Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 06, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'FINJAN HOLDINGS, INC. | ' |
Entity Central Index Key | '0001366340 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Trading Symbol | 'FNJN | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 22,412,953 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $20,559 | $24,598 |
Accounts receivable, net | 254 | 50 |
Inventories | 80 | 34 |
Prepaid expenses and other current assets | 239 | 150 |
Total current assets | 21,132 | 24,832 |
Property and equipment, net | 862 | 953 |
Intangible assets, net | 1,192 | 1,333 |
Goodwill | 306 | 306 |
Investments | 1,000 | 500 |
Other non-current assets | 23 | 23 |
Total Assets | 24,515 | 27,947 |
Current Liabilities: | ' | ' |
Accounts payable | 1,030 | 495 |
Accounts payable - related parties | 13 | 15 |
Accrued expenses | 957 | 336 |
Accrued income taxes | 4 | 4 |
Other current liabilities | 15 | 35 |
Total current liabilities | 2,019 | 885 |
Deferred tax liabilities | 35 | 39 |
Total Liabilities | 2,054 | 924 |
Commitments and contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock - $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2014 and December 31, 2013 | 0 | 0 |
Common stock - $0.0001 par value; 1,000,000,000 shares authorized (See Note 9); 22,402,953 and 22,368,453 shares issued and outstanding at June 30, 2014 and December 31, 2013 | 2 | 2 |
Additional paid-in capital | 22,237 | 21,546 |
Retained earnings | 222 | 5,475 |
Total Stockholders' Equity | 22,461 | 27,023 |
Total Liabilities and Stockholders' Equity | $24,515 | $27,947 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 22,402,953 | 22,368,453 |
Common stock, shares outstanding | 22,402,953 | 22,368,453 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $636 | $198 | $810 | $198 |
Cost of revenues | 332 | 148 | 466 | 148 |
Gross profit | 304 | 50 | 344 | 50 |
Operating Expenses: | ' | ' | ' | ' |
Selling, general and administrative | 3,564 | 1,493 | 6,687 | 2,339 |
Transaction costs | 0 | 790 | 0 | 790 |
Total operating expenses | 3,564 | 2,283 | 6,687 | 3,129 |
Loss from operations | -3,260 | -2,233 | -6,343 | -3,079 |
Other Income | ' | ' | ' | ' |
Gain on settlement | 0 | 1,000 | 1,000 | 1,000 |
Other income | 5 | 17 | 17 | 17 |
Interest income | 6 | 31 | 74 | 111 |
Total other income | 11 | 1,048 | 1,091 | 1,128 |
Loss before provision for income taxes | -3,249 | -1,185 | -5,252 | -1,951 |
Provision for income taxes | -2 | 7 | 1 | 7 |
Net Loss | ($3,247) | ($1,192) | ($5,253) | ($1,958) |
Net Loss Per Share: | ' | ' | ' | ' |
Basic and Diluted | ($0.15) | ($0.06) | ($0.23) | ($0.09) |
Weighted Average Number of Common Shares Outstanding: | ' | ' | ' | ' |
Basic and Diluted | 22,378,646 | 21,093,384 | 22,373,578 | 20,843,379 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net Loss | ($5,253) | ($1,958) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 253 | 37 |
Stock-based compensation expense | 618 | 465 |
Deferred tax liability | -4 | 0 |
Changes in operating assets and (liabilities): | ' | ' |
Accounts receivable | -204 | -112 |
Inventories | -46 | -16 |
Prepaid expenses and other current assets | -89 | -108 |
Other assets | 0 | -23 |
Accrued expenses | 622 | -521 |
Accounts payable | 535 | -1,891 |
Accounts payable - related parties | -2 | 0 |
Other current liabilities | -20 | 0 |
Accrued income taxes | 0 | -25,318 |
Total Adjustments | 1,663 | -27,487 |
Net Cash Used in Operating Activities | -3,590 | -29,445 |
Cash Flows From Investing Activities | ' | ' |
Investment in limited partnership venture capital fund | -500 | 0 |
Cash acquired through merger with Converted Organics | 0 | 63 |
Proceeds of notes receivable acquired through merger with Converted Organics | 0 | 517 |
Purchases of property and equipment | -19 | -10 |
Net Cash (Used in) Provided by Investing Activities | -519 | 570 |
Cash Flows From Financing Activities | ' | ' |
Proceeds from exercise of stock options | 70 | 0 |
Repayment of loan from former parent | 0 | -33,943 |
Repurchase of common stock | 0 | -204 |
Net Cash Used in Financing Activities | 70 | -34,147 |
Net Decrease in Cash and Cash Equivalents | -4,039 | -63,022 |
Cash and Cash Equivalents - Beginning | 24,598 | 91,545 |
Cash and Cash Equivalents - Ending | 20,559 | 28,523 |
Cash paid during the quarter for: | ' | ' |
Income Taxes | 0 | 25,325 |
Non-cash Investing and Financing activities: | ' | ' |
Purchase of property and equipment | 2 | 0 |
Dividend of investments to parent | $0 | $12,784 |
1_The_Company_and_Summary_of_S
1. The Company and Summary of Significant Accounting Policies | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
The Company and Summary of Significant Accounting Policies | ' | ||||||||
Finjan Holdings, Inc. (the “Company”, or “Finjan Holdings”), a Delaware corporation (formerly Converted Organics, Inc.), has two reportable business segments: a web and network security technology segment focused on licensing and enforcing its technology patent portfolio, operated by its wholly-owned subsidiary Finjan, Inc. (“Finjan”), and an organic fertilizer segment operated by another wholly-owned subsidiary, Converted Organics of California, LLC (“Converted Organics”). | |||||||||
