows: | ||||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||
Included in | Included in | Total | ||||||||||||||||||||||||
Cost of | Operating | Amortization | ||||||||||||||||||||||||
Period Ending December 31, | Revenues | Expenses | Expense | |||||||||||||||||||||||
2015 | $ | 9,554 | $ | 201 | $ | 9,755 | ||||||||||||||||||||
2016 | 9,199 | - | 9,199 | |||||||||||||||||||||||
2017 | 6,076 | - | 6,076 | |||||||||||||||||||||||
2018 | 1,714 | - | 1,714 | |||||||||||||||||||||||
2019 and thereafter | 780 | - | 780 | |||||||||||||||||||||||
$ | 27,323 | $ | 201 | $ | 27,524 | |||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
The Company has goodwill attributable to its MIG, GameSpy, Blammo, Griptonite, PlayFirst, and Cie Games acquisitions as of December 31, 2014. The Company has three reporting units comprised of the 1) Americas, 2) EMEA and 3) APAC regions. The Company attributed all of the goodwill resulting from the MIG acquisition to its Asia and Pacific (“APAC”) reporting unit. All of the goodwill attributable to the GameSpy, Blammo, Griptonite, PlayFirst, and Cie Games acquisitions has been fully assigned to the Company’s Americas reporting unit. The Company had fully impaired in prior years all goodwill allocated to its EMEA reporting unit. The goodwill allocated to the Americas reporting unit is denominated in U.S. Dollars (“USD”) and the goodwill allocated to the APAC reporting unit is denominated in Chinese Renminbi (“RMB”). As a result, the goodwill attributed to the APAC reporting unit is subject to foreign currency fluctuations. | ||||||||||||||||||||||||||
In the valuation of the goodwill balance for Griptonite, Blammo, MIG, GameSpy, PlayFirst, and Cie Games the Company gave consideration to the future economic benefits of other assets that were not individually identified or separately recognized. The acquired studio workforce for each of these acquisitions was estimated to have value, and since the acquired workforce is not individually identified or separately recognized, it was subsumed within the goodwill recognized as part of each business combination. The Company further planned to leverage its preexisting contractual relationships with Digital Storefronts to distribute new titles developed by the Griptonite, Blammo, PlayFirst, and Cie Games studios and the expected synergies are reflected in the value of the goodwill recognized. The Company also used the GameSpy acquired workforce and expertise to help in its development efforts for its games-as-a-service technology platform, and these synergies are reflected in the value of goodwill recognized. | ||||||||||||||||||||||||||
Goodwill by geographic region is as follows: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total | |||||||||||||||||||
Balance as of January 1 | ||||||||||||||||||||||||||
Goodwill | $ | 42,946 | $ | 25,354 | $ | 24,296 | $ | 92,596 | $ | 42,946 | $ | 25,354 | $ | 24,251 | $ | 92,551 | ||||||||||
Accumulated Impairment Losses | -24,871 | -25,354 | -22,886 | -73,111 | -24,871 | -25,354 | -22,886 | -73,111 | ||||||||||||||||||
18,075 | - | 1,410 | 19,485 | 18,075 | - | 1,365 | 19,440 | |||||||||||||||||||
Goodwill Acquired during the year | 68,488 | - | - | 68,488 | - | - | - | - | ||||||||||||||||||
Effects of Foreign Currency Exchange | - | - | -9 | -9 | - | - | 45 | 45 | ||||||||||||||||||
Balance as of period ended: | 86,563 | - | 1,401 | 87,964 | 18,075 | - | 1,410 | 19,485 | ||||||||||||||||||
Goodwill | 111,434 | 25,354 | 24,287 | 161,075 | 42,946 | 25,354 | 24,296 | 92,596 | ||||||||||||||||||
Accumulated Impairment Losses | -24,871 | -25,354 | -22,886 | -73,111 | -24,871 | -25,354 | -22,886 | -73,111 | ||||||||||||||||||
Balance as of period ended: | $ | 86,563 | $ | - | $ | 1,401 | $ | 87,964 | $ | 18,075 | $ | - | $ | 1,410 | $ | 19,485 | ||||||||||
In accordance with ASC 350, the Company’s goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Under ASC 350, the Company performs the annual impairment review of its goodwill balance as of September 30 or more frequently if triggering events occur. | ||||||||||||||||||||||||||
The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the multiple-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the goodwill impairment test. ASC 350 requires a multiple-step approach to testing goodwill for impairment for each reporting unit annually, or whenever events or changes in circumstances indicate the fair value of a reporting unit is below its carrying amount. The first step measures for impairment by applying the fair value-based tests at the reporting unit level. The second step (if necessary) measures the amount of impairment by applying the fair value-based tests to individual assets and liabilities within each reporting unit. The fair value of the reporting units is estimated using a combination of the market approach, which utilizes comparable companies’ data, and/or the income approach, which uses discounted cash flows. | ||||||||||||||||||||||||||
As of December 31, 2014, the Company had goodwill attributable to the APAC and Americas reporting units. The cash flows of these reporting units reflect the income and expenses of assets directly employed by, and liabilities related to, the operations of the reporting unit, including revenue related to local contractual relationships, but excludes revenue related to global contractual relationships such as Digital Storefronts which are owned by the U.S. and allocated directly to the Americas reporting unit. During the third quarter of 2014, the Company performed a Step 0 qualitative assessment for its Americas and APAC reporting units. Based on this assessment, the Company concluded that it was more likely than not that the fair value of each of the reporting units was greater than their carrying amounts, and, as a result, did not proceed to further impairment testing and accordingly did not recognize an impairment of goodwill in the year ended December 31, 2014. In 2013, the Company did not record any goodwill impairment charges as the fair values of the reporting units exceeded their respective carrying values. In 2012, the Company concluded that a portion of the goodwill attributed to the APAC reporting unit was impaired and recorded a $3,613 impairment charge. | ||||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | NOTE 7 — COMMITMENTS AND CONTINGENCIES | ||||
Leases | |||||
The Company leases office space under non-cancelable operating facility leases with various expiration dates through September 2020. Rent expense for the years ended December 31, 2014, 2013 and 2012 was $4,149, $3,380 and $2,704, respectively. The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. The deferred rent balance was $1,001 and $1,131 at December 31, 2014 and 2013, respectively, and was included within other long-term liabilities. | |||||
In April 2013 and June 2013, Company entered into lease agreements for space at its San Francisco headquarters and Washington offices that will expire on March 31, 2018 and September 30, 2020, respectively. In May 2014, the Company entered into a lease amendment for its Washington offices to expand the rentable square footage by 13 square feet and amended the lease payment schedule. The Company has provided deposits for lines of credit totaling $1,790 to secure its obligations under the leases, which have been classified as restricted cash on the Company’s consolidated balance sheet as of December 31, 2014. | |||||
At December 31, 2014, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2015 | $ | 4,359 | |||
2016 | 3,571 | ||||
2017 | 2,672 | ||||
2018 | 1,328 | ||||
2019 | 979 | ||||
2020 and thereafter | 754 | ||||
$ | 13,663 | ||||
Minimum Guaranteed Royalties and Developer Commitments | |||||
The Company has entered into license and publishing agreements with various owners of brands, properties and other content to develop and publish games based on or incorporating such licensed content for mobile devices. Pursuant to some of these agreements, the Company is required to pay minimum guaranteed royalties or license fees over the term of the agreement regardless of actual game sales. Future minimum guaranteed royalty payments as of December 31, 2014 were $1,474. | |||||
In September 2014, the Company and Kimsaprincess, Inc. (“KAP”), Kim Kardashian West is President of KAP, entered into a second amendment to their existing License Agreement (the “KAP License Agreement”) entered into in November 2013, as first amended in June 2014. In consideration of KAP’s additional commitments and obligations under the amended license agreement and the extension of the term of the KAP License Agreement by three years, the Company paid KAP an additional minimum guarantee, which has been fully recouped by the Company against royalties that it would otherwise pay to KAP. | |||||
The Company also from time to time contracts with various external software developers (“third-party developers”) to design and develop its games. The Company advances funds to these third-party developers, in installments, payable upon the completion of specified development milestones. Future developer commitments as of December 31, 2014 were $520, which are due over the next twelve months. These developer commitments reflect the Company’s minimum cash obligations but do not necessarily represent the periods in which they will be expensed. The Company expenses developer commitments as services are provided. | |||||
Income Taxes | |||||
As of December 31, 2014, unrecognized tax benefits and potential interest and penalties are classified within “other long-term liabilities” and “accounts payable” on the Company’s consolidated balance sheets. As of December 31, 2014, the settlement of the Company’s income tax liabilities could not be determined; however, the liabilities are not expected to become due within the next 12 months. | |||||
Indemnification Arrangements | |||||
The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. Accordingly, the Company had recorded no liabilities for these agreements as of December 31, 2014 or 2013. | |||||
In the ordinary course of its business, the Company includes standard indemnification provisions in most of its commercial agreements with Digital Storefronts and licensors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types. As a result, the Company believes the estimated fair value of these indemnity provisions is minimal. Accordingly, the Company had recorded no liabilities for these provisions as of December 31, 2014 or 2013. | |||||
Contingencies | |||||
From time to time, the Company is subject to various claims, complaints and legal actions in the normal course of business. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company’s estimate of losses is developed in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. After taking all of the above factors into account, the Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed reasonably probable and the amount can be reasonably estimated. The Company further determines whether an estimated loss from a contingency should be disclosed by assessing whether a material loss is deemed reasonably possible. Such disclosure will include an estimate of the additional loss or range of loss or will state that an estimate cannot be made. | |||||
On August 19, 2014, Inventor Holdings, LLC (“IHL”), a Delaware limited liability company, filed a complaint in the U.S. District Court for the District of Delaware alleging that the Company is infringing one of its patents and seeking unspecified damages, including interest, costs, expenses and an accounting of all infringing acts, attorneys’ fees and such other costs as the Court deems just and proper. On October 10, 2014, the Company filed a motion to dismiss the complaint with prejudice on the ground that the patent asserted by IHL claims patent-ineligible subject matter pursuant to 35 U.S.C. § 101 and thus the complaint fails to state a claim upon which relief can be granted. On October 27, 2014, IHL filed an opposition to the Company’s motion to dismiss the complaint with prejudice. The Company filed its reply to IHL’s opposition on November 6, 2014. The motion remains pending. In the meanwhile, the Court has entered a scheduling order for the case. Trial, if necessary, is set to begin December 5, 2016. | |||||
On November 5, 2014, the Company filed a complaint against Hothead Games, Inc. (“Hothead”) in the United States District Court for the Northern District of California. In the complaint, the Company alleges that Hothead has willfully infringed, and continues to willfully infringe, certain of its copyrights and trade dress contained in its Deer Hunter 2014 game through Hothead’s release of its game, Kill Shot. The Company’s complaint requests that the Court grant the following relief: (1) preliminary and/or permanent injunction restraining Hothead and its affiliates from directly or indirectly violating its rights under the Copyright Act and the Lanham Act; (2) an order directing that Hothead file with the Court and serve upon the Company’s counsel within 30 days after entry of such order or judgment a report in writing and under oath setting forth in detail the manner and form in which Hothead has complied with the injunction; (3) an award to the Company of damages it has sustained or will sustain by reason of Hothead’s conduct, all profits derived by Hothead from such conduct, or in lieu of any portion thereof, should it so elect, such statutory damages as provided by law; (4) its costs and reasonable attorneys’ fees; (5) prejudgment and post-judgment interest; and (6) all such further and additional relief, in law or in equity, to which it may be entitled or which the Court deems just and proper. Following a case management conference on February 6, 2015, the Court set all pre-trial and trial dates, with a jury trial set to commence on May 31, 2016. | |||||
In November 2014, Telinit Technologies, LLC, a Texas company, filed a complaint in the U.S. District Court for the Eastern District of Texas, Marshall Division, alleging that the Company was infringing one of its patents and seeking unspecified damages, attorneys’ fees and costs. The Company settled this dispute in January 2015 for an immaterial amount. | |||||
The Company does not believe it is party to any currently pending litigation, the outcome of which is reasonably likely to have a material adverse effect on its operations, financial position or liquidity. However, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors. | |||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equity [Abstract] | |||||||||||
Stockholders' Equity | NOTE 8 — STOCKHOLDERS’ EQUITY | ||||||||||
Common Stock | |||||||||||
At December 31, 2014, the Company was authorized to issue 250,000 shares of common stock. As of December 31, 2014, the Company had reserved 18,568 shares for future issuance under its stock plans and outstanding warrants. | |||||||||||
Preferred Stock | |||||||||||
At December 31, 2014, the Company was authorized to issue 5,000 shares of preferred stock. | |||||||||||
Acquisitions | |||||||||||
On August 20, 2014, as part of the consideration for its acquisition of Cie Games, the Company issued an aggregate of 9,983 shares of its common stock to Cie Games’ former shareholders, of which approximately 2,139 shares will be held back by Glu for 18 months from the closing date of the acquisition to satisfy potential indemnification claims under the Cie Games merger agreement. | |||||||||||
On May 14, 2014, as consideration for its acquisition of PlayFirst, the Company issued an aggregate of 2,849 shares of its common stock to PlayFirst’s former shareholders, which is net of shares withheld to cover a net working capital adjustment, stockholders’ agent expenses and tax obligations of certain former PlayFirst shareholders. Of the 2,849 shares issued in the acquisition, 1,500 are being held in escrow and will be retained by the Company for 24 months to satisfy potential indemnification claims under the PlayFirst merger agreement. During the third quarter of 2014, approximately 24 shares that were being held back pursuant to the PlayFirst merger agreement were cancelled to satisfy a net working capital adjustment. | |||||||||||
On August 2, 2012, the Company issued an aggregate of 600 shares of its common stock to IGN in connection with the Company’s acquisition of GameSpy. | |||||||||||
See Note 3 – Business Combinations – for more information about these acquisitions. | |||||||||||
