Neulion (NEUL) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Entity Registrant Name	NEULION, INC.
Entity Central Index Key	1,387,713
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		244,419,077

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current
Cash and cash equivalents	$ 59,064	$ 25,898
Accounts receivable, net of allowance for doubtful accounts of $1,806 and $221	15,980	8,056
Other receivables	684	603
Inventory	229	304
Deferred tax assets, net	384	0
Prepaid expenses and deposits	3,606	1,315
Due from related parties	292	111
Total current assets	80,239	36,287
Property, plant and equipment, net	6,866	3,830
Intangible assets, net	25,000	406
Goodwill	11,496	11,327
Other assets	1,549	88
Total assets	125,150	51,938
Current
Accounts payable	22,931	14,362
Accrued liabilities	9,267	5,248
Due to related parties	166	0
Deferred revenue	11,596	9,602
Total current liabilities	43,960	29,212
Long-term deferred revenue	1,053	1,019
Deferred rent liabilities	1,741	0
Deferred tax liabilities	3,821	1,451
Other long-term liabilities	146	202
Total liabilities	50,721	31,884
Redeemable preferred stock, net
Total redeemable preferred stock	14,977	14,955
Stockholders' equity
Common stock (par value: $0.01; shares authorized: 300,000,000; shares issued and outstanding: 244,419,077 and 178,210,006 respectively)	2,444	1,782
Additional paid-in capital	148,173	87,631
Promissory notes receivable	(209)	(209)
Accumulated deficit	(90,956)	(84,105)
Total stockholders' equity	59,452	5,099
Total liabilities and stockholders' equity	125,150	51,938
Class 3 Preference Shares [Member]
Redeemable preferred stock, net
Total redeemable preferred stock	10,000	10,000
Class 4 Preference Shares [Member]
Redeemable preferred stock, net
Total redeemable preferred stock	$ 4,977	$ 4,955

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts receivable, allowance for doubtful accounts	$ 1,806	$ 221
Redeemable preferred stock, net, par value per share	$ 0.01	$ 0.01
Redeemable preferred stock, net, shares authorized	50,000,000	50,000,000
Redeemable preferred stock, net, shares issued	28,089,083	28,089,083
Redeemable preferred stock, net, shares outstanding	28,089,083	28,089,083
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	244,419,077	178,210,006
Common stock, shares outstanding	244,419,077	178,210,006
Class 3 Preference Shares [Member]
Redeemable preferred stock, net, par value per share	$ 0.01	$ 0.01
Redeemable preferred stock, net, shares authorized	17,176,818	17,176,818
Redeemable preferred stock, net, shares issued	17,176,818	17,176,818
Redeemable preferred stock, net, shares outstanding	17,176,818	17,176,818
Class 4 Preference Shares [Member]
Redeemable preferred stock, net, par value per share	$ 0.01	$ 0.01
Redeemable preferred stock, net, shares authorized	10,912,265	10,912,265
Redeemable preferred stock, net, shares issued	10,912,265	10,912,265
Redeemable preferred stock, net, shares outstanding	10,912,265	10,912,265

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Revenue	$ 21,901	$ 12,177	$ 66,259	$ 39,056
Costs and expenses
Cost of revenue, exclusive of depreciation and amortization shown separately below	3,863	2,813	12,404	9,860
Selling, general and administrative, including stock-based compensation	11,150	6,330	32,454	19,108
Research and development	6,588	2,104	19,384	6,265
Depreciation and amortization	2,046	680	5,634	2,075
Costs and expenses	23,647	11,927	69,876	37,308
Operating income (loss)	(1,746)	250	(3,617)	1,748
Other income (expense)
Loss on foreign exchange	(218)	(31)	(558)	(65)
Investment income, net	85	2	269	427
Interest on convertible note, including amortization of debt discount	0	0	(123)	0
Gain on conversion of convertible note and revaluation of related derivative, net	0	0	507	0
Other income (expense)	(133)	(29)	95	362
Net and comprehensive income (loss) before income taxes	(1,879)	221	(3,522)	2,110
Income taxes	(1,241)	28	(3,329)	(164)
Net and comprehensive income (loss)	$ (3,120)	$ 249	$ (6,851)	$ 1,946
Net income (loss) per weighted average number of shares of common stock outstanding - basic	$ (0.01)	$ 0	$ (0.03)	$ 0.01
Weighted average number of shares of common stock outstanding - basic	244,324,763	175,803,863	224,213,231	173,498,515
Net income (loss) per weighted average number of shares of common stock outstanding - diluted	$ (0.01)	$ 0	$ (0.03)	$ 0.01
Weighted average number of shares of common stock outstanding - diluted	244,324,763	217,162,823	224,213,231	212,654,453

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common stock [Member]	Additional paid-in capital [Member]	Promissory Notes [Member]	Accumulated deficit [Member]
Balance at Dec. 31, 2014	$ 5,099	$ 1,782	$ 87,631	$ (209)	$ (84,105)
Balance, shares at Dec. 31, 2014	178,210,006	178,210,006
Acquisition of DivX Corporation	$ 58,521	$ 617	57,904
Acquisition of DivX Corporation, shares		61,731,172
Accretion of issuance costs on Class 4 Preference Shares	(23)		(23)
Exercise of broker units	19	$ 1	18
Exercise of broker units, shares		88,064
Exercise of broker warrants	0	$ 2	(2)
Exercise of broker warrants, shares		228,749
Exercise of subscriber warrants	0	$ 17	(17)
Exercise of subscriber warrants, shares		1,694,768
Exercise of stock options	843	$ 24	819
Exercise of stock options, shares		2,375,730
Stock-based compensation:
Stock options	1,242		1,242
Restricted stock	447		447
Directors compensation	155	$ 1	$ 154
Directors compensation, shares		90,588
Net loss	(6,851)				$ (6,851)
Balance at Sep. 30, 2015	$ 59,452	$ 2,444	$ 148,173	$ (209)	$ (90,956)
Balance, shares at Sep. 30, 2015	244,419,077	244,419,077

