Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 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 | FY | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 282,041,667 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 118,404,349 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current | ||
Cash and cash equivalents | $ 53,413 | $ 25,898 |
Accounts receivable, net | 12,967 | 8,056 |
Other receivables | 604 | 603 |
Inventory | 199 | 304 |
Prepaid expenses and deposits | 2,928 | 1,315 |
Due from related parties | 304 | 111 |
Total current assets | 70,415 | 36,287 |
Property, plant and equipment, net | 6,585 | 3,830 |
Intangible assets, net | 23,627 | 406 |
Goodwill | 11,496 | $ 11,327 |
Deferred tax assets | 30,614 | |
Other assets | 1,413 | $ 88 |
Total assets | 144,150 | 51,938 |
Current | ||
Accounts payable | 10,006 | 14,362 |
Accrued liabilities | 10,230 | $ 5,248 |
Due to related parties | 18 | |
Deferred revenue | 11,570 | $ 9,602 |
Total current liabilities | 31,824 | 29,212 |
Long-term deferred revenue | 1,067 | $ 1,019 |
Deferred rent liabilities | 1,649 | |
Deferred tax liabilities | 1,425 | $ 1,451 |
Other long-term liabilities | 127 | 202 |
Total liabilities | $ 36,092 | 31,884 |
Redeemable preferred stock, net | ||
Total redeemable preferred stock | 14,955 | |
Stockholders' equity (deficit) | ||
Common stock (par value: $0.01; shares authorized: 300,000,000; shares issued and outstanding: 2015: 280,903,667 and 2014: 178,210,006) | $ 2,809 | 1,782 |
Additional paid-in capital | 167,705 | 87,631 |
Promissory notes receivable | (209) | (209) |
Accumulated deficit | (62,247) | (84,105) |
Total stockholders' equity | 108,058 | 5,099 |
Total liabilities and stockholders' equity | $ 144,150 | 51,938 |
Class 3 Preference Shares [Member] | ||
Redeemable preferred stock, net | ||
Total redeemable preferred stock | 10,000 | |
Class 4 Preference Shares [Member] | ||
Redeemable preferred stock, net | ||
Total redeemable preferred stock | $ 4,955 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 0 | 28,089,083 |
Redeemable Preferred stock, net, shares outstanding | 0 | 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 | 280,903,667 | 178,210,006 |
Common stock, shares outstanding | 280,903,667 | 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 | 0 | 17,176,818 |
Redeemable Preferred stock, net, shares outstanding | 0 | 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 | 0 | 10,912,265 |
Redeemable Preferred stock, net, shares outstanding | 0 | 10,912,265 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Revenue | $ 94,043 | $ 55,520 | $ 47,107 |
Costs and expenses | |||
Cost of revenue, exclusive of depreciation and amortization shown separately below | 17,775 | 13,897 | 13,279 |
Selling, general and administrative, including stock-based compensation | 45,672 | 27,073 | 24,290 |
Research and development | 24,912 | 8,381 | 7,423 |
Depreciation and amortization | 7,544 | 2,621 | 3,755 |
Costs and expenses | 95,903 | 51,972 | 48,747 |
Operating income (loss) | (1,860) | 3,548 | (1,640) |
Other income (expense) | |||
Loss on foreign exchange | (818) | (138) | (125) |
Investment income, net | 363 | $ 428 | (2) |
Interest on convertible note, including amortization of debt discount | (123) | $ (234) | |
Gain on conversion of convertible note and revaluation of related derivative, net | 507 | ||
Other income (expense) | (71) | $ 290 | $ (361) |
Net and comprehensive income (loss) before income taxes | (1,931) | 3,838 | (2,001) |
Income taxes | 27,847 | (271) | (277) |
Net and comprehensive income (loss) | $ 25,916 | $ 3,567 | $ (2,278) |
Net income (loss) per weighted average number of shares of common stock outstanding - basic | $ 0.11 | $ 0.01 | $ (0.01) |
Weighted average number of shares of common stock outstanding - basic | 233,489,798 | 174,645,803 | 166,663,448 |
Net income (loss) per weighted average number of shares of common stock outstanding - diluted | $ 0.11 | $ 0.01 | $ (0.01) |
Weighted average number of shares of common stock outstanding - diluted | 245,346,681 | 214,711,362 | 166,663,448 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Promissory Notes [Member] | Accumulated deficit [Member] |
Balance at Dec. 31, 2012 | $ (823) | $ 1,642 | $ 83,138 | $ (209) | $ (85,394) |
Balance, shares at Dec. 31, 2012 | 164,207,147 | ||||
Accretion of issuance costs on Class 4 Preference Shares | (30) | (30) | |||
Conversion of convertible note | 568 | $ 28 | 540 | ||
Conversion of convertible note, shares | 2,841,600 | ||||
Exercise of broker warrants | 3 | $ 1 | 2 | ||
Exercise of broker warrants, shares | 8,000 | ||||
Exercise of subscriber warrants | (1) | $ 10 | (11) | ||
Exercise of subscriber warrants, shares | 1,044,427 | ||||
Exercise of stock options | 354 | $ 9 | 345 | ||
Exercise of stock options, shares | 929,920 | ||||
Stock based compensation: | |||||
Stock options | 870 | 870 | |||
Issuance of unrestricted stock under 2012 Omnibus Securities and Incentive Plan | 454 | $ 10 | 444 | ||
Issuance of unrestricted stock under 2012 Omnibus Securities and Incentive Plan, shares | 1,000,000 | ||||
Directors' compensation | 143 | $ 3 | $ 140 | ||
Directors' compensation, shares | 295,244 | ||||
Net income (loss) | (2,278) | $ (2,278) | |||
Balance at Dec. 31, 2013 | (740) | $ 1,703 | $ 85,438 | $ (209) | $ (87,672) |
Balance, shares at Dec. 31, 2013 | 170,326,338 | ||||
Accretion of issuance costs on Class 4 Preference Shares | (30) | (30) | |||
Exercise of broker warrants | $ 131 | $ 6 | 125 | ||
Exercise of broker warrants, shares | 627,063 | ||||
Exercise of subscriber warrants | $ 52 | (52) | |||
Exercise of subscriber warrants, shares | 5,241,544 | ||||
Exercise of stock options | $ 733 | $ 19 | 714 | ||
Exercise of stock options, shares | 1,858,835 | ||||
Stock based compensation: | |||||
Stock options | 1,259 | 1,259 | |||
Directors' compensation | 179 | $ 2 | 177 | ||
Directors' compensation, shares | 156,226 | ||||
Net income (loss) | 3,567 | $ 3,567 | |||
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 | (46) | (46) | |||
Conversion of Preference Shares | $ 15,000 | $ 281 | 14,719 | ||
Conversion of Preference Shares, shares | 28,089,083 | ||||
Dividend on Preference Shares | $ 82 | 3,976 | $ (4,058) | ||
Dividend on Preference Shares, shares | 8,176,210 | ||||
Exercise of broker units | $ 19 | $ 1 | 18 | ||
Exercise of broker units, shares | 88,064 | ||||
Exercise of broker warrants | $ 2 | (2) | |||
Exercise of broker warrants, shares | 228,749 | ||||
Exercise of subscriber warrants | $ 17 | (17) | |||
Exercise of subscriber warrants, shares | 1,694,768 | ||||
Exercise of stock options | $ 847 | $ 24 | 823 | ||
Exercise of stock options, shares | 2,395,040 | ||||
Stock based compensation: | |||||
Stock options | 1,519 | 1,519 | |||
Restricted stock | 985 | 985 | |||
Directors' compensation | 198 | $ 3 | 195 | ||
Directors' compensation, shares | 290,575 | ||||
Net income (loss) | 25,916 | $ 25,916 | |||
Balance at Dec. 31, 2015 | $ 108,058 | $ 2,809 | $ 167,705 | $ (209) | $ (62,247) |
Balance, shares at Dec. 31, 2015 | 280,903,667 | 280,903,667 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 25,916 | $ 3,567 | $ (2,278) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 7,544 | 2,621 | 3,755 |
Stock-based compensation | 2,702 | $ 1,438 | 1,417 |
Amortization of debt discount | 123 | $ 234 | |
Gain on revaluation of convertible note derivative | (507) | ||
Income tax (benefit) expense | (32,402) | $ 271 | $ 269 |
Changes in operating assets and liabilities, net of acquisitions | |||
Accounts receivable | 18,851 | $ (2,767) | $ (1,095) |
Income tax receivable | 4,318 | ||
Other receivables | 246 | $ (238) | $ (16) |
Inventory | 105 | 177 | (64) |
Prepaid expenses, deposits and other assets | (1,262) | (185) | 129 |
Due from related parties | (193) | 133 | 656 |
Accounts payable | (5,191) | 1,360 | 3,189 |
Accrued liabilities | (587) | (91) | 635 |
Deferred revenue | (984) | $ 1,038 | $ 2,733 |
Deferred rent liability | (263) | ||
Long-term liabilities | (75) | $ (68) | $ (87) |
Due to related parties | 18 | (17) | 4 |
Cash provided by operating activities | 18,359 | $ 7,239 | $ 9,481 |
INVESTING ACTIVITIES | |||
Cash acquired from acquisition of DivX Corporation | 9,718 | ||
Purchase of property, plant and equipment | (1,428) | $ (1,850) | $ (1,301) |
Cash provided by (used in) investing activities | 8,290 | (1,850) | (1,301) |
FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 847 | 733 | 354 |
Proceeds from exercise of broker units | 19 | 132 | 2 |
Cash provided by financing activities | 866 | 865 | 356 |
Net increase in cash and cash equivalents, during the year | 27,515 | 6,254 | 8,536 |
Cash and cash equivalents, beginning of year | 25,898 | 19,644 | 11,108 |
Cash and cash equivalents, end of year | 53,413 | $ 25,898 | $ 19,644 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 3,961 | ||
Supplemental disclosure of non-cash activities: | |||
Par value of shares of common stock issued upon exercise of cashless warrants | 19 | $ 52 | $ 10 |
Accretion of issuance costs on Class 4 Preference Shares | 46 | $ 30 | $ 30 |
Issuance of shares of common stock upon acquisition of DivX Corporation | 58,521 | ||
Issuance of shares of common stock upon conversion of Preference Shares | 15,000 | ||
Issuance of shares of common stock upon declaration of dividend on Preference Shares | $ 4,058 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 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 NeuLion Digital Platform is a proprietary, cloud-based, fully-integrated, turnkey solution that enables the distribution and monetization of digital video content. Through the Company's comprehensive solution suite, including the NeuLion Digital Platform, the DivX video viewing solution and the MainConcept advanced media processing products, NeuLion serves enterprise customers throughout the digital video ecosystem. 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 | 12 Months Ended |
Dec. 31, 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 accompanying consolidated financial statements reflect the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). As at December 31, 2015, the Company had an 11.8% equity interest in KyLin TV (2014 – 11.8%). This investment is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated. 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 the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates made by management include the determination of the useful lives of long-lived assets, impairment of intangible assets and goodwill, assumptions used in stock-based compensation and the allowance for doubtful accounts. On an ongoing basis, management reviews its estimates to ensure they appropriately reflect changes in the Company's business and new information as it becomes available. If historical experience and other factors used by management to make these estimates do not reasonably reflect future actual results, the Company's consolidated financial position and results of operations could be materially impacted. Revenue recognition The Company recognizes revenue 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 earns revenue as follows: (a) Setup fees are charged to customers for design, setup and implementation services. Setup fees are deferred at the beginning of the service period and recognized over the term of the arrangement, which is generally three to five years. (b) Annual and/or monthly fees are charged to customers for ongoing hosting, support and maintenance. Annual and/or monthly fees are deferred at the beginning of the service period and recognized evenly over the service period. (c) Subscription revenue consists of recurring revenue based on the number of subscribers. The subscriber revenue is typically generated on a monthly, quarterly or annual basis and can be a fixed fee per user, a variable fee per user or a variable fee based on a percentage of the subscription price. The Company defers the appropriate portion of cash received for the services that have not yet been rendered and recognizes the revenue over the term of the subscription, which is generally between 30 days and one year. Pay-per-view revenues are deferred and recognized in the period when the content is viewed. Subscription revenues are recorded on either a gross or net basis depending on the transaction arrangement with the customer. Where subscription revenues are recorded on a gross basis, the total amount of the subscription is deferred and recognized over the subscription term and the share of revenue owing to our customer is deferred and recognized as a cost of revenue over the term of the subscription. Where subscription revenues are recorded on a net basis, only the Company's share of revenue from the subscription is deferred and recognized over the term of the subscription. Under U.S. GAAP guidance related to reporting revenue gross as a principal versus net as an agent, the indicators used to determine whether an entity is a principal or an agent to a transaction are subject to judgment. When our assessment of the indicators leads us to conclude that we are the principal in the subscription transaction, revenue is recorded on a gross basis, the total amount of the subscription is deferred and recognized over the subscription term. When our assessment of the indicators leads us to conclude that we are the agent in the subscription transaction, only the Company's share of revenue from the subscription is deferred and recognized over the term of the subscription. (d) Usage fees are charged to customers for bandwidth and storage. Usage fees are billed on a monthly or quarterly basis and are recognized as the service is being provided. (e) 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. The Company actively polices and enforces its intellectual property, and pursues third parties who have under-reported the amount of royalties owed under a license agreement or who utilize its intellectual property without a license. As a result of these activities, from time to time, the Company may recognize royalty revenues that relate to infringements or under-reporting that occurred in prior periods. These royalty recoveries may cause revenues to be higher than expected during a particular reporting period and may not occur in subsequent periods. Differences between amounts initially recognized and amounts subsequently audited or reported as an adjustment to those amounts due from licensees, will be recognized in the period such adjustment is determined or contracted, as appropriate. Licensing revenue is recognized gross of withholding taxes that are remitted by the Company's licensees directly to their local tax authorities. For the years ended December 31, 2015, 2014 and 2013 withholding taxes were $3,754, $0 and $0 respectively. (f) eCommerce revenues are earned through providing customers with ticketing and retail merchandising web solutions. eCommerce revenues are recorded on a net basis when the service has been provided. The Company records as revenue the portion of the fees to which it is entitled as opposed to the amount billed for tickets or retail merchandise sold. (g) Advertising revenues are earned through the insertion of advertising impressions on websites and in streaming video at a cost per thousand impressions. Advertising revenue is recognized based on the number of impressions displayed (“served”) during the period. Deferred revenue for advertising represents the timing difference between collection of advertising revenue and when the advertisements are served, which is typically between 30 and 90 days. Advertising revenues are recorded on a gross basis, whereby the total amount billed to the advertiser is recorded as revenue and the share of revenue to our customer is recorded as a cost of revenue. (h) Support revenues are earned for providing customer support to our customers' end users. Support fees are recognized evenly over the service period. (i) Equipment revenue consists of the sale and rental of set-top boxes (“STBs”) to content partners and/or end users to enable the end user to receive content over the Internet and display the signal on a standard television. Shipping charges are included in total equipment revenue. Revenue is recognized generally upon shipment to the customer. The customer does not have any right of return on STBs. Revenue is recognized when persuasive evidence of an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. If any of these criteria are not met, revenue is deferred until such time as all of the criteria are met. Cash and cash equivalents Cash and cash equivalents consist of cash and short-term investments, such as money market funds, that have original maturities of less than three months. Accounts receivable Accounts receivable are carried at original invoice amount. The Company maintains a provision for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness; past transaction history with the customer; current economic industry trends; and changes in customer payment terms. If the financial conditions of the Company's customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. As of December 31, 2015 and 2014, the allowance for doubtful accounts was $688 and $221, respectively. Inventory Inventory consists of set-top boxes, which are finished goods. Inventories are recorded at the lower of cost and net realizable value. Cost is accounted for on a first-in, first-out basis. The Company evaluates its ending inventories for estimated excess quantities and obsolescence. This evaluation includes analyses of sales levels and projections of future demand within specific time horizons. Inventories in excess of future demand are reserved. In addition, the Company assesses the impact of changing technology and market conditions on its inventory-on-hand and writes off inventories that are considered obsolete. Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are expensed currently, while renewals and betterments that materially extend the life of an asset are capitalized. The cost of assets sold, retired or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are as follows: Computer hardware 5 years Computer software 3 years Furniture and fixtures 7 years Vehicles 5 years Leasehold improvements Shorter of useful life and lease term The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. If these future undiscounted cash flows are less than the carrying value of the asset, then the carrying amount of the asset is written down to its fair value, based on the related estimated discounted future cash flows. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property, plant and equipment are used and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment was recorded for the years ended December 31, 2015, 2014 and 2013. Intangible assets Intangible assets are recorded at cost less amortization. Cost of intangible assets acquired through business combinations represents their fair market value at the date of acquisition. Amortization is calculated using the straight-line method over the estimated useful lives of the intangible assets, which are as follows: Customer relationships 5-7 years Developed technology 5 years Trademarks 7 years The Company reviews the carrying value of its definite lived intangible assets for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. If these future undiscounted cash flows are less than the carrying value of the asset, then the carrying amount of the asset is written down to its fair value, based on the related estimated discounted future cash flows. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the intangible assets are used and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment was recorded for the years ended December 31, 2015, 2014 and 2013. Goodwill Goodwill represents the excess, at the date of acquisition, of the cost of an acquired business over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized but is subject to an annual impairment test at the reporting unit level and between annual tests if changes in circumstances indicate a potential impairment. The Company performs an annual goodwill impairment test as of October 1 of each calendar year. Goodwill impairment is assessed based on a comparison of the fair value of each reporting unit to the underlying carrying value of the reporting unit's net assets, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to determine the amount of the impairment loss. The second step of the impairment test involves comparing the implied fair value of the reporting unit's goodwill with its carrying amount to measure the amount of impairment loss, if any. The Company's impairment test is based on its single operating segment and reporting unit structure. For the years ended December 31, 2015, 2014 and 2013, there was no impairment loss. Investment in affiliate Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee's board of directors and voting rights. Under the equity method of accounting, an investee's accounts are not reflected within the Company's consolidated balance sheets and statements of operations and comprehensive loss; however, the Company's share of the losses of the investee company is reflected under the caption “Equity in loss of affiliate” in the consolidated statements of operations and comprehensive loss. Due to KyLin TV's accumulated losses, the Company's investment in KyLin TV was reduced to zero as at December 31, 2008. No further charges will be recorded because the Company has no obligation to fund the losses of KyLin TV. If KyLin TV becomes profitable in the future, the Company will resume applying the equity method only after its share of that net income equals the Company's share of net losses not recognized during the period in which the equity method was suspended. Income taxes Income taxes are accounted for under the provisions of ASC Topic 740, “Income Taxes Recognition” (“ASC 740”). ASC 740 requires that income tax accounts be computed using the liability method. Deferred taxes are determined based upon the estimated future tax effects of differences between the financial reporting and tax reporting bases of assets and liabilities given the provisions of currently enacted tax laws. ASC 740 requires an entity to recognize the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is recognized at the largest amount of the benefit that has a greater-than-fifty-percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance for classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires that a liability created for unrecognized tax benefits be presented as a separate liability and not combined with deferred tax liabilities or assets. The Company operates in a number of countries worldwide. Its income tax liability is therefore a consolidation of its tax liabilities in various locations. Its tax rate is affected by the profitability of its operations in various locations, the tax rates and taxation systems of the countries in which the Company operates, its tax policies and the impact of certain tax planning strategies which have been implemented. To determine its worldwide tax liability, the Company makes estimates of possible tax liabilities. Tax filings, positions and strategies are subject to review under local or international tax audit and the outcomes of such reviews are uncertain. In addition, these audits generally take place years after the period in which the tax provision in question was determined and it may take a substantial amount of time before the final outcome of any audit is known. Future tax audits could result in income tax liabilities that differ materially from the amounts recorded in our financial statements. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During the fourth quarter of 2015, the Company concluded that it was more likely than not that it would be able to realize the benefit of its federal and some state-related deferred tax assets in the future. The Company based this conclusion on historical and projected operating performance, as well as its expectation that operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. As a result, the Company reduced the valuation allowance on a portion of its net deferred tax assets at December 31, 2015. The Company will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required. Foreign currency transactions The functional currency of the Company is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies are re-measured into U.S. dollars at exchange rates in effect at the balance sheet dates. These transactional foreign exchange gains or losses are included in the consolidated statements of operations and comprehensive loss. Financial instruments The Company's financial instruments consist of cash and cash equivalents, accounts receivable, other receivables, due from/to related parties, accounts payable and accrued liabilities, which are primarily denominated in U.S. dollars. The carrying amounts of such instruments approximate their fair values principally due to the short-term nature of these items. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest rate, currency or credit risk arising from these financial instruments. With respect to accounts receivable, the Company is exposed to credit risk arising from the potential for counterparties to default on their contractual obligations to the Company. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations on its customers, but generally does not require collateral to support accounts receivable. The Company establishes an allowance for doubtful accounts that corresponds with the specific credit risk of its customers, historical trends and economic circumstances. Research and Development Costs incurred for research and development are expensed as incurred and are included in the consolidated statements of operations and comprehensive loss. Advertising Advertising costs are expensed as incurred and totaled $1,303, $430 Stock-based compensation and other stock-based payments The Company accounts for all stock options and warrants using a fair value-based method. The fair value of each stock option and warrant granted to employees is estimated on the date of the grant using the Black-Scholes-Merton option pricing model and the related stock-based compensation expense is recognized over the expected life of the option. The fair value of the warrants granted to non-employees is measured and expensed as the warrants vest. Restricted stock awards give the holder the right to one share of common stock for each vested share of restricted stock. Stock-based compensation expense is recorded based on the market value of the common stock on the grant date and recognized over the vesting period of these awards. Deferred rent Rent expense on non-cancellable leases containing known future scheduled rent increases is recorded on a straight-line basis over the terms 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 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 to be 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 the Company 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. The Company is currently evaluating the impact of this guidance on its operations and therefore have not yet determined the impact the adoption of this guidance will have on its financial position, results of operations or cash flows. 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 recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for periods beginning after December 15, 2015, including interim periods within those fiscal years. The new guidance must be applied prospectively to adjustments to provisional amounts that occur after the effective date of the ASU, with early adoption permitted. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, “Income Taxes” (ASU 2015-17), which requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax- paying component of an entity be offset and presented as a single amount is not affected by the amendments. For public business entities, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If an entity applies the guidance prospectively, the entity should disclose in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that prior periods were not retrospectively adjusted. If an entity applies the guidance retrospectively, the entity should disclose in the first interim and first annual period of change the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. The Company has decided to adopt this guidance on a prospective basis effective October 1, 2015. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02, Leases, which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 with early adoption permitted. Under Accounting Standards Update 2016-02, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee's obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee's right to use or control the use of a specified asset for the lease term. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2015 | |
Business Combination [Abstract] | |
Business Combination | 3. Business Combination On January 30, 2015, the Company completed the acquisition of 100% of the outstanding securities of DivX Corporation (“DivX”) for total consideration of $59,018. The Company also assumed an earn-out liability based on the achievement of certain revenue milestones over the three-year period following March 31, 2014. On January 30, 2015, management valued the earn-out liability at zero due to the historical performance and forecast of DivX. On closing, the Company issued 35,890,216 shares of common stock of the Company valued at $31,905 on the issuance date and a $27,000 two-year convertible promissory note (the “Note”). 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 automatically converted into 25,840,956 shares of common stock. The acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification 805 — Business Combinations . Accordingly, the results of operations of DivX have been included in the accompanying consolidated financial statements since the date of the acquisition. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition and are based on assumptions that the Company's management believes are reasonable given the information currently available. 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. The Company incurred approximately $360, $806 and $0, of acquisition-related expenses during the years ended December 31, 2015, 2014 and 2013, respectively that are included in selling, general and administrative expenses, in the consolidated statements of operations and comprehensive income. The total purchase price for DivX has been 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 valuations: Useful Life Amount (years) Developed technology $ 14,400 5 Customer relationships 9,400 5 Trademarks 4,700 7 $ 28,500 The 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 each of the five succeeding years is as follows: 2016 $ 5,431 2017 5,431 2018 5,431 2019 5,431 Thereafter 1,798 $ 23,522 Contracts Receivable The purchase price allocation includes estimated contracts receivable of $16,668, which are attributable to an adjustment to record the fair value of assumed contractual payments due to DivX for which no additional obligation exists in order to receive such payments. These contractual payments are for fixed multi-year site licenses and guaranteed minimum-royalty licenses. 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 year ended December 31, 2015 was $343. 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, 2015 and 2014. 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. Year ended December 31, 2015 2014 Total revenue $ 96,282 $ 81,751 Net income (loss) $ 23,691 $ (21,878 ) Income (loss) per share – basic and diluted $ 0.10 $ (0.10 ) |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment The details of property, plant and equipment and the related accumulated depreciation are set forth below: As of December 31, 2015 Accumulated Net book Cost depreciation value Computer hardware $ 15,036 $ 11,317 $ 3,719 Computer software 4,721 4,513 208 Vehicles 61 36 25 Furniture and fixtures 839 430 409 Leasehold improvements 2,827 603 2,224 $ 23,484 $ 16,899 $ 6,585 As of December 31, 2014 Accumulated Net book Cost depreciation value Computer hardware $ 13,528 $ 9,885 $ 3,643 Computer software 4,450 4,428 22 Vehicles 58 58 0 Furniture and fixtures 384 270 114 Leasehold improvements 171 120 51 $ 18,591 $ 14,761 $ 3,830 Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $2,265 , |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets The net carrying amount of goodwill is set forth below: Balance – December 31, 2013 and 2014 $ 11,327 Acquisition of DivX 169 Balance – December 31, 2015 $ 11,496 The details of intangible assets and the related accumulated amortization are set forth below: As of December 31, 2015 Accumulated Net book Cost amortization value Customer relationships $ 20,903 $ 13,121 $ 7,782 Developed technology 16,000 4,240 11,760 Trademarks 4,995 910 4,085 $ 41,898 $ 18,271 $ 23,627 As of December 31, 2014 Accumulated Net book Cost amortization value Customer relationships $ 11,503 $ 11,337 $ 166 Developed technology 1,600 1,360 240 Trademarks 295 295 0 $ 13,398 $ 12,992 $ 406 Amortization expense for the years ended December 31, 2015, 2014 and 2013 was $5,279 , Based on the amount of intangible assets subject to amortization, the Company's estimated amortization expense over the next five years and thereafter is as follows: 2016 $ 5,492 2017 5,477 2018 5,431 2019 5,431 2020 1,068 Thereafter 728 $ 23,627 |