Shares Issues In Connection With the Blammo Earnout | |||||||||||
In May 2013, the Company issued 742 shares to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal year ended March 31, 2013. In May 2014, the Company issued 435 shares of common stock to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal year ended March 31, 2014. In July 2014, the Company issued 750 shares of common stock to the former Blammo shareholders in lieu of the opportunity that the former Blammo shareholders otherwise would have had under the Share Purchase Agreement to earn up to 1,154 shares of the Company’s common stock for Fiscal 2015. The fair values of these earnout amounts have been presented in additional paid-in capital on the Company’s consolidated balance sheet as of December 31, 2014. See Note 4 for more information about these issuances. | |||||||||||
Public Offerings | |||||||||||
In June 2014, the Company sold in an underwritten public offering an aggregate of 9,861 shares of its common stock at a public offering price of $3.50 per share for net cash proceeds of approximately $32,058 after underwriting discounts and other offering expenses. | |||||||||||
In September 2013, the Company sold in an underwritten public offering an aggregate of 7,245 shares of its common stock at a public offering price of $2.10 per share for net cash proceeds of approximately $13,985 after underwriting discounts and other offering expenses. This public offering exhausted all of the securities that the Company was able to issue under its shelf registration statement that the SEC declared effective in December 2010. | |||||||||||
Warrants to Purchase Common Stock | |||||||||||
In connection with entry into the second amendment of the KAP License Agreement, the Company issued to KAP and two other entities associated with KAP’s president, Kim Kardashian West, a total of three warrants exercisable for up to an aggregate of 500 shares of the Company’s common stock (collectively, the “Kardashian Warrants”). Each of the Kardashian Warrants has an initial exercise price of $4.99 per share, subject to adjustments for dividends, reorganizations and other common stock events. Each of the Kardashian Warrants expires on September 2, 2020. Each of the Kardashian Warrants vests and becomes exercisable in equal monthly installments over the 60-month term of the KAP License Agreement, subject to full acceleration or cessation of vesting under certain circumstances, as stipulated in the amended KAP License Agreement. Each of the Kardashian Warrants may, at the election of the holder, be either exercised for cash or net exercised on a cashless basis. During the fourth quarter of 2014, 33 of the warrants vested and we recorded a corresponding warrant compensation charge of $66 classified to cost of sales. Key assumptions used in the Black-Scholes valuation model for the twelve months ended December 31, 2014 included an expected term of 6.0 years, volatility of 61.1%, risk-free interest rate of 1.99% and a dividend yield of 0%. | |||||||||||
In July 2013, the Company and MGM Interactive Inc. (“MGM”) entered into a warrant agreement that gives MGM the right to purchase up to 3,333 shares of the Company’s common stock at an exercise price of $3.00 per share (the “MGM Warrant”), subject to certain adjustments for dividends, reorganizations and other common stock events. Of the 3,333 shares of the Company’s common stock underlying the MGM Warrant, 333 shares were immediately vested and exercisable on the warrant agreement effective date and the remaining shares will vest and become exercisable based on conditions related to the Company releasing mobile games based on mutually agreed upon intellectual property licensed by MGM to the Company. The MGM Warrant expires on July 15, 2018. Under ASC 505, Equity-Based Payments to Non-Employees, the Company estimated the fair value of the vested shares of the MGM Warrant on the grant date using the Black-Scholes option valuation model. Key assumptions used in the Black-Scholes valuation model for the twelve months ended December 31, 2013 included an expected term of 5.0 years, volatility of 64.2%, risk-free interest rate of 1.5% and a dividend yield of 0%. During the twelve months ended December 31, 2013, the Company recorded $427 of non-cash warrant related expense in cost of revenues. The Company recorded the warrant issuance as a non-cash warrant related expense in cost of revenues for warrant shares immediately vested upon signing of the agreement, as such vesting was not tied to any game release nor to any specific intellectual property license. In July 2014, 333 shares vested in conjunction with the worldwide commercial release of a game based on MGM’s intellectual property, Hercules. Under ASC 505, the Company estimated the fair value of the vested portion of the MGM Warrant related to the Hercules game on the vest date using the Black-Scholes option valuation model. Key assumptions used in the Black-Scholes valuation model for the year ended December 31, 2014 included an expected term of 5.0 years, volatility of 56.8%, risk-free interest rate of 1.8% and a dividend yield of 0%. During the year ended December 31, 2014, the Company recorded $1,126 of non-cash warrant related expense in cost of revenues in the current period as the Hercules game is not expected to generate meaningful revenues over its lifetime. On July 11, 2014, MGM exercised 667 vested shares pursuant to which the Company received aggregate cash proceeds of $2,000. | |||||||||||
In April 2014, the Company entered into a license agreement with MGM, United Artists Corporation and Danjaq, LLC pursuant to which the Company will develop and publish a free-to-play mobile game based on the James Bond film franchise. The commercial release by the Company of this mobile game, which is expected to occur in second half of 2015, will trigger the vesting of an additional 1,000 shares subject to the MGM Warrant. | |||||||||||
During the years ended December 31, 2014, 2013 and 2012, respectively, investors exercised warrants to purchase 1,191, 2,886, and 413 shares of the Company’s common stock, and the Company received gross proceeds of $2,786, $4,329, and $619, respectively, in connection with these exercises. These exercised warrants related to part of the MGM Warrant as well as warrants issued by the Company in August 2010 in connection with a private placement transaction. | |||||||||||
Warrants outstanding at December 31, 2014 were as follows: | |||||||||||
Number | |||||||||||
Exercise | of Shares | ||||||||||
Price | Outstanding | ||||||||||
Term | per | Under | |||||||||
Date of Issuance | (Years) | Share | Warrant | ||||||||
August 2010 - Warrants issued in private offering | 5 | $ | 1.50 | 450 | |||||||
July 2013 - Warrant issued to MGM | 5 | 3.00 | 2,667 | ||||||||
September 2014 - Warrant issued to KAP | 6 | 4.99 | 500 | ||||||||
3,617 | |||||||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Segment Reporting | ||||||||||
NOTE 11 — SEGMENT REPORTING | ||||||||||
ASC 280, Segment Reporting (“ASC 280”), establishes standards for reporting information about operating segments. It defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision-maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews selected financial information on a geographic basis; however this information is included within one operating segment for purposes of allocating resources and evaluating financial performance. | ||||||||||
Accordingly, the Company reports as a single reportable segment—mobile games. In the case of Digital Storefronts, revenues are attributed to the geographic location where the end-user makes the purchase. The Company generates its revenues in the following geographic regions: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
United States of America | $ | 132,447 | $ | 48,697 | $ | 57,816 | ||||
China | 11,835 | 10,985 | 5,827 | |||||||
Americas, excluding the USA | 9,705 | 5,430 | 5,051 | |||||||
EMEA | 43,507 | 22,820 | 22,381 | |||||||
APAC, excluding China | 25,652 | 17,681 | 17,108 | |||||||
$ | 223,146 | $ | 105,613 | $ | 108,183 | |||||
The Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
Americas | $ | 5,406 | $ | 4,108 | ||||||
EMEA | 632 | 899 | ||||||||
APAC | 78 | 89 | ||||||||
$ | 6,116 | $ | 5,096 | |||||||
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | NOTE 12 — RESTRUCTURING |
During 2012, 2013 and 2014, the Company’s management approved restructuring plans to improve the effectiveness and efficiency of its operating model and reduce operating expenses around the world. During the year ended December 31, 2012, the Company recorded $1,371 of restructuring charges relating to employee termination costs in the Company’s APAC, Brazil and Washington offices and a reduction of executive sales and marketing headcount in the United States and Spain. During the year ended December 31, 2013, the Company recorded $1,448, of restructuring plan charges relating to employee termination costs in its Brazil, San Francisco, China, Washington, and EMEA offices, and facility-related costs related to streamlining its facility in Washington and additional costs associated with vacating its Brazil office. During the year ended December 31, 2014, the Company recorded $435 of restructuring charges, relating to employee termination costs associated with headcount reductions in its Moscow, Washington, and San Francisco studios. | |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | NOTE 13 – QUARTERLY FINANCIAL DATA (unaudited, in thousands) | |||||||||||||||||||||||||
The following table sets forth unaudited quarterly consolidated statements of operations data for 2013 and 2014. The Company derived this information from its unaudited consolidated financial statements, which it prepared on the same basis as its audited consolidated financial statements contained in this report. In its opinion, these unaudited statements include all adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair statement of that information when read in conjunction with the consolidated financial statements and related notes included elsewhere in this report. The operating results for any quarter should not be considered indicative of results for any future period. | ||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||
Revenues | $ | 44,580 | $ | 40,910 | $ | 64,791 | $ | 72,865 | $ | 24,605 | $ | 24,445 | $ | 21,722 | $ | 34,841 | ||||||||||
Cost of revenues: | ||||||||||||||||||||||||||
Platform commissions, royalties and other | 13,202 | 12,432 | 25,733 | 29,625 | 7,462 | 7,670 | (d) | 7,871 | 9,803 | |||||||||||||||||
Amortization of intangible assets | 554 | 441 | 1,338 | 2,434 | 1,074 | 1,078 | 1,082 | 1,004 | ||||||||||||||||||
Total cost of revenues | 13,756 | 12,873 | 27,071 | 32,059 | 8,536 | 8,748 | 8,953 | 10,807 | ||||||||||||||||||
Gross profit | 30,824 | 28,037 | 37,720 | 40,806 | 16,069 | 15,697 | 12,769 | 24,034 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Research and development | 15,579 | 17,297 | 15,355 | 16,053 | 11,630 | 11,224 | 11,405 | 12,618 | ||||||||||||||||||
Sales and marketing | 9,485 | 7,989 | (a) | 15,327 | 12,275 | 5,008 | 5,143 | 5,361 | (e) | 10,608 | ||||||||||||||||
General and administrative | 4,926 | 6,131 | 6,808 | 7,154 | 3,919 | 3,852 | 3,617 | 4,162 | ||||||||||||||||||
Amortization of intangible assets | 127 | 127 | 127 | 127 | 495 | 495 | 229 | 117 | ||||||||||||||||||
Restructuring charge | - | 159 | 209 | 67 | 511 | 937 | - | - | ||||||||||||||||||
Total operating expenses | 30,117 | 31,703 | 37,826 | 35,676 | 21,563 | 21,651 | 20,612 | 27,505 | ||||||||||||||||||
Income (loss) from operations | 707 | -3,666 | -106 | 5,130 | -5,494 | -5,954 | -7,843 | -3,471 | ||||||||||||||||||
Interest and other income (expense), net | -130 | -24 | -340 | (c) | -978 | 132 | 163 | -155 | -130 | |||||||||||||||||
Income/(loss) before income taxes | 577 | -3,690 | -446 | 4,152 | -5,362 | -5,791 | -7,998 | -3,601 | ||||||||||||||||||
Income tax benefit (provision) | -444 | -78 | (b) | 10,850 | -2,773 | -135 | (f) | 2,870 | 30 | 78 | ||||||||||||||||
Net income/(loss) | $ | 133 | $ | -3,768 | 10,404 | $ | 1,379 | $ | -5,497 | $ | -2,921 | -7,968 | $ | -3,523 | ||||||||||||
Net income /(loss) per share: | ||||||||||||||||||||||||||
Basic | $ | 0.00 | $ | -0.04 | $ | 0.11 | $ | 0.01 | $ | -0.08 | $ | -0.04 | $ | -0.11 | $ | -0.05 | ||||||||||
Diluted | $ | 0.00 | $ | -0.04 | $ | 0.10 | $ | 0.01 | $ | -0.08 | $ | -0.04 | $ | -0.11 | $ | -0.05 | ||||||||||
(a) | Changes in the sales and marketing expense from $9,485 in the first quarter of 2014 to $15,327 in the third quarter of 2014 was due primarily to higher marketing expenses associated with promoting Kim Kardashian: Hollywood. | |||||||||||||||||||||||||
(b) | The income tax benefit of $10,850 in the third quarter of 2014 was due primarily to the release of a portion of the Company’s valuation allowance of $8,352 resulting from the acquisition of Cie Games in August 2014, and the release of an $810 liability of uncertain tax positions relating to 2011, and as the Company received a closure notice for an ongoing tax return inquiry in July 2014. | |||||||||||||||||||||||||
(c) | Interest and other income (expense), net was a loss of $978 in the fourth quarter of 2014 primarily due to foreign currency losses related to the revaluation of certain assets and liabilities driven by significant devaluation of the Russian Ruble, and other European currencies in which the Company transacts. | |||||||||||||||||||||||||
(d) | Includes an impairment of prepaid royalties and guarantees charge of $435 in the third quarter of 2013, primarily due to a prepaid royalty impairment charge recorded for two of the Company’s third-party publishing titles. | |||||||||||||||||||||||||
(e) | Change in sales and marketing expense from $5,008 in the first quarter of 2013 to $10,608 in the fourth quarter of 2013 was due primarily to higher marketing expenses associated with promoting Deer Hunter 2014. | |||||||||||||||||||||||||
(f) | The income tax benefit of $2,870 in the second quarter of 2013 was due primarily to the release of uncertain tax positions due to the expiration of certain statutes of limitations in certain foreign jurisdictions. | |||||||||||||||||||||||||
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Basis of Presentation | Basis of Presentation | |||||||||||
The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. | ||||||||||||
Basis of Consolidation | Basis of Consolidation | |||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated. | ||||||||||||
Use of Estimates | Use of Estimates | |||||||||||
The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives that the Company uses for revenue recognition, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, income taxes, fair value of stock awards issued and contingent consideration issued to Blammo shareholders, fair value of warrants issued, accounting for business combinations, and evaluating goodwill and long-lived assets for impairment. Actual results may differ from these estimates and these differences may be material. | ||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||
The Company generates revenues through in-app purchases within its games on smartphones and tablets, such as Apple’s iPhone and iPad and mobile devices utilizing Google’s Android operating system. Smartphone and tablet games are distributed primarily through Digital Storefronts. | ||||||||||||
Revenue | ||||||||||||
The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the game for virtual goods. The Company recognizes revenue, when persuasive evidence of an arrangement exists, the service has been provided to the user, the price paid by the user is fixed or determinable, and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied requires judgments that may have a significant impact on the timing and amount of revenue the Company reports in each period. For the purposes of determining when the service has been provided to the player, the Company has determined that an implied obligation exists to the paying user to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game, which represents the Company’s best estimate of the estimated average life of virtual goods. | ||||||||||||
