Finjan (FNJN) 10-Q 11 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	6-May-15
Document And Entity Information [Abstract]
Entity Registrant Name	FINJAN HOLDINGS, INC.
Entity Central Index Key	1366340
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Trading Symbol	FNJN
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,516,833
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$15,005	$17,505
Accounts receivable, net	55	2,016
Prepaid expenses and other current assets	65	112
Total current assets	15,125	19,633
Property and equipment, net	136	66
Investment	1,000	1,000
Other long term assets	231
Total Assets	16,492	20,699
Current Liabilities:
Accounts payable	1,327	1,675
Accounts payable - related parties	18	100
Accrued expenses	842	800
Accrued income taxes	8	0
Total Liabilities	2,195	2,575
Stockholders' Equity
Preferred stock - $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2015 and December 31, 2014	0	0
Common stock - $0.0001 par value; 80,000,000 shares authorized; 22,511,807 and 22,448,098 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	2	2
Additional paid-in capital	23,501	23,126
Accumulated deficit	-9,206	-5,004
Total Stockholders' Equity	14,297	18,124
Total Liabilities and Stockholders' Equity	$16,492	$20,699

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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	80,000,000	80,000,000
Common stock, shares issued	22,511,807	22,448,098
Common stock, shares outstanding	22,511,807	22,448,098

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenues	$0	$0
Cost of goods sold:	0	0
Gross profit	0	0
Operating expenses
Selling, general and administrative	4,205	1,792
Total operating expenses	4,205	1,792
Operating loss	-4,205	-1,792
Other Income (expense)
Gain on settlement, net of legal costs	0	1,000
Interest income	9	68
Other income (expense)	-1	0
Total Other Income (expense)	8	1,068
Loss before provision for income taxes	-4,197	-724
Provision for income taxes	5	1
Loss from continued operations	-4,202	-725
Discontinued Operations
Loss from discontinued operations, net of taxes	0	-1,278
Net (Loss)	($4,202)	($2,003)
Net Loss per share from Continuing Operations
Basic and Diluted	($0.19)	($0.03)
Net Loss per share from Discontinued Operations
Basic and Diluted	$0	($0.06)
Net Loss Per Share
Basic and Diluted	($0.19)	($0.09)
Weighted Average Number of Common Shares Outstanding Basic and Diluted	22,408,608	22,368,453

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash Flows From Operating Activities
Net Loss	($4,202)	($725)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on discontinued operations	0	-1,278
Depreciation and amortization	7	132
Stock-based compensation	355	338
Deferred tax liability	0	-2
Changes in operating assets and liabilities
Accounts receivable	1,961	-1
Inventories	0	-27
Prepaid expenses and other current assets	47	-64
Accrued expenses	42	240
Accounts payable	-348	378
Accounts payable - related parties	-82	4
Other long-term assets	-231	0
Other current liabilities	0	-3
Accrued income taxes	8	1
Total Adjustments	1,397	-282
Net Cash Used in Operating Activities	-2,443	-1,007
Cash Flows From Investing Activities
Purchase of property and equipment	-77	-42
Net Cash Used in Investing Activities	-77	-42
Cash Flows From Financing Activities
Proceeds from exercise of stock options	20	0
Net Cash Provided by Financing Activities	20	0
Net Decrease in Cash and Cash Equivalent	-2,500	-1,049
Cash and Cash Equivalent - Beginning	17,505	24,598
Cash and Cash Equivalent - Ending	15,005	23,549
Non-cash investing and financing activities
Purchase of property and equipment in exchange for finance agreement	$0	$15