Economic Dependence and Concent
Economic Dependence and Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Economic Dependence and Concentration of Credit Risk [Abstract] | |
Economic Dependence and Concentration of Credit Risk | 6. Economic Dependence and Concentration of Credit Risk For the year ended December 31, 2015, the National Hockey League (“NHL”) and LG Electronics accounted for 23% of revenues: 12% and 11%, respectively. For the years ended December 31, 2014 and 2013, the NHL accounted for 18% and 20% of revenues, respectively. No other customers accounted for more than 10% of revenues in 2015, 2014 and 2013. As at December 31, 2015, Samsung Companies and Toshiba Companies accounted for 33% of accounts receivable: 19% and 14%, respectively. As at December 31, 2014, Rogers Media, the NHL and the National Basketball Association (“NBA”) accounted for 53% of accounts receivable: 28%, 13% and 12%, respectively. As at December 31, 2015, the Ultimate Fighting Championship (“UFC”) and the NBA accounted for 51% of accounts payable: 37% and 14%, respectively. As at December 31, 2014, the NHL and the UFC accounted for 59% of accounts payable: 49% and 10%, respectively. As at December 31, 2015, approximately 39% of the Company's cash and cash equivalents were held in accounts with U.S. banks that received a AA- rating from Standard and Poor's and an AA1 rating from Moody's and 26% of the Company's cash and cash equivalents were held in accounts with a U.S. bank that received a BBB+ rating from Standard and Poor's and an Baa1 rating from Moody's. At December 31, 2014, approximately 83% of the Company's cash and cash equivalents were held in accounts with a U.S. bank that received a BBB+ rating from Standard and Poor's and an A3 rating from Moody's. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. 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: KyLinTV KyLin TV is an IPTV company that is controlled by the Chairman of the Board of Directors of the Company. On June 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. For each of the periods presented, the amounts charged for these services provided by the Company for the years ended December 31, 2015, 2014 and 2013 were $118, $123 and $254, respectively, and were recorded as a recovery in selling, general and administrative expense. Additionally, the Company purchased set-top boxes from KyLin TV. For each of the periods presented, the amounts paid for this equipment for the years ended December 31, 2015, 2014 and 2013 were $0, $46 and $170, respectively. 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 June 2009, the Company signed a sublease agreement with Renaissance for office space in Plainview, New York. The sublease agreement expires in December 2016. Rent expense paid by the Company to Renaissance of $430, 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. The Company recognized revenue from related parties as follows: Year ended December 31, 2015 2014 2013 New York Islanders $ 292 $ 311 $ 311 Renaissance 120 120 120 Smile Train 96 90 96 KyLinTV 553 847 1,706 $ 1,061 $ 1,368 $ 2,233 The amounts due from (to) related parties are as follows: As of December 31, 2015 2014 New York Islanders $ (18 ) $ 3 Renaissance - 1 KyLin TV 304 107 $ 286 $ 111 Investment in affiliate – KyLin TV The Company records its investment in KyLin TV using the equity method. From January 1, 2008 through February 26, 2010, the Company's equity interest in KyLin TV was 17.1%. On February 26, 2010, a group of private investors invested $10.0 million in KyLin TV, which reduced the Company's equity interest to 11.8%. Of the total $10.0 million investment, $1.0 million was invested by AvantaLion LLC, a company controlled by the Chairman of the Board of Directors of the Company. Management has determined that, as a result of the 11.8% equity interest combined with the services that the Company provides KyLin TV, the Company continues to have significant influence on the operating activities of KyLin TV; therefore, the Company continues to account for its investment in KyLin TV using the equity method. As previously discussed, the Company also provides and charges KyLin TV for administrative and general corporate support. The Company's proportionate share of the equity loss from KyLin TV has been accounted for as a charge on the Company's consolidated statements of operations and comprehensive loss. Due to KyLin TV's accumulated losses, the investment was reduced to zero as at December 31, 2008. No further charges will be recorded as the Company has no obligation to fund the losses of KyLin TV. If KyLin TV becomes profitable in the future, the Company will resume applying the equity method only after its share of that net income equals the Company's share of net losses not recognized during the period the equity method was suspended. From 2008 through 2015, the Company's share of cumulative losses in KyLin TV that have not been recognized as of December 31, 2015 was $4,360. |
401(k) Profit Sharing Plan
401(k) Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2015 | |
401(k) Profit Sharing Plan [Abstract] | |
401(k) Profit Sharing Plan | 8. 401(k) Profit Sharing Plan The Company sponsors a 401(k) Profit Sharing Plan to provide retirement and incidental benefits to its eligible employees. Employees may contribute a percentage of their annual compensation through salary reduction, subject to certain qualifications and Internal Revenue Code limitations. The Company provides for voluntary matching contributions up to certain limits. Matching contributions vest immediately. For the years ended December 31, 2015, 2014 and 2013, the Company made aggregate matching contributions of $912, $485 and $436, respectively. |
Convertible Note
Convertible Note | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Note [Abstract] | |
Convertible Note | 9. Convertible Note On January 30, 2015, the Company completed the acquisition of 100% of the outstanding securities of DivX for total consideration of $59,018. On closing, the Company issued 35,890,216 shares of common stock of the Company valued at $31,905 on the issuance date and a $27,000 two-year convertible promissory Note. Upon receiving shareholder approval on June 4, 2015, the Note automatically converted into 25,840,956 shares of the Company's common stock. The Company recorded a gain of $610 for the year ended December 31, 2015 related to the conversion of the Note. 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. The Company determined that the fair value of the derivative liability on the acquisition date was $713 and on June 4, 2015 (prior to conversion) was $816, and accordingly recorded a net gain of $507 for the year ended December 31, 2015, on the consolidated statements of operations and comprehensive income (loss) to reflect the change in fair value of the derivative liability immediately prior to conversion and the conversion of the convertible note. The Company's determination of the fair value of the derivative liability was based on a 90% probability that the Note would be converted by June 30, 2015. If that probability was reduced, the fair value of derivative liability would be higher. The Company recorded $123 of interest expense on the amortization of the debt discount for the year ended December 31, 2015. Additionally, the Company analyzed the conversion feature and determined that the effective conversion price was higher than the market price at the date of issuance; therefore no beneficial conversion feature was recorded. |
Redeemable Preferred Stock
Redeemable Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Redeemable Preferred Stock [Abstract] | |
Redeemable Preferred Stock | 10. Redeemable Preferred Stock On November 19, 2015, the Company executed a Conversion and Settlement Agreement (the “Agreement”) with the holders of its Class 3 and Class 4 Preference Shares (collectively, the “Preference Shares”), whereby these holders agreed to convert their Preference Shares for shares of common stock of the Company on a 1-to-1 basis and for aggregate consideration totaling $4,058. The consideration of $4,058 was paid in the form of 8,176,210 shares of common stock of the Company (the “Additional Shares”), with the number of shares received calculated based on the five-day volume weighted average price of the Company's common stock immediately prior to conversion. The holders of the 17,176,818 issued and outstanding Class 3 Preference Shares received in the aggregate an equal number of shares of the Company's common stock as well as 5,737,691 Additional Shares as payment for accumulated dividends. The holders of the 10,912,265 issued and outstanding Class 4 Preference Shares received in the aggregate an equal number of shares of the Company's common stock as well as 2,438,519 Additional Shares as payment for accumulated dividends. The Company issued a total of 36,265,293 shares of its common stock. The holders of the Class 3 Preference Shares were JK&B Capital V Special Opportunities Fund, L.P. (“JK&B Special Opp.”) and JK&B Capital V, L.P. (“JK&B Capital”), both of which are controlled by Company director David Kronfeld, and The Gabriel A. Battista Revocable Trust Under a Trust Declaration dated August 22, 2006, which is controlled by Company director Gabriel A. Battista. The holders of the Class 4 Preference Shares were JK&B Special Opp. and JK&B Capital. Charles B. Wang, the Chairman of the Board of the Company, has a pecuniary interest of 85% in, but does not exercise control over, JK&B Special Opp. Mr. Wang is married to Nancy Li, the Executive Vice President and a director of the Company. As a result of the transaction, the Company currently has no Preference Shares issued and outstanding. |
Stock Option and Stock-Based Co
Stock Option and Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Stock Option and Stock-Based Compensation Plans [Abstract] | |
Stock Option and Stock-Based Compensation Plans | 11. Stock Option and Stock-Based Compensation Plans The total stock-based compensation expense included in the Company's consolidated statement of operations for the years ended December 31, 2015, 2014 (i) 2012 Omnibus Securities and Incentive Plan (the “New Plan”) The New Plan applies to all grants of distribution equivalent rights, incentive stock options, non-qualified stock options, performance share awards, performance unit awards, restricted stock awards, restricted stock unit awards, stock appreciation rights, tandem stock appreciation rights and unrestricted stock awards (“equity securities”) to directors, officers, employees and consultants of the Company or any entity controlled by the Company. The exercise price for any new security granted under the New Plan is determined by the closing price of the Company's common stock on the trading day prior to the grant date. If the security is granted on a pre-determined basis, the exercise price is determined using the five-day volume weighted average price of the Company's common stock on the Toronto Stock Exchange immediately prior to the date of grant. In all cases the exercise price may not be less than fair market value. Securities are exercisable during a period established at the time of their grant provided that such period will expire no later than five years after the date of grant, subject to early termination of the option in the event the holder of the option dies or ceases to be a director, officer or employee of the Company or ceases to provide ongoing management or consulting services to the Company or entity controlled by the Company. The maximum number of shares of common stock issuable upon exercise of securities granted pursuant to the New Plan is 50,000,000 shares of common stock. [a] Stock Options A summary of stock option activity under the New Plan is as follows: # Weighted average of options exercise price Outstanding, December 31, 2012 415,000 $ 0.25 Granted 14,253,000 0.44 Forfeited (475,000 ) 0.27 Outstanding, December 31, 2013 14,193,000 0.44 Granted 3,979,500 0.95 Exercised (193,255 ) 0.43 Forfeited (714,750 ) 0.47 Outstanding, December 31, 2014 17,264,495 0.56 Granted 5,283,750 1.01 Exercised (310,000 ) 0.51 Forfeited (749,150 ) 0.92 Outstanding, December 31, 2015 21,489,095 $ 0.66 The following table summarizes information regarding stock options granted under the New Plan as at December 31, 2015: Weighted average Aggregate Exercise Number remaining Number intrinsic price outstanding contractual life exercisable value $ 0.39 385,495 7.2 192,748 $ 57,622 $ 0.44 11,503,750 7.6 5,751,875 1,144,335 $ 0.48 900,000 2.6 450,000 53,527 $ 0.49 60,000 7.5 30,000 2,969 $ 0.59 57,750 9.9 - - $ 0.94 6,286,500 9.4 822,125 - $ 1.02 350,000 9.4 - - $ 1.03 400,000 3.4 100,000 - $ 1.16 1,545,600 9.5 - - 21,489,095 8.0 7,346,748 $ 1,258,453 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of fiscal 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The amount changes based on the fair market value of the Company's common stock. For the years ended December 31, 2015, 2014 and 2013, $1,334, $838 and $268, respectively, were recorded for total stock-based compensation expense related to stock options under the New Plan. The Company estimates the fair value of stock options granted using a Black-Scholes-Merton option pricing model. The assumptions used in determining the fair value of stock options granted are as follows: Year ended December 31, 2015 2014 2013 Weighted average Exercise price of stock options granted $ 1.01 $ 0.95 $ 0.44 Fair value of stock options granted $ 0.85 $ 0.64 $ 0.34 Expected volatility 98 % 87 % 87 % Risk-free interest rate 1.40 % 2.16 % 2.23 % Expected life (years) 7 7 7 Dividend yield 0 % 0 % 0 % The exercise price of stock options granted on a pre-determined basis is calculated using the five-day volume weighted average price of the Company's common stock on the Toronto Stock Exchange preceding