The Company sells both consumable and durable virtual goods and receives reports from the Digital Storefronts, which breakdown the various purchases made from their games over a given time period. The Company reviews these reports to determine on a per-item basis whether the purchase was a consumable virtual good or a durable virtual good. Consumable goods are items that can be purchased directly by the player through the Digital Storefront and are consumed at a predetermined time or otherwise have limitations on repeated use, while durable goods are items accessible to the user over an extended period of time. The Company’s revenues from consumable virtual goods have been insignificant over the previous three years. The Company recognizes the revenues from these items immediately, since it believes that the delivery obligation has been met and there are no further implicit or explicit performance obligations related to the purchase of that consumable virtual good. Revenues from durable virtual goods are generated through the purchase of virtual coins by users through a Digital Storefront. Players convert the virtual coins within the game to durable virtual goods such as weapons, armor or other accessories to enhance their game-playing experience. The durable virtual goods remain in the game for as long as the player continues to play. The Company believes this represents an implied service obligation, and accordingly, recognizes the revenues from the purchase of these durable virtual goods over the estimated average playing period of paying users. Based on the Company’s analysis, the estimated weighted average useful life of a paying user is approximately three months for the majority of our games, except for one game for which the estimated weighted average useful life of a paying user has been determined to be approximately four months. If a new game is launched and only a limited period of paying player data is available, then the Company also considers other quantitative and qualitative factors, such as the playing patterns for paying users for other games with similar characteristics. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future as the games’ operation periods change. Any adjustments arising from changes in the estimates of the lives of these virtual goods would be applied to the current quarter and prospectively on the basis that such changes are caused by new information indicating a change in game player behavior patterns. Any changes in the Company’s estimates of useful lives of these virtual goods may result in revenues being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. | ||||||||||||
The Company also has relationships with certain advertising service providers for advertisements within smartphone games and revenue from these advertising providers is generated through impressions, clickthroughs, banner ads and offers. Revenue is recognized as advertisements are delivered and reported to the Company, an executed contract exists, the price is fixed or determinable and collectability has been reasonably assured. Delivery generally occurs when the advertisement has been displayed or the offer has been completed by the user. The fee received for certain offer advertisements that result in the user receiving virtual currency for redemption within a game are deferred and recognized over the average playing period of paying users. | ||||||||||||
Other Estimates and Judgments | ||||||||||||
The Company estimates revenues from Digital Storefronts in the current period when reasonable estimates of these amounts can be made. Certain Digital Storefronts provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenues and therefore to recognize revenues during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company’s estimates. When the Company receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any differences between estimated revenues and actual revenues in the reporting period when the Company determines the actual amounts. Historically, the revenues on the final revenue report have not differed significantly from the reported revenues for the period. | ||||||||||||
Principal Agent Considerations | ||||||||||||
In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, the Company evaluates its Digital Storefront and advertising service provider agreements in order to determine whether or not it is acting as the principal or as an agent when selling its games or when selling advertisements within its games, which it considers in determining if revenue should be reported gross or net. The Company primarily uses Digital Storefronts for distributing its smartphone games and advertising service providers for serving advertisements within its games. Key indicators that the Company evaluates to reach this determination include: | ||||||||||||
· | the terms and conditions of the Company’s contracts with the Digital Storefronts and advertising service providers; | |||||||||||
· | the party responsible for billing and collecting fees from the end-users, including the resolution of billing disputes; | |||||||||||
· | whether the Company is paid a fixed percentage of the arrangement’s consideration or a fixed fee for each game, transaction, or advertisement; | |||||||||||
· | the party which sets the pricing with the end-user, has the credit risk and provides customer support; and | |||||||||||
· | the party responsible for the fulfillment of the game or serving of advertisements and that determines the specifications of the game or advertisement. | |||||||||||
Based on the evaluation of the above indicators, the Company has determined that it is generally acting as a principal and is the primary obligor to end-users for smartphone games distributed through digital storefronts and advertisements served through our advertising service providers. Therefore, the Company recognizes revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts and advertising service providers. | ||||||||||||
Deferred Platform Commissions and Royalties | Deferred Platform Commissions and Royalties | |||||||||||
Digital Storefronts retain platform commissions and fees on each purchase made by the paying players through the Digital Storefront. The Company is also obligated to pay ongoing licensing fees in the form of royalties related to the games developed based on or significantly incorporating licensed brands, properties or other content, and we plan to incorporate additional licensed content in even our own originally branded games. Additionally, certain smartphone games sold through digital storefronts require the revenue to be deferred due to an implied obligation to the paying player to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game. As revenues from sales to paying players through Digital Storefronts are deferred, the related direct and incremental platform commissions and fees as well as third party royalties are also deferred and reported in “Prepaid expenses and other” on the consolidated balance sheets. The deferred platform commissions and royalties are recognized in the consolidated statements of operations in “Cost of revenues” in the period in which the related sales are recognized as revenues. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||||
The Company considers all investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Deposits held with financial institutions often exceed the amount of insurance on these deposits. | ||||||||||||
Restricted Cash | Restricted Cash | |||||||||||
Restricted cash consists of deposits related to letters of credit to secure obligations under the Company’s operating lease agreements. | ||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | |||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. | ||||||||||||
The Company derives its accounts receivable from revenues earned from customers or through Digital Storefronts located in the U.S. and other locations outside of the U.S. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and, generally, requires no collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. It reviews all other balances quarterly. The Company charges off accounts receivable balances against the allowance when it determines that the amount will not be recovered. | ||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenues: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Apple | 52.2 | % | 50.1 | % | 41.3 | % | ||||||
24.8 | 19.2 | 20.3 | ||||||||||
Tapjoy | - | - | 10.7 | |||||||||
At December 31, 2014, Apple Inc. (“Apple”) accounted for 55.0% and Google Inc. (“Google”) accounted for 15.2% of total accounts receivable. At December 31, 2013, Apple accounted for 46.3%, and Jirbo (dba AdColony) and Google each accounted for 11.1% of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. | ||||||||||||
Fair Value Measurements | Fair Value | |||||||||||
The Company accounts for fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||
The first two levels in the hierarchy are considered observable inputs and the last is considered unobservable. The Company’s cash and cash equivalents, which were held in operating bank accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. Please refer to Note 4 for further details. | ||||||||||||
Prepaid or Guaranteed Licensor Royalties | Prepaid or Guaranteed Licensor Royalties | |||||||||||
The Company’s royalty expenses consist of fees that it pays to content owners for the use of their brands, properties and other licensed content, including trademarks and copyrights, in the development of the Company’s games. Royalty-based obligations are either paid in advance and capitalized on the balance sheet as prepaid royalties or accrued as incurred and subsequently paid. These royalty-based obligations are expensed to cost of revenues at the greater of the revenues derived from the relevant game multiplied by the applicable contractual rate or an effective royalty rate based on expected net product sales. Advanced license payments that are not recoupable against future royalties are capitalized and amortized over the lesser of the estimated life of the title incorporating licensed content or the term of the license agreement. | ||||||||||||
The Company’s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of sales to end users. In accordance with ASC 460-10-15, Guarantees (“ASC 460”), the Company recorded a minimum guaranteed liability of $1,434 and $433 as of December 31, 2014 and 2013, respectively. When no significant performance remains with the licensor, the Company initially records each of these guarantees as an asset and as a liability at the contractual amount. The Company believes that the contractual amount represents the fair value of the liability. When significant performance remains with the licensor, the Company records royalty payments as an asset when actually paid and as a liability when incurred, rather than upon execution of the contract. The Company classifies minimum royalty payment obligations as current liabilities to the extent they are contractually due within the next twelve months. | ||||||||||||
Each quarter, the Company evaluates the realization of its prepaid and guaranteed royalties as well as any unrecognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenues, cash flows and net margins to evaluate the future realization of prepaid royalties and guarantees. This evaluation considers multiple factors, including the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices for the Company and its competitors and/or other game platforms (e.g., consoles, personal computers and Internet) utilizing the intellectual property and whether there are any future planned theatrical releases or television series based on the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenues in the period that impairment is indicated. The Company recorded impairment charges to cost of revenues of $257, $435, and zero during the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||
In accordance with ASC 350, Intangibles-Goodwill and Other (“ASC 350”), the Company’s goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Under ASC 350, the Company performs the annual impairment review of its goodwill balance as of September 30. This impairment review involves a multiple-step process as follows: | ||||||||||||
Step — 0 The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the two-step goodwill impairment test. | ||||||||||||
Step — 1 The Company compares the fair value of each of its reporting units to the carrying value including goodwill of that unit. For each reporting unit where the carrying value, including goodwill, exceeds the unit’s fair value, the Company moves on to step 2. If a unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. | ||||||||||||
Step — 2 The Company performs an allocation of the fair value of the reporting unit to its identifiable tangible and intangible assets (other than goodwill) and liabilities. This allows the Company to derive an implied fair value for the unit’s goodwill. The Company then compares the implied fair value of the reporting unit’s goodwill with the carrying value of the unit’s goodwill. If the carrying amount of the unit’s goodwill is greater than the implied fair value of its goodwill, an impairment charge would be recognized for the excess. | ||||||||||||
In 2014 and 2013, the Company did not record any goodwill impairment charges as the fair values of the reporting units exceeded their respective carrying values. In 2012, the Company concluded that a portion of the goodwill attributed to the APAC reporting unit was impaired and recorded a $3,613 impairment charge. | ||||||||||||
Purchased intangible assets with finite lives are amortized using the straight-line method over their useful lives ranging from one to nine years and are reviewed for impairment in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). | ||||||||||||
Long-Lived Assets | Long-Lived Assets | |||||||||||
The Company evaluates its long-lived assets, including property and equipment and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable in accordance with ASC 360. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, significant negative industry or economic trends, and a significant decline in the Company’s stock price for a sustained period of time. The Company recognizes impairment based on the difference between the fair value of the asset and its carrying value. Fair value is generally measured based on either quoted market prices, if available, or a discounted cash flow analysis. | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
The Company states property and equipment at cost. The Company computes depreciation or amortization using the straight-line method over the estimated useful lives of the respective assets or, in the case of leasehold improvements, the lease term of the respective assets, whichever is shorter. | ||||||||||||
The depreciation and amortization periods for the Company’s property and equipment are as follows: | ||||||||||||
Computer equipment | Three years | |||||||||||
Computer software | Three years | |||||||||||
Furniture and fixtures | Three years | |||||||||||
Leasehold improvements | Shorter of the estimated useful life or remaining term of lease | |||||||||||
Research and Development Costs | Research and Development Costs | |||||||||||
The Company charges costs related to research, design and development of products to research and development expense as incurred. The types of costs included in research and development expenses include salaries, contractor fees and allocated facilities costs. | ||||||||||||
Software Development Costs | Software Development Costs | |||||||||||
The Company applies the principles of ASC 985-20, Software-Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed (“ASC 985-20”). ASC 985-20 requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs must be capitalized and reported at the lower of unamortized cost or net realizable value of the related product. The Company has adopted the “tested working model” approach to establishing technological feasibility for its games. Under this approach, the Company does not consider a game in development to have passed the technological feasibility milestone until the Company has completed a model of the game that contains essentially all the functionality and features of the final game and has tested the model to ensure that it works as expected. To date, the Company has not incurred significant costs between the establishment of technological feasibility and the release of a game for sale; thus, the Company has expensed all software development costs as incurred. The Company considers the following factors in determining whether costs can be capitalized: the uncertainty regarding a game’s revenue-generating potential and its historical practice of canceling games at any stage of the development process. | ||||||||||||