1_THE_COMPANY_AND_SUMMARY_OF_S

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Finjan Holdings, Inc., a Delaware corporation (the “Company” or “Finjan Holdings”), is focused on investments in, and development and monetization of, cybersecurity technologies and intellectual property.  As of December 4, 2014, the Company operates in a single segment, a web and network security technology segment focused on licensing and enforcing our technology patent portfolio, operated by our wholly-owned subsidiary Finjan, Inc. (“Finjan”).   On December 4, 2014, the Company sold its organic fertilizer business, and as a result it was reclassified and presented as discontinued operations in this quarterly filing.
	BASIS OF PRESENTATION
	These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (“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, 2014 which were included in the annual report on Form 10-K filed by the Company on March 11, 2015.
	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 months ended March 31, 2015 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.
	REVENUE RECOGNITION
	Revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product or service has occurred, all obligations have been performed pursuant to the terms of the agreement, the sales price is fixed or determinable, and collectability is reasonably assured.
	Revenue from the Company’s web and network security technology business results from grants of licenses to its patented cybersecurity technology and settlements reached from legal enforcement of the Company’s patent rights. The Company does not grant, at this time, technology or software end-user licenses. Revenue is recognized when the arrangement with the licensee has been signed and the license has been delivered and made effective, provided license fees are fixed or determinable and collectability is reasonably assured. The fair value of licenses achieved is recognized as revenue.
	The amount of consideration received upon any settlement or judgment is allocated to each element of the settlement based on the fair value of each element. Elements related to licensing agreements and royalty revenues, is recognized as revenue in the consolidated statement of operations. Elements that are not related to license agreements and royalty revenue in nature will be reflected as a separate line item within the Other Income section of the consolidated statements of operations. Elements provided in either settlement agreements or judgments include, the value of a license, legal release, and interest. When settlements or judgments are achieved at discounts to the fair value of a license, the Company allocates the full settlement or judgment, excluding specifically named elements as mentioned above, to the value of the license agreement or royalty revenue under the residual method relative to full license fair value prior to the discount. Legal release as part of a settlement agreement is recognized as a separate line item in the consolidated statements of operations when value can be allocated to the legal release. When the Company reaches a settlement with a defendant, no value is allocated to the legal release since the existence of a settlement removes legal standing to bring a claim of infringement, and without a legal claim, the legal release has no economic value. The element that is applicable to interest income will be recorded as a separate line item in Other Income.
	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 insurance limits. The Company has not experienced any losses in such accounts. As of March 31, 2015 and December 31, 2014, substantially all of the Company’s cash and cash equivalents are uninsured.
	REVENUES
	For neither the three months ended of March 31, 2015 or 2014, the Company did not realize any revenue.
	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 shares outstanding and potentially dilutive common shares outstanding.
	Potentially dilutive common shares from employee equity plans consist of the following:
		March 31,		March 31,
		2015		2014
	Stock options		1,390,832		1,625,476
	Restricted Stock Units		515,472		-
	Warrants*		-		-
	Total		1,906,304		1,625,476
	* As at December 31, 2014, all warrants have expired and none are outstanding or exercisable, Warrants were exercisable for less than one share of common stock as at March 31, 2014 and were therefore anti-dilutive, as a result of the 1-for-10 reverse stock split that was effected on November 8, 2011, the 1-for-500 reverse stock split that was effected on March 5, 2012, the 1-for-500 reverse stock, split that was effected on June 3, 2013 and the 1-for-12 reverse stock split effected August 22, 2013.
	RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
	On February 18, 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis” that amends the current consolidation guidance. The amendments affect both the variable interest entity and voting interest entity consolidation models. The new guidance is effective for the Company beginning January 1, 2016, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s condensed 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.

2_BALANCE_SHEET_COMPONENTS

2. BALANCE SHEET COMPONENTS	3 Months Ended
	Mar. 31, 2015
Text Block [Abstract]
BALANCE SHEET COMPONENTS	ACCRUED EXPENSES
	The components of accrued expenses were as follows:
		March 31,		December 31,
		2015		2014
		(In thousands)
	Legal	$	552		553
	Compensation		129		201
	Rent		46		46
	Other accrued expenses		115		-
	Total	$	842	$	800

