Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Vringo Inc | |
Entity Central Index Key | 1410428 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | VRNG | |
Entity Common Stock, Shares Outstanding | 93,571,042 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $12,239 | $16,023 |
Deposits with courts | 2,070 | 2,067 |
Other current assets | 389 | 510 |
Total current assets | 14,698 | 18,600 |
Property and equipment, at cost, net of $610 and $389 accumulated depreciation as of March 31, 2015 and December 31, 2014, respectively | 0 | 221 |
Intangible assets, net | 16,821 | 17,625 |
Other assets | 989 | 989 |
Total assets | 32,508 | 37,435 |
Current liabilities | ||
Accounts payable and accrued expenses | 4,750 | 4,731 |
Derivative warrant liabilities | 0 | 1 |
Total current liabilities | 4,750 | 4,732 |
Long-term liabilities | ||
Derivative warrant liabilities | 0 | 174 |
Other liabilities | 1,507 | 1,349 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity | ||
Series A Convertible Preferred stock, $0.01 par value per share; 5,000,000 authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value per share 150,000,000 authorized; 93,571,042 and 93,404,895 issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 936 | 934 |
Additional paid-in capital | 217,996 | 215,951 |
Accumulated deficit | -192,681 | -185,705 |
Total stockholders’ equity | 26,251 | 31,180 |
Total liabilities and stockholders’ equity | $32,508 | $37,435 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $610 | $389 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 150,000,000 | 150,000,000 |
Common stock, issued | 93,571,042 | 93,404,895 |
Common stock, outstanding | 93,571,042 | 93,404,895 |
Series A convertible preferred stock [Member] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | $150 | $250 |
Costs and Expenses* | ||
Operating legal costs | 3,101 | 4,875 |
Amortization of intangibles | 804 | 957 |
General and administrative | 2,998 | 4,243 |
Total operating expenses | 6,903 | 10,075 |
Operating loss from continuing operations | -6,753 | -9,825 |
Non-operating income (expense), net | -223 | 1 |
Gain (loss) on revaluation of warrants | 0 | -1,076 |
Loss from continuing operations before income taxes | -6,976 | -10,900 |
Income tax expense | 0 | 0 |
Loss from continuing operations | -6,976 | -10,900 |
Loss from discontinued operations before income taxes* | 0 | -209 |
Income tax expense | 0 | 0 |
Loss from discontinued operations | 0 | -209 |
Net loss | -6,976 | -11,109 |
Basic | ||
Loss per share from continuing operations | ($0.07) | ($0.13) |
Loss per share from discontinued operations | $0 | $0 |
Total net loss per share | ($0.07) | ($0.13) |
Diluted | ||
Loss per share from continuing operations | ($0.07) | ($0.13) |
Loss per share from discontinued operations | $0 | $0 |
Total net loss per share | ($0.07) | ($0.13) |
Weighted-average number of shares outstanding during the period: | ||
Basic | 93,404,895 | 85,457,670 |
Diluted | 93,404,895 | 85,457,670 |
* Includes stock-based compensation expense, as follows: | ||
Stock Based Compensation Expense | 1,872 | 2,800 |
Operating legal costs [Member] | ||
* Includes stock-based compensation expense, as follows: | ||
Stock Based Compensation Expense | 318 | 343 |
General and Administrative [Member] | ||
* Includes stock-based compensation expense, as follows: | ||
Stock Based Compensation Expense | 1,554 | 2,306 |
Discontinued Operations [Member] | ||
* Includes stock-based compensation expense, as follows: | ||
Stock Based Compensation Expense | $0 | $151 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands | ||||
Balance at Dec. 31, 2013 | $114,282 | $845 | $189,465 | ($76,028) |
Exercise of stock options and vesting of RSU | 1,944 | 13 | 1,931 | 0 |
Exercise of warrants | 2,011 | 7 | 2,004 | 0 |
Stock-based compensation | 2,800 | 0 | 2,800 | 0 |
Net loss for the period | -11,109 | 0 | 0 | -11,109 |
Balance at Mar. 31, 2014 | 109,928 | 865 | 196,200 | -87,137 |
Balance at Dec. 31, 2014 | 31,180 | 934 | 215,951 | -185,705 |
Exercise of stock options and vesting of RSU | 0 | 2 | -2 | 0 |
Change in classification of derivative warrants to equity warrants | 175 | 0 | 175 | 0 |
Stock-based compensation | 1,872 | 0 | 1,872 | 0 |
Net loss for the period | -6,976 | 0 | 0 | -6,976 |
Balance at Mar. 31, 2015 | $26,251 | $936 | $217,996 | ($192,681) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($6,976) | ($11,109) |
Items not affecting cash flows | ||
Depreciation and amortization | 1,025 | 1,141 |
Stock-based compensation | 1,872 | 2,800 |
Change in fair value of warrants | 0 | 1,076 |
Exchange rate loss, net | 226 | 20 |
Changes in current assets and liabilities | ||
Decrease in other current assets | 120 | 139 |
Increase (decrease) in payables and accruals | 231 | -2,560 |
Net cash used in operating activities | -3,502 | -8,493 |
Cash flows from investing activities | ||
Acquisition of property and equipment | 0 | -72 |
Increase in deposits | -278 | 0 |
Net cash used in investing activities | -278 | -72 |
Cash flows from financing activities | ||
Exercise of stock options | 0 | 1,531 |
Exercise of warrants | 0 | 1,265 |