Internal Use Software | Internal Use Software | |||||||||||
The Company recognizes internal use software development costs in accordance with ASC 350-40, Intangibles-Goodwill and Other-Internal Use Software (“ASC 350-40”). Thus, the Company capitalizes software development costs, including costs incurred to purchase third-party software, beginning when it determines certain factors are present including, among others, that technology exists to achieve the performance requirements and/or buy versus internal development decisions have been made. The Company capitalized certain internal use software costs totaling approximately $2,165, $249 and $1,598 during the years ended December 31, 2014, 2013, and 2012, respectively. The estimated useful life of costs capitalized is generally three years. During the years ended December 31, 2014, 2013 and 2012, the amortization of capitalized software costs totaled approximately $950, $1,097 and $1,014, respectively. Capitalized internal use software development costs are included in property and equipment, net. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. Under ASC 740, the Company determines deferred tax assets and liabilities based on the temporary difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which it expects the differences to reverse. The Company establishes valuation allowances when necessary to reduce deferred tax assets to the amount it expects to realize. | ||||||||||||
The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. | ||||||||||||
Restructuring | Restructuring | |||||||||||
The Company accounts for costs associated with employee terminations and other exit activities in accordance with ASC 420, Exit or Disposal Cost Obligations (“ASC 420”). The Company records employee termination benefits as an operating expense when it communicates the benefit arrangement to the employee and it requires no significant future services, other than a minimum retention period, from the employee to earn the termination benefits. In addition, termination benefits related to international employees are recognized when the amount of such termination benefits becomes estimable and payment is probable. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||
The Company applies the fair value provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options and restricted stock units (“RSUs”). ASC 718 requires companies to estimate the fair value of stock-option awards on the grant date using an option pricing model. The fair value of stock options and stock purchase rights granted pursuant to the Company’s equity incentive plans and 2007 Employee Stock Purchase Plan (“ESPP”), respectively, is determined using the Black-Scholes valuation model. The determination of fair value is affected by the stock price, as well as assumptions regarding subjective and complex variables such as expected employee exercise behavior and expected stock price volatility over the expected term of the award. Generally, these assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. Employee stock-based compensation expense is calculated based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment to stock-based compensation expense will be recognized at that time. Changes to the assumptions used in the Black-Scholes option valuation calculation and the forfeiture rate, as well as future equity granted or assumed through acquisitions could significantly impact the compensation expense the Company recognizes. The cost of RSUs is determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant, and is reduced for estimated forfeitures. The compensation cost for all share-based payment awards is amortized on a straight-line basis over the requisite service period. | ||||||||||||
The Company has elected to use the “with and without” approach as described in determining the order in which tax attributes are utilized. As a result, the Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through its statement of operations. | ||||||||||||
The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 718 and ASC 505-50. | ||||||||||||
Advertising Expenses | Advertising Expenses | |||||||||||
The Company expenses the production costs of advertising, including direct response advertising, the first time the advertising takes place. Advertising expense was $35,169, $18,308 and $12,124 in the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Comprehensive Loss | Comprehensive Income/(loss) | |||||||||||
Comprehensive income/(loss) consists of two components, net income/(loss) and other comprehensive income/(loss). Other comprehensive income/(loss) refers to revenues, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income/(loss). The Company’s other comprehensive income/(loss) included foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, and a reclassification to net loss from the write-off of cumulative translation adjustment. | ||||||||||||
Foreign Currency Translation | Foreign Currency Translation | |||||||||||
In preparing its consolidated financial statements, the Company translates the financial statements of its foreign subsidiaries from their functional currencies, the local currency, into U.S. Dollars. This process resulted in unrealized exchange gains and losses, which are included as a component of accumulated other comprehensive loss within stockholders’ deficit. However, if the functional currency is deemed to be the U.S. Dollar, any gain or loss associated with the translation of these financial statements would be included within the Company’s consolidated statements of operations. | ||||||||||||
Cumulative foreign currency translation adjustments include any gain or loss associated with the translation of a subsidiary’s financial statements when the functional currency of a subsidiary is the local currency. If the Company disposes of any of its subsidiaries, any cumulative translation gains or losses would be realized and recorded within the Company’s consolidated statement of operations in the period during which the disposal occurs. If the Company determines that there has been a change in the functional currency of a subsidiary relative to the U.S. Dollar, any translation gains or losses arising after the date of change would be included within the Company’s consolidated statement of operations. | ||||||||||||
Business Combination | Business Combination | |||||||||||
The Company applies the accounting standard related to business combinations, ASC 805, Business Combinations (“ASC 805’). The standard requires recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date with subsequent changes recognized in earnings; requires acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and development to be capitalized at fair value as an indefinite-lived intangible asset until completion or abandonment; and requires that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. | ||||||||||||
The Company accounts for acquisitions of entities or assets that include inputs and processes and have the ability to create outputs as business combinations. The purchase price of the acquisition is allocated to tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, the Company records adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in its operating results in the period in which the adjustments were determined. | ||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This accounting guidance did not have a material impact on the Company’s consolidated financial statements once adopted. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for the Company beginning January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | ||||||||||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. | ||||||||||||
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Revenues from Customers or Aggregate Purchases through Digital Storefronts Accounted for More Than Ten Percent of Revenues | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Apple | 52.2 | % | 50.1 | % | 41.3 | % | ||||||
24.8 | 19.2 | 20.3 | ||||||||||
Tapjoy | - | - | 10.7 | |||||||||
Depreciation and Amortization Periods for Company's Property and Equipment | ||||||||||||
Computer equipment | Three years | |||||||||||
Computer software | Three years | |||||||||||
Furniture and fixtures | Three years | |||||||||||
Leasehold improvements | Shorter of the estimated useful life or remaining term of lease | |||||||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Computation of Net Income (Loss) Per Share | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net income/(loss) | $ | 8,148 | $ | -19,909 | $ | -20,459 | ||||
Shares used to compute net income/(loss) per share: | ||||||||||
Weighted average common shares outstanding | 93,575 | 71,543 | 64,932 | |||||||
Weighted average common shares subject to restrictions | -1,749 | -90 | -614 | |||||||
Weighted average shares used to compute basic net income/(loss) per share | 91,826 | 71,453 | 64,318 | |||||||
Dilutive potential common shares | 5,096 | - | - | |||||||
Weighted average shares used to compute diluted net income/(loss) per share | 96,922 | 71,453 | 64,318 | |||||||
Basic net income/(loss) per share | $ | 0.09 | $ | -0.28 | $ | -0.32 | ||||
Diluted net income/(loss) per share | $ | 0.08 | $ | -0.28 | $ | -0.32 | ||||
Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share of Common Stock | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Options to purchase common stock | 6,347 | 10,646 | 10,321 | |||||||
Warrants to purchase common stock | 2,362 | 3,310 | 4,187 | |||||||
RSUs | 2,746 | 936 | - | |||||||
Common shares subject to restrictions | 1,596 | 90 | 614 | |||||||
13,051 | 14,982 | 15,122 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Discount rate | 35 | % | 35 | % | 35 | % | |||||
Risk-free interest rate minimum | 0.13 | % | 0.07 | % | 0.05 | % | |||||
Risk-free interest rate maximum | 0.13 | % | 0.19 | % | 0.28 | % | |||||
Expected volatility | 42 | % | 35 | % | 38 | % | |||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||
Accounts Receivable | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable | $ | 32,528 | $ | 18,764 | |||||||||
Less: Allowance for doubtful accounts | -297 | -459 | |||||||||||
$ | 32,231 | $ | 18,305 | ||||||||||
Allowance for Doubtful Accounts | |||||||||||||
Balance at | Balance at | ||||||||||||
Beginning of | End of | ||||||||||||
Description | Year | Additions | Deductions | Year | |||||||||
Year ended December 31, 2014 | $ | 459 | $ | 219 | $ | 381 | $ | 297 | |||||
Year ended December 31, 2013 | $ | 432 | $ | 51 | $ | 24 | $ | 459 | |||||
Year ended December 31, 2012 | $ | 800 | $ | 202 | $ | 570 | $ | 432 | |||||
Prepaid Expenses and Other | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred platform commission fees | 9,776 | 4,516 | |||||||||||
Deferred royalties | 3,739 | - | |||||||||||
Deferred tax asset | 921 | 108 | |||||||||||
Prepaid royalties | 864 | 740 | |||||||||||
Other | 2,952 | 2,299 | |||||||||||
$ | 18,252 | 7,663 | |||||||||||
Property and Equipment | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Computer equipment | $ | 6,721 | $ | 6,134 | |||||||||
Furniture and fixtures | 949 | 862 | |||||||||||
Software | 8,504 | 6,290 | |||||||||||
Leasehold improvements | 3,381 | 2,768 | |||||||||||
19,555 | 16,054 | ||||||||||||
Less: Accumulated depreciation and amortization | -13,439 | -10,958 | |||||||||||
$ | 6,116 | $ | 5,096 | ||||||||||
Other Long-Term Liabilities | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred rent | $ | 1,001 | $ | 1,131 | |||||||||
Uncertain tax position obligations | 977 | 890 | |||||||||||
Accrued royalties | 870 | - | |||||||||||
Deferred tax liability | 842 | 122 | |||||||||||
Other | 246 | 214 | |||||||||||
$ | 3,936 | $ | 2,357 | ||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Carrying Amounts and Accumulated Amortization Expense of Acquired Intangible Assets | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||
Value | Expense | Value | Value | Expense | Value | |||||||||||||||||||||
(Including | (Including | (Including | (Including | (Including | (Including | |||||||||||||||||||||
Estimated | Impact of | Impact of | Impact of | Impact of | Impact of | Impact of | ||||||||||||||||||||
Useful | Foreign | Foreign | Foreign | Foreign | Foreign | Foreign | ||||||||||||||||||||
Life | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | ||||||||||||||||||||
Intangible assets amortized to cost of revenues: | ||||||||||||||||||||||||||
Titles, content and technology | 3 yrs | $ | 34,095 | $ | -15,214 | $ | 18,881 | $ | 12,851 | $ | -12,165 | $ | 686 | |||||||||||||
Catalogs | 1 yr | 1,208 | -1,208 | - | 1,283 | -1,283 | - | |||||||||||||||||||
ProvisionX Technology | 6 yrs | 199 | -199 | - | 211 | -211 | - | |||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 24,794 | -20,192 | 4,602 | 19,940 | -19,645 | 295 | |||||||||||||||||||
Licensed content | 5 yrs | 3,012 | -3,012 | - | 3,040 | -3,040 | - | |||||||||||||||||||
Service provider license | 9 yrs | 479 | -375 | 104 | 482 | -324 | 158 | |||||||||||||||||||
In-process research and development | 3 yrs | 800 | -100 | 700 | - | - | - | |||||||||||||||||||
Trademarks | 7 yrs | 5,226 | -2,190 | 3,036 | 5,230 | -1,480 | 3,750 | |||||||||||||||||||
69,813 | -42,490 | 27,323 | 43,037 | -38,148 | 4,889 | |||||||||||||||||||||
Other intangible assets amortized to operating expenses: | ||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,289 | -1,289 | - | 1,368 | -1,368 | - | |||||||||||||||||||
Noncompete agreement | 4 yrs | 5,417 | -5,216 | 201 | 5,452 | -4,742 | 710 | |||||||||||||||||||
6,706 | -6,505 | 201 | 6,820 | -6,110 | 710 | |||||||||||||||||||||
Total intangibles assets, net | $ | 76,519 | $ | -48,995 | $ | 27,524 | $ | 49,857 | $ | -44,258 | $ | 5,599 | ||||||||||||||
Total Expected Future Amortization Related to Intangible Assets | ||||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||
Included in | Included in | Total | ||||||||||||||||||||||||
Cost of | Operating | Amortization | ||||||||||||||||||||||||
Period Ending December 31, | Revenues | Expenses | Expense | |||||||||||||||||||||||
2015 | $ | 9,554 | $ | 201 | $ | 9,755 | ||||||||||||||||||||
2016 | 9,199 | - | 9,199 | |||||||||||||||||||||||
2017 | 6,076 | - | 6,076 | |||||||||||||||||||||||
2018 | 1,714 | - | 1,714 | |||||||||||||||||||||||
2019 and thereafter | 780 | - | 780 | |||||||||||||||||||||||
$ | 27,323 | $ | 201 | $ | 27,524 | |||||||||||||||||||||
Goodwill by Reporting Unit | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total | |||||||||||||||||||
Balance as of January 1 | ||||||||||||||||||||||||||
Goodwill | $ | 42,946 | $ | 25,354 | $ | 24,296 | $ | 92,596 | $ | 42,946 | $ | 25,354 | $ | 24,251 | $ | 92,551 | ||||||||||
Accumulated Impairment Losses | -24,871 | -25,354 | -22,886 | -73,111 | -24,871 | -25,354 | -22,886 | -73,111 | ||||||||||||||||||
18,075 | - | 1,410 | 19,485 | 18,075 | - | 1,365 | 19,440 | |||||||||||||||||||
Goodwill Acquired during the year | 68,488 | - | - | 68,488 | - | - | - | - | ||||||||||||||||||
Effects of Foreign Currency Exchange | - | - | -9 | -9 | - | - | 45 | 45 | ||||||||||||||||||
Balance as of period ended: | 86,563 | - | 1,401 | 87,964 | 18,075 | - | 1,410 | 19,485 | ||||||||||||||||||
Goodwill | 111,434 | 25,354 | 24,287 | 161,075 | 42,946 | 25,354 | 24,296 | 92,596 | ||||||||||||||||||
Accumulated Impairment Losses | -24,871 | -25,354 | -22,886 | -73,111 | -24,871 | -25,354 | -22,886 | -73,111 | ||||||||||||||||||
Balance as of period ended: | $ | 86,563 | $ | - | $ | 1,401 | $ | 87,964 | $ | 18,075 | $ | - | $ | 1,410 | $ | 19,485 | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2015 | $ | 4,359 | |||
2016 | 3,571 | ||||
2017 | 2,672 | ||||
2018 | 1,328 | ||||
2019 | 979 | ||||
2020 and thereafter | 754 | ||||
$ | 13,663 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equity [Abstract] | |||||||||||
Warrants Outstanding | |||||||||||
Number | |||||||||||
Exercise | of Shares | ||||||||||
Price | Outstanding | ||||||||||
Term | per | Under | |||||||||
Date of Issuance | (Years) | Share | Warrant | ||||||||
August 2010 - Warrants issued in private offering | 5 | $ | 1.50 | 450 | |||||||
July 2013 - Warrant issued to MGM | 5 | 3.00 | 2,667 | ||||||||
September 2014 - Warrant issued to KAP | 6 | 4.99 | 500 | ||||||||
3,617 | |||||||||||
Stock_Option_and_Other_Benefit
Stock Option and Other Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Calculation of Share-based Awards Available for Grant | |||||||||||||