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ (6,851)	$ 1,946
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	5,634	2,075
Stock-based compensation	1,843	1,089
Amortization of debt discount	123	0
Gain on revaluation of convertible note derivative	(507)	0
Deferred income taxes	215	164
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	15,838	449
Income tax receivable	4,318	0
Other receivables	166	(7)
Inventory	75	185
Prepaid expenses, deposits and other assets	(2,076)	(106)
Due from related parties	(181)	(204)
Accounts payable	7,734	1,626
Accrued liabilities	(1,540)	(787)
Deferred revenue	(972)	572
Deferred rent liability	(171)	0
Long-term liabilities	(56)	(52)
Due to related parties	166	8
Cash provided by operating activities	23,758	6,958
INVESTING ACTIVITIES
Cash acquired from acquisition of DivX Corporation	9,718	0
Purchase of property, plant and equipment	(1,172)	(1,654)
Cash provided by (used in) investing activities	8,546	(1,654)
FINANCING ACTIVITIES
Proceeds from exercise of stock options	843	680
Proceeds from exercise of broker units	19	132
Cash provided by financing activities	862	812
Net increase in cash and cash equivalents, during the period	33,166	6,116
Cash and cash equivalents, beginning of period	25,898	19,644
Cash and cash equivalents, end of period	59,064	$ 25,760
Supplemental disclosure of cash flow information:
Cash paid for income taxes	2,783
Supplemental disclosure of non-cash activities:
Par value of shares of common stock issued upon exercise of cashless warrants	19	$ 52
Accretion of issuance costs on Class 4 Preference Shares	23	$ 23
Issuance of shares of common stock upon acquisition of DivX Corporation	58,521
Issuance of convertible note upon acquisition of DivX Corporation	$ 27,000

Nature of Operations

Nature of Operations	9 Months Ended
	Sep. 30, 2015
Nature of Operations [Abstract]
Nature of Operations	1. Nature of Operations NeuLion, Inc. (“NeuLion” or the “Company”) is a leading provider of digital video solutions and services with the mission to deliver and enable the highest quality on-demand and live digital content experiences anywhere and on any device. The Company is headquartered in Plainview, New York and was domesticated under Delaware law on November 30, 2010. The Company's common stock is listed on the Toronto Stock Exchange (“TSX”) under the symbol NLN.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies The Company's accounting policies are consistent with those presented in its annual consolidated financial statements as at December 31, 2014. These interim unaudited condensed consolidated financial statements do not include all footnote disclosures required by U.S. generally accepted accounting principles (“GAAP”) for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements, including the notes thereto, for the year ended December 31, 2014, as they appear in the Company's Annual Report on Form 10-K. These financial statements are prepared in conformity with U.S. GAAP, which requires management to make certain estimates that affect the reported amounts in the interim unaudited condensed consolidated financial statements, and the disclosures made in the accompanying notes. Despite the Company's intention to establish accurate estimates and use reasonable assumptions, actual results may differ from these estimates. All significant intercompany transactions and accounts have been eliminated on consolidation. In the opinion of management, these interim unaudited condensed consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly the Company's financial position as at September 30, 2015 and December 31, 2014 and the results of operations and cash flows for the three and nine months ended September 30, 2015 and 2014. The results of operations for the three and nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results to be expected for the entire year. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the interim unaudited condensed consolidated financial statements. As of September 30, 2015, the Company's significant accounting policies and estimates, which are detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, since that date have not changed except as follows. Revenue recognition The Company recognizes revenue for transactions to sell products and to license technology when four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable and collectability is reasonably assured. Revenue from multiple-element arrangements is allocated among separate elements based on their estimated sales prices, provided the elements have value on a stand-alone basis, there is objective and reliable evidence of sales price, the arrangement does not include a general right of return relative to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in the Company's control. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. The Company's licensing revenue is primarily derived from royalties paid to the Company by licensees of the Company's intellectual property rights. Revenue in such transactions is recognized during the period in which such customers report to the Company the number of royalty-eligible units that they have shipped. Revenue from guaranteed minimum-royalty licenses is recognizable upon delivery of the technology license when no further obligations of the Company exist. In certain guaranteed minimum-royalty licenses, the Company enters into extended payment programs with customers. Revenue related to such extended payment programs is recognized at the earlier of when cash is received or when periodic payments become due to the Company. If the Company receives non-refundable advance payments from licensees that are allocable to a future contract period or could be creditable against other obligations of the licensee to it, the recognition of the related revenue is deferred until such future period or creditable obligation lapses. Royalties and other license fees are recorded net of reserves for estimated losses, and are recognized when all revenue recognition criteria have been met. The Company makes judgments as to whether collectability can be reasonably assured based on the licensee's recent payment history unless significant and persuasive evidence exists that the customer is creditworthy. In the absence of a favorable collection history or significant and persuasive evidence that the customer is creditworthy, the Company recognizes revenue upon receipt of cash, provided that all other revenue recognition criteria have been met. Deferred rent Rent expense on non-cancellable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the respective leases. The difference between rent expense and rent paid is accounted for as deferred rent. Landlord construction allowances and other such lease incentives are recorded as deferred rent and are amortized on a straight-line basis as reductions to rent expense. Recently i ssued a ccounting s tandards In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on revenue recognition. This guidance provided that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also required more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance was effective for interim and annual reporting periods beginning after December 15, 2016 and was required to be applied retrospectively or modified retrospectively. Early adoption was not permitted. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is now permitted, but not before the original effective date of the standard. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We are currently evaluating the impact of this guidance on our operations and therefore have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations or cash flows, if any. In April 2015, the FASB issued an Accounting Standards Update which requires that debt issuance costs be presented in the balance sheet as a direct reduction to the carrying amount of the associated debt liability, consistent with debt discounts. Currently debt issuance costs are recognized as an asset. The ASU is effective for the Company in the first quarter of 2016 and is required to be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its results of operations, financial position, and cash flows. In September 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which requires that an acquirer Reclassification of Comparative Amounts Certain items previously reported have been reclassified to conform to the current period's reporting format.