Cash provided by financing activities | 0 | 2,796 |
Effect of exchange rate changes on cash and cash equivalents | -4 | 1 |
Decrease in cash and cash equivalents | -3,784 | -5,768 |
Cash and cash equivalents at beginning of period | 16,023 | 33,586 |
Cash and cash equivalents at end of period | 12,239 | 27,818 |
Non-cash investing and financing transactions | ||
Non-cash acquisition of cost method investment | 0 | 787 |
Conversion of derivative warrants into common stock | 0 | 746 |
Change in classification of derivative warrants to equity warrants | $175 | $0 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
General [Abstract] | |
General | Note 1. General |
Overview | |
Vringo, Inc., together with its consolidated subsidiaries (“Vringo” or the “Company”), is engaged in the development and monetization of intellectual property worldwide. The Company's intellectual property portfolio consists of over 600 patents and patent applications covering telecom infrastructure, internet search and mobile technologies. The Company’s patents and patent applications have been developed internally or acquired from third parties. In potential acquisitions, the Company seeks to purchase all of, or interests in, technology and intellectual property in exchange for cash, the Company’s securities and/or interests in the monetization of those assets. Revenue from this aspect of Vringo’s business can be generated through licensing and litigation efforts. | |
Prior to December 31, 2013, the Company operated a global platform for the distribution of mobile social applications and the services that it developed. On February 18, 2014, the Company executed the sale of its mobile social application business to InfoMedia Services Limited (“InfoMedia”), receiving an 8.25% ownership interest in InfoMedia as consideration. As part of the transaction, the Company has the opportunity to license certain intellectual property assets and support InfoMedia to identify and protect new intellectual property. | |
Infrastructure Patents | |
The Company’s infrastructure patents are primarily made up of a patent portfolio purchased from Nokia Corporation (“Nokia”) in 2012. This patent portfolio is comprised of 124 patent families with counterparts in certain jurisdictions world-wide and encompass technologies relating to telecom infrastructure, including communication management, data and signal transmission, mobility management, radio resources management and services. Declarations were filed by Nokia indicating that 31 of the 124 patent families acquired may be essential to wireless communications standards. The Company also owns other acquired infrastructure patent portfolios and has filed over 60 internally developed patent applications. As one of the means of realizing the value of the patents on telecom infrastructure, the Company has filed a number of suits against ZTE Corporation (“ZTE”), ASUSTeK Computer Inc. (“ASUS”), and certain of their subsidiaries, affiliates and other companies in the United States, European jurisdictions, India, Australia, Brazil, and Malaysia alleging infringement of certain U.S., European, Indian, Australian, Brazilian, and Malaysian patents. | |
To date, in connection with the suits filed against ZTE, Vringo patents have been found to be infringed in the United Kingdom (“UK”) and Germany, and preliminary relief has been granted in India, Brazil, Romania, and the Netherlands. Separately, Vringo has entered into settlement and license agreements with ADT, Tyco, D-Link, and Belkin. | |
Search Patents | |
On September 15, 2011, the Company’s wholly-owned subsidiary, I/P Engine, Inc. (“I/P Engine”), initiated litigation against AOL Inc., Google, Inc., IAC Search & Media, Inc., Gannett Company, Inc., and Target Corporation (collectively, the “Defendants”) for infringement of claims of certain of its owned patents. Trial commenced during 2012, and, on November 6, 2012, the jury ruled in favor of I/P Engine and against the Defendants. After upholding the validity of the patents-in-suit, and determining that the asserted claims of the patents were infringed by the Defendants, the jury found that reasonable royalty damages should be based on a “running royalty,” and that the running royalty rate should be 3.5%. The jury also awarded I/P Engine a total of approximately $30.5 million. In January 2014, the United States District Court, Eastern District of Virginia (the “District Court”) ordered that I/P Engine recover an additional sum of $17.32 million from the Defendants for supplemental damages and prejudgment interest. Further, the District Court ruled that the appropriate ongoing royalty rate for Defendants' continued infringement of the patents-in-suit is a rate of 6.5% of the 20.9% royalty base previously set by the District Court. These rulings were appealed by the Defendants and the oral argument was heard before the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) on May 6, 2014. | |