Shares | |||||||||||||
Available | |||||||||||||
Balances at December 31, 2013 | 4,890 | ||||||||||||
Share-based awards granted (1) | -6,620 | ||||||||||||
Share-based awards canceled (2) | 3,110 | ||||||||||||
Balances at December 31, 2014 | 1,380 | ||||||||||||
Summary of Company's RSU Activity | |||||||||||||
Weighted | |||||||||||||
Number of | Average | ||||||||||||
Units | Grant Date | ||||||||||||
Outstanding | Fair Value | ||||||||||||
Awarded and unvested, December 31, 2013 | 2,578 | $ | 2.91 | ||||||||||
Granted | 3,925 | 4.25 | |||||||||||
Vested | -574 | 2.81 | |||||||||||
Forfeited | -1,010 | 3.50 | |||||||||||
Awarded and unvested, December 31, 2014 | 4,919 | $ | 3.87 | ||||||||||
Restricted stock units expected to vest, December 31, 2014 | 3,981 | ||||||||||||
Stock Option Activity | |||||||||||||
Options Outstanding | |||||||||||||
Weighted | Weighted | ||||||||||||
Number | Average | Average | Aggregate | ||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||
Shares | Price | Term (Years) | Value | ||||||||||
Balances at December 31, 2011 | 9,744 | 2.80 | |||||||||||
Options granted | 3,399 | 3.84 | |||||||||||
Options canceled | -1,416 | 3.89 | |||||||||||
Options exercised | -806 | 1.68 | |||||||||||
Balances at December 31, 2012 | 10,921 | 3.07 | |||||||||||
Options granted | 2,937 | 2.70 | |||||||||||
Options canceled | -2,502 | 3.65 | |||||||||||
Options exercised | -957 | 1.35 | |||||||||||
Balances at December 31, 2013 | 10,399 | 2.98 | |||||||||||
Options granted | 1,344 | 4.08 | |||||||||||
Options canceled | -1,506 | 3.72 | |||||||||||
Options exercised | -2,867 | 2.19 | |||||||||||
Balances at December 31, 2014 | 7,370 | $ | 3.32 | 3.57 | $ | 6,144 | |||||||
Options vested and expected to vest at December 31, 2014 | 6,945 | $ | 3.31 | 3.49 | $ | 5,926 | |||||||
Options exercisable at December 31, 2014 | 4,409 | $ | 3.22 | 2.90 | $ | 4,486 | |||||||
Options Outstanding and Currently Exercisable by Exercise Price | |||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Remaining | Weighted | Weighted | |||||||||||
Range of | Contractual | Average | Average | ||||||||||
Exercise | Number | Life | Exercise | Number | Exercise | ||||||||
Prices | Outstanding | (in Years) | Price | Exercisable | Price | ||||||||
$ 0.52 - $ 1.77 | 926 | 1.48 | $ | 1.44 | 926 | $ | 1.44 | ||||||
$ 1.90 - $ 2.74 | 1,023 | 4.05 | 2.50 | 597 | 2.42 | ||||||||
$ 2.83 - $ 2.84 | 140 | 4.44 | 2.83 | 47 | 2.84 | ||||||||
$ 2.90 - $ 2.90 | 821 | 2.77 | 2.90 | 632 | 2.90 | ||||||||
$ 2.91 - $ 2.91 | 746 | 4.67 | 2.91 | 238 | 2.91 | ||||||||
$ 2.98 - $ 3.20 | 11 | 2.88 | 3.15 | 6 | 3.17 | ||||||||
$ 3.29 - $ 3.29 | 911 | 3.77 | 3.29 | 493 | 3.29 | ||||||||
$ 3.39 - $ 3.78 | 739 | 3.71 | 3.69 | 492 | 3.69 | ||||||||
$ 3.88 - $ 4.10 | 824 | 5.28 | 4.05 | 60 | 3.91 | ||||||||
$ 4.15 - $ 11.88 | 1,229 | 3.17 | 5.34 | 918 | 5.54 | ||||||||
$ 0.52 - $ 11.88 | 7,370 | 3.57 | $ | 3.32 | 4,409 | $ | 3.22 | ||||||
Schedule of Assumptions Used in Black-Scholes Valuation Model and Weighted Average Assumptions | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield | - | % | - | % | - | % | |||||||
Risk-free interest rate | 1.34 | % | 0.82 | % | 0.60 | % | |||||||
Expected term (years) | 4.00 | 4.00 | 4.00 | ||||||||||
Expected volatility | 52 | % | 52 | % | 65 | % | |||||||
Stock-Based Compensation Expense | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Research and development | $ | 7,422 | $ | 1,948 | $ | 3,491 | |||||||
Sales and marketing | 701 | 303 | 386 | ||||||||||
General and administrative | 3,510 | 2,034 | 1,945 | ||||||||||
Total stock-based compensation expense | $ | 11,633 | $ | 4,285 | $ | 5,822 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||
Component of Loss Before Income Taxes By Tax Jurisdiction | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
United States | $ | 5,283 | $ | -21,820 | $ | -6,745 | |||||||||||||
Foreign | -4,690 | -932 | -15,708 | ||||||||||||||||
Income/(loss) before income taxes | $ | 593 | $ | -22,752 | $ | -22,453 | |||||||||||||
Components of Income Tax Provision | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
Current: | 2014 | 2013 | 2012 | ||||||||||||||||
Federal | $ | -5 | $ | - | $ | - | |||||||||||||
State | -5 | -4 | -4 | ||||||||||||||||
Foreign | 656 | 2,294 | 913 | ||||||||||||||||
646 | 2,290 | 909 | |||||||||||||||||
Deferred: | |||||||||||||||||||
Federal | 6,821 | - | 497 | ||||||||||||||||
State | - | - | 64 | ||||||||||||||||
Foreign | 88 | 553 | 524 | ||||||||||||||||
6,909 | 553 | 1,085 | |||||||||||||||||
Total: | |||||||||||||||||||
Federal | 6,816 | - | 497 | ||||||||||||||||
State | -5 | -4 | 60 | ||||||||||||||||
Foreign | 744 | 2,847 | 1,437 | ||||||||||||||||
$ | 7,555 | $ | 2,843 | $ | 1,994 | ||||||||||||||
Difference Between Actual Rate and Federal Statutory Rate | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Tax at federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | |||||||||||||
State tax, net of federal benefit | 0.8 | - | 0.3 | ||||||||||||||||
Foreign rate differential | 56.6 | -0.1 | -0.6 | ||||||||||||||||
Research and development credit | -133.9 | 5.1 | - | ||||||||||||||||
Warrants | 67.7 | - | - | ||||||||||||||||
Withholding taxes | -10.5 | -2.1 | -0.3 | ||||||||||||||||
Goodwill impairment | - | - | -5.5 | ||||||||||||||||
Stock-based compensation | 224.9 | -0.7 | -2.7 | ||||||||||||||||
Non-deductible intercompany bad debt | 3.9 | 0.3 | -16.5 | ||||||||||||||||
FIN 48 interest and release | -219.4 | 14.6 | 10.0 | ||||||||||||||||
Other | 59.6 | 1.6 | -0.7 | ||||||||||||||||
Valuation allowance | -1,357.70 | -40.2 | -9.1 | ||||||||||||||||
Effective tax rate | -1,274.00 | % | 12.5 | % | 8.9 | % | |||||||||||||
Deferred Tax Assets and Liabilities | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||
US | Foreign | Total | US | Foreign | Total | ||||||||||||||
Deferred tax assets: | |||||||||||||||||||
Fixed assets | $ | - | $ | 1,231 | $ | 1,231 | $ | 554 | $ | 1,685 | $ | 2,239 | |||||||
Net operating loss carryforwards | 41,885 | 9,902 | 51,787 | 36,299 | 10,552 | 46,851 | |||||||||||||
Accruals, reserves and other | 3,163 | 154 | 3,317 | 7,761 | 208 | 7,969 | |||||||||||||
Foreign tax credit | 6,398 | - | 6,398 | 6,348 | - | 6,348 | |||||||||||||
Stock-based compensation | 3,382 | 24 | 3,406 | 3,311 | 56 | 3,367 | |||||||||||||
Research and development credit | 7,929 | - | 7,929 | 4,245 | - | 4,245 | |||||||||||||
Other | 2,974 | 18 | 2,992 | 3,088 | 10 | 3,098 | |||||||||||||
Total deferred tax assets | $ | 65,731 | $ | 11,329 | $ | 77,060 | $ | 61,606 | $ | 12,511 | $ | 74,117 | |||||||
Deferred tax liabilities: | |||||||||||||||||||
Fixed assets | $ | -431 | $ | $ | -431 | $ | - | $ | - | $ | - | ||||||||
Macrospace, MIG and iFone intangible assets | - | - | - | -94 | -94 | ||||||||||||||
Blammo intangible assets | - | - | - | -129 | -129 | ||||||||||||||
Superscape,CieGame and Playfirst intangible assets | -7,915 | -109 | -8,024 | -116 | - | -116 | |||||||||||||
Other | - | - | - | -9 | -9 | ||||||||||||||
Net deferred tax assets | 57,385 | 11,220 | 68,605 | 61,490 | 12,279 | 73,769 | |||||||||||||
Less valuation allowance | -57,385 | -11,141 | -68,526 | -61,490 | -12,294 | -73,784 | |||||||||||||
Net deferred tax liability | $ | - | $ | 79 | $ | 79 | $ | - | $ | -15 | $ | -15 | |||||||
Reconciliation of Total Amounts of Unrecognized Tax Benefits | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Beginning balance | $ | 6,538 | $ | 4,626 | |||||||||||||||
Reductions of tax positions taken during previous years | -1,364 | -725 | |||||||||||||||||
Additions based on uncertain tax positions related to the current period | 1,641 | 1,149 | |||||||||||||||||
Additions based on uncertain tax positions related to prior periods | 71 | 1,449 | |||||||||||||||||
Cumulative translation adjustment | -92 | 39 | |||||||||||||||||
Ending balance | $ | 6,794 | $ | 6,538 | |||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Revenues in Geographic Regions | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
United States of America | $ | 132,447 | $ | 48,697 | $ | 57,816 | ||||
China | 11,835 | 10,985 | 5,827 | |||||||
Americas, excluding the USA | 9,705 | 5,430 | 5,051 | |||||||
EMEA | 43,507 | 22,820 | 22,381 | |||||||
APAC, excluding China | 25,652 | 17,681 | 17,108 | |||||||
$ | 223,146 | $ | 105,613 | $ | 108,183 | |||||
Long-Lived Assets by Geographical Area | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
Americas | $ | 5,406 | $ | 4,108 | ||||||
EMEA | 632 | 899 | ||||||||
APAC | 78 | 89 | ||||||||
$ | 6,116 | $ | 5,096 | |||||||
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Accumulated deficit | $244,063 | $252,211 | |
Net income | 8,148 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 30,574 | -9,578 | -6,749 |
Consumable virtual goods, immaterial revenue (in years) | 3 years | ||
Estimated average useful life of paying user | 3 months | ||
Number of games, longer paying user | 1 | ||
Capitalized internal use software costs | $2,165 | $249 | $1,598 |
Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated average useful life of paying user | 4 months |
The_Company_and_Summary_of_Sig4
The Company and Summary of Significant Accounting Policies - Concentration Risks (Details) (Customer Concentration Risk [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from customers | Apple | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 52.20% | 50.10% | 41.30% |
Revenues from customers | Google | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 24.80% | 19.20% | 20.30% |
Revenues from customers | Tapjoy | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 10.70% | ||
Accounts Receivable | Apple | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 55.00% | 46.30% | |
Accounts Receivable | Google | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 15.20% | 11.10% |
The_Company_and_Summary_of_Sig5
The Company and Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Accrued Royalties | $1,474 | $1,474 | |||
Impairment charges to cost of revenues | 435 | 257 | 435 | 0 | |
Goodwill impairment charges | $3,613 | $0 | |||
Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful life | 1 year | ||||
Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful life | 9 years |
The_Company_and_Summary_of_Sig6
The Company and Summary of Significant Accounting Policies - Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 3 years |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 3 years |
The_Company_and_Summary_of_Sig7
The Company and Summary of Significant Accounting Policies - Additional Infomration 3 (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Internal Use Software [Abstract] | |||
Capitalized internal use software costs | $2,165 | $249 | $1,598 |
Amortization of capitalized software costs | $950 | $1,097 | $1,014 |
Capitalized software costs | |||
Internal Use Software [Abstract] | |||
Intangible assets estimated useful life | 3 years | ||
Minimum | |||
Internal Use Software [Abstract] | |||
Intangible assets estimated useful life | 1 year | ||
Maximum | |||
Internal Use Software [Abstract] | |||
Intangible assets estimated useful life | 9 years |
The_Company_and_Summary_of_Sig8
The Company and Summary of Significant Accounting Policies - Additional Infomration 4 (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Advertising Expenses [Abstract] | |||
Advertising expense | $35,169 | $18,308 | $12,124 |
Net_IncomeLoss_Per_Share_Detai
Net Income/(Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Net income/(loss) | $1,379 | $10,404 | ($3,768) | $133 | ($3,523) | ($7,968) | ($2,921) | ($5,497) | $8,148 | ($19,909) | ($20,459) |
Shares used to compute net income/(loss) per share: | |||||||||||
Weighted average common shares outstanding | 93,575 | 71,543 | 64,932 | ||||||||
Weighted average unvested common shares subject to restrictions | -1,749 | -90 | -614 | ||||||||
Weighted average shares used to compute basic net income/(loss) per share | 91,826 | 71,453 | 64,318 | ||||||||
Dilutive potential common shares | 5,096 | ||||||||||
Weighted average shares used to compute diluted net income/(loss) per share | 96,922 | 71,453 | 64,318 | ||||||||
Basic net income/(loss) per share | $0.01 | $0.11 | ($0.04) | $0 | ($0.05) | ($0.11) | ($0.04) | ($0.08) | $0.09 | ($0.28) | ($0.32) |
Diluted net income/(loss) per share | $0.01 | $0.10 | ($0.04) | $0 | ($0.05) | ($0.11) | ($0.04) | ($0.08) | $0.08 | ($0.28) | ($0.32) |
Net_IncomeLoss_Per_Share_Antid
Net Income/(Loss) Per Share - Antidilutive (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti dilutive securities excluded from computation of diluted net loss per share | 13,051 | 14,982 | 15,122 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti dilutive securities excluded from computation of diluted net loss per share | 6,347 | 10,646 | 10,321 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti dilutive securities excluded from computation of diluted net loss per share | 2,362 | 3,310 | 4,187 |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti dilutive securities excluded from computation of diluted net loss per share | 2,746 | 936 | |
Common shares subject to restrictions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti dilutive securities excluded from computation of diluted net loss per share | 1,596 | 90 | 614 |
Business_Combinations_Summary_
Business Combinations - Summary of Acquistions Table - (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 20, 2014 | 14-May-14 | Aug. 02, 2012 |
In Thousands, unless otherwise specified | ||||||
Intangible assets: | ||||||
Goodwill | $87,964 | $19,485 | $19,440 | |||
Cie Games, Inc. | ||||||
Assets acquired: | ||||||
Cash | 5,281 | |||||
Accounts receivable, net | 4,624 | |||||
Restricted Cash | 200 | |||||
Other current assets | 422 | |||||
Property and equipment | 519 | |||||
Intangible assets: | ||||||
Intangible assets | 23,500 | |||||
Goodwill | 57,247 | |||||
Total assets acquired | 91,793 | |||||
Liabilities assumed: | ||||||
Accounts payable | -2,317 | |||||
Other accrued liabilities | -2,053 | |||||
Deferred Revenue | -294 | |||||
Deferred tax liability | -6,821 | |||||
Total liabilities acquired | -11,485 | |||||
Net acquired assets | 80,308 | |||||
Cie Games, Inc. | Customer contract and related relationships | ||||||
Intangible assets: | ||||||
Intangible assets | 4,300 | |||||
Cie Games, Inc. | Titles, content and technology | ||||||
Intangible assets: | ||||||
Intangible assets | 19,200 | |||||
Play First | ||||||
Assets acquired: | ||||||
Cash | 123 | |||||
Accounts receivable, net | 736 | |||||
Other current assets | 145 | |||||
Property and equipment | 15 | |||||
Intangible assets: | ||||||
Intangible assets | 3,700 | |||||
Goodwill | 11,241 | |||||
Total assets acquired | 15,960 | |||||
Liabilities assumed: | ||||||
Accounts payable | -1,509 | |||||
Other accrued liabilities | -651 | |||||
Line of credit | -890 | |||||
Term loan | -1,450 | |||||
Total liabilities acquired | -4,500 | |||||
Net acquired assets | 11,460 | |||||
Play First | Customer contract and related relationships | ||||||
Intangible assets: | ||||||
Intangible assets | 700 | |||||
Play First | Titles, content and technology | ||||||
Intangible assets: | ||||||
Intangible assets | 2,200 | |||||
Play First | In-process research and development | ||||||
Intangible assets: | ||||||
Intangible assets | 800 | |||||
Game Spy Industries | ||||||
Assets acquired: | ||||||
Cash | 913 | |||||
Accounts receivable, net | 1,695 | |||||
Property and equipment | 485 | |||||
Intangible assets: | ||||||
Goodwill | 1,096 | |||||
Total assets acquired | 5,739 | |||||
Liabilities assumed: | ||||||
Other accrued liabilities | -689 | |||||
Deferred Revenue | -1,684 | |||||
Deferred tax liability | -570 | |||||
Total liabilities acquired | -2,943 | |||||
Net acquired assets | 2,796 | |||||
Game Spy Industries | Customer contract and related relationships | ||||||
Intangible assets: | ||||||
Intangible assets | 250 | |||||
Game Spy Industries | Titles, content and technology | ||||||
Intangible assets: | ||||||
Intangible assets | $1,300 |
Business_Combinations_Cie_Game
Business Combinations - Cie Games, Inc. (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Aug. 20, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Date of Acquisition [Abstract] | ||||
Share price | 3.9 | |||
Residual value of goodwill | 87,964 | $19,485 | $19,440 | |
Minimum | ||||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Intangible assets estimated useful life | 1 year | |||