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2015
Business Combination [Abstract]
Business Combination	3 . Business Combination On January 30, 2015, the Company completed the acquisition of 100 DivX Corporation (“DivX”) for total 59,018 The Company also assumed an earn-out liability based on the achievement of certain revenue milestones over the three 35,890,216 31,905 27,000 two At the Company's Annual Meeting of Stockholders on June 4, 2015, the Company's stockholders approved the conversion of the Note. Upon such approval, the Note principal of $ 27,000 25,840,956 The acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification 805 — Business Combinations The process for estimating the fair values of identifiable intangible assets and certain tangible assets requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. Definitive allocations are being performed and finalized based on certain valuations and other studies performed by the Company. The Company incurred approximately $ 800 0 400 The total purchase price for DivX has been preliminarily allocated as follows: Cash $ 9,718 Accounts receivable 7,094 Contracts receivable 16,668 Income tax receivable 4,317 Other receivables 247 Prepaid expenses 1,342 Deferred tax asset 384 Other assets 334 Property and equipment, net 3,592 Intangible assets 28,500 Goodwill 169 Accounts payable (721 ) Accrued liabilities (5,560 ) Deferred revenue (3,000 ) Deferred tax liability (2,154 ) Deferred rent liability (1,912 ) Net assets acquired $ 59,018 The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on preliminary valuations: Amount Useful Life (years) Developed technology $ 14,400 5 Customer relationships 9,400 5 Trademarks 4,700 7 $ 28,500 The preliminary fair value of the intangible assets has been estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted-average cost of capital. The estimated amortization expense for 2015 and for each of the four succeeding years and thereafter is as follows: 2015 $ 4,978 2016 5,431 2017 5,431 2018 5,431 2019 5,431 Thereafter 1,798 $ 28,500 Contracts Receivable The purchase price allocation includes estimated contracts receivable of $ 16,700 no DivX's revenue is primarily derived from royalties paid by licensees to acquire intellectual property rights. Revenue in such transactions is recognized during the period in which such customers reported the number of royalty-eligible units that they have shipped. As the first royalty reports received from customers post-acquisition were for shipments made prior to the acquisition, these amounts did not meet the requirements for the Company to recognize the revenue, however the cash payments associated with these reports will be received by the Company. In certain multi-year site licenses and guaranteed minimum-royalty licenses, DivX, under previous ownership, entered into extended payment programs. Revenue related to such extended payment programs was recognized at the earlier of when cash was received or when periodic payments became due. In each case, the payment terms extend over the term of the multi-year license, and the remaining contractual payments that existed at the acquisition date will be received by the Company. As the Company assumed no additional obligations under such contracts, these payments are considered a fixed payment stream, rather than revenue. This fixed payment stream is accounted for as an element of accounts receivable and included as part of the acquisition accounting. The fair value of the remaining payments due under the applicable contracts is estimated by calculating the discounted cash flows associated with such future billings. Although, the Company has not recognized revenue as it collects the corresponding site license payments under these pre-acquisition contracts, the Company has recognized interest income at the discount rate of the contract receivable. Interest income recognized during the three and nine months ended September 30, 2015 was $ 87 257 Pro Forma Financial Information The unaudited financial information in the table below summarizes the combined results of operations of the Company and DivX, on a pro forma basis, as though the Company had acquired DivX on January 1, 2014 and 2015. The pro forma information for all periods presented also includes the effects of business combination accounting resulting from the acquisition, including amortization charges from acquired intangibles assets. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total revenue $ 21,901 $ 18,460 $ 68,498 $ 58,453 Net loss $ (3,120 ) $ (6,266) $ (9,075 ) $ (18,323) Loss per share - basic and diluted $ (0.01 ) $ (0.03) $ (0.04 ) $ (0.09) The results for the three months ended September 30, 2015 are actual results.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2015
Inventory [Abstract]
Inventory	4. Inventory Inventory consists of finished goods.

Economic Dependence and Concent

Economic Dependence and Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2015
Economic Dependence and Concentration of Credit Risk [Abstract]
Economic Dependence and Concentration of Credit Risk	5. Economic Dependence and Concentration of Credit Risk For the three months ended September 30, 2015, LG Electronics accounted for 12 23 12 11 (“NFL”) 26 15 11 18 As of September 30, 2015, Samsung Companies and Toshiba Companies accounted for 47 30 17 National Basketball Association (“NBA”) 53 28 13 12 As of September 30, 2015, the NBA and the NFL accounted for 75 43 32 (“UFC”) 59 49 10 respectively. At September 30, 2015, approximately 39 BBB+ Baa1 26 AA- AA1