On June 3, 2013, Converted Organics, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Finjan. Effective June 3, 2013 and pursuant to the Merger Agreement, a wholly owned subsidiary merged with and into Finjan and Finjan became a wholly-owned subsidiary of Converted Organics, Inc. (the “Merger”). The transaction was accounted for as a reverse acquisition under the acquisition method of accounting for business combinations, with Finjan being treated as the acquiring company in the Merger for accounting purposes. Accordingly, the assets and liabilities and the historical operations that are reflected in Finjan Holdings condensed consolidated financial statements are those of Finjan and are recorded at the historical cost basis of Finjan. The results of operations of the acquired Converted Organics business have been included in the condensed consolidated statement of operations since the date of Merger. | |||||||||
Unless otherwise indicated or the context otherwise requires, references to “Finjan Holdings,” or “the Company” refer to Finjan Holdings, Inc., and its consolidated subsidiaries. Disclosures relating to the pre-merger business of Finjan Holdings, Inc., unless noted as being the business of Converted Organics prior to the Merger, pertain to the business of Finjan prior to the Merger. | |||||||||
BASIS OF PRESENTATION | |||||||||
These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission, or “SEC”, for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) can be condensed or omitted. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto of the Company for the year ended December 31, 2013 which were included in the annual report on Form 10-K filed by the Company on March 14, 2014. | |||||||||
In the opinion of management, these condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and notes thereto of the Company and include all adjustments, consisting only of normal recurring adjustments, considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three and six months ended June 30, 2014 are not necessarily indicative of the operating results for the year ending December 31, 2014, for any other interim period or for any future period. | |||||||||
USE OF ESTIMATES | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to stock-based compensation expense, impairment of intangible assets, the determination of the economic useful life of property and equipment and intangible assets, income taxes and valuation allowances against net deferred tax assets, and the application of the acquisition method of accounting for business combinations. Management bases its estimates on historical experience or on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |||||||||
PRINCIPLES OF CONSOLIDATION | |||||||||
The accompanying condensed consolidated financial statements include the accounts of Finjan Holdings and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||
CONCENTRATIONS OF CREDIT RISK | |||||||||
The Company maintains its cash and cash equivalents in financial institutions located in the United States. At times, the Company’s cash and cash equivalent balances may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced any losses in such accounts. As of June 30, 2014 and December 31, 2013, substantially all of the Company’s cash and cash equivalents are uninsured. | |||||||||
During the three months ended June 30, 2014, approximately 16% (Customer A), 20% (Customer B) and 33% (Customer C) of the revenues generated by the Company were from three customers compared to 22% (Customer D), 25% (Customer B) and 37% (Customer C) during the comparable period in 2013. During the six months ended June 30, 2014 approximately 13% (Customer A), 16% (Customer B) and 33% (Customer C) of the revenues generated by the Company were from three customers compared to 22% (Customer D), 25% (Customer B) and 37% (Customer C) during the comparable period in 2013. Accounts receivable from these customers was not material to the condensed consolidated balance sheet. | |||||||||
NET LOSS PER COMMON SHARE | |||||||||
Basic net loss per common share is based upon the weighted-average number of common shares outstanding. Diluted net loss per common share is based on the weighted-average number of common share outstanding and potentially dilutive common shares outstanding. | |||||||||
Potentially dilutive common shares from employee equity plans and warrants are determined by applying the treasury stock method to the assumed exercise of warrants and share options and are excluded from the computation of diluted net loss per share because their inclusion would be anti-dilutive and consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Options | 1,497,032 | 1,625,476 | |||||||
Warrants* | — | — | |||||||
Total | 1,497,032 | 1,625,476 | |||||||
*Warrants are currently exercisable for less than one share of common stock, and therefore anti-dilutive, as a result of the 1-for-10 reverse stock split that the Company effected on November 8, 2011, the 1-for-500 reverse stock split that the Company effected on March 5, 2012, the 1-for-500 reverse stock split that the Company effected on June 3, 2013 and the 1-for-12 reverse stock split the Company effected on August 22, 2013. The warrants are subject to further adjustments in the future, which may have the effect of increasing or decreasing the exercise price and the number of shares issuable upon exercise of the warrants. | |||||||||