Maximum | ||||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Intangible assets estimated useful life | 9 years | |||
Cie Games, Inc. | ||||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Shares of the Company's common stock | 9,983 | |||
Share price | $5.09 | |||
Value of shares transfered in purchase price consideration | 50,813 | |||
Cash paid | 29,495 | |||
Net acquired assets | 80,308 | |||
Share consideration held back to satisfy indemnification claims | 2,139 | |||
Held back period | 18 months | |||
Business acquisition cash consideration held back | 280 | |||
Cash consideration held back for working capital shortfalls | 250 | |||
Acquired intangible assets | 23,500 | |||
Business acquisition, transitional costs | 513 | |||
Residual value of goodwill | $57,247 | |||
Cie Games, Inc. | Minimum | ||||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Intangible assets estimated useful life | 3 years | |||
Cie Games, Inc. | Maximum | ||||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Intangible assets estimated useful life | 5 years |
Business_Combinations_PlayFirs
Business Combinations - PlayFirst Inc. (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | 14-May-14 | 14-May-14 | Sep. 30, 2014 | Aug. 02, 2012 |
Business Acquisition, Date of Acquisition [Abstract] | |||||
Share price | 3.9 | ||||
Common stock, value | $2,796 | ||||
Minimum | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Intangible assets estimated useful life | 1 year | ||||
Maximum | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Intangible assets estimated useful life | 9 years | ||||
Play First | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Value of shares transfered in purchase price consideration | 11,553 | ||||
Shares of the Company's common stock | 2,849 | ||||
Share price | $3.91 | $3.91 | |||
Shares withheld to cover stockholders' agent expenses and tax obligations | 106 | ||||
Common stock, value | 11,141 | 11,141 | |||
Cash paid | 412 | ||||
Shares held in Escrow | 1,500 | 1,500 | |||
Held back period | 24 months | 24 months | |||
Business acquisition, debt assumed | 3,480 | 3,480 | |||
Number of shares cancelled to satisfy net working capital adjustment | 24 | ||||
Fair value adjustment to goodwill | 93 | ||||
Acquired intangible assets | 3,700 | 3,700 | |||
Business acquisition, transitional costs | $917 | $917 | |||
Play First | Minimum | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Shares of the Company's common stock | 2,955 | ||||
Intangible assets estimated useful life | 3 years | ||||
Play First | Maximum | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Shares of the Company's common stock | 3,000 | ||||
Intangible assets estimated useful life | 5 years |
Business_Combinations_GameSpy_
Business Combinations - GameSpy (Details) (USD $) | 12 Months Ended | 0 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Aug. 02, 2012 |
Business Acquisition, Date of Acquisition [Abstract] | ||
Common stock, value | $2,796 | |
Share price | 3.9 | |
Minimum | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Intangible assets estimated useful life | 1 year | |
Maximum | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Intangible assets estimated useful life | 9 years | |
Game Spy Industries | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Shares of the Company's common stock | 600 | |
Share price | $4.66 | |
Measurement periods from acquisition date | 1 year | |
Game Spy Industries | Minimum | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Intangible assets estimated useful life | 2 years | |
Game Spy Industries | Maximum | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Intangible assets estimated useful life | 3 years |
Business_Combinations_Valuatio
Business Combinations - Valuation Methodology (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | 14-May-14 | Aug. 20, 2014 | Aug. 02, 2012 |
Play First | Titles, content and technology | Minimum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 20.00% | ||
Play First | Titles, content and technology | Maximum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 35.00% | ||
Play First | In-process research and development | Minimum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 20.00% | ||
Play First | In-process research and development | Maximum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 35.00% | ||
Cie Games, Inc. | |||
Fair Value Inputs [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 294 | ||
Cie Games, Inc. | Titles, content and technology | Minimum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 20.00% | ||
Cie Games, Inc. | Titles, content and technology | Maximum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 35.00% | ||
Cie Games, Inc. | In-process research and development | Minimum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 20.00% | ||
Cie Games, Inc. | In-process research and development | Maximum | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 35.00% | ||
Game Spy Industries | |||
Fair Value Inputs [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | $1,684 | ||
Deferred revenue, amortization period | 24 months | ||
Game Spy Industries | Customer contract and related relationships | |||
Fair Value Inputs [Abstract] | |||
Fair value assumptions income approach discount rate | 14.00% |
Business_Combinations_Pro_form
Business Combinations - Pro forma (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||
Total pro forma revenues | $243,971 | $137,095 |
Pro forma net income/(loss) | 2,800 | -33,009 |
Pro forma net income/(loss) per share - basic | $0.03 | ($0.41) |
Pro forma net income/(loss) per share - diluted | $0.03 | ($0.41) |
Play First and Cie Games | ||
Business Acquisition [Line Items] | ||
Total pro forma revenues | 13,601 | |
Pro forma net income/(loss) | ($315) |
Fair_Value_Measurements_Liabil
Fair Value Measurements - Liabilities for Contingent Consideration (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Aug. 01, 2011 | 31-May-14 | 31-May-13 | Aug. 02, 2012 | Dec. 31, 2011 | Jun. 30, 2014 |
Business Acquisition, Contingent Consideration [Line Items] | ||||||||||
Cash and cash equivalents | $70,912 | $28,496 | $22,325 | $32,212 | ||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||||||
Fair value of shares issued | 2,796 | |||||||||
Number of Sellers | 5 | |||||||||
Change in fair value of non-employee contingent liabilities | 835 | 7 | 167 | |||||||
Blammo | ||||||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||||||
Number of Sellers, employees | 3 | |||||||||
Blammo | Minimum | ||||||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||||||
Net revenues, target | 15,000 | |||||||||
Blammo | ||||||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||||||
Shares issued | 1,000 | |||||||||
Number of Sellers, nonemployee | 2 | |||||||||
Change in fair value of non-employee contingent liabilities | 835 | 7 | 167 | |||||||
Contingent consideration liability | 0 | 427 | ||||||||
Contingent consideration liability, current | 329 | |||||||||
Blammo | Common Stock [Member] | ||||||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||||||
Shares issued | 750 | 435 | 742 | |||||||
Fair value of shares issued | $3,750 | |||||||||
Blammo | Common Stock [Member] | Maximum | ||||||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||||||
Additional shares, potential | 3,313 | |||||||||
Additional shares, foregone | 1,154 |
Fair_Value_Measurements_Key_As
Fair Value Measurements - Key Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Inputs [Abstract] | |||
Risk-free interest rate | 1.50% | ||
Expected volatility | 64.20% | ||
Level 3 | |||
Fair Value Inputs [Abstract] | |||
Discount rate | 35.00% | 35.00% | 35.00% |
Expected volatility | 42.00% | 35.00% | 38.00% |
Level 3 | Minimum | |||
Fair Value Inputs [Abstract] | |||
Risk-free interest rate | 0.13% | 0.07% | 0.05% |
Level 3 | Maximum | |||
Fair Value Inputs [Abstract] | |||
Risk-free interest rate | 0.13% | 0.19% | 0.28% |
Balance_Sheet_Components_Accou
Balance Sheet Components - Accounts Receivable (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheet Related Disclosures [Abstract] | |||
Accounts receivable | $32,528 | $18,764 | |
Less: Allowance for doubtful accounts | -297 | -459 | -432 |
Accounts receivable, net | 32,231 | 18,305 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | 459 | 432 | 800 |
Additions | 219 | 51 | 202 |
Deductions | 381 | 24 | 570 |
Ending Balance | $297 | $459 | $432 |
Balance_Sheet_Components_Prepa
Balance Sheet Components - Prepaid expenses and other (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Deferred platform commission fees | $9,776 | $4,516 |
Deferred royalties | 3,739 | |
Deferred tax asset | 921 | 108 |
Prepaid royalties | 864 | 740 |
Other | 2,952 | 2,299 |
Prepaid expenses and other | $18,252 | $7,663 |
Balance_Sheet_Components_Prope
Balance Sheet Components - Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment, gross | $19,555 | $16,054 | |
Less: Accumulated depreciation and amortization | -13,439 | -10,958 | |
Property and equipment, net | 6,116 | 5,096 | |
Depreciation [Abstract] | |||
Depreciation | 2,513 | 2,707 | 2,368 |
Computer Equipment [Member] | |||
Property, plant and equipment, gross | 6,721 | 6,134 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment, gross | 949 | 862 | |
Computer Software [Member] | |||
Property, plant and equipment, gross | 8,504 | 6,290 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment, gross | $3,381 | $2,768 |
Balance_Sheet_Components_Other
Balance Sheet Components - Other long-term assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets, Miscellaneous [Abstract] | ||
Other Assets, Noncurrent | $6,674 | $637 |
Nonsoftware License Arrangement [Member] | ||
Other Assets, Miscellaneous [Abstract] | ||
Other Assets, Noncurrent | $5,870 | $0 |
Balance_Sheet_Components_Other1
Balance Sheet Components - Other Long Term Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Long-Term Liabilities | ||
Deferred rent | $1,001 | $1,131 |
Uncertain tax position obligations | 977 | 890 |
Accrued royalties | 870 | |
Deferred income tax liability | 842 | 122 |
Other | 246 | 214 |
Total other long-term liabilities | $3,936 | $2,357 |
Recovered_Sheet1
Goodwill And Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value (Including Impact of Foreign Exchange) | $76,519 | $49,857 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -48,995 | -44,258 |
Total intangible assets | 27,524 | 5,599 |
Cost of sales | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value (Including Impact of Foreign Exchange) | 69,813 | 43,037 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -42,490 | -38,148 |
Total intangible assets | 27,323 | 4,889 |
Cost of sales | Titles, content and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 3 years | 3 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 34,095 | 12,851 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -15,214 | -12,165 |
Total intangible assets | 18,881 | 686 |
Cost of sales | Catalogs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 1 year | 1 year |
Gross Carrying Value (Including Impact of Foreign Exchange) | 1,208 | 1,283 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -1,208 | -1,283 |
Cost of sales | ProvisionX Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 6 years | 6 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 199 | 211 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -199 | -211 |
Cost of sales | Customer contract and related relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 5 years | 5 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 24,794 | 19,940 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -20,192 | -19,645 |
Total intangible assets | 4,602 | 295 |
Cost of sales | Licensed content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 5 years | 5 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 3,012 | 3,040 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -3,012 | -3,040 |
Cost of sales | Service provider license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 9 years | 9 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 479 | 482 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -375 | -324 |
Total intangible assets | 104 | 158 |
Cost of sales | In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 3 years | 3 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 800 | |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -100 | |
Total intangible assets | 700 | |
Cost of sales | Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 7 years | 7 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 5,226 | 5,230 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -2,190 | -1,480 |
Total intangible assets | 3,036 | 3,750 |
Operating expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value (Including Impact of Foreign Exchange) | 6,706 | 6,820 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -6,505 | -6,110 |
Total intangible assets | 201 | 710 |
Operating expense | Emux Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 6 years | 6 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 1,289 | 1,368 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -1,289 | -1,368 |
Operating expense | Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 4 years | 4 years |
Gross Carrying Value (Including Impact of Foreign Exchange) | 5,417 | 5,452 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -5,216 | -4,742 |
Total intangible assets | $201 | $710 |
Recovered_Sheet2
Goodwill And Intangible Assets - Acquired Intangibles (Details) (USD $) | 12 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2012 |
Play First and Cie Games | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $27,200 | |
Game Spy Industries | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $1,550 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets - Furture Amortization (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cost of Goods and Services Sold, Depreciation and Amortization [Abstract] | |||||||||||
Amortization expense, cost of revenues | $2,434 | $1,338 | $441 | $554 | $1,004 | $1,082 | $1,078 | $1,074 | $4,767 | $4,238 | $3,783 |
Amortization expense, operating | 127 | 127 | 127 | 127 | 117 | 229 | 495 | 495 | 508 | 1,336 | 1,980 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
2015 | 9,755 | 9,755 | |||||||||
2016 | 9,199 | 9,199 | |||||||||
2017 | 6,076 | 6,076 | |||||||||
2018 | 1,714 | 1,714 | |||||||||
2019 and thereafter | 780 | 780 | |||||||||
Total intangible assets | 27,524 | 27,524 | |||||||||
Cost of sales | |||||||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
2015 | 9,554 | 9,554 | |||||||||
2016 | 9,199 | 9,199 | |||||||||
2017 | 6,076 | 6,076 | |||||||||
2018 | 1,714 | 1,714 | |||||||||
2019 and thereafter | 780 | 780 | |||||||||
Total intangible assets | 27,323 | 27,323 | |||||||||
Operating expense | |||||||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
2015 | 201 | 201 | |||||||||
Total intangible assets | $201 | $201 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets - Goodwill (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
item | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | 3 | |||
Goodwill [Roll Forward] | ||||
Goodwill, Gross | $161,075 | $92,596 | $92,551 | $161,075 |
Accumulated Impairment Losses | -73,111 | -73,111 | -73,111 | -73,111 |
Goodwill, Net | 87,964 | 19,485 | 19,440 | 87,964 |
Goodwill Acquired during the year | 68,488 | |||
Effects of Foreign Currency Exchange | -9 | 45 | ||
Goodwill, Net | 87,964 | 19,485 | 19,440 | 87,964 |
Impairment of goodwill | 3,613 | 0 | ||
Americas | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Gross | 111,434 | 42,946 | 42,946 | 111,434 |
Accumulated Impairment Losses | -24,871 | -24,871 | -24,871 | -24,871 |
Goodwill, Net | 86,563 | 18,075 | 18,075 | 86,563 |
Goodwill Acquired during the year | 68,488 | |||
Goodwill, Net | 86,563 | 18,075 | 18,075 | 86,563 |
EMEA | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Gross | 25,354 | 25,354 | 25,354 | 25,354 |
Accumulated Impairment Losses | -25,354 | -25,354 | -25,354 | -25,354 |
APAC | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Gross | 24,287 | 24,296 | 24,251 | 24,287 |
Accumulated Impairment Losses | -22,886 | -22,886 | -22,886 | -22,886 |
Goodwill, Net | 1,401 | 1,410 | 1,365 | 1,401 |
Effects of Foreign Currency Exchange | -9 | 45 | ||
Goodwill, Net | 1,401 | 1,410 | 1,365 | 1,401 |