the grant date. The Company estimates volatility based on the Company's historical volatility. The Company estimates the risk-free rate based on the Federal Reserve rate. The Company currently estimates the expected life of its stock options to be seven years. As at December 31, 2015, there was $8,599 of total unrecognized compensation cost related to non-vested stock options under the New Plan, which is expected to be recognized over a weighted-average period of three years. [b] Restricted Stock On May 7, 2015, the Company granted 3,300,000 shares of restricted common stock to various member of Company management. The shares vest annually in equal increments of 25% on each anniversary of the effective date of grant, which was May 18, 2015; the first increment vests on May 18, 2016. The total fair value of these shares, in the amount of $3,127, will be recognized evenly over the vesting period. On August 24, 2015, the Company granted 1,200,000 shares of restricted common stock to various members of Company management and employees. The shares vested in their entirety on January 19, 2016. The total fair value of these shares, in the amount of $606, will be recognized evenly over the vesting period. For the years ended December 31, 2015, 2014 and 2013, $985, $0 and $0, respectively, were recorded for total stock-based compensation expense related to restricted stock. (ii) Fourth Amended and Restated Stock Option Plan (the “Old Plan”) The Old Plan applied to all grants of options to directors, officers, employees and consultants of the Company or any entity controlled by the Company. The exercise price for any option granted under the Old Plan was determined by the closing price of the Company's common stock on the trading day prior to the grant date. If the option was granted on a pre-determined basis, the exercise price was determined using the five-day volume weighted average price of the Company's common stock on the Toronto Stock Exchange immediately prior to the date of grant. In all cases the exercise price was not less than fair market value. Options were exercisable during a period established at the time of their grant provided that such period will expire no later than five years after the date of grant, subject to early termination of the option in the event the holder of the option dies or ceases to be a director, officer or employee of the Company or ceases to provide ongoing management or consulting services to the Company or entity controlled by the Company. The maximum number of shares of common stock issuable upon the exercise of options granted pursuant to the Old Plan was equal to the greater of (i) 4,000,000 shares of common stock and (ii) 12.5% of the number of issued and outstanding shares of common stock. Since the adoption of the New Plan, no options have been or will be issued under the Old Plan. A summary of stock option activity under the Old Plan is as follows: # Weighted average of options exercise price Outstanding, December 31, 2012 16,502,500 $ 0.44 Exercised (2,598,771 ) 0.47 Expired (3,050,000 ) 0.56 Forfeited (779,229 ) 0.34 Outstanding, December 31, 2013 10,074,500 0.40 Exercised (2,026,262 ) 0.51 Forfeited (156,063 ) 0.10 Outstanding, December 31, 2014 7,892,175 0.38 Exercised (2,981,875 ) 0.49 Forfeited (47,000 ) 0.56 Outstanding, December 31, 2015 4,863,300 $ 0.31 The following table summarizes information regarding stock options granted under the Old Plan as at December 31, 2015: Weighted average Aggregate Exercise Number remaining Number intrinsic price outstanding contractual life exercisable value $ 0.18 2,236,250 1.4 1,677,188 $ 803,876 $ 0.29 25,000 0.6 25,000 6,237 $ 0.36 247,000 0.4 247,000 44,330 $ 0.43 2,355,050 0.4 2,355,050 257,819 4,863,300 0.9 4,304,238 $ 1,112,262 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of fiscal 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The amount changes based on the fair market value of the Company's common stock. For the years ended December 31, 2015, 2014 and 2013, $185 , The Company estimates the fair value of options granted using a Black-Scholes-Merton option pricing model. No options were granted under the Old Plan during the years ended December 31, 2015, 2014 and 2013. As at December 31, 2015, there was $42 of total unrecognized compensation cost related to these non-vested options. (iii) Warrants On May 9, 2012, the Company granted 1,894,741 warrants to a merchant bank that were fully vested upon the merchant bank signing an engagement letter with the Company for various consulting services. The fair value of these warrants, in the amount of $373,264, were included in selling, general and administrative, including stock-based compensation, on the Company's consolidated statement of operations and comprehensive loss in 2012. Additionally, the Company granted 1,894,741 warrants to the merchant bank that are exercisable if the merchant bank achieves certain performance targets. In accordance with ASC Topic 505-50, “Equity-Based Payments to Non-Employees,” the Company has not recorded any expense for the years ended December 31, 2015 and 2014 as the performance targets have not been met. These warrants expire on May 9, 2022. On September 25, 2012, the Company completed a private placement for aggregate gross proceeds of approximately $4.6 million. The Company sold an aggregate of 22,782,674 units, with each unit consisting of one share of common stock and one-half of one subscriber warrant, with each full warrant entitling the holder thereof to purchase one share of common stock at US$0.30 for 30 months following closing. The agent for a portion of the subscriptions received from the Company a cash commission equal to CDN$299,251 (8% of the gross proceeds of the offering, excluding proceeds arising from the units purchased by the Chairman and the then Vice Chairman) and 748,127 broker warrants (4% of the number of the units issued in the offering). Each broker warrant is exercisable for one broker unit at an exercise price of US$0.21 per warrant at any time prior to the 30-month anniversary of the closing date of the offering. Each broker unit consists of one share of common stock and one-half of a warrant, and each full warrant entitles the holder thereof to purchase one share of common stock at US$0.30 for 30 months following the closing date of the Offering. During the year ended December 31, 2015 all remaining subscriber warrants and broker warrants were either exercised or forfeited. No warrants remained outstanding at December 31, 2015. The total stock-based compensation expense related to warrants during the years ended December 31, 2015, 2014 and 2013 was $0. A summary of the warrant activity is as follows: # Weighted average of warrants exercise price Outstanding, December 31, 2012 19,383,269 $ 0.37 Exercised (2,486,000 ) 0.30 Expired (4,945,000 ) 0.63 Outstanding, December 31, 2013 11,952,269 $ 0.28 Exercised (6,993,063 ) 0.29 Outstanding, December 31, 2014 4,959,206 $ 0.27 Exercised (2,967,465 ) 0.30 Forfeited (67,000 ) 0.51 Outstanding, December 31, 2015 1,924,741 $ 0.25 The fair value of warrants was determined using the Black-Scholes-Merton option pricing model. The following table summarizes the warrant information as at December 31, 2015: Weighted average Aggregate Exercise Number remaining Number intrinsic price outstanding contractual life exercisable value $ 0.22 1,894,741 6.4 1,894,741 $ 605,133 $ 2.20 30,000 1.8 30,000 - 1,924,741 6.3 1,924,741 $ 605,133 No warrants were granted during the years ended December 31, 2015 and 2014. (iv) Directors' Compensation Plan (“Directors' Plan”) Non-management directors of the Company receive a minimum of 50%, and may elect to receive a greater portion, of their fees in common stock. The number of shares of common stock to be issued to non-management directors is determined by dividing the dollar value of the fees by the closing price of the common stock on the relevant payment date. The maximum number of shares of common stock available to be issued by the Company under the Directors' Plan is 5,000,000. During the year ended December 31, 2015, the Company issued 290,575 |
Promissory Notes Receivable
Promissory Notes Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Note [Abstract] | |
Promissory Notes Receivable | 12. Promissory Notes Receivable On October 17, 2008, prior to its merger with NeuLion, Inc., NeuLion USA, Inc. loaned employees an aggregate of $209,250 through promissory notes to exercise stock options. The promissory notes bear interest at 3.16% per annum and were repayable on October 17, 2013. The Company extended the repayment of the promissory notes from October 17, 2013 to October 17, 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Basic earnings per share is computed by dividing net income (loss) for the year by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by dividing net income (loss) for the year by the weighted average number of shares of common stock outstanding adjusted for the dilutive effect of preferred stock, restricted stock, stock options and warrants. The following table presents the calculation of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013. Year ended December 31, 2015 2014 2013 Net income (loss) $ 25,916 $ 3,567 $ (2,278 ) Weighted average shares of common stock outstanding used in calculating basic EPS 233,489,798 174,645,803 166,663,448 Effect of dilutive preferred stock, restricted stock, stock options and warrants 11,856,883 40,065,559 - Weighted average shares of common stock outstanding used in calculating diluted EPS 245,346,681 214,711,362 166,663,448 Basic EPS $ 0.11 $ 0.01 $ (0.01 ) Diluted EPS $ 0.11 $ 0.01 $ (0.01 ) The following table summarizes the securities convertible into common stock that were outstanding as at December 31, 2015, 2014 and 2013 were included in the computation of diluted income per share. Year ended December 31, 2015 2014 2013 Class 3 Preference Shares - 17,176,818 17,176,818 Class 4 Preference Shares - 10,912,265 10,912,265 Options – 2012 Omnibus Securities and Incentive Plan 21,489,095 17,264,495 14,193,000 Restricted Stock – 2012 Omnibus Securities and Incentive Plan 4,438,000 - - Options – Fourth Amended and Restated Stock Option Plan 4,863,300 7,892,175 10,074,500 Warrants 1,924,741 4,959,206 11,952,269 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 14. Supplemental Cash Flow Information For each of the years presented, the Company did not pay any cash interest expense. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Commitments The Company has multiple leases for facilities and equipment. As of December 31, 2015, the Company had no outstanding capital leases. Future minimum annual payments over the next five years (exclusive of taxes, insurance and maintenance costs) under these commitments as of December 31, 2015 are as follows: Operating Leases Minimum Gross Recovery Net Guarantees Total 2016 $ 2,512 $ (719 ) $ 1,793 $ 3,192 $ 4,985 2017 1,711 (391 ) 1,320 1,256 2,576 2018 1,144 - 1,144 239 1,383 2019 915 - 915 - 915 2020 103 - 103 - 103 $ 6,385 $ (1,110 ) $ 5,275 $ 4,687 $ 9,962 The Company periodically enters into contracts with customers in which the Company guarantees the customer a minimum amount of revenue share for services the Company provides under the contract. The minimum guarantees shown above primarily relate to (i) these minimum fixed revenue guarantees the Company has committed over the next 5 years and (ii) minimum fixed bandwidth fees commitments with certain vendors over the next 12 to 18 months. As at December 31, 2015, the Company believes that the future commitments are probable. The Company has subleased a portion of its Toronto office, which is expected to generate a total recovery of $1.1 million over the next two years. Contingencies During the ordinary course of its business activities, the Company may be contingently liable for litigation and a party to claims. Management believes that adequate provisions have been made where required for such contingencies. 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. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2015 | |
Segmented Information [Abstract] | |
Segmented Information | 16. Segmented Information The Company's assets and operations are located primarily in the United States. The Company operates in one segment. Our chief operating decision-maker reviews our operating results on an aggregate basis and manages our operations as a single operating segment. Total revenue from customers, based on the location of the customers, was as follows: Year ended December 31, 2015 2014 2013 North America $ 64,146 68 % $ 51,418 93 % $ 44,375 94 % Asia 20,100 21 % 436 0 % 896 2 % Europe 6,249 7 % 2,568 5 % 1,535 3 % Australia 3,548 4 % 1,098 2 % 301 1 % $ 94,043 100 % $ 55,520 100 % $ 47,107 100 % As at December 31, 2015 and 2014, property and equipment at locations outside the U.S. was not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 17. Income Taxes The domestic and international components of income (loss) before provision for income taxes are presented as follows: Year ended December 31, 2015 2014 2013 Domestic $ (2,475 ) $ 4,405 $ (1,541 ) Foreign 544 (567 ) (460 ) Total income (loss) before income taxes $ (1,931 ) $ 3,838 $ (2,001 ) Income tax expense (benefit) consists of the following: Year ended December 31, 2015 2014 2013 Current: Federal $ - $ - $ - State 67 - - Foreign 4,457 - - Total current $ 4,523 $ - $ - Deferred: Federal (32,534 ) 254 254 State 468 17 23 Foreign (305 ) - - Total deferred (32,371 ) 271 277 Income tax expense (benefit) $ (27,847 ) $ 271 $ 277 The Company is subject to income and other taxes in a variety of jurisdictions, including the United States, Canada, and various state jurisdictions. A reconciliation of income taxes computed at the United States statutory rate to the Company's effective income tax rate is shown below. Year ended December 31, 2015 2014 2013 Combined basic federal rate 35 % 35 % 35 % Income tax benefit based on statutory income tax rate $ (676 ) $ 1,343 $ (700 ) Increase in income taxes resulting from: Non-deductible expenses and state taxes 496 (49 ) 203 Change in valuation allowance (27,667 ) (1,023 ) 774 Income tax (benefit) expense $ (27,847 ) $ 271 $ 277 Deferred income taxes result principally from temporary differences in the recognition of loss carry-forwards and expense items for financial and income tax reporting purposes. Significant components of the Company's deferred tax assets as of December 31, 2015 and 2014 were as follows: As of, December 31, 2015 2014 Current deferred tax assets Accrued expenses and deferred revenue $ - $ 1,795 Valuation allowance - (1,758 ) Total current deferred tax asset $ - $ 37 Non-current deferred tax assets Accrued expenses and deferred revenue $ 3,430 $ - Intangible assets and goodwill - 4,528 Stock options 385 536 Net operating losses 28,543 38,717 Credits 8,097 - Other 1,466 - Valuation allowance (6,330 ) (43,677 ) Total non-current deferred tax assets $ 35,591 $ 104 Non-current deferred tax liabilties Property, plant and equipment $ (2,078 ) $ (81 ) Intangible assets and goodwill (4,312 ) (1,452 ) Foreign earnings (11 ) (60 ) Total non-current deferred tax liabilities $ (6,401 ) $ (1,593 ) Total net deferred tax asset (liability) $ 29,189 $ (1,452 ) As at December 31, 2015, the Company had federal and state net operating loss carryforwards of approximately $71,525 and $32,782, respectively. The federal and state net operating losses do not include approximately $17,625 and $13,112, respectively, related to tax goodwill amortization that will not be realized for financial reporting purposes until the Company is able to take a tax benefit for those deductions. The federal and state net operating losses begin to expire in 2024 and 2016, respectively. As at December 31, 