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	6 . Related Party Transactions The Company has entered into certain transactions and agreements in the normal course of operations with related parties. Significant related party transactions are as follows: KyLin TV, Inc. (“KyLin TV”) KyLin TV is an Internet Protocol television (“IPTV”) company that is controlled by the Chairman of the Board of Directors of the Company. On September 1, 2008, the Company entered into an agreement with KyLin TV to build and deliver the setup and back office operations for KyLin TV's IPTV service. Effective April 1, 2012, the Company amended its agreement with KyLin TV, such that, in addition to the services previously provided, KyLin TV was appointed the exclusive distributor of the Company's business to consumer (“B2C”) IPTV interests. As exclusive distributor, KyLin TV obtains, advertises and markets all of the Company's B2C content, in accordance with the terms of the amendment. Accordingly, KyLin TV records the gross revenues from the Company's B2C content as well as the associated license fees, whereas the Company records revenues in accordance with the revised fee schedule in the amendment. The Company also provides and charges KyLin TV for administrative and general corporate support. The amounts charged for these services provided by the Company for the three and nine months ended September 30, 2015 were $ 33 94 (three and nine months ended September 30, 2014 were $ 32 93 New York Islanders Hockey Club, L.P. (“New York Islanders”) The Company provides IT-related professional services and administrative services to the New York Islanders, a professional hockey club that is majority owned by the Chairman of the Board of Directors of the Company. Renaissance Property Associates, LLC (“Renaissance”) The Company provides IT-related professional services to Renaissance, a real estate management company owned by the Chairman of the Board of Directors of the Company. In September 2009, the Company signed a sublease agreement with Renaissance for office space in Plainview, New York. The sublease agreement expired in December 2013, and the Company is now leasing this office on a month-to-month basis. Rent expense paid by the Company to Renaissance for the three and nine months ended September 30, 2015 108 323 respectively (three and nine months ended September 30, 2014 were $ 108 323 Smile Train, Inc. (“Smile Train”) The Company provides IT-related professional services to Smile Train, a public charity whose founder and significant benefactor is the Chairman of the Board of Directors of the Company. For the periods indicated, the Company recognized revenue from related parties as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 KyLin TV $ 121 $ 209 $ 459 $ 643 New York Islanders 71 89 221 239 Renaissance 30 30 90 90 Smile Train 24 24 72 72 $ 246 $ 352 $ 842 $ 1,044 The amounts due from (to) related parties are as follows: As of September 30, December 31, KyLin TV $ 292 $ 107 New York Islanders (20 ) 3 Renaissance (146 ) 1 $ 126 $ 111

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Abstract]
Intangible Assets	7. Intangible Assets As of September 30, 2015 Accumulated Net book Cost amortization value Customer relationships $ 20,903 $ 12,635 $ 8,268 Completed technology 16,000 3,520 12,480 Trademarks 4,995 743 4,252 $ 41,898 $ 16,898 $ 25,000 As of December 31, 2014 Accumulated Net book Cost amortization value Customer relationships $ 11,503 $ 11,337 $ 166 Completed technology 1,600 1,360 240 Trademarks 295 295 0 $ 13,398 $ 12,992 $ 406

Convertible Note

Convertible Note	9 Months Ended
	Sep. 30, 2015
Convertible Note [Abstract]
Convertible Note	8. Convertible Note On January 30, 2015, the Company completed the acquisition of 100 59,018 35,890,216 31,905 27,000 two Upon receiving shareholder approval on June 4, 2015, the Note automatically converted into 25,840,956 0 610 Accounting for the Note If certain criteria are met, companies must bifurcate certain embedded features from their host instruments and account for them as free-standing derivative instruments. The Company evaluated the noteholder's right to receive a cash payment for any positive intrinsic value in the Company's stock at the maturity date of the Note and determined that the embedded cash settlement option should be bifurcated. 713 and 816 507 for the nine months ended September 30, 2015, 90 0 266 for the three and nine months ended September 30, 2015, respectively. The Company recorded $ 0 123 of interest expense on the amortization of the debt discount for the three and nine months ended September 30, 2015, respectively. no

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2015
Earnings (Loss) Per Share [Abstract]
Earnings (Loss) Per Share	9. Earnings (Loss) Per Share Basic earnings (loss) (loss) computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding adjusted for the dilutive effect of preferred stock, stock options and warrants. For the periods indicated, the following table presents the calculation of basic and diluted EPS: Three months ended September 30 , Nine months ended 2015 2014 2015 2014 Net income (loss) $ (3,120) $ 249 $ (6,851) $ 1,946 Weighted average shares of common stock outstanding used in calculating basic EPS 244,324,763 175,803,863 224,213,231 173,498,515 Effect of dilutive preferred stock, stock options and warrants 0 41,358,960 0 39,155,938 Weighted average shares of common stock outstanding 244,324,763 217,162,823 224,213,231 212,654,453 Basic Earnings (Loss) per Share $ (0.01) $ 0.00 $ (0.03) $ 0.01 Diluted Earnings (Loss) per Share $ (0.01) $ 0.00 $ (0.03) $ 0.01 (i) for the three and nine months ended September 30, 2014 and (ii) were not included in the computation of diluted income per share for the three and nine months ended September 30, 2015 because their effect would have been anti-dilutive. September 30, 2015 2014 Class 3 Preference Shares 17,176,818 17,176,818 Class 4 Preference Shares 10,912,265 10,912,265 Stock options – Amended and Restated 2012 Omnibus Securities and Incentive Plan 21,817,795 17,596,995 Restricted stock – Amended and Restated 2012 Omnibus Securities and Incentive Plan 4,500,000 0 Stock options – Fourth Amended and Restated Stock Option Plan 4,895,300 8,222,217 Warrants 1,924,741 8,795,506