Impairment of goodwill | $3,613 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Leases (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 |
sqft | ||||
Operating Leased Assets [Line Items] | ||||
Rent expense | $4,149 | $3,380 | $2,704 | |
Deferred rent balance | 1,001 | 1,131 | ||
Minimum Operating Lease Payments | ||||
2015 | 4,359 | |||
2016 | 3,571 | |||
2017 | 2,672 | |||
2018 | 1,328 | |||
2019 | 979 | |||
2020 and thereafter | 754 | |||
Total | 13,663 | |||
Washington Office Operating Lease [Member] | Building [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Increase in lease area | 13 | |||
Increase in deposit for letter of credit to secure lease obligation | $1,790 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Other Commitments (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Aug. 19, 2014 | Nov. 30, 2014 | Dec. 31, 2013 |
patent | patent | ||||
Other Commitments [Line Items] | |||||
Future minimum royalty payments | $1,434 | $433 | |||
Income Tax Uncertainties [Abstract] | |||||
Income tax liabilities not expected to become due | 12 months | ||||
Kimsaprincess, Inc [Member] | |||||
Other Commitments [Line Items] | |||||
License agreement extension term | 3 years | ||||
Inventor Holdings, LLC [Member] | Pending Litigation [Member] | |||||
Contingencies [Abstract] | |||||
Number of patents, alleged infringement | 1 | ||||
Telinit Technologies, LLC [Member] | Pending Litigation [Member] | |||||
Contingencies [Abstract] | |||||
Number of patents, alleged infringement | 1 | ||||
Indemnification Agreement [Member] | Officers And Directors [Member] | |||||
Indemnification Agreements [Abstract] | |||||
Indemnification liability recorded | 0 | 0 | |||
Indemnification Agreement [Member] | Digital Storefronts [Member] | |||||
Indemnification Agreements [Abstract] | |||||
Indemnification liability recorded | 0 | ||||
Developer Commitments [Member] | |||||
Other Commitments [Line Items] | |||||
Developer commitments, next twelve months | $520 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | Dec. 31, 2014 |
Common Stock [Abstract] | |
Common stock, shares authorized | 250,000,000 |
Common stock, reserved for future issuance | 18,568,000 |
Preferred Stock [Abstract] | |
Preferred stock, shares authorized | 5,000,000 |
Stockholders_Equity_Acquistion
Stockholders' Equity - Acquistions (Details) | 0 Months Ended | 1 Months Ended | ||||||||
In Thousands, unless otherwise specified | Aug. 20, 2014 | 14-May-14 | 14-May-14 | Aug. 02, 2012 | Aug. 02, 2014 | Aug. 01, 2011 | Jul. 31, 2014 | 31-May-14 | 31-May-13 | Sep. 30, 2014 |
Cie Games, Inc. | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 9,983 | |||||||||
Shares held back | 2,139 | |||||||||
Held back period | 18 months | |||||||||
Business Combination Equity Interests Issued Or Issuable Held Back Period | 18 months | |||||||||
Cie Games, Inc. | Common Stock [Member] | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 9,983 | |||||||||
Shares held back | 2,139 | |||||||||
Held back period | 18 months | |||||||||
Business Combination Equity Interests Issued Or Issuable Held Back Period | 18 months | |||||||||
Play First | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 2,849 | |||||||||
Held back period | 24 months | 24 months | ||||||||
Shares Held In Escrow | 1,500 | 1,500 | ||||||||
Business Combination Equity Interests Issued Or Issuable Held Back Period | 24 months | 24 months | ||||||||
Play First | Maximum | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 3,000 | |||||||||
Play First | Common Stock [Member] | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 2,849 | |||||||||
Shares held back | 24 | |||||||||
Game Spy Industries | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 600 | |||||||||
Game Spy Industries | Common Stock [Member] | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 600 | |||||||||
Blammo | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 1,000 | |||||||||
Blammo | Common Stock [Member] | ||||||||||
Business Combinations [Abstract] | ||||||||||
Shares issued | 750 | 435 | 742 | |||||||
Blammo | Common Stock [Member] | Maximum | ||||||||||
Business Combinations [Abstract] | ||||||||||
Additional shares, foregone | 1,154 |
Stockholders_Equity_Public_Off
Stockholders' Equity - Public Offerings (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 |
Stockholders' Equity Note [Abstract] | ||||
Share price | $3.90 | |||
Proceeds from public offering, net | $32,058 | $13,985 | ||
Common Stock [Member] | ||||
Stockholders' Equity Note [Abstract] | ||||
Shares issued | 9,861 | 7,245 | ||
Common Stock [Member] | Public Offering [Member] | ||||
Stockholders' Equity Note [Abstract] | ||||
Shares issued | 9,861 | 7,245 | ||
Share price | $3.50 | $2.10 | ||
Proceeds from public offering, net | $32,058 | $13,985 |
Stockholders_Equity_Kardashian
Stockholders' Equity - Kardashian Warrants (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 |
entity | entity | ||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | |||
Expected term (years) | 5 years | ||
Expected volatility percent | 64.20% | ||
Expected risk-free interest rate | 1.50% | ||
Dividend yield | 0.00% | ||
Kardashian Warrants [Member] | |||
Warrants and Rights Note Disclosure [Abstract] | |||
Number of other entities | 2 | 2 | |
Number of warrants issued | 3 | ||
Warrants exercise price, per share | $4.99 | $4.99 | |
Warrant exercisable term period | 60 months | ||
Warrant expense | $66 | ||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | |||
Expected term (years) | 6 years | ||
Expected volatility percent | 61.10% | ||
Expected risk-free interest rate | 1.99% | ||
Dividend yield | 0.00% | ||
Common Stock [Member] | Kardashian Warrants [Member] | |||
Warrants and Rights Note Disclosure [Abstract] | |||
Warrants exercise price, per share | $4.99 | $4.99 | |
Shares issued, warrants exercised | 33,000 | ||
Maximum | Common Stock [Member] | Kardashian Warrants [Member] | |||
Warrants and Rights Note Disclosure [Abstract] | |||
Number of shares, if warrants exercised | 500,000 | 500,000 |
Stockholders_Equity_MGM_Warran
Stockholders' Equity - MGM Warrant (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Jul. 11, 2014 | Dec. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Apr. 30, 2014 |
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Expected term (years) | 5 years | |||||
Expected volatility percent | 64.20% | |||||
Expected risk-free interest rate | 1.50% | |||||
Dividend yield | 0.00% | |||||
MGM Interactive Inc [Member] | ||||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Proceeds from exercise of warrants | $2,000 | |||||
MGM Warrant [Member] | ||||||
Warrants and Rights Note Disclosure [Abstract] | ||||||
Warrants exercise price, per share | $3 | |||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Expected term (years) | 5 years | |||||
Expected volatility percent | 56.80% | |||||
Expected risk-free interest rate | 1.80% | |||||
Dividend yield | 0.00% | |||||
Common Stock [Member] | MGM Warrant [Member] | ||||||
Warrants and Rights Note Disclosure [Abstract] | ||||||
Warrants exercise price, per share | $3 | |||||
Shares issued, warrants exercised | 667 | 333 | 333 | |||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Shares issuable upon vesting | 1,000 | |||||
Maximum | Common Stock [Member] | MGM Warrant [Member] | ||||||
Warrants and Rights Note Disclosure [Abstract] | ||||||
Number of shares, if warrants exercised | 3,333 | |||||
Cost of sales | MGM Warrant [Member] | ||||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Warrant expense | 427 | $1,126 |
Stockholders_Equity_Warrants_D
Stockholders' Equity - Warrants (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Warrant or Right [Line Items] | |||
Expected term (years) | 5 years | ||
Number of Shares Outstanding Under Warrant | 3,617 | ||
Warrant [Member] | |||
Class of Warrant or Right [Line Items] | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,191 | 2,886 | 413 |
Proceeds from Warrant Exercises | $2,786 | $4,329 | $619 |
Private Offering Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Warrants exercise price, per share | $1.50 | ||
Number of Shares Outstanding Under Warrant | 450 | ||
MGM Warrant [Member] | |||
Class of Warrant or Right [Line Items] | |||
Expected term (years) | 5 years | ||
Warrants exercise price, per share | $3 | ||
Number of Shares Outstanding Under Warrant | 2,667 | ||
Kardashian Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Expected term (years) | 6 years | ||
Warrants exercise price, per share | $4.99 | ||
Number of Shares Outstanding Under Warrant | 500 |
Recovered_Sheet3
Stock Option And Other Benefit Plans (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 26, 2007 | Oct. 25, 2007 | Aug. 15, 2009 | Oct. 31, 2011 | Aug. 14, 2009 | Mar. 31, 2008 | Dec. 31, 2007 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Quoted closing price of Company's common stock | $3.90 | |||||||||
Cash proceed from option exercise, net | $6,271 | $1,295 | $1,357 | |||||||
Income tax benefit from stock option exercises | 0 | 0 | ||||||||
Expected volatility | 52.00% | 52.00% | 65.00% | |||||||
Share-based compensation, fair value assumptions, risk-free interest rate | 1.34% | 0.82% | 0.60% | |||||||
Share-based compensation, fair value assumptions, expected dividend rate | 0.00% | 0.00% | 0.00% | |||||||
Unamortized stock-based compensation expense and incremental unamortized expense | 2,714 | |||||||||
Weighted-average fair value of stock options granted | $1.69 | $1.10 | $1.90 | |||||||
Stock-based compensation (benefit) expense recorded as contingent liability | 4,560 | 171 | 1,549 | |||||||
2007 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock authorized for issuance, increased | 7,200 | |||||||||
Restricted stock award where price charged to participant less than fair market value | 100.00% | |||||||||
Number of shares available for grant | 1,031 | |||||||||
Stock option granted contractual term | 6 years | 10 years | ||||||||
2008 Equity Inducement Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock award where price charged to participant less than fair market value | 100.00% | |||||||||
Number of shares available for grant | 349 | |||||||||
2007 Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 1,283 | 667 | ||||||||
Percentage of outstanding shares reserved for grant increase during each January 1 for the first eight calendar years | 1.00% | |||||||||
Maximum offering period share amount | 200 | 300 | 500 | |||||||
Maximum | 2007 Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares issued | 5,333 | |||||||||
RSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 25.00% | |||||||||
Number of shares granted | 3,925 | |||||||||
Vesting period | 4 years | |||||||||
Unrecognized compensation expense | 15,658 | |||||||||
Unrecognized compensation expense recognized over weighted average period | 3 years | |||||||||
RSUs | CEO | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 575 | |||||||||
Fair value of awards estimated | 1,311 | |||||||||
Expected volatility | 48.50% | |||||||||
Share-based compensation, fair value assumptions, risk-free interest rate | 1.35% | |||||||||
Share-based compensation, fair value assumptions, expected dividend rate | 0.00% | |||||||||
Share-based compensation, fair value assumptions, grant price | $4.05 | |||||||||
RSUs | Market-Based RSUs | CEO | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 225 | |||||||||
Vesting period | 4 years | |||||||||
Average share price | $7 | |||||||||
Consecutive trading days | 30 days | |||||||||
RSUs | Performance RSU | CEO | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 350 | |||||||||
Vesting period | 4 years | |||||||||
Average share price | $10 | |||||||||
Consecutive trading days | 30 days | |||||||||
Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total intrinsic value exercised | 7,735 | 1,886 | 2,114 | |||||||
Stock option granted contractual term | 6 years | |||||||||
Unrecognized compensation expense | $4,480 | |||||||||
Unrecognized compensation expense recognized over weighted average period | 2 years 4 months 17 days | |||||||||
Stock Options | 2007 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Employee options, vesting percentage, after first year | 25.00% | |||||||||
Employee options, vesting percentage, monthly after first year | 2.08% | |||||||||
Stock Options | Minimum | 2007 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercise price of options percentage of fair market value of common stock on grant date | 85.00% | |||||||||
Non Qualified Stock Option [Member] | Minimum | 2007 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercise price of options percentage of fair market value of common stock on grant date | 85.00% | |||||||||
Non Qualified Stock Option [Member] | Minimum | 2007 Equity Incentive Plan | 10% Stockholder [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercise price of options percentage of fair market value of common stock on grant date | 110.00% | |||||||||
Incentive Stock Option [Member] | Minimum | 2007 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercise price of options percentage of fair market value of common stock on grant date | 100.00% | |||||||||
Incentive Stock Option [Member] | Minimum | 2007 Equity Incentive Plan | 10% Stockholder [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercise price of options percentage of fair market value of common stock on grant date | 110.00% |
Stock_Option_And_Other_Benefit1
Stock Option And Other Benefit Plans (Details 2) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based awards granted | -1,344 | -2,937 | -3,399 |
Share-based awards canceled | 1,506 | 2,502 | 1,416 |
2007 Equity Incentive and 2008 Equity Inducement Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available, beginning balances | 4,890 | ||
Share-based awards granted | -6,620 | ||
Share-based awards canceled | 3,110 | ||
Shares available, ending balances | 1,380 |
Stock_Option_And_Other_Benefit2
Stock Option And Other Benefit Plans (Details 3) (2007 Equity Incentive and 2008 Equity Inducement Plans) | 12 Months Ended |
Dec. 31, 2014 | |
2007 Equity Incentive and 2008 Equity Inducement Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Pool share reduced for each share granted | 1.39 |
Pool share increased for each share canceled | 1.39 |
Stock_Option_And_Other_Benefit3
Stock Option And Other Benefit Plans (Details 4) (RSUs, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded and unvested, Number of Units Outstanding, beginning balance | 2,578 |
Granted, Number of Units Outstanding | 3,925 |
Vested, Number of Units Outstanding | -574 |
Forfeited, Number of Units Outstanding | -1,010 |
Awarded and unvested, Number of Units Outstanding, ending balance | 4,919 |
Expected to vest, Number of Units | 3,981 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $2.91 |
Granted, Weighted Average Grant Date Fair Value | $4.25 |
Vested, Weighted Average Grant Date Fair Value | $2.81 |
Forfeited, Weighted Average Grant Date Fair Value | $3.50 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $3.87 |
Stock_Option_And_Other_Benefit4
Stock Option And Other Benefit Plans (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares, beginning balances | 10,399 | 10,921 | 9,744 |
Options granted, number of shares | 1,344 | 2,937 | 3,399 |
Options canceled, number of shares | -1,506 | -2,502 | -1,416 |
Options exercised, number of shares | -2,867 | -957 | -806 |
Number of shares, ending balances | 7,370 | 10,399 | 10,921 |
Options vested and expected to vest, number of shares | 6,945 | ||
Options exercisable, number of shares | 4,409 | ||
Weighted average exercise price, beginning balances | $2.98 | $3.07 | $2.80 |
Options granted, weighted average exercise price | $4.08 | $2.70 | $3.84 |
Options canceled, weighted average exercise price | $3.72 | $3.65 | $3.89 |
Options exercised, weighted average exercise price | $2.19 | $1.35 | $1.68 |
Weighted average exercise price, ending balances | $3.32 | $2.98 | $3.07 |
Options vested and expected to vest, weighted average exercise price | $3.31 | ||
Options exercisable, weighted average exercise price | $3.22 | ||
Weighted average contractual term, options outstanding | 3 years 6 months 26 days | ||
Weighted average contractual term, options vested and expected | 3 years 5 months 27 days | ||
Weighted average contractual term, Options exercisable | 2 years 10 months 24 days | ||
Aggregate intrinsic value, options outstanding | $6,144 | ||
Aggregate intrinsic value, Options vested and expected to vest | 5,926 | ||