2015, the Company had federal and state research and development credit carryforwards of approximately $210 and $86, respectively. The federal research and development credit begins to expire in 2033. The state research and development credit carries forward indefinitely. As at December 31, 2015, the Company had a foreign tax credit carryforward of approximately $7,897. The Company had foreign net operating loss carryforwards of approximately $10,397. Our ability to utilize our federal tax attribute carryforwards have been limited by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), which imposes an annual limit on the ability of a corporation that undergoes an ''ownership change'' to use its tax attribute carryforwards to reduce its liability. An ownership change is generally defined as a greater than 50% increase in equity ownership by 5% shareholders in any three-year period. Along with the release of $27,667 of valuation allowance included in deferred tax expense, the current and non-current valuation allowance also decreased by $11,438 during the year ended December 31, 2015 by the permanent removal of net operating losses that were impacted by a 382 limitation and other adjustments to federal and state net operating losses amounts. As at December 31, 2015, based on the weight of available evidence, including profitability in recent periods and the availability of expected future taxable income, the Company concluded that it is more likely than not that the benefits of Federal and some state-related deferred income tax assets will be realized. Accordingly, the Company reduced the valuation allowances on its domestic gross deferred income tax assets. The Company continues to maintain a valuation allowance to offset foreign and certain state deferred tax assets, as realization of such assets do not meet the more-likely-than-not threshold. The net change in the total valuation allowance was a decrease of $39,105 and an increase of $129 as of December 31, 2015 and December 31, 2014, respectively. The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes Recognition.” The Company does not believe there are any material uncertain tax provisions under ASC 740. The Company is subject to federal and state income tax, as well as income tax in various foreign jurisdictions in which the Company operates. The Company's federal and state tax returns remain open and subject to potential government audit for the years 2012, 2013 and 2014. However, to the extent allowed by law the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating losses or credit carryforward amount. |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Use of estimates | 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 the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates made by management include the determination of the useful lives of long-lived assets, impairment of intangible assets and goodwill, assumptions used in stock-based compensation and the allowance for doubtful accounts. On an ongoing basis, management reviews its estimates to ensure they appropriately reflect changes in the Company's business and new information as it becomes available. If historical experience and other factors used by management to make these estimates do not reasonably reflect future actual results, the Company's consolidated financial position and results of operations could be materially impacted. |
Revenue recognition | Revenue recognition The Company recognizes revenue 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 earns revenue as follows: (a) Setup fees are charged to customers for design, setup and implementation services. Setup fees are deferred at the beginning of the service period and recognized over the term of the arrangement, which is generally three to five years. (b) Annual and/or monthly fees are charged to customers for ongoing hosting, support and maintenance. Annual and/or monthly fees are deferred at the beginning of the service period and recognized evenly over the service period. (c) Subscription revenue consists of recurring revenue based on the number of subscribers. The subscriber revenue is typically generated on a monthly, quarterly or annual basis and can be a fixed fee per user, a variable fee per user or a variable fee based on a percentage of the subscription price. The Company defers the appropriate portion of cash received for the services that have not yet been rendered and recognizes the revenue over the term of the subscription, which is generally between 30 days and one year. Pay-per-view revenues are deferred and recognized in the period when the content is viewed. Subscription revenues are recorded on either a gross or net basis depending on the transaction arrangement with the customer. Where subscription revenues are recorded on a gross basis, the total amount of the subscription is deferred and recognized over the subscription term and the share of revenue owing to our customer is deferred and recognized as a cost of revenue over the term of the subscription. Where subscription revenues are recorded on a net basis, only the Company's share of revenue from the subscription is deferred and recognized over the term of the subscription. Under U.S. GAAP guidance related to reporting revenue gross as a principal versus net as an agent, the indicators used to determine whether an entity is a principal or an agent to a transaction are subject to judgment. When our assessment of the indicators leads us to conclude that we are the principal in the subscription transaction, revenue is recorded on a gross basis, the total amount of the subscription is deferred and recognized over the subscription term. When our assessment of the indicators leads us to conclude that we are the agent in the subscription transaction, only the Company's share of revenue from the subscription is deferred and recognized over the term of the subscription. (d) Usage fees are charged to customers for bandwidth and storage. Usage fees are billed on a monthly or quarterly basis and are recognized as the service is being provided. (e) 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. The Company actively polices and enforces its intellectual property, and pursues third parties who have under-reported the amount of royalties owed under a license agreement or who utilize its intellectual property without a license. As a result of these activities, from time to time, the Company may recognize royalty revenues that relate to infringements or under-reporting that occurred in prior periods. These royalty recoveries may cause revenues to be higher than expected during a particular reporting period and may not occur in subsequent periods. Differences between amounts initially recognized and amounts subsequently audited or reported as an adjustment to those amounts due from licensees, will be recognized in the period such adjustment is determined or contracted, as appropriate. Licensing revenue is recognized gross of withholding taxes that are remitted by the Company's licensees directly to their local tax authorities. For the years ended December 31, 2015, 2014 and 2013 withholding taxes were $3,754, $0 and $0 respectively. (f) eCommerce revenues are earned through providing customers with ticketing and retail merchandising web solutions. eCommerce revenues are recorded on a net basis when the service has been provided. The Company records as revenue the portion of the fees to which it is entitled as opposed to the amount billed for tickets or retail merchandise sold. (g) Advertising revenues are earned through the insertion of advertising impressions on websites and in streaming video at a cost per thousand impressions. Advertising revenue is recognized based on the number of impressions displayed (“served”) during the period. Deferred revenue for advertising represents the timing difference between collection of advertising revenue and when the advertisements are served, which is typically between 30 and 90 days. Advertising revenues are recorded on a gross basis, whereby the total amount billed to the advertiser is recorded as revenue and the share of revenue to our customer is recorded as a cost of revenue. (h) Support revenues are earned for providing customer support to our customers' end users. Support fees are recognized evenly over the service period. (i) Equipment revenue consists of the sale and rental of set-top boxes (“STBs”) to content partners and/or end users to enable the end user to receive content over the Internet and display the signal on a standard television. Shipping charges are included in total equipment revenue. Revenue is recognized generally upon shipment to the customer. The customer does not have any right of return on STBs. Revenue is recognized when persuasive evidence of an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. If any of these criteria are not met, revenue is deferred until such time as all of the criteria are met. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash and short-term investments, such as money market funds, that have original maturities of less than three months. |
Accounts receivable | Accounts receivable Accounts receivable are carried at original invoice amount. The Company maintains a provision for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness; past transaction history with the customer; current economic industry trends; and changes in customer payment terms. If the financial conditions of the Company's customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. As of December 31, 2015 and 2014, the allowance for doubtful accounts was $688 and $221, respectively. |
Inventory | Inventory Inventory consists of set-top boxes, which are finished goods. Inventories are recorded at the lower of cost and net realizable value. Cost is accounted for on a first-in, first-out basis. The Company evaluates its ending inventories for estimated excess quantities and obsolescence. This evaluation includes analyses of sales levels and projections of future demand within specific time horizons. Inventories in excess of future demand are reserved. In addition, the Company assesses the impact of changing technology and market conditions on its inventory-on-hand and writes off inventories that are considered obsolete. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are expensed currently, while renewals and betterments that materially extend the life of an asset are capitalized. The cost of assets sold, retired or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts, and any resulting gain or loss is recognized. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are as follows: Computer hardware 5 years Computer software 3 years Furniture and fixtures 7 years Vehicles 5 years Leasehold improvements Shorter of useful life and lease term The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. If these future undiscounted cash flows are less than the carrying value of the asset, then the carrying amount of the asset is written down to its fair value, based on the related estimated discounted future cash flows. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property, plant and equipment are used and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment was recorded for the years ended December 31, 2015, 2014 and 2013. |
Intangible assets | Intangible assets Intangible assets are recorded at cost less amortization. Cost of intangible assets acquired through business combinations represents their fair market value at the date of acquisition. Amortization is calculated using the straight-line method over the estimated useful lives of the intangible assets, which are as follows: Customer relationships 5-7 years Developed technology 5 years Trademarks 7 years The Company reviews the carrying value of its definite lived intangible assets for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. If these future undiscounted cash flows are less than the carrying value of the asset, then the carrying amount of the asset is written down to its fair value, based on the related estimated discounted future cash flows. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the intangible assets are used and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment was recorded for the years ended December 31, 2015, 2014 and 2013. |
Goodwill | Goodwill Goodwill represents the excess, at the date of acquisition, of the cost of an acquired business over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized but is subject to an annual impairment test at the reporting unit level and between annual tests if changes in circumstances indicate a potential impairment. The Company performs an annual goodwill impairment test as of October 1 of each calendar year. Goodwill impairment is assessed based on a comparison of the fair value of each reporting unit to the underlying carrying value of the reporting unit's net assets, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to determine the amount of the impairment loss. The second step of the impairment test involves comparing the implied fair value of the reporting unit's goodwill with its carrying amount to measure the amount of impairment loss, if any. The Company's impairment test is based on its single operating segment and reporting unit structure. For the years ended December 31, 2015, 2014 and 2013, there was no impairment loss. |
Investment in affiliate | Investment in affiliate Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee's board of directors and voting rights. Under the equity method of accounting, an investee's accounts are not reflected within the Company's consolidated balance sheets and statements of operations and comprehensive loss; however, the Company's share of the losses of the investee company is reflected under the caption “Equity in loss of affiliate” in the consolidated statements of operations and comprehensive loss. Due to KyLin TV's accumulated losses, the Company's investment in KyLin TV was reduced to zero as at December 31, 2008. No further charges will be recorded because the Company has no obligation to fund the losses of KyLin TV. If KyLin TV becomes profitable in the future, the Company will resume applying the equity method only after its share of that net income equals the Company's share of net losses not recognized during the period in which the equity method was suspended. |
Income taxes | Income taxes Income taxes are accounted for under the provisions of ASC Topic 740, “Income Taxes Recognition” (“ASC 740”). ASC 740 requires that income tax accounts be computed using the liability method. Deferred taxes are determined based upon the estimated future tax effects of differences between the financial reporting and tax reporting bases of assets and liabilities given the provisions of currently enacted tax laws. ASC 740 requires an entity to recognize the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is recognized at the largest amount of the benefit that has a greater-than-fifty-percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance for classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires that a liability created for unrecognized tax benefits be presented as a separate liability and not combined with deferred tax liabilities or assets. The Company operates in a number of countries worldwide. Its income tax liability is therefore a consolidation of its tax liabilities in various locations. Its tax rate is affected by the profitability of its operations in various locations, the tax rates and taxation systems of the countries in which the Company operates, its tax policies and the impact of certain tax planning strategies which have been implemented. To determine its worldwide tax liability, the Company makes estimates of possible tax liabilities. Tax filings, positions and strategies are subject to review under local or international tax audit and the outcomes of such reviews are uncertain. In addition, these audits generally take place years after the period in which the tax provision in question was determined and it may take a substantial amount of time before the final outcome of any audit is known. Future tax audits could result in income tax liabilities that differ materially from the amounts recorded in our financial statements. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During the fourth quarter of 2015, the Company concluded that it was more likely than not that it would be able to realize the benefit of its federal and some state-related deferred tax assets in the future. The Company based this conclusion on historical and projected operating performance, as well as its expectation that operations will generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets. As a result, the Company reduced the valuation allowance on a portion of its net deferred tax assets at December 31, 2015. The Company will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required. |