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | |||||||||
On June 19, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is expected not to have a material impact on the Company’s consolidated financial position and results of operations. | |||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to when products and services are transferred to customers. ASU 2014-09 will be effective for the Company beginning in its first quarter of 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. | |||||||||
Other recent accounting standards that have been issued or proposed by FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption. | |||||||||
SUBSEQUENT EVENTS | |||||||||
Management has evaluated subsequent events or transactions occurring through the date on which the financial statements were issued. See Note 9. |
2_ProForma_Financial_Informati
2. Pro-Forma Financial Information | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Pro-Forma Financial Information | ' | ||||||||
As described in Note 1, the Company completed the Merger on June 3, 2013. The following unaudited pro-forma information presents the combined results of operations for the three and six months ended June 30 2013 as if the Merger with Converted Organics, Inc. had been completed on January 1, 2013. The pro-forma financial information includes adjustments to reflect one-time charges and amortization of fair value adjustments in the appropriate pro-forma periods as though the companies were combined as of the beginning of 2013. These adjustments include: | |||||||||
· | An increase in amortization and depreciation expense of $75,000 and $149,000 for the three and six months period ended June 30, 2013, respectively. | ||||||||
· | The exclusion of transaction-related expenses of $790,000 for the three and six months ended June 30, 2013, respectively | ||||||||
The unaudited pro-forma results do not reflect operating efficiencies or potential cost savings which may have been implemented after the Merger. | |||||||||
Three Months | Six Months | ||||||||
Ended June 30, | Ended June 30, | ||||||||
2013 | 2013 | ||||||||
(In thousands, except per share data) | |||||||||
Revenue | $ | 1,664 | $ | 2,065 | |||||
Net loss | $ | (943 | ) | $ | (3,035 | ) | |||
Net loss per common share, basic and diluted | $ | 0 | $ | -0.01 | |||||
Weighted average shares outstanding, basic and diluted | 21,093,384 | 20,843,379 |
3_Balance_Sheet_Components
3. Balance Sheet Components | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Balance Sheet Components | ' | ||||||||
INVENTORIES | |||||||||
The components of inventories were as follows: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 33 | $ | 13 | |||||
Finished goods | 47 | 21 | |||||||
Inventories | $ | 80 | $ | 34 | |||||
ACCRUED EXPENSES | |||||||||
The components of accrued expenses were as follows: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Legal | $ | 661 | $ | 238 | |||||
Compensation | 193 | 78 | |||||||
Professional fees | 103 | 20 | |||||||
Other Accrued expenses | $ | 957 | $ | 336 |
4_Commitments
4. Commitments | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments | ' | ||||
Operating Leases | |||||
The Company leases a production facility in California. Under the terms of the lease, the Company owes minimum annual rent of $125,202, payable in monthly installments of $10,433, unless earlier terminated in accordance with the lease. The annual rental rate is subject to increase on each annual anniversary of the commencement of the immediately preceding rental year by 3% of the rent paid during the immediately preceding year. This lease expires in 2018. | |||||
On September 9, 2013, the Company entered into a lease for its new corporate headquarters for a period of five years beginning October 1, 2013. Under the terms of the lease, the Company owes an initial annual rent of $138,952, payable in monthly installments of $11,579, unless earlier terminated in accordance with the lease. The annual rental rate is subject to an increase on a cumulative basis after the first lease year at the rate of 2.5% per annum compounded annually. | |||||
On March 20, 2014, the Company received the consent of the master landlord for a sublease agreement dated March 10, 2014, pursuant to which the Company subleased office space in Menlo Park, California through November 30, 2017. From the commencement date, the Company owes an initial annual rent of $164,619, payable in equal monthly installments, unless earlier terminated by either party in accordance with the lease. The annual rental rate is subject to an approximately 3.0% increase at each anniversary of the commencement date during the term. | |||||
The following table sets forth the Company’s aggregate future minimum payments under its operating lease commitment as of June 30, 2014 (in thousands): | |||||
Year ending December 31, | |||||
2014 (remaining) | $ | 211 | |||
2015 | 445 | ||||
2016 | 457 | ||||
2017 | 448 | ||||
2018 | 127 | ||||
$ | 1,688 | ||||