Aggregate intrinsic value, options exercisable | $4,486 |
Stock_Option_And_Other_Benefit5
Stock Option And Other Benefit Plans (Details 6) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number of option outstanding | 7,370 | 10,399 | 10,921 | 9,744 |
Weighted average remaining contractual life (in years) | 3 years 6 months 26 days | |||
Options Outstanding, weighted average exercise price | $3.32 | $2.98 | $3.07 | $2.80 |
Options exercisable, weighted-average exercise price | $3.22 | |||
Options exercisable Number of Exercisable | 4,409 | |||
$ 0.52 - $ 1.77 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $0.52 | |||
Range of Exercise Prices, Upper Limit | $1.77 | |||
Number of option outstanding | 926 | |||
Weighted average remaining contractual life (in years) | 1 year 5 months 23 days | |||
Options Outstanding, weighted average exercise price | $1.44 | |||
Options exercisable, weighted-average exercise price | $1.44 | |||
Options exercisable Number of Exercisable | 926 | |||
$ 1.90 - $ 2.74 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $1.90 | |||
Range of Exercise Prices, Upper Limit | $2.74 | |||
Number of option outstanding | 1,023 | |||
Weighted average remaining contractual life (in years) | 4 years 18 days | |||
Options Outstanding, weighted average exercise price | $2.50 | |||
Options exercisable, weighted-average exercise price | $2.42 | |||
Options exercisable Number of Exercisable | 597 | |||
$2.83 - $ 2.84 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $2.83 | |||
Range of Exercise Prices, Upper Limit | $2.84 | |||
Number of option outstanding | 140 | |||
Weighted average remaining contractual life (in years) | 4 years 5 months 9 days | |||
Options Outstanding, weighted average exercise price | $2.83 | |||
Options exercisable, weighted-average exercise price | $2.84 | |||
Options exercisable Number of Exercisable | 47 | |||
$ 2.90 - $ 2.90 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $2.90 | |||
Range of Exercise Prices, Upper Limit | $2.90 | |||
Number of option outstanding | 821 | |||
Weighted average remaining contractual life (in years) | 2 years 9 months 7 days | |||
Options Outstanding, weighted average exercise price | $2.90 | |||
Options exercisable, weighted-average exercise price | $2.90 | |||
Options exercisable Number of Exercisable | 632 | |||
$2.91 - $ 2.91 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $2.91 | |||
Range of Exercise Prices, Upper Limit | $2.91 | |||
Number of option outstanding | 746 | |||
Weighted average remaining contractual life (in years) | 4 years 8 months 1 day | |||
Options Outstanding, weighted average exercise price | $2.91 | |||
Options exercisable, weighted-average exercise price | $2.91 | |||
Options exercisable Number of Exercisable | 238 | |||
$2.98 - $ 3.20 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $2.98 | |||
Range of Exercise Prices, Upper Limit | $3.20 | |||
Number of option outstanding | 11 | |||
Weighted average remaining contractual life (in years) | 2 years 10 months 17 days | |||
Options Outstanding, weighted average exercise price | $3.15 | |||
Options exercisable, weighted-average exercise price | $3.17 | |||
Options exercisable Number of Exercisable | 6 | |||
$3.29 - $ 3.29 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $3.29 | |||
Range of Exercise Prices, Upper Limit | $3.29 | |||
Number of option outstanding | 911 | |||
Weighted average remaining contractual life (in years) | 3 years 9 months 7 days | |||
Options Outstanding, weighted average exercise price | $3.29 | |||
Options exercisable, weighted-average exercise price | $3.29 | |||
Options exercisable Number of Exercisable | 493 | |||
$3.39 - $ 3.78 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $3.39 | |||
Range of Exercise Prices, Upper Limit | $3.78 | |||
Number of option outstanding | 739 | |||
Weighted average remaining contractual life (in years) | 3 years 8 months 16 days | |||
Options Outstanding, weighted average exercise price | $3.69 | |||
Options exercisable, weighted-average exercise price | $3.69 | |||
Options exercisable Number of Exercisable | 492 | |||
$ 3.88 - $ 4.10 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $3.88 | |||
Range of Exercise Prices, Upper Limit | $4.10 | |||
Number of option outstanding | 824 | |||
Weighted average remaining contractual life (in years) | 5 years 3 months 11 days | |||
Options Outstanding, weighted average exercise price | $4.05 | |||
Options exercisable, weighted-average exercise price | $3.91 | |||
Options exercisable Number of Exercisable | 60 | |||
$4.15 - $ 11.88 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $4.15 | |||
Range of Exercise Prices, Upper Limit | $11.88 | |||
Number of option outstanding | 1,229 | |||
Weighted average remaining contractual life (in years) | 3 years 2 months 1 day | |||
Options Outstanding, weighted average exercise price | $5.34 | |||
Options exercisable, weighted-average exercise price | $5.54 | |||
Options exercisable Number of Exercisable | 918 | |||
$ 0.52 - $ 11.88 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Limit | $0.52 | |||
Range of Exercise Prices, Upper Limit | $11.88 | |||
Number of option outstanding | 7,370 | |||
Weighted average remaining contractual life (in years) | 3 years 6 months 26 days | |||
Options Outstanding, weighted average exercise price | $3.32 | |||
Options exercisable, weighted-average exercise price | $3.22 | |||
Options exercisable Number of Exercisable | 4,409 |
Stock_Option_And_Other_Benefit6
Stock Option And Other Benefit Plans (Details 7) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.34% | 0.82% | 0.60% |
Expected term (years) | 4 years | 4 years | 4 years |
Expected volatility | 52.00% | 52.00% | 65.00% |
Stock_Option_And_Other_Benefit7
Stock Option And Other Benefit Plans (Details 8) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $11,633 | $4,285 | $5,822 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 7,422 | 1,948 | 3,491 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 701 | 303 | 386 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $3,510 | $2,034 | $1,945 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||||||||
United States | $5,283 | ($21,820) | ($6,745) | ||||||||
Foreign | -4,690 | -932 | -15,708 | ||||||||
Income/(loss) before income taxes | $4,152 | ($446) | ($3,690) | $577 | ($3,601) | ($7,998) | ($5,791) | ($5,362) | $593 | ($22,752) | ($22,453) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||||||||||
Federal | ($5) | ||||||||||
State | -5 | -4 | -4 | ||||||||
Foreign | 656 | 2,294 | 913 | ||||||||
Current Income Tax Expense (Benefit), Total | 646 | 2,290 | 909 | ||||||||
Deferred: | |||||||||||
Federal | 6,821 | 497 | |||||||||
State | 64 | ||||||||||
Foreign | 88 | 553 | 524 | ||||||||
Deferred Income Tax Expense (Benefit), Total | 6,909 | 553 | 1,085 | ||||||||
Total: | |||||||||||
Federal | 6,816 | 497 | |||||||||
State | -5 | -4 | 60 | ||||||||
Foreign | 744 | 2,847 | 1,437 | ||||||||
Income tax benefit/(provision) | ($2,773) | $10,850 | ($78) | ($444) | $78 | $30 | $2,870 | ($135) | $7,555 | $2,843 | $1,994 |
Income_Taxes_Details_3
Income Taxes (Details 3) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at federal statutory rate | 34.00% | 34.00% | 34.00% |
State tax, net of federal benefit | 0.80% | 0.30% | |
Foreign rate differential | 56.60% | -0.10% | -0.60% |
Research and development credit | -133.90% | 5.10% | |
Warrants | 67.70% | ||
Withholding taxes | -10.50% | -2.10% | -0.30% |
Goodwill impairment | -5.50% | ||
Stock-based compensation | 224.90% | -0.70% | -2.70% |
Non-deductible intercompany bad debt | 3.90% | 0.30% | -16.50% |
FIN 48 interest and release | -219.40% | 14.60% | 10.00% |
Other | 59.60% | 1.60% | -0.70% |
Valuation allowance | -1357.70% | -40.20% | -9.10% |
Effective tax rate | -1274.00% | 12.50% | 8.90% |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Accumulated earnings of foreign subsidiaries | $3,188 | ||
Valuation allowance movements | -8,352 | ||
Unrecognized tax benefit netted against deferred tax assets | 6,030 | 4,623 | |
Unrecognized tax benefits, impact effective tax rate | 764 | ||
Anticipated release of provision relating to uncertain tax positions due to expiration of certain statutes of limitation in foreign jurisdictions | 102 | ||
Unrecognized Tax Benefits Reductions Resulting from Lapse of Applicable Statute of Limitations Anticipated Duration Period | 12 months | ||
Liability related to interest and penalties for uncertain tax positions | 329 | 283 | |
Accrued interest and penalty expense related to estimated obligations for unrecognized tax benefits | 86 | 105 | 182 |
Release of provision on uncertain tax positions due to the expiration of certain statutes of limitation in foreign jurisdictions | 37 | ||
Valuation Allowance | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance movements | 6,821 | 0 | 562 |
Valuation Allowance Other | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance movements | -5,258 | 10,073 | |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards, expiration year | 31-Dec-15 | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards, expiration year | 31-Dec-34 | ||
Federal Tax | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 106,325 | ||
U S State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 91,419 | ||
State alternative minimum tax credits | 12 | ||
Federal Research And Development Credits | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward amount | 7,732 | ||
Tax credit carryforwards, expiration year | 31-Dec-22 | ||
California Research And Development Tax Credit | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward amount | 8,198 | ||
Foreign | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward amount | 6,341 | ||
Tax credit carryforwards, expiration year | 31-Dec-17 | ||
United Kingdom | |||
Income Tax Contingency [Line Items] | |||
Non-deductible intercompany bad debt | 10,870 | ||
Net operating loss carryforwards | $45,363 |
Income_Taxes_Details_5
Income Taxes (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Fixed assets | $1,231 | $2,239 |
Net operating loss carryforwards | 51,787 | 46,851 |
Accruals, reserves and other | 3,317 | 7,969 |
Foreign tax credit | 6,398 | 6,348 |
Stock-based compensation | 3,406 | 3,367 |
Research and development credit | 7,929 | 4,245 |
Other | 2,992 | 3,098 |
Total deferred tax assets | 77,060 | 74,117 |
Deferred tax liabilities: | ||
Fixed assets | -431 | |
Other | -9 | |
Net deferred tax assets | 68,605 | 73,769 |
Less valuation allowance | -68,526 | -73,784 |
Net deferred tax liability | 79 | -15 |
Macrospace, MIG and iFone | ||
Deferred tax liabilities: | ||
Intangible assets | -94 | |
Blammo | ||
Deferred tax liabilities: | ||
Intangible assets | -129 | |
Superscape,CieGame and Playfirst | ||
Deferred tax liabilities: | ||
Intangible assets | -8,024 | -116 |
US | ||
Deferred tax assets: | ||
Fixed assets | 554 | |
Net operating loss carryforwards | 41,885 | 36,299 |
Accruals, reserves and other | 3,163 | 7,761 |
Foreign tax credit | 6,398 | 6,348 |
Stock-based compensation | 3,382 | 3,311 |
Research and development credit | 7,929 | 4,245 |
Other | 2,974 | 3,088 |
Total deferred tax assets | 65,731 | 61,606 |
Deferred tax liabilities: | ||
Fixed assets | -431 | |
Net deferred tax assets | 57,385 | 61,490 |
Less valuation allowance | -57,385 | -61,490 |
US | Superscape,CieGame and Playfirst | ||
Deferred tax liabilities: | ||
Intangible assets | -7,915 | -116 |
Foreign | ||
Deferred tax assets: | ||
Fixed assets | 1,231 | 1,685 |
Net operating loss carryforwards | 9,902 | 10,552 |
Accruals, reserves and other | 154 | 208 |
Stock-based compensation | 24 | 56 |
Other | 18 | 10 |
Total deferred tax assets | 11,329 | 12,511 |
Deferred tax liabilities: | ||
Other | -9 | |
Net deferred tax assets | 11,220 | 12,279 |
Less valuation allowance | -11,141 | -12,294 |
Net deferred tax liability | 79 | -15 |
Foreign | Macrospace, MIG and iFone | ||
Deferred tax liabilities: | ||
Intangible assets | -94 | |
Foreign | Blammo | ||
Deferred tax liabilities: | ||
Intangible assets | -129 | |
Foreign | Superscape,CieGame and Playfirst | ||
Deferred tax liabilities: | ||
Intangible assets | ($109) |
Income_Taxes_Details_6
Income Taxes (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $6,538 | $4,626 |
Reductions of tax positions taken during previous years | -1,364 | -725 |
Additions based on uncertain tax positions related to the current period | 1,641 | 1,149 |
Additions based on uncertain tax positions related to prior periods | 71 | 1,449 |
Cumulative translation adjustment | -92 | 39 |
Unrecognized Tax Benefits, Ending Balance | $6,794 | $6,538 |
Segment_Reporting_Revenues_Det
Segment Reporting - Revenues (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of operating segments | 1 | ||||||||||
Revenues | $72,865 | $64,791 | $40,910 | $44,580 | $34,841 | $21,722 | $24,445 | $24,605 | $223,146 | $105,613 | $108,183 |
United States of America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 132,447 | 48,697 | 57,816 | ||||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 11,835 | 10,985 | 5,827 | ||||||||
Americas, excluding the USA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 9,705 | 5,430 | 5,051 | ||||||||
EMEA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 43,507 | 22,820 | 22,381 | ||||||||
APAC, excluding China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $25,652 | $17,681 | $17,108 |
Segment_Reporting_PPE_Details
Segment Reporting - PPE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | $6,116 | $5,096 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | 5,406 | 4,108 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | 632 | 899 |
APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | $78 | $89 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charge | $67 | $209 | $159 | $937 | $511 | $435 | $1,448 | $1,371 |
Employee termination costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charge | $435 | $1,448 | $1,371 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues | $72,865 | $64,791 | $40,910 | $44,580 | $34,841 | $21,722 | $24,445 | $24,605 | $223,146 | $105,613 | $108,183 | |
Cost of revenues: | ||||||||||||
Platform commissions, royalties and other | 29,625 | 25,733 | 12,432 | 13,202 | 9,803 | 7,871 | 7,670 | 7,462 | 80,992 | 32,806 | 29,630 | |
Amortization of intangible assets | 2,434 | 1,338 | 441 | 554 | 1,004 | 1,082 | 1,078 | 1,074 | 4,767 | 4,238 | 3,783 | |
Total cost of revenues | 32,059 | 27,071 | 12,873 | 13,756 | 10,807 | 8,953 | 8,748 | 8,536 | 85,759 | 37,044 | 33,413 | |
Gross profit | 40,806 | 37,720 | 28,037 | 30,824 | 24,034 | 12,769 | 15,697 | 16,069 | 137,387 | 68,569 | 74,770 | |
Operating expenses: | ||||||||||||
Research and development | 16,053 | 15,355 | 17,297 | 15,579 | 12,618 | 11,405 | 11,224 | 11,630 | 64,284 | 46,877 | 54,275 | |
Sales and marketing | 12,275 | 15,327 | 7,989 | 9,485 | 10,608 | 5,361 | 5,143 | 5,008 | 45,076 | 26,120 | 20,893 | |
General and administrative | 7,154 | 6,808 | 6,131 | 4,926 | 4,162 | 3,617 | 3,852 | 3,919 | 25,019 | 15,550 | 14,744 | |
Amortization of intangible assets | 127 | 127 | 127 | 127 | 117 | 229 | 495 | 495 | 508 | 1,336 | 1,980 | |
Restructuring charge | 67 | 209 | 159 | 937 | 511 | 435 | 1,448 | 1,371 | ||||
Total operating expenses | 35,676 | 37,826 | 31,703 | 30,117 | 27,505 | 20,612 | 21,651 | 21,563 | 135,322 | 91,331 | 96,876 | |
Income (loss) from operations | 5,130 | -106 | -3,666 | 707 | -3,471 | -7,843 | -5,954 | -5,494 | 2,065 | -22,762 | -22,106 | |
Interest and other income (expense), net | -978 | -340 | -24 | -130 | -130 | -155 | 163 | 132 | -1,472 | 10 | -347 | |
Loss before income taxes | 4,152 | -446 | -3,690 | 577 | -3,601 | -7,998 | -5,791 | -5,362 | 593 | -22,752 | -22,453 | |
Income tax benefit | -2,773 | 10,850 | -78 | -444 | 78 | 30 | 2,870 | -135 | 7,555 | 2,843 | 1,994 | |
Net income (loss) | 1,379 | 10,404 | -3,768 | 133 | -3,523 | -7,968 | -2,921 | -5,497 | 8,148 | -19,909 | -20,459 | |
Net income/(loss) per common share: | ||||||||||||
Basic | $0.01 | $0.11 | ($0.04) | $0 | ($0.05) | ($0.11) | ($0.04) | ($0.08) | $0.09 | ($0.28) | ($0.32) | |
Diluted | $0.01 | $0.10 | ($0.04) | $0 | ($0.05) | ($0.11) | ($0.04) | ($0.08) | $0.08 | ($0.28) | ($0.32) | |
Quarterly Financial Data [Abstract] | ||||||||||||
Valuation Allowance Deferred Tax Asset Change In Amount | 8,352 | |||||||||||
Release of tax liability | 810 | |||||||||||
Impairment of prepaid royalties and guarantees | $435 | $257 | $435 | $0 |