Segmented Information

Segmented Information	9 Months Ended
	Sep. 30, 2015
Segmented Information [Abstract]
Segmented Information	10 . Segmented Information The Company's assets and operations are located primarily in the United States. The Company operates in one Total revenue from customers, based on the location of the customers, was as follows: Three months ended September 30 , Nine months ended September 30, 2015 2014 2015 2014 North America $ 14,312 65 % $ 11,156 92 % $ 44,517 67 % $ 36,036 92 % Asia 5,280 24 % 103 1 % 14,380 22 % 375 1 % Europe 1,444 7 % 663 5 % 4,617 7 % 2,003 5 % Australia 865 4 % 255 2 % 2,745 4 % 642 2 % $ 21,901 100 % $ 12,177 100 % $ 66,259 100 % $ 39,056 100 % As of September 30, 2015 and December 31, 2014, property and equipment at locations outside the U.S. was not material.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies The Company has multiple leases for facilities and equipment. As of September 30, 2015, the Company had no outstanding capital leases. Future minimum annual payments over the next five years and thereafter (exclusive of taxes, insurance and maintenance costs) under these commitments as of September 30, 2015 are as follows: Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating lease obligations $ 5,264 $ 2,014 $ 3,144 $ 106 $ 0 Purchase obligations 5,978 4,482 1,496 0 0 $ 11,242 $ 6,496 $ 4,640 $ 106 $ 0 The Company periodically enters into contracts with customers in which we guarantee our customer a minimum amount of revenue share for services we provide under the contract. The minimum guarantees shown above primarily relate to (i) these minimum fixed revenue guarantees that we have committed to our customers over the next 4 12 18 The Company has subleased a portion of its Toronto office, which is expected to generate a total recovery 1,302 During the ordinary course of business activities, the Company may be contingently liable for litigation and a party to claims. Management believes that adequate provisions have been made in the accounts where required. Although the extent of potential costs and losses, if any, is uncertain, management believes that the ultimate resolution of such contingencies will not have an adverse effect on the consolidated financial position or results of operations of the Company.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Income Taxes	12. Income Taxes The (provision) benefit for income taxes during the 2015 and 2014 periods is primarily comprised of current and deferred tax expense in profitable cost-plus foreign jurisdictions, changes in deferred tax liabilities that cannot be offset by deferred tax assets and foreign withholding taxes. Due to the full valuation allowance on our U.S. net deferred tax assets, we do not incur significant U.S. income tax expense or benefit. As of September 30, 2015, we continued to provide a full valuation allowance against essentially all of our U.S. deferred tax assets as we do not believe that it is more likely than not that we will realize a benefit from those assets. We have not recorded a valuation allowance against certain foreign net deferred tax assets as we believe that it is more likely than not that we will realize a benefit from those assets. The Company does not believe there are any uncertain tax provisions under Accounting Standards Codification 740.

Investment Income and Interest

Investment Income and Interest Expense, net	9 Months Ended
	Sep. 30, 2015
Investment Income and Interest Expense, net [Abstract]
Investment Income and Interest Expense, net	13. Investment Income and Interest Expense, net Investment income for the nine months ended September 30, 2014 includes proceeds 421 pon the sale of an over-the-counter stock that previously had a nominal recorded value. Interest income for the three and nine months ended September 30, 2015 includes 0 266 respectively , of reversal of interest expense that was previously accrued (see note 8) on the Note and 0 123 respectively, of interest on the amortization of the debt discount.

Redeemable Preferred Stock

Redeemable Preferred Stock	9 Months Ended
	Sep. 30, 2015
Redeemable Preferred Stock [Abstract]
Redeemable Preferred Stock	14. Redeemable Preferred Stock 1 4,131 five

Basis of Presentation and Sig21

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Basis of Presentation and Significant Accounting Policies [Abstract]
Revenue recognition	Revenue recognition The Company recognizes revenue for transactions to sell products and to license technology when four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable and collectability is reasonably assured. Revenue from multiple-element arrangements is allocated among separate elements based on their estimated sales prices, provided the elements have value on a stand-alone basis, there is objective and reliable evidence of sales price, the arrangement does not include a general right of return relative to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in the Company's control. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. The Company's licensing revenue is primarily derived from royalties paid to the Company by licensees of the Company's intellectual property rights. Revenue in such transactions is recognized during the period in which such customers report to the Company the number of royalty-eligible units that they have shipped. Revenue from guaranteed minimum-royalty licenses is recognizable upon delivery of the technology license when no further obligations of the Company exist. In certain guaranteed minimum-royalty licenses, the Company enters into extended payment programs with customers. Revenue related to such extended payment programs is recognized at the earlier of when cash is received or when periodic payments become due to the Company. If the Company receives non-refundable advance payments from licensees that are allocable to a future contract period or could be creditable against other obligations of the licensee to it, the recognition of the related revenue is deferred until such future period or creditable obligation lapses. Royalties and other license fees are recorded net of reserves for estimated losses, and are recognized when all revenue recognition criteria have been met. The Company makes judgments as to whether collectability can be reasonably assured based on the licensee's recent payment history unless significant and persuasive evidence exists that the customer is creditworthy. In the absence of a favorable collection history or significant and persuasive evidence that the customer is creditworthy, the Company recognizes revenue upon receipt of cash, provided that all other revenue recognition criteria have been met.
Deferred rent	Deferred rent Rent expense on non-cancellable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the respective leases. The difference between rent expense and rent paid is accounted for as deferred rent. Landlord construction allowances and other such lease incentives are recorded as deferred rent and are amortized on a straight-line basis as reductions to rent expense.
Recently issued accounting standards	Recently i ssued a ccounting s tandards In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on revenue recognition. This guidance provided that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also required more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance was effective for interim and annual reporting periods beginning after December 15, 2016 and was required to be applied retrospectively or modified retrospectively. Early adoption was not permitted. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is now permitted, but not before the original effective date of the standard. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We are currently evaluating the impact of this guidance on our operations and therefore have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations or cash flows, if any. In April 2015, the FASB issued an Accounting Standards Update which requires that debt issuance costs be presented in the balance sheet as a direct reduction to the carrying amount of the associated debt liability, consistent with debt discounts. Currently debt issuance costs are recognized as an asset. The ASU is effective for the Company in the first quarter of 2016 and is required to be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its results of operations, financial position, and cash flows. In September 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which requires that an acquirer
Reclassification of Comparative Amounts	Reclassification of Comparative Amounts Certain items previously reported have been reclassified to conform to the current period's reporting format.