The Company accounts for its leases under the straight-line method of accounting. Deferred rent payable was $42,121 as of June 30, 2014. Deferred rent as of December 31, 2013 was not material. | |||||
Rent expense for the three and six months ended June 30, 2014 was $110,072 and $185,126, respectively, and $26,960 and $32,792 in the comparable periods in 2013. | |||||
Capital Commitments | |||||
On November 21, 2013, the Company made a $5 million commitment to invest in an Israel-based limited partnership venture capital fund seeking to invest in early-stage cyber technology companies. If and when the Company funds the entire amount of the investment, it will be less than a 10% limited partnership interest in which the Company will not be able to exercise control over the fund. Accordingly, the Company has accounted for this investment under the cost method of accounting. During the quarter ended June 30, 2014, the fund made a capital call of $0.5 million. As of June 30, 2014, the Company had a $4 million outstanding capital commitment to the venture capital fund. |
5_StockBased_Compensation
5. Stock-Based Compensation | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
The Company estimates the fair values of stock options using the Black-Scholes option-pricing model. For the three and six months ended June 30, 2014, and 2013 the assumptions used in the Black-Scholes option-pricing model were as follows: | |||||||||||||
Employee Grants | Non-Employee Grants | ||||||||||||
Three and Six | Three and Six Months | ||||||||||||
Months Ended | Ended June 30, | ||||||||||||
30-Jun-13 | 2013 | 2014 | |||||||||||
Weighted-average grant date fair value | $ | 1.44 | $ | 0.12 | $ | 1.44 | |||||||
Weighted-average Black-Scholes option pricing model assumptions: | |||||||||||||
Volatility | 50.6 | % | 50.6 | % | 53.03 | % | |||||||
Expected term (in years) | 6 | 10 | 10 | ||||||||||
Risk-free rate | 1 | % | 1.8 | % | 2.38 | % | |||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||
Forfeiture rate | 0 | % | 0 | % | 0 | % | |||||||
The risk-free interest rate is the United States Treasury rate for the day of the grant having a term equal to the life of the equity instrument. The volatility is a measure of the amount by which the Company’s share price has fluctuated or is expected to fluctuate. Since the Company’s common stock was not publicly traded at the time of certain grants to employees in 2013, an average of the historic volatility of comparative companies was used. The dividend yield is 0% as the Company has not made any dividend payment and does not anticipate paying a dividend in the near future. An increase or decrease in the risk free rate or volatility could increase or decrease the fair value of our equity instruments. | |||||||||||||
As of June 30, 2014, the remaining number of shares available for issuance under the 2013 Global Share Option Plan and Israeli Sub-Plan was 611,360. Management does not anticipate any additional issuances under the 2013 Global Share Option Plan and Israeli Sub-Plan. | |||||||||||||
During the six months ended June 30, 2014, no options were granted, 34,500 options were exercised for cash proceeds of approximately $70,000 and 93,944 options forfeited. Approximately $0.3 million and $0.6 million of stock-based compensation expense was recorded in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2014, respectively. Approximately $0.5 million of stock-based compensation expense was recorded in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations for the three and six months period ended June 30, 2013. The stock-based compensation expense was related to the amortization of the value of the options granted to certain employees, consultants, and members of the Board of Directors (the "Board") after the Merger. | |||||||||||||
As of June 30, 2014, total compensation cost not yet recognized related to unvested stock options under the 2013 Global Share Option Plan and Israeli Sub-Plan was $0.9 million, which is expected to be recognized over a weighted-average period of 1.6 years. |
6_Related_Party_Transactions
6. Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
In the course of business, the Company obtains legal services from a firm in which the Company’s executive chairman is a partner. The Company incurred approximately $43,000 and $81,000 in legal fees payable to the firm during the three and six months ended June 30, 2014, respectively, and approximately $40,000 and $90,000 during the three and six months ended June 30, 2013, respectively. As of June 30, 2014 and December 31, 2013, the Company has balances due to this firm amounting to $12,530 and $17,000, respectively. |
7_Segment_Reporting
7. Segment Reporting | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
The Company has two operating segments, namely, a web and network security technology segment and an organic fertilizer segment. The Company’s operating segments are each reportable segments because their activities are not economically similar. Presented below are the revenues and net loss for each segment for the three and six month periods ended June 30, 2014 and June 30, 2013. | |||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
Web and network security technology | $ | - | $ | - | $ | - | $ | - | |||||||||