3_COMMITMENTS

3. COMMITMENTS	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	Operating Leases
	The Company entered into a lease for its former corporate headquarters in New York, NY for a period of five years beginning October 1, 2013. Under the terms of the lease, the Company owes an initial annual rent of $139,000, payable in monthly installments of $12,000 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, CA through November 30, 2017. From the commencement date, the Company owes an initial annual rent of $165,000 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 Company signed a sublease agreement dated January 7, 2015, pursuant to which the Company will sublease office space in Palo Alto, California through September 30, 2018 as its new Company headquarters. From the commencement date, the Company owes an initial annual rent of approximately $425,000, payable in equal monthly installments, unless earlier terminated by either party in accordance with the lease. The annual rental rate is subject to an approximate 3.0% increase at each anniversary of the commencement date during the term. The consent of the master landlord was received on February 25, 2015. The lease payments are reflected in the table below. The minimum lease payments related to the lease is approximately $1.5 million, and required an initial security deposit of $231,000 which is included in other assets.
	The following table sets forth the Company’s aggregate future minimum payments under its operating lease commitments as of March 31, 2015 (in thousands):
	For the year ending December 31,
	2015 (remaining)	$	513
	2016		754
	2017		753
	2018		459
		$	2,479
	The Company accounts for its leases under the straight-line method of accounting. Deferred rent payable was $46,000 as of March 31, 2015 and December 31, 2014 and is included as part of accrued expenses on the condensed consolidated balance sheet.
	Rent expense for the three months ended March 31, 2015 and March 31, 2014 was $112,000 and $75,000, respectively.
	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. As of March 31, 2015, the Company had a $4 million outstanding capital commitment to the venture capital fund, which can be called any time until 2018.

4_LICENSE_SETTLEMENT_AND_RELEA

4. LICENSE, SETTLEMENT AND RELEASE AGREEMENT	3 Months Ended
	Mar. 31, 2015
License Settlement And Release Agreement
LICENSE, SETTLEMENT AND RELEASE AGREEMENT	On September 24, 2014, Finjan entered into a license agreement with a third-party against whom Finjan had filed a patent infringement lawsuit.  Pursuant to this agreement, the licensee and Finjan also agreed to dismiss the infringement litigation, and each party gave the other a general release for all claims that it might have against the other, known or unknown, based on the actions of either party on or before the date of the settlement.
	Under the license agreement, the licensee will pay Finjan a license fee of $8 million payable in four installments.  The first installment of $3 million was paid upon execution of the agreement and filing of the dismissal with prejudice, the second installment of $2 million was received on January 16, 2015, the third installment of $2 million is payable on or before January 15, 2016, and the fourth and final installment of $1 million is payable on or before January 13, 2017.  The Company recognized approximately $5.0 million of the $8.0 million license as revenues as of December 31, 2014, as such amount was determined to be fixed and determinable, in accordance with the Company’s revenue recognition policy as described in Note 1. The remaining balance of $3 million under the terms of the agreement will be recognized when payment is due. Each party also agreed to bear its own legal fees and costs. The Company recognized $0.8 million of legal fees related to this settlement as cost of revenue.  At December 31, 2014, $2 million of the Company’s outstanding accounts receivable relates to the second installment, which was received on January 16th, 2015 and recognized as revenue during the year ended December 31, 2014.