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
	Sep. 30, 2015
Business Combination [Abstract]
Schedule of Total Purchase Price Allocation	Cash $ 9,718 Accounts receivable 7,094 Contracts receivable 16,668 Income tax receivable 4,317 Other receivables 247 Prepaid expenses 1,342 Deferred tax asset 384 Other assets 334 Property and equipment, net 3,592 Intangible assets 28,500 Goodwill 169 Accounts payable (721 ) Accrued liabilities (5,560 ) Deferred revenue (3,000 ) Deferred tax liability (2,154 ) Deferred rent liability (1,912 ) Net assets acquired $ 59,018
Schedule of Identifiable Intangible Assets Acquired and Their Respective Useful Lives	Amount Useful Life (years) Developed technology $ 14,400 5 Customer relationships 9,400 5 Trademarks 4,700 7 $ 28,500
Schedule of Estimated Amortization Expense	2015 $ 4,978 2016 5,431 2017 5,431 2018 5,431 2019 5,431 Thereafter 1,798 $ 28,500
Schedule of Pro Forma Information	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total revenue $ 21,901 $ 18,460 $ 68,498 $ 58,453 Net loss $ (3,120 ) $ (6,266) $ (9,075 ) $ (18,323) Loss per share - basic and diluted $ (0.01 ) $ (0.03) $ (0.04 ) $ (0.09)

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Schedule of Revenue from Related Parties	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 KyLin TV $ 121 $ 209 $ 459 $ 643 New York Islanders 71 89 221 239 Renaissance 30 30 90 90 Smile Train 24 24 72 72 $ 246 $ 352 $ 842 $ 1,044
Schedule of Amounts Due from (to) Related Parties	As of September 30, December 31, KyLin TV $ 292 $ 107 New York Islanders (20 ) 3 Renaissance (146 ) 1 $ 126 $ 111

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Abstract]
Schedule of Intangible Assets	As of September 30, 2015 Accumulated Net book Cost amortization value Customer relationships $ 20,903 $ 12,635 $ 8,268 Completed technology 16,000 3,520 12,480 Trademarks 4,995 743 4,252 $ 41,898 $ 16,898 $ 25,000 As of December 31, 2014 Accumulated Net book Cost amortization value Customer relationships $ 11,503 $ 11,337 $ 166 Completed technology 1,600 1,360 240 Trademarks 295 295 0 $ 13,398 $ 12,992 $ 406

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings (Loss) Per Share [Abstract]
Schedule of Basic and Diluted EPS	Three months ended September 30 , Nine months ended 2015 2014 2015 2014 Net income (loss) $ (3,120) $ 249 $ (6,851) $ 1,946 Weighted average shares of common stock outstanding used in calculating basic EPS 244,324,763 175,803,863 224,213,231 173,498,515 Effect of dilutive preferred stock, stock options and warrants 0 41,358,960 0 39,155,938 Weighted average shares of common stock outstanding 244,324,763 217,162,823 224,213,231 212,654,453 Basic Earnings (Loss) per Share $ (0.01) $ 0.00 $ (0.03) $ 0.01 Diluted Earnings (Loss) per Share $ (0.01) $ 0.00 $ (0.03) $ 0.01
Schedule of Anti-dilutive Securities	September 30, 2015 2014 Class 3 Preference Shares 17,176,818 17,176,818 Class 4 Preference Shares 10,912,265 10,912,265 Stock options – Amended and Restated 2012 Omnibus Securities and Incentive Plan 21,817,795 17,596,995 Restricted stock – Amended and Restated 2012 Omnibus Securities and Incentive Plan 4,500,000 0 Stock options – Fourth Amended and Restated Stock Option Plan 4,895,300 8,222,217 Warrants 1,924,741 8,795,506

Segmented Information (Tables)

Segmented Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segmented Information [Abstract]
Schedule of total revenue from customers based on location	Three months ended September 30 , Nine months ended September 30, 2015 2014 2015 2014 North America $ 14,312 65 % $ 11,156 92 % $ 44,517 67 % $ 36,036 92 % Asia 5,280 24 % 103 1 % 14,380 22 % 375 1 % Europe 1,444 7 % 663 5 % 4,617 7 % 2,003 5 % Australia 865 4 % 255 2 % 2,745 4 % 642 2 % $ 21,901 100 % $ 12,177 100 % $ 66,259 100 % $ 39,056 100 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Schedule of Future Annual Payments	Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating lease obligations $ 5,264 $ 2,014 $ 3,144 $ 106 $ 0 Purchase obligations 5,978 4,482 1,496 0 0 $ 11,242 $ 6,496 $ 4,640 $ 106 $ 0

Business Combination (Narrative

Business Combination (Narratives) (Details) - DivX [Member] - USD ($) $ in Thousands	Jun. 04, 2015	Jan. 30, 2015	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Business Combination [Line Items]
Ownership percentage		100.00%
Total consideration		$ 59,018
Earn-out consideration achievement of milestone period		3 years
Earn-out liability		$ 0
Common stock issued for acquisition		35,890,216
Value of common stock issued for acquisition		$ 31,905
Convertible promissory note incurred as consideration		$ 27,000
Term of convertible promissory note		2 years
Convertible note	$ 27,000
Number of share issued upon conversion of note	25,840,956
Acquisition-related expenses			$ 0	$ 400	$ 800
Contracts receivable		$ 16,668
Additional obligations
Interest income recognized			$ 87	$ 257

Business Combination (Schedule

Business Combination (Schedule of Total Purchase Price Allocation) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jan. 30, 2015	Dec. 31, 2014
Total purchase price allocation
Goodwill	$ 11,496		$ 11,327
DivX [Member]
Total purchase price allocation
Cash		$ 9,718
Accounts receivable		7,094
Contracts receivable		16,668
Income tax receivable		4,317
Other receivables		247
Prepaid expenses		1,342
Deferred tax asset		384
Other assets		334
Property and equipment, net		3,592
Intangible assets		28,500
Goodwill		169
Accounts payable		(721)
Accrued liabilities		(5,560)
Deferred revenue		(3,000)
Deferred tax liability		(2,154)
Deferred rent liability		(1,912)
Net assets acquired		$ 59,018