Organic fertilizer | 636 | 198 | 810 | 198 | |||||||||||||
Total Revenue | $ | 636 | $ | 198 | $ | 810 | $ | 198 | |||||||||
Net (Loss) Income: | |||||||||||||||||
Web and network security technology | $ | (3,322 | ) | $ | (757 | ) | $ | (5,116 | ) | $ | (1,523 | ) | |||||
Organic fertilizer | 75 | (435 | ) | (137 | ) | (435 | ) | ||||||||||
Total Net Loss: | $ | (3,247 | ) | $ | (1,192 | ) | $ | (5,253 | ) | $ | (1,958 | ) | |||||
Other Income: | |||||||||||||||||
Web and network security technology | $ | 5 | $ | 1,017 | $ | 1,005 | $ | 1,017 | |||||||||
Organic fertilizer | - | - | 12 | - | |||||||||||||
Total Other Income | $ | 5 | $ | 1,017 | $ | 1,017 | $ | 1,017 | |||||||||
Interest Income: | |||||||||||||||||
Web and network security technology | $ | 6 | $ | 30 | $ | 74 | $ | 110 | |||||||||
Organic fertilizer | - | 1 | - | 1 | |||||||||||||
Total Interest Income | $ | 6 | $ | 31 | $ | 74 | $ | 111 | |||||||||
Depreciation and Amortization: | |||||||||||||||||
Web and network security technology | $ | 4 | $ | - | $ | 7 | $ | - | |||||||||
Organic fertilizer | 112 | 37 | 246 | 37 | |||||||||||||
Total Depreciation and Amortization: | $ | 116 | $ | 37 | $ | 253 | $ | 37 | |||||||||
As of June 30, 2014, total assets held by the web and network security technology segment and organic fertilizer segment were $23.6 million and $0.9 million, respectively. |
8_Contingencies
8. Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Finjan filed a patent infringement lawsuit against FireEye, Inc. in the United States District Court for the Northern District of California on July 8, 2013, asserting that FireEye, Inc. is infringing U.S. Patent Nos. 6,804,780, 8,079,086, 7,975,305, 8,225,408, 7,058,822, 7,647,633 and 6,154,844. | |
Finjan filed a patent infringement lawsuit against Blue Coat Systems, Inc., in the United States District Court for the Northern District of California on August 28, 2013, asserting that Blue Coat Systems, Inc. is infringing U.S. Patent Nos. 6,154,844, 6,804,780, 6,965,968, 7,058,822, 7,418,731, and 7,647,633. | |
Finjan filed a patent infringement lawsuit against Websense, Inc. in the United States District Court for the Northern District of California on September 23, 2013, asserting that Websense, Inc. is infringing U.S. Patent Nos. 7,058,822, 7,647,633, 8,141,154, and 8,225,408. Finjan filed a separate suit against Websense, Inc. in the United States District Court for the Northern District of California on March 24, 2014, asserting that Websense, Inc. is infringing U.S. Patent No. 8,677,494. | |
Finjan appealed a District Court Decision in a prior patent case with defendants Symantec Corp., Websense, Inc., and Sophos Inc., where there was a finding of no liability for U.S. Patent Nos. 6,092,194 and 6,480,962. The Appeal Brief was filed on December 10, 2013, at the Court of Appeals for the Federal Circuit and the case is pending. | |
Finjan filed a patent infringement lawsuit against Proofpoint, Inc. and Armorize Technologies, Inc. in the United States District Court for the Northern District of California on December 16, 2013, asserting that Proofpoint, Inc. and Armorize Technologies, Inc. are infringing U.S. Patent Nos. 6,154,844, 7,058,822, 7,613,918, 7,647,633, 7,975,305, 8,079,086, 8,141,154, and 8,225,408. | |
Finjan filed a patent infringement lawsuit against Sophos Inc. in the United States District Court for the Northern District of California on March 14, 2014, asserting that Sophos Inc. is infringing U.S. Patent Nos. 6,154,844, 6,804,780, 7,613,918, 7,613,926, 7,757,289, 8,141,154, 8,566,580, and 8,677,494. | |
Finjan filed a patent infringement lawsuit against Symantec Corp. in the United States District Court for the Northern District of California on June 30, 2014, asserting that Symantec Corp. is infringing U.S. Patent Nos. 7,756,996, 7,757,289, 7,930,299, 8,015,182, and 8,141,154. | |
Patent litigation is inherently subject to uncertainties. As such, there can be no assurance that the Company will be successful with its oral arguments in front of the Court or in litigating and /or settling all these claims. | |
The Company is not currently aware of any threatened litigations, inbound cases filed against the Company, or counterclaims that could result in any material adverse impact to the financial statements as of June 30, 2014. |
9_Subsequent_Events
9. Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
The Company’s stockholders approved the Finjan Holdings, Inc. 2014 Incentive Compensation Plan at the annual meeting of stockholders held on July 10, 2014, pursuant to which 2,196,836 shares of common stock are authorized for issuance. Upon shareholder approval of the Plan, the Company issued a total of 244,504 Restricted Stock Units ("RSUs") and options to purchase an aggregate of 25,000 Shares of our common stock that had been previously approved by the Board and the Compensation Committee, subject to stockholder approval of the Plan, to certain non-executive employees and non-executive directors. These equity grants include 24,390 RSUs to each of Messrs. Daniel, Kellogg and Southworth, who were newly appointed to the Board and Audit Committee in April, and Mr. Benhamou, who was newly appointed as Chair of the Audit Committee in April. The equity grants also include 244,504 RSUs and 25,000 options granted to non-executive employees. For each grant of RSUs, one-third of the RSUs are scheduled to vest on the one year anniversary of the grant date or employee start date, and an additional 8.33% of the RSUs are scheduled to vest every three calendar months thereafter. For each grant of options, one-fourth of the options are scheduled to vest on the one-year anniversary of the employee start date, and an additional 6.25% of the options are scheduled to vest every three calendar months thereafter. | |