On August 15, 2014, the Federal Circuit reversed the judgment of the District Court by holding that the claims of the patents-in-suit asserted by the Company against the Defendants are invalid for obviousness. The Company filed a petition with the Federal Circuit on October 15, 2014 seeking en banc review of the decision. On October 20, 2014, the Federal Circuit invited the defendants/appellants to respond to the petition. On December 15, 2014, the Federal Circuit denied I/P Engine's petition for rehearing of the case en banc and consequently, the Company announced that I/P Engine will seek review by the Supreme Court of the United States (“Supreme Court”) of the Federal Circuit’s decision. I/P Engine intends to file a petition for a writ of certiorari with the Supreme Court, which requests review of the Federal Circuit’s decision, by the May 14, 2015 deadline. | |
Financial conditions | |
As of March 31, 2015, the Company had a cash balance of $12,239. The Company’s average monthly cash spent in operations for the three-month periods ended March 31, 2015 and 2014 was approximately $1,167 and $2,831, respectively. In addition, the Company paid approximately $2,682 in deposits with courts beginning in the second quarter of 2014 to date, related to proceedings in Germany, Brazil, Romania, and Malaysia, which are included in Deposits with courts in the consolidated balance sheets as of March 31, 2015 and December 31, 2014. Deposits with courts paid in local currency are remeasured on the balance sheet date based on the related foreign exchange rate on that date. As of March 31, 2015, Deposits with courts totaled $2,070. As of March 31, 2015 and December 31, 2014, the Company’s total stockholders' equity was $26,251 and $31,180, respectively. The decrease in stockholders’ equity since December 31, 2014 is mainly due to the operating loss during the quarter ended March 31, 2015. | |
On May 4, 2015 (the “Closing Date”), the Company entered into a securities purchase agreement with certain institutional investors in a registered direct offering of $12,500 of Senior Secured Convertible Notes (the “Notes”) and certain warrants to purchase shares of the Company’s common stock. On the Closing Date, the Company issued the Notes, which are convertible into shares of the Company’s common stock at $1.00 per share, bear 8% interest and mature in 21 months from the date of issuance, unless earlier converted. In addition, the Company issued approximately 5.4 million warrants to purchase shares of the Company’s common stock, which are exercisable at $1.00 per share and are exercisable for a period of five years. In connection with the issuance of the Notes and warrants, the Company received net cash proceeds of $12,425 on May 5, 2015. The Company’s obligations under the outstanding Notes are secured by a first priority perfected security interest in substantially all of the Company’s U.S. assets. In addition, stock of certain subsidiaries of the Company has been pledged. The outstanding notes contain customary events of default, as well as covenants which include restrictions on the assumption of new debt by the Company. | |
The principal amount of the outstanding Notes will be repaid monthly, and the Company may make such payments and related interest payments in cash or, subject to certain conditions, in registered shares of the Company’s common stock, at its election. If the Company chooses to repay the Notes in shares of its common stock, the shares will be issued at a 15% discount, based on the then-current market price data of the Company’s common stock. The Company may also repay the Notes in advance of the maturity schedule subject to early repayment penalties. This transaction will be accounted for in the second quarter of fiscal 2015. As a result of this transaction, the Company’s cash balance as of May 5, 2015 is approximately $22,900. | |
The Company’s operating plans include efforts to increase revenue through the licensing of its intellectual property, strategic partnerships, and litigation, when required, which may be resolved through a settlement or collection. Disputes regarding the assertion of patents and other intellectual property rights are highly complex and technical. The majority of the Company’s expenditures consist of costs related to the Company’s litigation campaigns. In the cases against ZTE and ASUS, the Company incurred costs during the first quarter of 2015 related to the preparation and filing of briefs and other court documents, as well as case preparation and management. A large percentage of these costs were incurred in the UK and the U.S. In civil law jurisdictions, such as Germany, France, Spain, and others, the majority of costs are incurred in the early stages of litigation. With respect to the Company’s litigation in such countries, the respective campaigns are currently in the later stages and therefore the Company has already incurred the large majority of the related anticipated costs. As such, based on the Company’s plans, costs in these jurisdictions are projected to be lower in the remainder of 2015 and other future periods. | |