5_STOCKHOLDERS_EQUITY

5. STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity
STOCKHOLDERS' EQUITY	Stock-based Compensation
	On July 10, 2014, the Company’s stockholders approved the Finjan Holdings, Inc. 2014 Incentive Compensation Plan (the "2014 Plan") at the annual meeting of stockholders, pursuant to which 2,196,836 shares of common stock are authorized for issuance.  Since shareholder approval of the 2014 Plan, the Company has issued a total of 574,504 Restricted Stock Units ("RSUs") of which 515,472 remained outstanding as of March 31, 2015.  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.
	Upon shareholder approval of the 2014 Plan, the 2013 Global Share Option Plan and Israeli Sub-Plan (the “2013 Plan”) was terminated, other than respect to options outstanding under such plan. 1,390,832 options remain outstanding as of March 31, 2015 under the 2013 Plan. During the three months ended March 31, 2015 there were 25,000 options forfeited.
	Stock-based compensation to employees, non-employees, consultants and directors are recognized as expense in the statement of operations. The compensation cost for all stock-based awards is measured at the grant date, based on the fair value of the award (determined using Black-Scholes option pricing model for stock options and intrinsic value on the date of grant for non-vested restricted stock), and is recognized as an expense over the employee’s requisite service period (generally the vesting of the equity awards). Determining the fair value of stock-based awards at the grant date requires significant estimates and judgments, including estimating the market price of our common stock, future employee stock option exercise behavior and requisite service periods.
	During the three months ended March 31, 2015, the Company charged $0.4 million of stock option amortization to its statement of operations. The aggregate intrinsic value of RSU and stock options outstanding and exercisable as of March 15, 2015 was $0.3 million.
	The Company estimates the fair values of stock options using the Black-Scholes option-pricing model. For the three ended March 31, 2015 and 2014, the assumptions used in the Black-Scholes option-pricing model were as follows:
		Three Months Ended March 31, 2015						Three Months Ended March 31, 2014
		Employee			Non-Employee			Employee			Non-Employee
		Grants			Grants			Grants			Grants
	Weighted-average grant date fair value	$	0.78		$	0.84		$	1.44		$	1.44
	Weighted-average Black-Scholes option pricing model
	assumptions
	Volatility		50.7	%		57.8	%		50.6	%		55.6	%
	Expected term (in years)		5			10			6			10
	Risk-free rate		1	%		2.9	%		1	%		2.9	%
	Expected dividend yield		0	%		0	%		0	%		0	%
	Forfeited rate		0	%		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 or was not publicly traded for an extended duration at the time of the grant due to the lack of historical information, the Company determines the expected term of its stock option awards by using the simplified method, which 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. Due the lack of historical information, the Company determines the expected term of its stock option awards by using the simplified method, which assumes each vesting tranche of the award has a term equal to average of the contractual term and the vesting period.

6_RELATED_PARTY_TRANSACTIONS

6. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
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 Chairman is a partner. The Company incurred approximately $139,000 in legal fees to the firm during the three months ended March 31, 2015, and approximately $36,000 during the three months ended March 31, 2014.  As of March 31, 2015 and December 31, 2014, the Company has balances due to this firm amounting to $13,000 and $12,000, respectively.
	The Company obtains social media and investor related services from a firm in which the Company’s Chief Financial Officer holds a 50% interest.  The Company incurred approximately $16,000 in fees to the firm during the three months ended March 31, 2015, and none during the three months ended March 31, 2014.  As of March 31, 2015, and December 31, 2014, the Company has balances due to this firm amounting to $5,000 and 0, respectively.

7_CONTINGENCIES

7. CONTINGENCIES	3 Months Ended
	Mar. 31, 2015
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, as amended on August 16, 2013.  Finjan is asserting that FireEye, Inc. is infringing U.S. Patent Nos. 6,154,844, 6,804,780, 7,058,822, 7,647,633, 7,975,305, 8,079,086, and 8,225,408.
	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.  Finjan is 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 Proofpoint, Inc. and Armorize Technologies, Inc. in the United States District Court for the Northern District of California on December 16, 2013.  Finjan is 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, as amended on April 8, 2014.  Finjan is 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, as amended on September 11, 2014.  Finjan is asserting that Symantec Corp. is infringing U.S. Patent Nos. 6,154,844, 7,613,926, 7,756,996, 7,757,289, 7,930,299, 8,015,182, 8,141,154, and 8,677,494.
	Finjan filed a patent infringement lawsuit against Palo Alto Networks, Inc. in the United States District Court for the Northern District of California on November 4, 2014.  Finjan is asserting that Palo Alto Networks, Inc. is infringing U.S. Patent Nos. 6,804,780, 6,965,968, 7,058,822, 7,418,731, 7,613,918, 7,613,926, 7,647,633, 8,141,154, 8,225,408, and 8,677,494.
	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 litigation, inbound cases filed against the Company, or counterclaims that could result in any material adverse impact to the condensed consolidated financial statements as of March 31, 2015.