Upon shareholder approval of the Plan, the 2013 Global Share Option Plan and Israeli Sub-Plan were terminated, other than respect to the 1,489,532 shares of common stock underlying options outstanding under such plan. The Company did not recognize any compensation expenses related to the RSU or stock option grants under the 2014 Incentive Compensation Plan for the three and six months period ended June 30, 2014. | |
The Company’s stockholders also approved several charter amendments, including the amendment to decrease the number of authorized shares of common stock from 1,000,000,000 to 80,000,000, effective on July 10, 2014 upon the filing with the Secretary of State of the State of Delaware of the Amended and Restated Certificate of Incorporation. The Board also adopted Amended and Restated Bylaws. | |
Subsequent to June 30, 2014, the Company received approximately $17,000 in cash proceeds from the exercising 10,000 stock options to purchase the Company’s common stock. |
1_The_Company_and_Summary_of_S1
1. The Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation | ' | ||||||||
These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission, or “SEC”, for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) can be condensed or omitted. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto of the Company for the year ended December 31, 2013 which were included in the annual report on Form 10-K filed by the Company on March 14, 2014. | |||||||||
In the opinion of management, these condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and notes thereto of the Company and include all adjustments, consisting only of normal recurring adjustments, considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three and six months ended June 30, 2014 are not necessarily indicative of the operating results for the year ending December 31, 2014, for any other interim period or for any future period. | |||||||||
Use of Estimates | ' | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to stock-based compensation expense, impairment of intangible assets, the determination of the economic useful life of property and equipment and intangible assets, income taxes and valuation allowances against net deferred tax assets, and the application of the acquisition method of accounting for business combinations. Management bases its estimates on historical experience or on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |||||||||
Principles of Consolidation | ' | ||||||||
The accompanying condensed consolidated financial statements include the accounts of Finjan Holdings and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||
Concentrations Of Credit Risk | ' | ||||||||
The Company maintains its cash and cash equivalents in financial institutions located in the United States. At times, the Company’s cash and cash equivalent balances may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced any losses in such accounts. As of June 30, 2014 and December 31, 2013, substantially all of the Company’s cash and cash equivalents are uninsured. | |||||||||
During the three months ended June 30, 2014, approximately 16% (Customer A), 20% (Customer B) and 33% (Customer C) of the revenues generated by the Company were from three customers compared to 22% (Customer D), 25% (Customer B) and 37% (Customer C) during the comparable period in 2013. During the six months ended June 30, 2014 approximately 13% (Customer A), 16% (Customer B) and 33% (Customer C) of the revenues generated by the Company were from three customers compared to 22% (Customer D), 25% (Customer B) and 37% (Customer C) during the comparable period in 2013. Accounts receivable from these customers was not material to the condensed consolidated balance sheet. | |||||||||
Net Income (Loss) per Common Share | ' | ||||||||
Basic net income (loss) per common share is based upon the weighted-average number of common shares outstanding. Diluted net income (loss) per common share is based on the weighted-average number of common share outstanding and potentially dilutive common shares outstanding. | |||||||||
Potentially dilutive common shares from employee equity plans and warrants are determined by applying the treasury stock method to the assumed exercise of warrants and share options and are excluded from the computation of diluted net loss per share because their inclusion would be anti-dilutive and consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Options | 1,497,032 | 1,625,476 | |||||||
Warrants* | — | — | |||||||
Total | 1,497,032 | 1,625,476 | |||||||