Despite the Company’s plans, its legal proceedings may continue for several years and may require significant expenditures for legal fees and other expenses. Further, should the Company be deemed the losing party in certain of its litigations, it may be liable for some or all of its opponents’ legal fees. In addition, in connection with litigation, the Company has made several affirmative financial guarantees to courts around the world, and might face the need to make additional guarantees in the future. | |
In addition, the Company’s plans to continue to expand its planned operations through acquisitions and monetization of additional patents, other intellectual property or operating businesses may be time consuming, complex and costly to consummate. The Company may utilize many different transaction structures in its acquisitions and the terms of such acquisition agreements tend to be heavily negotiated. The Company’s future ability to raise capital, if necessary, may be limited. Even if the Company is able to acquire particular patents or other intellectual property assets, there is no guarantee that it will generate sufficient revenue related to those assets to offset the acquisition costs. Therefore, no assurance can be given at this time as to whether the Company will be able to achieve its objectives or whether it will have the sources of liquidity for follow through with its operating plans. | |
In addition, until the Company generates sufficient revenue, the Company may need to raise additional funds, which may be achieved through the issuance of additional equity or debt, or through loans from financial institutions. There can be no assurance, however, that any such opportunities will materialize. The Company may also be able to raise additional funds through the exercise of its outstanding warrants and options, however, substantially all of such outstanding equity instruments are currently “out of the money”. | |
As a result of the events and circumstances described above, including the cash proceeds received in connection with the May 2015 financing transaction and the Company’s operating plans, which include paying the principal and interest related to the Notes in shares of the Company’s common stock, the Company believes that it currently has sufficient cash to continue its current operations for at least the next twelve months. | |
Accounting_and_Reporting_Polic
Accounting and Reporting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Policies | Note 2. Accounting and Reporting Policies |
(a) Basis of presentation and principles of consolidation | |
The accompanying interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period. All significant intercompany balances and transactions have been eliminated in consolidation. | |
(b) Use of estimates | |
The preparation of accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from such estimates. Significant items subject to such estimates and assumptions include the Company’s intangibles assets, the useful lives of the Company’s intangible assets, the valuation of the Company’s derivative warrants, the valuation of stock-based compensation, deferred tax assets and liabilities, income tax uncertainties and other contingencies. | |
(c) Translation into U.S. dollars | |
The Company conducts certain transactions in foreign currencies, which are recorded at the exchange rate as of the transaction date. All exchange gains and losses occurring from the remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected as non-operating income or expense in the consolidated statements of operations. | |
(d) Cash and cash equivalents | |
The Company invests its cash in money market funds with financial institutions. The Company has established guidelines relating to diversification and maturities of its investments in order to minimize credit risk and maintain high liquidity of funds. All highly liquid investments with original maturities of three months or less at acquisition date are considered cash equivalents. | |
(e) Derivative instruments | |
The Company recognizes all derivative instruments as either assets or liabilities in the consolidated balance sheets at their respective fair values. Derivative instruments are revalued at each reporting date, with changes in the fair value of the instruments included in the consolidated statements of operations as non-operating income (expense). As of March 31, 2015, the Company does not have any outstanding derivative instruments. | |
(f) Intangible assets | |
Intangible assets include purchased patents which are recorded based on the cost to acquire them. These assets are amortized over their remaining estimated useful lives, which are periodically evaluated for reasonableness. The Company’s intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In assessing the recoverability of the Company's intangible assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its intangible assets. | |
(g) Revenue recognition | |
Revenue from patent licensing and enforcement is recognized if collectability is reasonably assured, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and delivery of the service has been rendered. The Company uses management's best estimate of selling price for individual elements in multiple-element arrangements, where vendor specific evidence or third party evidence of selling price is not available. | |