Foreign currency transactions | Foreign currency transactions The functional currency of the Company is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies are re-measured into U.S. dollars at exchange rates in effect at the balance sheet dates. These transactional foreign exchange gains or losses are included in the consolidated statements of operations and comprehensive loss. |
Financial instruments | Financial instruments The Company's financial instruments consist of cash and cash equivalents, accounts receivable, other receivables, due from/to related parties, accounts payable and accrued liabilities, which are primarily denominated in U.S. dollars. The carrying amounts of such instruments approximate their fair values principally due to the short-term nature of these items. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest rate, currency or credit risk arising from these financial instruments. With respect to accounts receivable, the Company is exposed to credit risk arising from the potential for counterparties to default on their contractual obligations to the Company. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations on its customers, but generally does not require collateral to support accounts receivable. The Company establishes an allowance for doubtful accounts that corresponds with the specific credit risk of its customers, historical trends and economic circumstances. |
Research and Development | Research and Development Costs incurred for research and development are expensed as incurred and are included in the consolidated statements of operations and comprehensive loss. |
Advertising | Advertising Advertising costs are expensed as incurred and totaled $1,303, $430 |
Stock-based compensation and other stock-based payments | Stock-based compensation and other stock-based payments The Company accounts for all stock options and warrants using a fair value-based method. The fair value of each stock option and warrant granted to employees is estimated on the date of the grant using the Black-Scholes-Merton option pricing model and the related stock-based compensation expense is recognized over the expected life of the option. The fair value of the warrants granted to non-employees is measured and expensed as the warrants vest. Restricted stock awards give the holder the right to one share of common stock for each vested share of restricted stock. Stock-based compensation expense is recorded based on the market value of the common stock on the grant date and recognized over the vesting period of these awards. |
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 terms 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 Issued Accounting Standards 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 to be 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 the Company 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. The Company is currently evaluating the impact of this guidance on its operations and therefore have not yet determined the impact the adoption of this guidance will have on its financial position, results of operations or cash flows. 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 recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for periods beginning after December 15, 2015, including interim periods within those fiscal years. The new guidance must be applied prospectively to adjustments to provisional amounts that occur after the effective date of the ASU, with early adoption permitted. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, “Income Taxes” (ASU 2015-17), which requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax- paying component of an entity be offset and presented as a single amount is not affected by the amendments. For public business entities, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If an entity applies the guidance prospectively, the entity should disclose in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that prior periods were not retrospectively adjusted. If an entity applies the guidance retrospectively, the entity should disclose in the first interim and first annual period of change the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. The Company has decided to adopt this guidance on a prospective basis effective October 1, 2015. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02, Leases, which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 with early adoption permitted. Under Accounting Standards Update 2016-02, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee's obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee's right to use or control the use of a specified asset for the lease term. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. |
Basis of Presentation and Sig25
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Computer hardware 5 years Computer software 3 years Furniture and fixtures 7 years Vehicles 5 years Leasehold improvements Shorter of useful life and lease term |
Schedule of Estimated Useful Lives of Intangible Assets | Customer relationships 5-7 years Developed technology 5 years Trademarks 7 years |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combination [Line Items] | |
Schedule of Estimated Amortization Expense | 2016 $ 5,492 2017 5,477 2018 5,431 2019 5,431 2020 1,068 Thereafter 728 $ 23,627 |
DivX [Member] | |
Business Combination [Line Items] | |
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 | Useful Life Amount (years) Developed technology $ 14,400 5 Customer relationships 9,400 5 Trademarks 4,700 7 $ 28,500 |
Schedule of Estimated Amortization Expense | 2016 $ 5,431 2017 5,431 2018 5,431 2019 5,431 Thereafter 1,798 $ 23,522 |
Schedule of Pro Forma Information | Year ended December 31, 2015 2014 Total revenue $ 96,282 $ 81,751 Net income (loss) $ 23,691 $ (21,878 ) Income (loss) per share – basic and diluted $ 0.10 $ (0.10 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of December 31, 2015 Accumulated Net book Cost depreciation value Computer hardware $ 15,036 $ 11,317 $ 3,719 Computer software 4,721 4,513 208 Vehicles 61 36 25 Furniture and fixtures 839 430 409 Leasehold improvements 2,827 603 2,224 $ 23,484 $ 16,899 $ 6,585 As of December 31, 2014 Accumulated Net book Cost depreciation value Computer hardware $ 13,528 $ 9,885 $ 3,643 Computer software 4,450 4,428 22 Vehicles 58 58 0 Furniture and fixtures 384 270 114 Leasehold improvements 171 120 51 $ 18,591 $ 14,761 $ 3,830 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of Goodwill | Balance – December 31, 2013 and 2014 $ 11,327 Acquisition of DivX 169 Balance – December 31, 2015 $ 11,496 |
Schedule of Intangible Assets | As of December 31, 2015 Accumulated Net book Cost amortization value Customer relationships $ 20,903 $ 13,121 $ 7,782 Developed technology 16,000 4,240 11,760 Trademarks 4,995 910 4,085 $ 41,898 $ 18,271 $ 23,627 As of December 31, 2014 Accumulated Net book Cost amortization value Customer relationships $ 11,503 $ 11,337 $ 166 Developed technology 1,600 1,360 240 Trademarks 295 295 0 $ 13,398 $ 12,992 $ 406 |
Schedule of Estimated Amortization Expense | 2016 $ 5,492 2017 5,477 2018 5,431 2019 5,431 2020 1,068 Thereafter 728 $ 23,627 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Revenue from Related Parties | Year ended December 31, 2015 2014 2013 New York Islanders $ 292 $ 311 $ 311 Renaissance 120 120 120 Smile Train 96 90 96 KyLinTV 553 847 1,706 $ 1,061 $ 1,368 $ 2,233 |
Schedule of Amounts Due from (to) Related Parties | As of December 31, 2015 2014 New York Islanders $ (18 ) $ 3 Renaissance - 1 KyLin TV 304 107 $ 286 $ 111 |
Stock Option and Stock-Based 30
Stock Option and Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Warrant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | # Weighted average of warrants exercise price Outstanding, December 31, 2012 19,383,269 $ 0.37 Exercised (2,486,000 ) 0.30 Expired (4,945,000 ) 0.63 Outstanding, December 31, 2013 11,952,269 $ 0.28 Exercised (6,993,063 ) 0.29 Outstanding, December 31, 2014 4,959,206 $ 0.27 Exercised (2,967,465 ) 0.30 Forfeited (67,000 ) 0.51 Outstanding, December 31, 2015 1,924,741 $ 0.25 |
Schedule of Information Regarding Compensation Plan | Weighted average Aggregate Exercise Number remaining Number intrinsic price outstanding contractual life exercisable value $ 0.22 1,894,741 6.4 1,894,741 $ 605,133 $ 2.20 30,000 1.8 30,000 - 1,924,741 6.3 1,924,741 $ 605,133 |
New Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | # Weighted average of options exercise price Outstanding, December 31, 2012 415,000 $ 0.25 Granted 14,253,000 0.44 Forfeited (475,000 ) 0.27 Outstanding, December 31, 2013 14,193,000 0.44 Granted 3,979,500 0.95 Exercised (193,255 ) 0.43 Forfeited (714,750 ) 0.47 Outstanding, December 31, 2014 17,264,495 0.56 Granted 5,283,750 1.01 Exercised (310,000 ) 0.51 Forfeited (749,150 ) 0.92 Outstanding, December 31, 2015 21,489,095 $ 0.66 |
Schedule of Information Regarding Compensation Plan | Weighted average Aggregate Exercise Number remaining Number intrinsic price outstanding contractual life exercisable value $ 0.39 385,495 7.2 192,748 $ 57,622 $ 0.44 11,503,750 7.6 5,751,875 1,144,335 $ 0.48 900,000 2.6 450,000 53,527 $ 0.49 60,000 7.5 30,000 2,969 $ 0.59 57,750 9.9 - - $ 0.94 6,286,500 9.4 822,125 - $ 1.02 350,000 9.4 - - $ 1.03 400,000 3.4 100,000 - $ 1.16 1,545,600 9.5 - - 21,489,095 8.0 7,346,748 $ 1,258,453 |
Schedule of Assumptions Used to Value Stock Options | Year ended December 31, 2015 2014 2013 Weighted average Exercise price of stock options granted $ 1.01 $ 0.95 $ 0.44 Fair value of stock options granted $ 0.85 $ 0.64 $ 0.34 Expected volatility 98 % 87 % 87 % Risk-free interest rate 1.40 % 2.16 % 2.23 % Expected life (years) 7 7 7 Dividend yield 0 % 0 % 0 % |
Old Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | # Weighted average of options exercise price Outstanding, December 31, 2012 16,502,500 $ 0.44 Exercised (2,598,771 ) 0.47 Expired (3,050,000 ) 0.56 Forfeited (779,229 ) 0.34 Outstanding, December 31, 2013 10,074,500 0.40 Exercised (2,026,262 ) 0.51 Forfeited (156,063 ) 0.10 Outstanding, December 31, 2014 7,892,175 0.38 Exercised (2,981,875 ) 0.49 Forfeited (47,000 ) 0.56 Outstanding, December 31, 2015 4,863,300 $ 0.31 |
Schedule of Information Regarding Compensation Plan | Weighted average Aggregate Exercise Number remaining Number intrinsic price outstanding contractual life exercisable value $ 0.18 2,236,250 1.4 1,677,188 $ 803,876 $ 0.29 25,000 0.6 25,000 6,237 $ 0.36 247,000 0.4 247,000 44,330 $ 0.43 2,355,050 0.4 2,355,050 257,819 4,863,300 0.9 4,304,238 $ 1,112,262 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Year ended December 31, 2015 2014 2013 Net income (loss) $ 25,916 $ 3,567 $ (2,278 ) Weighted average shares of common stock outstanding used in calculating basic EPS 233,489,798 174,645,803 166,663,448 Effect of dilutive preferred stock, restricted stock, stock options and warrants 11,856,883 40,065,559 - Weighted average shares of common stock outstanding used in calculating diluted EPS 245,346,681 214,711,362 166,663,448 Basic EPS $ 0.11 $ 0.01 $ (0.01 ) Diluted EPS $ 0.11 $ 0.01 $ (0.01 ) |
Schedule of Anti-dilutive Securities | Year ended December 31, 2015 2014 2013 Class 3 Preference Shares - 17,176,818 17,176,818 Class 4 Preference Shares - 10,912,265 10,912,265 Options – 2012 Omnibus Securities and Incentive Plan 21,489,095 17,264,495 14,193,000 Restricted Stock – 2012 Omnibus Securities and Incentive Plan 4,438,000 - - Options – Fourth Amended and Restated Stock Option Plan 4,863,300 7,892,175 10,074,500 Warrants 1,924,741 4,959,206 11,952,269 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Annual Payments | Operating Leases Minimum Gross Recovery Net Guarantees Total 2016 $ 2,512 $ (719 ) $ 1,793 $ 3,192 $ 4,985 2017 1,711 (391 ) 1,320 1,256 2,576 2018 1,144 - 1,144 239 1,383 2019 915 - 915 - 915 2020 103 - 103 - 103 $ 6,385 $ (1,110 ) $ 5,275 $ 4,687 $ 9,962 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segmented Information [Abstract] | |
Schedule of Revenue by Geographic Area | Year ended December 31, 2015 2014 2013 North America $ 64,146 68 % $ 51,418 93 % $ 44,375 94 % Asia 20,100 21 % 436 0 % 896 2 % Europe 6,249 7 % 2,568 5 % 1,535 3 % Australia 3,548 4 % 1,098 2 % 301 1 % $ 94,043 100 % $ 55,520 100 % $ 47,107 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Components of Loss Before Income Taxes | Year ended December 31, 2015 2014 2013 Domestic $ (2,475 ) $ 4,405 $ (1,541 ) Foreign 544 (567 ) (460 ) Total income (loss) before income taxes $ (1,931 ) $ 3,838 $ (2,001 ) |
Schedule of Components of Income Tax Expense (Benefit) | Year ended December 31, 2015 2014 2013 Current: Federal $ - $ - $ - State 67 - - Foreign 4,457 - - Total current $ 4,523 $ - $ - Deferred: Federal (32,534 ) 254 254 State 468 17 23 Foreign (305 ) - - Total deferred (32,371 ) 271 277 Income tax expense (benefit) $ (27,847 ) $ 271 $ 277 |
Reconciliation of Income Tax Expense Computed at Statutory Rate to Effective Income Tax Rate | Year ended December 31, 2015 2014 2013 Combined basic federal rate 35 % 35 % 35 % Income tax benefit based on statutory income tax rate $ (676 ) $ 1,343 $ (700 ) Increase in income taxes resulting from: Non-deductible expenses and state taxes 496 (49 ) 203 Change in valuation allowance (27,667 ) (1,023 ) 774 Income tax (benefit) expense $ (27,847 ) $ 271 $ 277 |
Schedule of Deferred Tax Assets and Liabilities | As of, December 31, 2015 2014 Current deferred tax assets Accrued expenses and deferred revenue $ - $ 1,795 Valuation allowance - (1,758 ) Total current deferred tax asset $ - $ 37 Non-current deferred tax assets Accrued expenses and deferred revenue $ 3,430 $ - Intangible assets and goodwill - 4,528 Stock options 385 536 Net operating losses 28,543 38,717 Credits 8,097 - Other 1,466 - Valuation allowance (6,330 ) (43,677 ) Total non-current deferred tax assets $ 35,591 $ 104 Non-current deferred tax liabilties Property, plant and equipment $ (2,078 ) $ (81 ) Intangible assets and goodwill (4,312 ) (1,452 ) Foreign earnings (11 ) (60 ) Total non-current deferred tax liabilities $ (6,401 ) $ (1,593 ) Total net deferred tax asset (liability) $ 29,189 $ (1,452 ) |
Basis of Presentation and Sig35
Basis of Presentation and Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 26, 2010 | Feb. 25, 2010 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Licensing Revenue | $ 3,754 | $ 0 | $ 0 | ||
Accounts receivable | |||||
Allowance for doubtful accounts | 688 | 221 | |||
Advertising | |||||
Advertising costs | $ 1,303 | $ 430 | $ 325 | ||
Design, Setup and Implementation Services [Member] | Minimum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Length of revenue recognition period | 3 years | ||||