*Warrants are currently exercisable for less than one share of common stock, and therefore anti-dilutive, as a result of the 1-for-10 reverse stock split that the Company effected on November 8, 2011, the 1-for-500 reverse stock split that the Company effected on March 5, 2012, the 1-for-500 reverse stock split that the Company effected on June 3, 2013 and the 1-for-12 reverse stock split the Company effected on August 22, 2013. The warrants are subject to further adjustments in the future, which may have the effect of increasing or decreasing the exercise price and the number of shares issuable upon exercise of the warrants. | |||||||||
Recently Issued Accounting Pronouncements Not Yet Adopted | ' | ||||||||
On June 19, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is expected not to have a material impact on the Company’s consolidated financial position and results of operations. | |||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to when products and services are transferred to customers. ASU 2014-09 will be effective for the Company beginning in its first quarter of 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. | |||||||||
Other recent accounting standards that have been issued or proposed by FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption. | |||||||||
Subsequent Events | ' | ||||||||
Management has evaluated subsequent events or transactions occurring through the date on which the financial statements were issued. See Note 9. |
1_The_Company_and_Summary_of_S2
1. The Company and Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Components Excluded from Computation of Diluted Net Loss Per Share | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Options | 1,497,032 | 1,625,476 | |||||||
Warrants* | — | — | |||||||
Total | 1,497,032 | 1,625,476 |
1_ProForma_Financial_Informati
1. Pro-Forma Financial Information (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Pro Forma Information from Operations | ' | ||||||||
Three Months | Six Months | ||||||||
Ended June 30, | Ended June 30, | ||||||||
2013 | 2013 | ||||||||
(In thousands, except per share data) | |||||||||
Revenue | $ | 1,664 | $ | 2,065 | |||||
Net loss | $ | (943 | ) | $ | (3,035 | ) | |||
Net loss per common share, basic and diluted | $ | (0.00 | ) | $ | -0.01 | ||||
Weighted average shares outstanding, basic and diluted | 21,093,384 | 20,843,379 |
3_Balance_Sheet_Components_Tab
3. Balance Sheet Components (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 33 | $ | 13 | |||||
Finished goods | 47 | 21 | |||||||
Inventories | $ | 80 | $ | 34 | |||||
Components of Accrued Expenses | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Legal | $ | 661 | $ | 238 | |||||
Compensation | 193 | 78 | |||||||
Professional fees | 103 | 20 | |||||||
Other Accrued expenses | $ | 957 | $ | 336 |
4_Commitments_Tables
4. Commitments (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Operating Leases | ' | ||||
Year ending December 31, | |||||
2014 (remaining) | $ | 211 | |||
2015 | 445 | ||||
2016 | 457 | ||||
2017 | 448 | ||||
2018 | 127 | ||||
$ | 1,688 |
5_StockBased_Compensation_Tabl
5. Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Weighted-average Black-Scholes Option Pricing Model Assumptions | ' | ||||||||||||
Employee Grants | Non-Employee Grants | ||||||||||||
Three and Six | Three and Six Months | ||||||||||||
Months Ended | Ended June 30, | ||||||||||||
30-Jun-13 | 2013 | 2014 | |||||||||||
Weighted-average grant date fair value | $ | 1.44 | $ | 0.12 | $ | 1.44 | |||||||
Weighted-average Black-Scholes option pricing model assumptions: | |||||||||||||
Volatility | 50.6 | % | 50.6 | % | 53.03 | % | |||||||
Expected term (in years) | 6 | 10 | 10 | ||||||||||
Risk-free rate | 1 | % | 1.8 | % | 2.38 | % | |||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||
Forfeiture rate | 0 | % | 0 | % | 0 | % |
7_Segment_Reporting_Tables
7. Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Revenues and Net Loss for Each Segment | ' | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
Web and network security technology | $ | - | $ | - | $ | - | $ | - | |||||||||
Organic fertilizer | 636 | 198 | 810 | 198 | |||||||||||||
Total Revenue | $ | 636 | $ | 198 | $ | 810 | $ | 198 | |||||||||
Net (Loss) Income: | |||||||||||||||||
Web and network security technology | $ | (3,322 | ) | $ | (757 | ) | $ | (5,116 | ) | $ | (1,523 | ) | |||||
Organic fertilizer | 75 | (435 | ) | (137 | ) | (435 | ) | ||||||||||
Total Net Loss: | $ | (3,247 | ) | $ | (1,192 | ) | $ | (5,253 | ) | $ | (1,958 | ) | |||||
Other Income: | |||||||||||||||||
Web and network security technology | $ | 5 | $ | 1,017 | $ | 1,005 | $ | 1,017 | |||||||||
Organic fertilizer | - | - | 12 | - | |||||||||||||
Total Other Income | $ | 5 | $ | 1,017 | $ | 1,017 | $ | 1,017 | |||||||||
Interest Income: | |||||||||||||||||
Web and network security technology | $ | 6 | $ | 30 | $ | 74 | $ | 110 | |||||||||
Organic fertilizer | - | 1 | - | 1 | |||||||||||||
Total Interest Income | $ | 6 | $ | 31 | $ | 74 | $ | 111 | |||||||||
Depreciation and Amortization: | |||||||||||||||||
Web and network security technology | $ | 4 | $ | - | $ | 7 | $ | - | |||||||||
Organic fertilizer | 112 | 37 | 246 | 37 | |||||||||||||
Total Depreciation and Amortization: | $ | 116 | $ | 37 | $ | 253 | $ | 37 |
1_The_Company_and_Summary_of_S3