Currently, the Company’s revenue arrangements provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to the Company’s patents. These rights typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patents, (ii) the release of the licensee from certain claims, and (iii) the dismissal of any pending litigation. The intellectual property rights granted typically extend until the expiration of the related patents. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the related technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement, or upon receipt of the upfront payment. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, upon receipt of the upfront fee, and when all other revenue recognition criteria have been met. | |
(h) Operating legal costs | |
Operating legal costs mainly include expenses incurred in connection with the Company’s patent licensing and enforcement activities, patent-related legal expenses paid to external patent counsel (including contingent legal fees), licensing and enforcement related research, consulting and other expenses paid to third parties, as well as related internal payroll expenses and stock-based compensation. In addition, amounts received by the Company for reimbursements of legal fees in connection with our litigation campaigns are recorded in Operating legal costs as contra-expense. | |
(i) Stock-based compensation | |
Stock-based compensation is recognized as an expense in the consolidated statements of operations and such cost is measured at the grant-date fair value of the equity-settled award. The fair value of stock options is estimated at the date of grant using the Black-Scholes-Merton option-pricing model. The expense is recognized on a straight-line basis, over the requisite service period. The Company uses the simplified method to estimate the expected term of options due to insufficient history and high turnover in the past. Since the Company lacks sufficient history, expected volatility is estimated based on a weighted average historical volatility of the Company and comparable entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve at the date of grant. | |
(j) Recently Issued Accounting Pronouncements | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity's revenue recognition. The core principle of the new standard is that revenue should be recognized 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 is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Topic 205): Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. | |
(k) Reclassification | |
Certain balances have been reclassified to conform to presentation requirements. | |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Intangible Assets | Note 3. Intangible Assets | ||||||||||
The following table provides information regarding the Company’s intangible assets, which consist of its patents: | |||||||||||
Weighted average | |||||||||||
March 31, 2015 | December 31, 2014 | amortization period (years) | |||||||||
Patents | 28,213 | 28,213 | 8.9 | ||||||||
Less: accumulated amortization and impairment | -11,392 | -10,588 | |||||||||
$ | 16,821 | $ | 17,625 | ||||||||
The Company’s patents consist of three major patent portfolios, which were acquired from third parties, as well as a number of internally developed patents. The costs related to internally developed patents are expensed as incurred. | |||||||||||
In August 2012, the Company purchased a portfolio from Nokia consisting of various patents and patent applications as described in Note 1. The total consideration paid for the portfolio was $22,000 and the Company capitalized certain costs related to the acquisition of patents in the total amount of $548. Under the terms of the purchase agreement, to the extent that the gross revenue generated by such portfolio exceeds $22,000, the Company is obligated to pay a royalty of 35% of such excess. The Company has not recorded any amounts in respect of this contingent consideration, as both the amounts of future potential revenue, if any, and the timing of such revenue cannot be reasonably estimated. | |||||||||||
The Company’s patents are amortized over their expected useful lives (i.e., through the expiration date of the patent). During the three-month periods ended March 31, 2015 and 2014, the Company recorded amortization expense of $804 and $957, respectively, related to its patents. | |||||||||||
During the third quarter of 2014, the Company determined that there were impairment indicators related to certain of its patents. A significant factor that was considered when making this determination included the announcement of the Federal Circuit’s decision on August 15, 2014 described in Note 1. The Company concluded that this factor was deemed a “triggering” event requiring that the related patent assets be tested for impairment during the third quarter of 2014. In performing this impairment test, the Company determined that the patent portfolio containing the patents-in-suit in I/P Engine's litigation against AOL Inc., Google Inc. et al, which represents an asset group, was subject to impairment testing. In the first step of the impairment test, the Company utilized its projections of future undiscounted cash flows based on the Company’s existing plans for the patents. As a result, it was determined that the Company’s projections of future undiscounted cash flows were less than the carrying value of the asset group. Accordingly, the Company performed the second step of the impairment test to measure the potential impairment by calculating the asset group’s fair value. This resulted in an impairment of $1,355 during the third quarter of 2014, related to the asset group, which represents the difference between the fair value and the carrying value of the asset group. There were no impairment charges related to the Company’s patents during the three-month periods ended March 31, 2015 and 2014. | |||||||||||