8_SUBSEQUENT_EVENTS

8. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	On April 7, 2015, Finjan entered into a Confidential Asset Purchase and Patent License Agreement, effective as of April 7, 2015, with F-Secure Corporation, a company incorporated in Finland (“F-Secure”). The agreement provides for F-Secure to pay Finjan the sum of $1,000,000 in cash, of which $700,000 was received on April 22, 2015 and $300,000 is payable on or before March 31, 2016.  The agreement also provides for the assignment by F-Secure to Finjan of two patents, U.S. Patent Nos. 8,474,048 and 7,769,991, including among other things, all progeny applications or patents, foreign counterparts and reissues (the “F-Secure Patents”). In exchange for the foregoing and other valuable consideration, Finjan agreed to, subject to certain restrictions, limits and other conditions, grant F-Secure a worldwide, fully-paid up, nonexclusive field of use license to Finjan patents owned as of the effective date or acquired by Finjan or its affiliates within two years from the effective date, as well as to the F-Secure Patents.

1_THE_COMPANY_AND_SUMMARY_OF_S1

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION	These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (“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, 2014 which were included in the annual report on Form 10-K filed by the Company on March 11, 2015.
	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 months ended March 31, 2015 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.
REVENUE RECOGNITION	Revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product or service has occurred, all obligations have been performed pursuant to the terms of the agreement, the sales price is fixed or determinable, and collectability is reasonably assured.
	Revenue from the Company’s web and network security technology business results from grants of licenses to its patented cybersecurity technology and settlements reached from legal enforcement of the Company’s patent rights. The Company does not grant, at this time, technology or software end-user licenses. Revenue is recognized when the arrangement with the licensee has been signed and the license has been delivered and made effective, provided license fees are fixed or determinable and collectability is reasonably assured. The fair value of licenses achieved is recognized as revenue.
	The amount of consideration received upon any settlement or judgment is allocated to each element of the settlement based on the fair value of each element. Elements related to licensing agreements and royalty revenues, is recognized as revenue in the consolidated statement of operations. Elements that are not related to license agreements and royalty revenue in nature will be reflected as a separate line item within the Other Income section of the consolidated statements of operations. Elements provided in either settlement agreements or judgments include, the value of a license, legal release, and interest. When settlements or judgments are achieved at discounts to the fair value of a license, the Company allocates the full settlement or judgment, excluding specifically named elements as mentioned above, to the value of the license agreement or royalty revenue under the residual method relative to full license fair value prior to the discount. Legal release as part of a settlement agreement is recognized as a separate line item in the consolidated statements of operations when value can be allocated to the legal release. When the Company reaches a settlement with a defendant, no value is allocated to the legal release since the existence of a settlement removes legal standing to bring a claim of infringement, and without a legal claim, the legal release has no economic value. The element that is applicable to interest income will be recorded as a separate line item in Other Income.
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 insurance limits. The Company has not experienced any losses in such accounts. As of March 31, 2015 and December 31, 2014, substantially all of the Company’s cash and cash equivalents are uninsured.
REVENUES	For neither the three months ended of March 31, 2015 or 2014, the Company did not realize any revenue.
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 shares outstanding and potentially dilutive common shares outstanding.
	Potentially dilutive common shares from employee equity plans consist of the following:
		March 31,		March 31,
		2015		2014
	Stock options		1,390,832		1,625,476
	Restricted Stock Units		515,472		-
	Warrants*		-		-
	Total		1,906,304		1,625,476
	* As at December 31, 2014, all warrants have expired and none are outstanding or exercisable, Warrants were exercisable for less than one share of common stock as at March 31, 2014 and were therefore anti-dilutive, as a result of the 1-for-10 reverse stock split that was effected on November 8, 2011, the 1-for-500 reverse stock split that was effected on March 5, 2012, the 1-for-500 reverse stock, split that was effected on June 3, 2013 and the 1-for-12 reverse stock split effected August 22, 2013.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED	On February 18, 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis” that amends the current consolidation guidance. The amendments affect both the variable interest entity and voting interest entity consolidation models. The new guidance is effective for the Company beginning January 1, 2016, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s condensed 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.