Design, Setup and Implementation Services [Member] | Maximum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Length of revenue recognition period | 5 years | ||||
Advertising Revenues [Member] | Minimum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Length of revenue recognition period | 30 days | ||||
Advertising Revenues [Member] | Maximum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Length of revenue recognition period | 90 days | ||||
Subscription Revenue [Member] | Minimum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Length of revenue recognition period | 30 days | ||||
Subscription Revenue [Member] | Maximum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Length of revenue recognition period | 1 year | ||||
KyLinTV [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 11.80% | 11.80% | 11.80% | 17.10% | |
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Number of common shares equated with each award | 1 |
Basis of Presentation and Sig36
Basis of Presentation and Significant Accounting Policies (Schedule of Useful Lives of Depreciable Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computer hardware [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Basis of Presentation and Sig37
Basis of Presentation and Significant Accounting Policies (Schedule of Useful Lives of Amortizable Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 4 years 4 months 24 days |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 7 years |
Completed technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 5 years |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 7 years |
Business Combination (Narrative
Business Combination (Narratives) (Details) - USD ($) $ in Thousands | Jun. 04, 2015 | Jan. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 17, 2008 |
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 | |||||
Interest rate of convertible promissory note | 3.16% | |||||
Acquisition-related expenses | $ 360 | $ 806 | $ 0 | |||
Contracts receivable | 16,668 | |||||
Interest income recognized | 343 | |||||
DivX [Member] | ||||||
Business Combination [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Total consideration | $ 59,018 | |||||
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 | |||||
Number of share issued upon conversion of note | 25,840,956 | |||||
Contracts receivable | $ 16,668 |
Business Combination (Schedule
Business Combination (Schedule of Total Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Total purchase price allocation | |||
Contracts receivable | $ 16,668 | ||
Goodwill | 11,496 | $ 11,327 | $ 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 (Schedul40
Business Combination (Schedule of Identifiable Intangible Assets Acquired and Their Respective Useful Lives) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Combination [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 4 years 4 months 24 days |
Trademarks [Member] | |
Business Combination [Line Items] | |
Identifiable intangible assets acquired, Useful Life | 7 years |
DivX [Member] | |
Business Combination [Line Items] | |
Identifiable intangible assets acquired, Amount | $ 28,500 |
DivX [Member] | Developed technology [Member] | |
Business Combination [Line Items] | |
Identifiable intangible assets acquired, Amount | $ 14,400 |
Identifiable intangible assets acquired, Useful Life | 5 years |
DivX [Member] | Customer relationships [Member] | |
Business Combination [Line Items] | |
Identifiable intangible assets acquired, Amount | $ 9,400 |
Identifiable intangible assets acquired, Useful Life | 5 years |
DivX [Member] | Trademarks [Member] | |
Business Combination [Line Items] | |
Identifiable intangible assets acquired, Amount | $ 4,700 |
Identifiable intangible assets acquired, Useful Life | 7 years |
Business Combination (Schedul41
Business Combination (Schedule of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Business Combination [Line Items] | ||
2,016 | $ 5,492 | |
2,017 | 5,477 | |
2,018 | 5,431 | |
2,019 | 5,431 | |
2,020 | 1,068 | |
Thereafter | 728 | |
Total | 23,627 | $ 406 |
DivX [Member] | ||
Business Combination [Line Items] | ||
2,016 | 5,431 | |
2,017 | 5,431 | |
2,018 | 5,431 | |
2,019 | 5,431 | |
Thereafter | 1,798 | |
Total | $ 23,522 |
Business Combination (Schedul42
Business Combination (Schedule of Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pro forma information | ||
Total revenue | $ 96,283 | $ 81,751 |
Net income (loss) | $ 23,691 | $ (21,878) |
Income (loss) per share - basic and diluted | $ 0.10 | $ (0.10) |
Property, Plant and Equipment43
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 23,484 | $ 18,591 | |
Accumulated depreciation | 16,899 | 14,761 | |
Net book value | 6,585 | 3,830 | |
Depreciation expense | 2,265 | 1,378 | $ 1,390 |
Computer hardware [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 15,036 | 13,528 | |
Accumulated depreciation | 11,317 | 9,885 | |
Net book value | 3,719 | 3,643 | |
Computer software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 4,721 | 4,450 | |
Accumulated depreciation | 4,513 | 4,428 | |
Net book value | 208 | 22 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 61 | 58 | |
Accumulated depreciation | $ 36 | $ 58 | |
Net book value | |||
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 839 | $ 384 | |
Accumulated depreciation | 430 | 270 | |
Net book value | 409 | 114 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 2,827 | 171 | |
Accumulated depreciation | 603 | 120 | |
Net book value | $ 2,224 | $ 51 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill and Intangible Assets [Abstract] | |
Balance | $ 11,327 |
Acquisition of DivX | 169 |
Balance | $ 11,496 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 41,898 | $ 13,398 | |
Accumulated amortization | 18,271 | 12,992 | |
Total | 23,627 | 406 | |
Amortization expense | $ 5,279 | 1,244 | $ 2,365 |
Identifiable intangible assets acquired, Useful Life | 4 years 4 months 24 days | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 20,903 | 11,503 | |
Accumulated amortization | 13,121 | 11,337 | |
Total | 7,782 | 166 | |
Completed technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 16,000 | 1,600 | |
Accumulated amortization | 4,240 | 1,360 | |
Total | $ 11,760 | 240 | |
Identifiable intangible assets acquired, Useful Life | 5 years | ||
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 4,995 | 295 | |
Accumulated amortization | $ 910 | $ 295 | |
Total | |||
Identifiable intangible assets acquired, Useful Life | 7 years |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets (Schedule of Estimated Amortization Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets [Abstract] | ||
2,016 | $ 5,492 | |
2,017 | 5,477 | |
2,018 | 5,431 | |
2,019 | 5,431 | |
2,020 | 1,068 | |
Thereafter | 728 | |
Total | $ 23,627 | $ 406 |
Economic Dependence and Conce47
Economic Dependence and Concentration of Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 23.00% | ||
Revenue [Member] | NHL [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 18.00% | 20.00% |
Revenue [Member] | LG Electronics [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 33.00% | 53.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Rogers Media [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 28.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | NHL [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Samsung Companies [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Toshiba Companies [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | NBA [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 51.00% | 59.00% | |
Accounts Payable [Member] | Customer Concentration Risk [Member] | NHL [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 49.00% | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | UFC [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 37.00% | 10.00% | |
Accounts Payable [Member] | Customer Concentration Risk [Member] | NBA [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Cash and Cash Equivalents [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 83.00% | ||
Cash and Cash Equivalents [Member] | Moody's, A3 Rating [Member] | |||
Concentration Risk [Line Items] | |||
Credit quality | A3 | ||
Cash and Cash Equivalents [Member] | Standard & Poor's, BBB+ Rating [Member] | |||
Concentration Risk [Line Items] | |||
Credit quality | BBB+ | ||
Cash And Cash Equivalent One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 39.00% | ||
Cash And Cash Equivalent One [Member] | Moody's, A3 Rating [Member] | |||
Concentration Risk [Line Items] | |||
Credit quality | AA1 | ||
Cash And Cash Equivalent One [Member] | Standard & Poor's, BBB+ Rating [Member] | |||
Concentration Risk [Line Items] | |||
Credit quality | AA- | ||
Cash And Cash Equivalent Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 26.00% | ||
Cash And Cash Equivalent Two [Member] | Moody's, A3 Rating [Member] | |||
Concentration Risk [Line Items] | |||
Credit quality | Baa1 | ||
Cash And Cash Equivalent Two [Member] | Standard & Poor's, BBB+ Rating [Member] | |||
Concentration Risk [Line Items] | |||
Credit quality | BBB+ |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 26, 2010 | Feb. 25, 2010 | Dec. 31, 2008 | |
KyLinTV [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party costs | $ 0 | $ 46 | $ 170 | |||
Revenues from related party | $ 118 | $ 123 | $ 254 | |||
Equity interest | 11.80% | 11.80% | 11.80% | 17.10% | ||
Amount invested in equity method investment by third party | $ 10,000 | |||||
Investment in affiliate | $ 0 | |||||
Cumulative losses | $ 4,360 | |||||
Renaissance Property Associates, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Selling, general and administrative expense from related parties | $ 430 | $ 430 | ||||
AvantaLion LLC [Member] | KyLinTV [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amount invested in equity method investment by third party | $ 1,000 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Revenue from related party | $ 1,061 | $ 1,368 | $ 2,233 |
New York Islanders Hockey Club, L.P. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | 292 | 311 | 311 |
Renaissance Property Associates, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | 120 | 120 | 120 |
Smile Train, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | 96 | 90 | 96 |
KyLinTV [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | $ 553 | $ 847 | $ 1,706 |
Related Party Transactions (S50
Related Party Transactions (Schedule of Amounts Due from (to) Related Parties) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Amounts due from (to) related parties | $ 286 | $ 111 |
New York Islanders Hockey Club, L.P. [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from (to) related parties | (18) | 3 |
Renaissance Property Associates, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from (to) related parties | 0 | 1 |
KyLinTV [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from (to) related parties | $ 304 | $ 107 |
401(k) Profit Sharing Plan (Det
401(k) Profit Sharing Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Aggregate net matching contributions | $ 912 | $ 485 | $ 436 |
Convertible Note (Details)
Convertible Note (Details) - USD ($) $ in Thousands | Jun. 04, 2015 | Jan. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 17, 2008 |
Debt Instrument [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Total consideration | $ 59,018 | |||||
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 | |||||
Number of share issued upon conversion of note | 25,840,956 | |||||
Interest rate of convertible promissory note | 3.16% | |||||
Gain on revaluation of convertible note derivative | $ 507 | |||||
Interest expense on the amortization of the debt discount | 123 | $ 234 | ||||
DivX [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Total consideration | $ 59,018 | |||||
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 | |||||
Number of share issued upon conversion of note | 25,840,956 | |||||
Gains (Losses) on Extinguishment of Debt | 610 | |||||
Fair value of the derivative liability | $ 816 | $ 713 | ||||
Gain on revaluation of convertible note derivative | $ 507 | |||||
Probability of note conversion by September 30, 2015 | 90.00% | |||||
Interest expense on the amortization of the debt discount | $ 123 |
Redeemable Preferred Stock (Con
Redeemable Preferred Stock (Conversion and Settlement Agreement) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Redeemable Preferred Stock [Abstract] | |
Pecuniary interest in JK&B Special Opp | 85.00% |
Common Stock [Member] | |
Conversion of Stock [Line Items] | |
Dividend on Preference Shares, shares | 8,176,210 |
Conversion And Settlement Agreement [Member] | |
Conversion of Stock [Line Items] | |
Conversion of Stock, Amount Converted | $ | $ 4,058 |
Conversion And Settlement Agreement [Member] | Common Stock [Member] | |
Conversion of Stock [Line Items] | |
Conversion of Stock, Shares Issued | 36,265,293 |
Dividend on Preference Shares, shares | 8,176,210 |
Conversion And Settlement Agreement [Member] | Class 3 Preference Shares [Member] | |
Conversion of Stock [Line Items] | |
Conversion of Stock, Shares Converted | 17,176,818 |
Conversion And Settlement Agreement [Member] | Class 3 Preference Shares [Member] | Common Stock [Member] | |
Conversion of Stock [Line Items] | |
Dividend on Preference Shares, shares | 5,737,691 |
Conversion And Settlement Agreement [Member] | Class 4 Preference Shares [Member] | |
Conversion of Stock [Line Items] | |
Conversion of Stock, Shares Converted | 10,912,265 |
Conversion And Settlement Agreement [Member] | Class 4 Preference Shares [Member] | Common Stock [Member] | |
Conversion of Stock [Line Items] | |
Dividend on Preference Shares, shares | 2,438,519 |
Stock Option and Stock-Based 54
Stock Option and Stock-Based Compensation Plans (Narrative) (Details) - USD ($) | Aug. 24, 2015 | May. 07, 2015 | May. 09, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Stock-based compensation | $ 2,702,000 | $ 1,438,000 | $ 1,417,000 | |||
Directors' compensation | $ 198,000 | $ 179,000 | 143,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,200,000 | 3,300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Fair Value | $ 606,000 | $ 3,129,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||
Fair value of unrestricted stock awards issued to various employees | $ 454,000 | |||||
New Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Weighted average exercise price of options exercisable | $ 1.01 | $ 0.95 | $ 0.44 | |||
Employee Stock Option [Member] | New Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Maximum contractual term | 5 years | |||||
Maximum number of shares of common stock issuable | 50,000,000 | |||||
Stock-based compensation expense (recovery) | $ 1,334,000 | $ 838,000 | $ 268,000 | |||
Expected life (in years) | 5 days | |||||
Unrecognized compensation cost | $ 8,599,000 | |||||
Unrecognized compensation cost, weighted-average recognition period | 3 years | |||||
Employee Stock Option [Member] | Old Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Maximum contractual term | 5 years | |||||
Maximum number of shares of common stock issuable | 4,000,000 | |||||
Maximum percentage of issued and outstanding shares of common stock issuable | 12.50% | |||||
Stock-based compensation expense (recovery) | $ 185,000 | 421,000 | $ 601,000 | |||
Non Vested Stock Option [Member] | Old Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Unrecognized compensation cost | 42,000 | |||||
Warrants [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Stock-based compensation expense (recovery) | $ 0 | $ 0 | ||||
Warrants [Member] | Granted To Merchant Bank [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Compensation cost recognized from plan modification | $ 373,264 | |||||