Net_Loss_per_Common_Share
Net Loss per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||
Net Loss per Common Share | Note 4. Net Loss per Common Share | |||||||
Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. However, as the Company generated net losses in all periods presented, some potentially dilutive securities that relate to the continuing operations, including certain warrants and stock options, were not reflected in diluted net loss per share because the impact of such instruments was anti-dilutive. The table below presents the computation of basic and diluted net losses per common share: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Basic Numerator: | ||||||||
Loss from continuing operations attributable to shares of common stock | $ | -6,976 | $ | -10,900 | ||||
Loss from discontinued operations attributable to shares of common stock | $ | - | $ | -209 | ||||
Net loss attributable to shares of common stock | $ | -6,976 | $ | -11,109 | ||||
Basic Denominator: | ||||||||
Weighted average number of shares of common stock outstanding during the period | 93,404,895 | 85,428,830 | ||||||
Weighted average number of penny stock options | - | 28,840 | ||||||
Basic common stock shares outstanding | 93,404,895 | 85,457,670 | ||||||
Basic loss per common stock share from continuing operations | $ | -0.07 | $ | -0.13 | ||||
Basic loss per common stock share from discontinued operations | $ | 0 | $ | 0 | ||||
Basic net loss per common stock share | $ | -0.07 | $ | -0.13 | ||||
Diluted Numerator: | ||||||||
Net loss from continuing operations attributable to shares of common stock | $ | -6,976 | $ | -10,900 | ||||
Increase in net loss attributable to derivative warrants | $ | - | $ | - | ||||
Diluted net loss from continuing operations attributable to shares of common stock | $ | -6,976 | $ | -10,900 | ||||
Diluted net loss from discontinued operations attributable to shares of common stock | $ | - | $ | -209 | ||||
Diluted net loss attributable to shares of common stock | $ | -6,976 | $ | -11,109 | ||||
Diluted Denominator: | ||||||||
Basic common stock shares outstanding | 93,404,895 | 85,457,670 | ||||||
Shares assumed issued upon exercise of derivative warrants during the period | - | - | ||||||
Diluted common stock shares outstanding | 93,404,895 | 85,457,670 | ||||||
Diluted loss per common stock share from continuing operations | $ | -0.07 | $ | -0.13 | ||||
Diluted loss per common stock share from discontinued operations | $ | 0 | $ | 0 | ||||
Diluted net loss per common stock share | $ | -0.07 | $ | -0.13 | ||||
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||||||||
Both vested and unvested options at $0.96-$5.50 exercise price, to purchase an equal number of shares of common stock of the Company | 9,202,345 | 10,331,409 | ||||||
Unvested RSU to issue an equal number of shares of common stock of the Company | 676,564 | 1,890,738 | ||||||
Common stock shares granted, but not yet vested | - | 14,331 | ||||||
Warrants to purchase an equal number of shares of common stock of the Company | 17,402,654 | 17,708,713 | ||||||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 27,281,563 | 29,945,191 | ||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Discontinued Operations and Assets Held For Sale | Note 5. Discontinued Operations | ||||
On February 18, 2014, the Company executed the sale of its mobile social application business to InfoMedia. As consideration for the assets and agreements related to the Company’s mobile social application business, the Company received 18 Class B shares of InfoMedia, which represent an 8.25% ownership interest in InfoMedia. Additionally, the Company’s Chief Executive Officer was appointed as a full voting member on InfoMedia’s board of directors and the Company received a number of customary protective rights. The InfoMedia Class B shares are accounted for as a cost-method investment at the carrying amount of $787 and are included in Other assets in the consolidated balance sheets as of March 31, 2015 and December 31, 2014. During the quarter ended March 31, 2015, there were no events or changes in circumstances that would indicate that the carrying amount of this investment may no longer be recoverable. | |||||