1_THE_COMPANY_AND_SUMMARY_OF_S2

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Summary of Components Excluded from Computation of Diluted Net Loss Per Share		March 31,		March 31,
		2015		2014
	Stock options		1,390,832		1,625,476
	Restricted Stock Units		515,472		-
	Warrants*		-		-
	Total		1,906,304		1,625,476
	* As at December 31, 2014, all warrants have expired and none are outstanding or exercisable, Warrants were exercisable for less than one share of common stock as at March 31, 2014 and were therefore anti-dilutive, as a result of the 1-for-10 reverse stock split that was effected on November 8, 2011, the 1-for-500 reverse stock split that was effected on March 5, 2012, the 1-for-500 reverse stock, split that was effected on June 3, 2013 and the 1-for-12 reverse stock split effected August 22, 2013.

2_BALANCE_SHEET_COMPONENTS_Tab

2. BALANCE SHEET COMPONENTS (Tables)	3 Months Ended
	Mar. 31, 2015
Text Block [Abstract]
Components of Accrued Expenses		March 31,		December 31,
		2015		2014
		(In thousands)
	Legal	$	552		553
	Compensation		129		201
	Rent		46		46
	Other accrued expenses		115		-
	Total	$	842	$	800

3_COMMITMENTS_Tables

3. COMMITMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Operating Leases	For the year ending December 31,
	2015 (remaining)	$	513
	2016		754
	2017		753
	2018		459
		$	2,479

5_STOCKHOLDERS_EQUITY_Tables

5. STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average Black-Scholes Option Pricing Model Assumptions		Three Months Ended March 31, 2015						Three Months Ended March 31, 2014
		Employee			Non-Employee			Employee			Non-Employee
		Grants			Grants			Grants			Grants
	Weighted-average grant date fair value	$	0.78		$	0.84		$	1.44		$	1.44
	Weighted-average Black-Scholes option pricing model
	assumptions
	Volatility		50.7	%		57.8	%		50.6	%		55.6	%
	Expected term (in years)		5			10			6			10
	Risk-free rate		1	%		2.9	%		1	%		2.9	%
	Expected dividend yield		0	%		0	%		0	%		0	%
	Forfeited rate		0	%		0	%		0	%		0	%

1_THE_COMPANY_AND_SUMMARY_OF_S3

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Antidilutive securities	1,906,304	1,625,476
Stock Option [Member]
Antidilutive securities	1,390,832	1,625,476
Restricted Stock Units
Antidilutive securities	515,472	0

2_BALANCE_SHEET_COMPONENTS_Det

2. BALANCE SHEET COMPONENTS (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Payables and Accruals [Abstract]
Legal	$552	$553
Compensation	129	201
Rent	46	46
Other accrued expenses	115	0
Total accrued expenses	$842	$800

3_COMMITMENTS_Details

3. COMMITMENTS (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Leases [Abstract]
2015 (remaining)	$513
2016	754
2017	753
2018	459
Total	$2,479

3_COMMITMENTS_Details_Narrativ

3. COMMITMENTS (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Deferred rent payable	$46
Rent expense	112	75
Venture Capital Funds [Member]
Capital commitment outstanding	$4,000

5_STOCKHOLDERS_EQUITY_Details

5. STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Employee Grants [Member]
Weighted-average grant date fair value	$0.78	$1.44
Weighted-average Black-Scholes option pricing model assumptions:
Volatility	50.70%	50.60%
Expected term (in years)	5 years	6 years
Risk-free rate	1.00%	1.00%
Expected dividend yield	0.00%	0.00%
Forfeiture rate	0.00%	0.00%
Non Employee Grants [Member]
Weighted-average grant date fair value	$0.84	$1.44
Weighted-average Black-Scholes option pricing model assumptions:
Volatility	57.80%	55.60%
Expected term (in years)	10 years	10 years
Risk-free rate	2.90%	2.90%
Expected dividend yield	0.00%	0.00%
Forfeiture rate	0.00%	0.00%

5_STOCKHOLDERS_EQUITY_Details_

5. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Stock option amortization	$400
Aggregate intrinsic value	$300
2013 Plan [Member]
Options outstanding	1,350,832

6_RELATED_PARTY_TRANSACTIONS_D

6. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Legal fees	$139	$36
Amounts due to the firm	13		12
Chief Financial Officer [Member]
Legal fees	16	0
Amounts due to the firm	$5		$0