Warrants granted for consulting services | 1,894,741 | |||||
Warrants exercisable based on achieving performance targets | 1,894,741 | |||||
Directors' Compensation Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Minimum percent of retainer paid in common stock | 50.00% | |||||
Maximum number of shares of common stock issuable | 5,000,000 | |||||
Shares of common stock issued for plan | 290,575 | 156,226 | 295,244 | |||
Directors' compensation | $ 198,000 | $ 179,000 | $ 142,500,000 | |||
Restricted Stock [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Stock-based compensation | $ 985,000 | $ 0 | $ 0 |
Stock Option and Stock-Based 55
Stock Option and Stock-Based Compensation Plans (Private Placement) (Narrative) (Details) - 1 months ended Sep. 25, 2012 $ / shares in Units, $ in Millions | USD ($)$ / shares$ / Warrantsshares | CAD$ / Warrantsshares |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Private placement | $ | $ 4.6 | |
Units sold | 22,782,674 | 22,782,674 |
Exercise price of warrants | $ / shares | $ 0.30 | |
Warrant exercise period | 30 months | 30 months |
Common stock, number of shares associated with each unit | 1 | 1 |
Number of shares common stock each full Warrant entitles the holder to purchase | 1 | |
Broker Warrant [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Price per unit | $ / Warrants | 0.21 | 0.21 |
Cash commission to agent | CAD | CAD 299,251 | |
Cash commission, percent of gross proceeds | 8.00% | 8.00% |
Broker Warrants | 748,127 | |
Broker warrants granted, percent of units issued | 4.00% | 4.00% |
Stock Option and Stock-Based 56
Stock Option and Stock-Based Compensation Plans (Schedule of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
New Plan [Member] | |||
Number | |||
Outstanding, Beginning Balance | 17,264,495 | 14,193,000 | 415,000 |
Granted | 5,283,750 | 3,979,500 | 14,253,000 |
Exercised | (310,000) | (193,255) | |
Forfeited | (749,150) | (714,750) | (475,000) |
Outstanding, Ending Balance | 21,489,095 | 17,264,495 | 14,193,000 |
Weighted average exercise price | |||
Outstanding, Beginning Balance | $ 0.56 | $ 0.44 | $ 0.25 |
Granted | 1.01 | 0.95 | 0.44 |
Exercised | 0.51 | 0.43 | |
Forfeited | 0.92 | 0.47 | 0.27 |
Outstanding, Ending Balance | $ 0.66 | $ 0.56 | $ 0.44 |
Old Plan [Member] | |||
Number | |||
Outstanding, Beginning Balance | 7,892,175 | 10,074,500 | 16,502,500 |
Exercised | (2,981,875) | (2,026,262) | (2,598,771) |
Expired | (3,050,000) | ||
Forfeited | (47,000) | (156,063) | (779,229) |
Outstanding, Ending Balance | 4,863,300 | 7,892,175 | 10,074,500 |
Weighted average exercise price | |||
Outstanding, Beginning Balance | $ 0.38 | $ 0.40 | $ 0.44 |
Exercised | 0.49 | 0.51 | 0.47 |
Expired | 0.56 | ||
Forfeited | 0.56 | 0.10 | 0.34 |
Outstanding, Ending Balance | $ 0.31 | $ 0.38 | $ 0.40 |
Stock Option and Stock-Based 57
Stock Option and Stock-Based Compensation Plans (Schedule of Information Regarding Stock Options) (Details) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | 21,489,095 |
Weighted average remaining contractual life | 8 years |
Number exercisable | 7,346,748 |
Aggregate intrinsic value | $ | $ 1,258.453 |
Old Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | 4,863,300 |
Weighted average remaining contractual life | 10 months 24 days |
Number exercisable | 4,304,238 |
Aggregate intrinsic value | $ | $ 1,112,262 |
$0.18 [Member] | Old Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.18 |
Number outstanding | 2,236,250 |
Weighted average remaining contractual life | 1 year 4 months 24 days |
Number exercisable | 1,677,188 |
Aggregate intrinsic value | $ | $ 803,876 |
$ 0.29 [Member] | Old Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.29 |
Number outstanding | 25,000 |
Weighted average remaining contractual life | 7 months 6 days |
Number exercisable | 25,000 |
Aggregate intrinsic value | $ | $ 6,237 |
$ 0.36 [Member] | Old Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.36 |
Number outstanding | 247,000 |
Weighted average remaining contractual life | 4 months 24 days |
Number exercisable | 247,000 |
Aggregate intrinsic value | $ | $ 44,330 |
$ 0.39 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.39 |
Number outstanding | 385,495 |
Weighted average remaining contractual life | 7 years 2 months 12 days |
Number exercisable | 192,748 |
Aggregate intrinsic value | $ | $ 57,622 |
$ 0.43 [Member] | Old Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.43 |
Number outstanding | 2,355,050 |
Weighted average remaining contractual life | 4 months 24 days |
Number exercisable | 2,355,050 |
Aggregate intrinsic value | $ | $ 257,819 |
$ 0.44 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.44 |
Number outstanding | 11,503,750 |
Weighted average remaining contractual life | 7 years 7 months 6 days |
Number exercisable | 5,751,875 |
Aggregate intrinsic value | $ | $ 1,144,335 |
$ 0.48 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.48 |
Number outstanding | 900,000 |
Weighted average remaining contractual life | 2 years 7 months 6 days |
Number exercisable | 450,000 |
Aggregate intrinsic value | $ | $ 53,527 |
$ 0.49 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.49 |
Number outstanding | 60,000 |
Weighted average remaining contractual life | 7 years 6 months |
Number exercisable | 30,000 |
Aggregate intrinsic value | $ | $ 2,969 |
$ 0.59 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.59 |
Number outstanding | 57,750 |
Weighted average remaining contractual life | 9 years 10 months 24 days |
Number exercisable | |
Aggregate intrinsic value | $ | |
$ 0.94 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.94 |
Number outstanding | 6,286,500 |
Weighted average remaining contractual life | 9 years 4 months 24 days |
Number exercisable | 822,125 |
Aggregate intrinsic value | $ | |
$ 1.02 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 1.02 |
Number outstanding | 350,000 |
Weighted average remaining contractual life | 9 years 4 months 24 days |
Number exercisable | |
Aggregate intrinsic value | $ | |
$ 1.03 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 1.03 |
Number outstanding | 400,000 |
Weighted average remaining contractual life | 3 years 4 months 24 days |
Number exercisable | 100,000 |
Aggregate intrinsic value | $ | |
$ 1.06 [Member] | New Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 1.06 |
Number outstanding | 1,545,600 |
Weighted average remaining contractual life | 9 years 6 months |
Number exercisable | |
Aggregate intrinsic value | $ |
Stock Option and Stock-Based 58
Stock Option and Stock-Based Compensation Plans (Schedule of Assumptions Used) (Details) - Stock Options [Member] - New Plan [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average | |||
Exercise price of stock options granted | $ 1.01 | $ 0.95 | $ 0.44 |
Fair value of stock options granted | $ 0.85 | $ 0.64 | $ 0.34 |
Expected volatility | 98.00% | 87.00% | 87.00% |
Risk-free interest rate | 1.40% | 2.16% | 2.23% |
Expected life (in years) | 7 years | 7 years | 7 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Option and Stock-Based 59
Stock Option and Stock-Based Compensation Plans (Schedule of Warrant Activity) (Details) - Warrant [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number | |||
Outstanding, Beginning Balance | 4,959,206 | 11,952,269 | 19,383,269 |
Exercised | (2,967,465) | (6,993,063) | (2,486,000) |
Forfeited | (67,000) | ||
Expired | (4,945,000) | ||
Outstanding, Ending Balance | 1,924,741 | 4,959,206 | 11,952,269 |
Weighted average exercise price | |||
Outstanding, Beginning Balance | $ 0.27 | $ 0.28 | $ 0.37 |
Exercised | 0.30 | 0.29 | 0.30 |
Forfeited | 0.51 | ||
Expired | 0.63 | ||
Outstanding, Ending Balance | $ 0.25 | $ 0.27 | $ 0.28 |
Stock Option and Stock-Based 60
Stock Option and Stock-Based Compensation Plans (Schedule of Warrant Information) (Details) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding | 1,924,741 |
Weighted average remaining contractual life | 6 years 3 months 18 days |
Number exercisable | 1,924,741 |
Aggregate intrinsic value | $ | $ 605,133 |
$0.22 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 0.22 |
Number outstanding | 1,894,741 |
Weighted average remaining contractual life | 6 years 4 months 24 days |
Number exercisable | 1,894,741 |
Aggregate intrinsic value | $ | $ 605,133 |
$ 2.20 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price | $ / shares | $ 2.20 |
Number outstanding | 30,000 |
Weighted average remaining contractual life | 1 year 9 months 18 days |
Number exercisable | 30,000 |
Aggregate intrinsic value | $ |
Promissory Notes Receivable (De
Promissory Notes Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Oct. 17, 2008 | |
Convertible Note [Abstract] | ||
Promissory note | $ 209,250 | |
Interest rate of convertible promissory note | 3.16% | |
Debt instrument, maturity date | Oct. 17, 2017 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 25,916 | $ 3,567 | $ (2,278) |
Weighted average shares of common stock outstanding used in calculating basic EPS | 233,489,798 | 174,645,803 | 166,663,448 |
Effect of dilutive preferred stock, stock options and warrants | 11,856,883 | 40,065,559 | |
Weighted average shares of common stock outstanding used in calculating diluted EPS | 245,346,681 | 214,711,362 | 166,663,448 |
Basic EPS | $ 0.11 | $ 0.01 | $ (0.01) |
Diluted EPS | $ 0.11 | $ 0.01 | $ (0.01) |
Earnings Per Share (Schedule 63
Earnings Per Share (Schedule of Anit-dilutive Securities) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class 3 Preference Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 17,176,818 | 17,176,818 | |
Class 4 Preference Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 10,912,265 | 10,912,265 | |
Stock Options [Member] | 2012 Omnibus Securities and Incentive Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 21,489,095 | 17,264,495 | 14,193,000 |
Stock Options [Member] | Fourth Amended and Restated Stock Option Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 4,863,300 | 7,892,175 | 10,074,500 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 1,924,741 | 4,959,206 | 11,952,269 |
Restricted Stock [Member] | 2012 Omnibus Securities and Incentive Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 4,438,000 |
Commitments and Contingencies64
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Lease, Gross | |
2,016 | $ 2,512 |
2,017 | 1,711 |
2,018 | 1,144 |
2,019 | 915 |
2,020 | 103 |
Operating Lease, Gross | 6,385 |
Operating Lease, Recovery | |
2,016 | (719) |
2,017 | $ (391) |
2,018 | |
2,019 | |
2,020 | |
Operating Lease, Recovery | $ (1,110) |
Operating Lease, Net | |
2,016 | 1,793 |
2,017 | 1,320 |
2,018 | 1,144 |
2,019 | 915 |
2,020 | 103 |
Operating Lease, Net | 5,275 |
Operating Lease, Minimum Guarantees | |
2,016 | 3,192 |
2,017 | 1,256 |
2,018 | $ 239 |
2,019 | |
2,020 | |
Operating Lease, Minimum Guarantees | $ 4,687 |
Operating Lease, Total | |
2,016 | 4,985 |
2,017 | 2,576 |
2,018 | 1,383 |
2,019 | 915 |
2,020 | 103 |
Operating Lease, Total | $ 9,962 |
Commitments and Contingencies65
Commitments and Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Other Commitments [Line Items] | |
Minimum fixed revenue guarantee period to customers | 5 years |
Expected amount of sublease recovery over next two year period | $ 1.1 |
Maximum [Member] | |
Other Commitments [Line Items] | |
Minimum fixed bandwidth fees commitment period with certain vendors | 18 months |
Minimum [Member] | |
Other Commitments [Line Items] | |
Minimum fixed bandwidth fees commitment period with certain vendors | 12 months |
Segmented Information (Schedule
Segmented Information (Schedule of Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers [Line Items] | |||
Revenues | $ 94,043 | $ 55,520 | $ 47,107 |
Revenue [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
North America [Member] | |||
Revenues from External Customers [Line Items] | |||
Revenues | $ 64,146 | $ 51,418 | $ 44,375 |
North America [Member] | Revenue [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration Risk, Percentage | 68.00% | 93.00% | 94.00% |
Asia [Member] | |||
Revenues from External Customers [Line Items] | |||
Revenues | $ 20,100 | $ 436 | $ 896 |
Asia [Member] | Revenue [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 0.00% | 2.00% |
Europe [Member] | |||
Revenues from External Customers [Line Items] | |||
Revenues | $ 6,249 | $ 2,568 | $ 1,535 |
Europe [Member] | Revenue [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration Risk, Percentage | 7.00% | 5.00% | 3.00% |
Australia [Member] | |||
Revenues from External Customers [Line Items] | |||
Revenues | $ 3,548 | $ 1,098 | $ 301 |
Australia [Member] | Revenue [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration Risk, Percentage | 4.00% | 2.00% | 1.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Release of valuation allowance included in deferred tax expense | $ 27,667 | $ 1,023 | $ (774) |
Change in the current and non-current valuation allowance | (11,438) | ||
Net change in the total valuation allowance | (39,105) | $ 129 | |
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating tax loss ("NOL's") carryforwards | $ 71,525 | ||
Net operating tax loss ("NOL's") carryforwards, year of expiration | Dec. 31, 2024 | ||
Net operating tax loss ("NOL's") carryforwards related to goodwill amortization | $ 17,625 | ||
Internal Revenue Service (IRS) [Member] | Research and Development Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | $ 210 | ||
Tax credit carryforward, expiration date | Dec. 31, 2033 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating tax loss ("NOL's") carryforwards | $ 32,782 | ||
Net operating tax loss ("NOL's") carryforwards, year of expiration | Dec. 31, 2016 | ||
Net operating tax loss ("NOL's") carryforwards related to goodwill amortization | $ 13,112 | ||
State and Local Jurisdiction [Member] | Research and Development Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 86 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating tax loss ("NOL's") carryforwards | 10,397 | ||
Tax credit carryforward | $ 7,897 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Domestic | $ (2,475) | $ 4,405 | $ (1,541) |
Foreign | 544 | (567) | (460) |
Total income (loss) before income taxes | $ (1,931) | $ 3,838 | $ (2,001) |
Income Taxes (Schedule of Com69
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | |||
State | $ 67 | ||
Foreign | 4,457 | ||
Total current | 4,524 | ||
Deferred: | |||
Federal | (32,534) | $ 254 | $ 254 |
State | 468 | $ 17 | $ 23 |
Foreign | (305) | ||
Total deferred | (32,371) | $ 271 | $ 277 |
Income tax expense (benefit) | $ (27,847) | $ 271 | $ 277 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Combined basic federal rate | 35.00% | 35.00% | 35.00% |
Income tax benefit based on statutory income tax rate | $ (676) | $ 1,343 | $ (700) |
Non-deductible expenses and state taxes | 496 | (49) | 203 |
Change in valuation allowance | (27,667) | (1,023) | 774 |
Income tax expense (benefit) | $ (27,847) | $ 271 | $ 277 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax assets | ||
Accrued expenses and deferred revenue | $ 1,795 | |
Valuation allowance | (1,758) | |
Total current deferred tax asset | $ 37 | |
Non-current deferred tax assets | ||
Accrued expenses and deferred revenue | $ 3,430 | |
Intangible assets and goodwill | $ 4,528 | |
Stock options | $ 385 | 536 |
Net operating losses | 28,543 | $ 38,717 |
Credits | 8,097 | |
Other | 1,465 | |
Valuation allowance | (6,330) | $ (43,677) |
Deferred tax assets | 35,590 | 104 |
Non-current deferred tax liabilities | ||
Property, plant and equipment | (2,078) | (81) |
Intangible assets and goodwill | (4,312) | (1,452) |
Foreign earnings | (11) | (60) |
Total non-current deferred tax liabilities | (6,401) | (1,593) |
Total net deferred tax liability | $ 29,189 | $ (1,452) |