Business Combination (Schedul30

Business Combination (Schedule of Identifiable Intangible Assets Acquired and Their Respective Useful Lives) (Details) - DivX [Member] $ in Thousands	Jan. 30, 2015USD ($)
Business Combination [Line Items]
Identifiable intangible assets acquired, Amount	$ 28,500
Developed technology [Member]
Business Combination [Line Items]
Identifiable intangible assets acquired, Amount	$ 14,400
Identifiable intangible assets acquired, Useful Life	5 years
Customer relationships [Member]
Business Combination [Line Items]
Identifiable intangible assets acquired, Amount	$ 9,400
Identifiable intangible assets acquired, Useful Life	5 years
Trademarks [Member]
Business Combination [Line Items]
Identifiable intangible assets acquired, Amount	$ 4,700
Identifiable intangible assets acquired, Useful Life	7 years

Business Combination (Schedul31

Business Combination (Schedule of Estimated Amortization Expense) (Details) - DivX [Member] $ in Thousands	Sep. 30, 2015USD ($)
Business Combination [Line Items]
2,015	$ 4,978
2,016	5,431
2,017	5,431
2,018	5,431
2,019	5,431
Thereafter	1,798
Total	$ 28,500

Business Combination (Schedul32

Business Combination (Schedule of Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pro forma information
Total actual revenue	$ 21,901	$ 12,177	$ 66,259	$ 39,056
Actual net loss	(3,120)	249	(6,851)	1,946
DivX [Member]
Pro forma information
Total revenue		18,460	68,498	58,453
Net loss		$ (6,266)	$ (9,075)	$ (18,323)
Earnings per share - basic and diluted		$ (0.03)	$ (0.04)	$ (0.09)
Total actual revenue	21,901
Actual net loss	$ (3,120)
Actual loss per share - basic and diluted	$ (0.01)

Economic Dependence and Conce33

Economic Dependence and Concentration of Credit Risk (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Concentration risk percent	100.00%	100.00%	100.00%	100.00%
Moody's, Aa1 Rating [Member]
Concentration Risk [Line Items]
Ratings			AA1
Standard & Poor's, BBB+ Rating [Member]
Concentration Risk [Line Items]
Ratings			BBB+
Standard & Poor's, AA- Rating [Member]
Concentration Risk [Line Items]
Ratings			AA-
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percent			47.00%		53.00%
Accounts Receivable [Member] | Samsung Companies [Member]
Concentration Risk [Line Items]
Concentration risk percent			30.00%
Accounts Receivable [Member] | Toshiba Companies [Member]
Concentration Risk [Line Items]
Concentration risk percent			17.00%
Accounts Receivable [Member] | Rogers Media [Member]
Concentration Risk [Line Items]
Concentration risk percent					28.00%
Accounts Receivable [Member] | National Hockey League [Member]
Concentration Risk [Line Items]
Concentration risk percent					13.00%
Accounts Receivable [Member] | National Basketball Association [Member]
Concentration Risk [Line Items]
Concentration risk percent					12.00%
Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percent			75.00%		59.00%
Accounts Payable [Member] | National Hockey League [Member]
Concentration Risk [Line Items]
Concentration risk percent					49.00%
Accounts Payable [Member] | National Basketball Association [Member]
Concentration Risk [Line Items]
Concentration risk percent			43.00%
Accounts Payable [Member] | Ultimate Fighting Championship [Member]
Concentration Risk [Line Items]
Concentration risk percent					10.00%
Accounts Payable [Member] | National Football League [Member]
Concentration Risk [Line Items]
Concentration risk percent			32.00%
Revenue [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percent		26.00%	23.00%
Revenue [Member] | Customer Concentration Risk [Member] | LG Electronics [Member]
Concentration Risk [Line Items]
Concentration risk percent	12.00%		12.00%
Revenue [Member] | Customer Concentration Risk [Member] | National Hockey League [Member]
Concentration Risk [Line Items]
Concentration risk percent		15.00%	11.00%	18.00%
Revenue [Member] | Customer Concentration Risk [Member] | National Football League [Member]
Concentration Risk [Line Items]
Concentration risk percent		11.00%
Cash and Cash Equivalents [Member] | Standard & Poor's, BBB+ Rating [Member] | Moody's, Baa1 Rating [Member]
Concentration Risk [Line Items]
Concentration risk percent			39.00%
Ratings			Baa1
Cash and Cash Equivalents [Member] | Standard & Poor's, AA- Rating [Member] | Moody's, Aa1 Rating [Member]
Concentration Risk [Line Items]
Concentration risk percent			26.00%

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
KyLin TV [Member]
Related Party Transaction [Line Items]
Selling, general and administrative expense from related parties	$ 33	$ 32	$ 94	$ 93
Renaissance Property Associates, LLC [Member]
Related Party Transaction [Line Items]
Selling, general and administrative expense from related parties	$ 108	$ 108	$ 323	$ 323

Related Party Transactions (Sch

Related Party Transactions (Schedule of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transaction [Line Items]
Revenue	$ 246	$ 352	$ 842	$ 1,044
KyLin TV [Member]
Related Party Transaction [Line Items]
Revenue	121	209	459	643
New York Islanders Hockey Club, LP [Member]
Related Party Transaction [Line Items]
Revenue	71	89	221	239
Renaissance Property Associates, LLC [Member]
Related Party Transaction [Line Items]
Revenue	30	30	90	90
Smile Train, Inc [Member]
Related Party Transaction [Line Items]
Revenue	$ 24	$ 24	$ 72	$ 72