In connection with the sale of its mobile social application business, the Company is required to present the results of the Company’s mobile social application business as discontinued operations in the consolidated statements of operations. The following table represents the components of operating results from discontinued operations for the three months ended March 31, 2014, as presented in the consolidated statements of operations: | |||||
Revenue | $ | 37 | |||
Operating expenses | -266 | ||||
Operating loss | -229 | ||||
Non-operating income | 20 | ||||
Loss before taxes on income | -209 | ||||
Income tax expense | - | ||||
Loss from discontinued operations | $ | -209 | |||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||
Fair Value Measurements | Note 6. Fair Value Measurements | |||||||||||||
The Company measures fair value in accordance with FASB Accounting Standard Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures. FASB ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received by selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, FASB ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | ||||||||||||||
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||||||||||||
Level 2: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||
Level 3: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | ||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||||||||||||
The following table presents the placement in the fair value hierarchy of liabilities measured at fair value on a recurring basis as of December 31, 2014: | ||||||||||||||
Fair value measurement at reporting date using | ||||||||||||||
Quoted prices in | ||||||||||||||
active markets | Significant other | Significant | ||||||||||||
for identical | observable | unobservable | ||||||||||||
Derivative warrant liabilities | Balance | assets (Level 1) | inputs (Level 2) | inputs (Level 3) | ||||||||||
As of December 31, 2014 | $ | 175 | $ | - | $ | - | $ | 175 | ||||||
The Company measures its derivative liabilities at fair value. The Conversion Warrants, the derivative Reload Warrants and the derivative Series 1 Warrants (as defined in Note 8) were classified within Level 3 because they were valued using the Black-Scholes-Merton and the Monte-Carlo models (as these warrants included down-round protection clauses), which utilize significant inputs that are unobservable in the market. On January 1, 2015, the down-round protection clauses associated with all of the Company’s outstanding derivative warrants expired and, as a result, these warrants no longer meet the criteria for liability classification. As such, the related liabilities were revalued as of January 1, 2015 and the balance of $175 was reclassified to equity as of March 31, 2015. | ||||||||||||||
In addition to the above, the Company’s financial instruments as of March 31, 2015 and December 31, 2014 consisted of cash, cash equivalents, receivables, accounts payable and deposits. The carrying amounts of all the aforementioned financial instruments approximate fair value. | ||||||||||||||
Valuation processes for Level 3 Fair Value Measurements | ||||||||||||||
Fair value measurement of the derivative warrant liabilities related to the Conversion Warrants, Reload Warrants and Series 1 Warrants (as defined in Note 8) fall within Level 3 of the fair value hierarchy. The fair value measurements are evaluated by management to ensure that changes are consistent with expectations of management based upon the sensitivity and nature of the inputs. | ||||||||||||||
December 31, 2014: | ||||||||||||||
Description | Valuation technique | Unobservable inputs | Range | |||||||||||
Conversion Warrants, derivative Reload Warrants and derivative Series 1 Warrants | Black-Scholes-Merton and the Monte-Carlo models | Volatility | 56.55% - 77.06% | |||||||||||
Risk free interest rate | 0.13% - 0.87% | |||||||||||||
Expected term, in years | 0.48 - 2.55 | |||||||||||||
Dividend yield | 0% | |||||||||||||
Sensitivity of Level 3 measurements to changes in significant unobservable inputs | ||||||||||||||
The inputs to estimate the fair value of the Company’s derivative warrant liabilities were the current market price of the Company’s common stock, the exercise price of the warrant, its remaining expected term, the volatility of the Company’s common stock price, the Company’s assumptions regarding the probability and timing of a down-round protection triggering event and the risk-free interest rate. Significant changes in any of those inputs in isolation can result in a significant change in the fair value measurement. Generally, an increase in the market price of the Company’s shares of common stock, an increase in the volatility of the Company’s shares of common stock, an increase in the remaining term of the warrant, or an increase of a probability of a down-round triggering event would each result in a directionally similar change in the estimated fair value of the Company’s warrants. Such changes would increase the associated liability while decreases in these assumptions would decrease the associated liability. An increase in the risk-free interest rate or a decrease in the positive differential between the warrant’s exercise price and the market price of the Company’s shares of common stock would result in a decrease in the estimated fair value measurement of the warrants and thus a decrease in the associated liability. The Company has not, and does not plan to, declare dividends on its common stock, and as such, there is no change in the estimated fair value of the warrants due to the dividend assumption. | ||||||||||||||