1. The Company and Summary of Significant Accounting Policies (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Antidilutive securities | 1,497,032 | 1,625,476 |
Stock Option [Member] | ' | ' |
Antidilutive securities | 1,497,032 | 1,625,476 |
Warrant [Member] | ' | ' |
Antidilutive securities | 0 | 0 |
1_The_Company_and_Summary_of_S4
1. The Company and Summary of Significant Accounting Policies (Details Narrative) (Sales Revenue Net [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Customer One [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Concentration risk percentage | 16.00% | 22.00% | 13.00% | 22.00% |
Customer Two [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Concentration risk percentage | 20.00% | 25.00% | 16.00% | 25.00% |
Customer Three [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Concentration risk percentage | 33.00% | 37.00% | 33.00% | 37.00% |
2_ProForma_Financial_Informati1
2. Pro-Forma Financial Information (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Business Combinations [Abstract] | ' | ' |
Revenue | $1,664 | $2,065 |
Net Loss | ($943) | ($3,035) |
Net loss per common share, basic and diluted | $0 | ($0.01) |
Weighted average shares outstanding: | ' | ' |
Basic and diluted | 21,093,384 | 20,843,379 |
2_ProForma_Financial_Informati2
2. Pro-Forma Financial Information (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Business Combinations [Abstract] | ' | ' |
Merger completion date | 3-Jun-13 | 3-Jun-13 |
Increase in depreciation and amortization expense | $75 | $149 |
3_Balance_Sheet_Components_Det
3. Balance Sheet Components (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $33 | $13 |
Finished goods | 47 | 21 |
Inventories | $80 | $34 |
3_Balance_Sheet_Components_Det1
3. Balance Sheet Components (Details 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Legal | $661 | $238 |
Compensation | 193 | 78 |
Professional fees | 103 | 20 |
Other Accrued expenses | $957 | $336 |
4_Commitments_Details
4. Commitments (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 (remaining) | $211 |
2015 | 445 |
2016 | 457 |
2017 | 448 |
2018 | 127 |
Total | $1,688 |
4_Commitments_Details_Narrativ
4. Commitments (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Deferred rent payable | ' | ' | ' | ' | $42,121 |
Rent expense | 110,072 | 26,960 | 185,126 | 32,792 | ' |
Venture Capital Funds [Member] | ' | ' | ' | ' | ' |
Capital commitment outstanding | $400,000 | ' | $400,000 | ' | ' |
5_StockBased_Compensation_Deta
5. Stock-Based Compensation (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Grants [Member] | ' | ' |
Weighted-average grant date fair value | ' | $1.44 |
Weighted-average Black-Scholes option pricing model assumptions: | ' | ' |
Volatility | ' | 50.60% |
Expected term (in years) | ' | '6 years |
Risk-free rate | ' | 1.00% |
Expected dividend yield | ' | 0.00% |
Forfeiture rate | ' | 0.00% |
Non Employee Grants [Member] | ' | ' |
Weighted-average grant date fair value | $1.44 | $0.12 |
Weighted-average Black-Scholes option pricing model assumptions: | ' | ' |
Volatility | 53.03% | 50.60% |
Expected term (in years) | '10 years | '10 years |
Risk-free rate | 2.38% | 1.80% |
Expected dividend yield | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 0.00% |
5_StockBased_Compensation_Deta1
5. Stock-Based Compensation (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Options granted | 0 | ' | ' | ' |
Options exercised | 34,500 | ' | ' | ' |
Options cancelled | 93,944 | ' | ' | ' |
Stock-based compensation expense | $300 | $500 | $600 | $500 |
Compensation cost not yet recognized | $900 | ' | $900 | ' |
Compensation cost expected to be recognized over a weighted-average period | ' | ' | '1 year 7 months 6 days | ' |
Global Share Option Plan [Member] | ' | ' | ' | ' |
Number of remaining shares available for issuance | 611,360 | ' | 611,360 | ' |
6_Related_Party_Transactions_D
6. Related Party Transactions (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Legal fees | $43,000 | $40,000 | $81,000 | $90,000 |
Amounts due to the firm | $12,530 | $17,000 | $12,530 | $17,000 |
7_Segment_Reporting_Details
7. Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue | $636 | $198 | $810 | $198 |
Net Income (Loss) | -3,247 | -1,192 | -5,253 | -1,958 |
Other Income | 5 | 1,017 | 1,017 | 1,017 |
Interest Income | 6 | 31 | 74 | 111 |
Depreciation and Amortization | 116 | 37 | 253 | 37 |
Web And Network Security Technology [Member] | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Net Income (Loss) | -3,322 | -757 | -5,116 | -1,523 |
Other Income | 5 | 1,017 | 1,005 | 1,017 |
Interest Income | 6 | 30 | 74 | 110 |
Depreciation and Amortization | 4 | 0 | 7 | 0 |
Organic Fertilizer [Member] | ' | ' | ' | ' |
Revenue | 636 | 198 | 810 | 198 |
Net Income (Loss) | 75 | -435 | -137 | -435 |
Other Income | 0 | 0 | 12 | 0 |
Interest Income | 0 | 1 | 0 | 1 |
Depreciation and Amortization | $112 | $37 | $246 | $37 |
7_Segment_Reporting_Details_Na
7. Segment Reporting (Details Narrative) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Segment | ||
Number of operating segments | 2 | ' |
Assets | $24,515 | $27,947 |
Web And Network Security Technology [Member] | ' | ' |
Assets | 23,600 | ' |
Organic Fertilizer [Member] | ' | ' |
Assets | $900 | ' |