Related Party Transactions (S36

Related Party Transactions (Schedule of Amounts Due from (to) Related Parties) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Amounts due from (to) related parties	$ 126	$ 111
KyLin TV [Member]
Related Party Transaction [Line Items]
Amounts due from (to) related parties	292	107
New York Islanders Hockey Club, LP [Member]
Related Party Transaction [Line Items]
Amounts due from (to) related parties	(20)	3
Renaissance Property Associates, LLC [Member]
Related Party Transaction [Line Items]
Amounts due from (to) related parties	$ (146)	$ 1

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Intangible Assets [Line Items]
Cost	$ 41,898	$ 13,398
Accumulated amortization	16,898	12,992
Net book value	25,000	406
Customer relationships [Member]
Intangible Assets [Line Items]
Cost	20,903	11,503
Accumulated amortization	12,635	11,337
Net book value	8,268	166
Completed technology [Member]
Intangible Assets [Line Items]
Cost	16,000	1,600
Accumulated amortization	3,520	1,360
Net book value	12,480	240
Trademarks [Member]
Intangible Assets [Line Items]
Cost	4,995	295
Accumulated amortization	743	295
Net book value	$ 4,252	$ 0

Convertible Note (Details)

Convertible Note (Details) - USD ($)	Jun. 04, 2015	Jan. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	May. 30, 2015
Debt Instrument [Line Items]
Gain on revaluation of convertible note derivative			$ 0	$ 0		$ 507,000	$ 0
Interest income			0			266
Interest expense on the amortization of the debt discount			0			123,000	$ 0
DivX [Member]
Debt Instrument [Line Items]
Ownership percentage		100.00%
Total consideration		$ 59,018,000
Common stock issued for acquisition		35,890,216
Value of common stock issued for acquisition		$ 31,905,000
Convertible promissory note incurred as consideration		$ 27,000,000
Term of convertible promissory note		2 years
Number of share issued upon conversion of note	25,840,956
Gains (Losses) on Extinguishment of Debt			0			610,000
Beneficial conversion feature for convertible note
Fair value of the derivative liability			$ 816,000			816,000		$ 713,000
Gain on revaluation of convertible note derivative						$ 507,000
Probability of note conversion by September 30, 2015					90.00%

Earnings (Loss) Per Share (Sche

Earnings (Loss) Per Share (Schedule of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings (Loss) Per Share [Abstract]
Net income (loss)	$ (3,120)	$ 249	$ (6,851)	$ 1,946
Weighted average shares of common stock outstanding used in calculating basic EPS	244,324,763	175,803,863	224,213,231	173,498,515
Effect of dilutive preferred stock, stock options and warrants	0	41,358,960	0	39,155,938
Weighted average shares of common stock outstanding used in calculating diluted EPS	244,324,763	217,162,823	224,213,231	212,654,453
Basic Earnings (Loss) per Share	$ (0.01)	$ 0	$ (0.03)	$ 0.01
Diluted Earnings (Loss) per Share	$ (0.01)	$ 0	$ (0.03)	$ 0.01

Earnings (Loss) Per Share (Sc40

Earnings (Loss) Per Share (Schedule of Anti-dilutive Securities) (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Class 3 Preference Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	17,176,818	17,176,818
Class 4 Preference Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	10,912,265	10,912,265
Stock options - Amended and Restated 2012 Omnibus Securities and Incentive Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	21,817,795	17,596,995
Restricted stock - Amended and Restated 2012 Omnibus Securities and Incentive Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	4,500,000	0
Stock options - Fourth Amended and Restated Stock Option Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	4,895,300	8,222,217
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	1,924,741	8,795,506

Segmented Information (Details)

Segmented Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)item	Sep. 30, 2014USD ($)
Segmented Information [Abstract]
Number of operating segments | item			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 21,901	$ 12,177	$ 66,259	$ 39,056
Revenue (as a percent)	100.00%	100.00%	100.00%	100.00%
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 14,312	$ 11,156	$ 44,517	$ 36,036
Revenue (as a percent)	65.00%	92.00%	67.00%	92.00%
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,280	$ 103	$ 14,380	$ 375
Revenue (as a percent)	24.00%	1.00%	22.00%	1.00%
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,444	$ 663	$ 4,617	$ 2,003
Revenue (as a percent)	7.00%	5.00%	7.00%	5.00%
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 865	$ 255	$ 2,745	$ 642
Revenue (as a percent)	4.00%	2.00%	4.00%	2.00%

Commitments and Contingencies42

Commitments and Contingencies (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Commitments and Contingencies [Line Items]
Outstanding capital leases	$ 0
Minimum fixed revenue guarantee period to customers	4 years
Expected amount of sublease recovery over next two year period	$ 1,302
Minimum [Member]
Commitments and Contingencies [Line Items]
Minimum fixed bandwidth fees commitment period with certain vendors	12 months
Maximum [Member]
Commitments and Contingencies [Line Items]
Minimum fixed bandwidth fees commitment period with certain vendors	18 months

Commitments and Contingencies43

Commitments and Contingencies (Schedule of Future Annual Payments) (Details) $ in Thousands	Sep. 30, 2015USD ($)
Operating lease obligations
Less than 1 year	$ 2,014
1-3 years	3,144
3-5 years	106
More than 5 years	0
Total	5,264
Purchase obligations
Less than 1 year	4,482
1-3 years	1,496
3-5 years	0
More than 5 years	0
Total	5,978
Contractual obligations
Less than 1 year	6,496
1-3 years	4,640
3-5 years	106
More than 5 years	0
Total	$ 11,242

Investment Income and Interes44

Investment Income and Interest Expense, net (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Investment Income and Interest Expense, net [Abstract]
Investment income			$ 421,000
Interest income	$ 0	$ 266
Interest expense on the amortization of the debt discount	$ 0	$ 123,000	$ 0

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details) - Class 3 and Class 4 Preference Shares [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)shares
Redeemable Preferred Stock [Line item]
Conversion of convertible preferred stock, shares	1
Conversion of convertible preferred stock, consideration | $	$ 4,131
Period for calculation of weighted average price for shares to be received	5 days