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||
Stock-based Compensation | Note 7. Stock-based Compensation | ||||||||||||||||||||
The Company has a stock-based compensation plan available to grant stock options and RSU to the Company’s directors, employees and consultants. Under the 2012 Employee, Director and Consultant Equity Incentive Plan (the “Plan”), a maximum of 15,600,000 shares of common stock may be awarded. As of March 31, 2015, 4,974,566 shares were available for future grants under the Plan. | |||||||||||||||||||||
The following table illustrates the stock options granted during the three month period ended March 31, 2015: | |||||||||||||||||||||
Fair market | Assumptions used in | ||||||||||||||||||||
No. of | Exercise | value at | Black-Scholes option | ||||||||||||||||||
Title | Grant date | options | price | grant date | Vesting terms | pricing model | |||||||||||||||
Directors and Employees | Jan-15 | 1,150,000 | $0.51 - $0.59 | $0.33 - $0.38 | Over 1 year for Directors; Over 3 years for Employees | Volatility: 74.9 % - 77.1% | |||||||||||||||
Risk free interest rate: 1.27% - 1.51% | |||||||||||||||||||||
Expected term, in years: 5.31-5.81 | |||||||||||||||||||||
Dividend yield: 0.00% | |||||||||||||||||||||
Certain options granted are subject to acceleration of vesting of 75% - 100% (according to the agreement signed with each grantee), upon a subsequent change of control. | |||||||||||||||||||||
The activity related to stock options and RSU during the three month period ended March 31, 2015 consisted of the following: | |||||||||||||||||||||
RSU | Options | ||||||||||||||||||||
Weighted average | Weighted average | ||||||||||||||||||||
No. of | grant date fair | No. of | Weighted average | Exercise price | grant date fair | ||||||||||||||||
RSU | value | options | exercise price | range | value | ||||||||||||||||
Outstanding at January 1, 2015 | 1,196,357 | $ | 3.64 | 8,052,345 | $ | 3.36 | $ | 0.96 - $5.50 | $ | 2.24 | |||||||||||
Granted | - | - | 1,150,000 | $ | 0.54 | $ | 0.51 - $0.59 | $ | 0.35 | ||||||||||||
Vested/Exercised | -166,147 | $ | 3.62 | - | - | - | - | ||||||||||||||
Forfeited | -353,646 | $ | 3.63 | - | - | - | - | ||||||||||||||
Expired | - | - | - | - | - | - | |||||||||||||||
Outstanding at March 31, 2015 | 676,564 | $ | 3.64 | 9,202,345 | $ | 3.01 | $ | 0.51 - $5.50 | $ | 2 | |||||||||||
Exercisable at March 31, 2015 | - | - | 6,876,927 | $ | 3.29 | $ | 0.51 - $5.50 | ||||||||||||||
The Company did not recognize tax benefits related to its stock-based compensation as there is a full valuation allowance recorded. | |||||||||||||||||||||
Warrants
Warrants | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Warrants and Rights Note Disclosure [Abstract] | ||||||||||||
Warrants | Note 8. Warrants | |||||||||||
The following table summarizes information about warrant activity during the three month period ended March 31, 2015: | ||||||||||||
Weighted average | Exercise | |||||||||||
No. of warrants | exercise price | price range | ||||||||||
Outstanding at January 1, 2015 | 17,402,654 | $ | 4.26 | $ | 0.94 - $5.06 | |||||||
Granted | - | $ | - | $ | - | |||||||
Exercised | - | $ | - | $ | - | |||||||
Outstanding at March 31, 2015 | 17,402,654 | $ | 4.26 | $ | 0.94 - $5.06 | |||||||
The Company’s outstanding warrants as of March 31, 2015 consist of the following: | ||||||||||||
Remaining | ||||||||||||
No. outstanding* | Exercise price | contractual life | Expiration Date | |||||||||
Series 1 Warrants | 1,490,250 | $ | 1.76 | 2.30 years | 19-Jul-17 | |||||||
Series 2 Warrants | 1,943,523 | $ | 1.76 | 2.30 years | 19-Jul-17 | |||||||
Conversion Warrants | 14,492 | $ | 0.94 | 0.22 years | 21-Jun-15 | |||||||
Reload Warrants | 758,023 | $ | 1.76 | 1.86 years | 6-Feb-17 | |||||||
IPO Warrants | 4,784,000 | $ | 5.06 | 0.22 years | 21-Jun-15 | |||||||
October 2012 Warrants | 3,000,000 | $ | 5.06 | 0.22 years | 21-Jun-15 | |||||||
June 2014 Warrants | 5,412,366 | $ | 5.06 | 0.22 years | 21-Jun-15 | |||||||
Outstanding as of March 31, 2015 | 17,402,654 | |||||||||||
* All outstanding warrants as of March 31, 2015 are classified as equity. | ||||||||||||
Revenue_from_Settlements_and_L
Revenue from Settlements and Licensing Agreements | 3 Months Ended |
Mar. 31, 2015 | |
Revenue from Settlement and Licensing Agreement [Abstract] | |
Revenue from Settlement and Licensing Agreement | Note 9. Revenue from Settlements and Licensing Agreements |
During the first quarter of 2015, the Company entered into a confidential agreement with D-Link, effective March 10, 2015, that resolved all litigation pending between the parties. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies |
Litigation and legal proceedings | |
The Company retains the services of professional service providers, including law firms that specialize in intellectual property licensing, enforcement and patent law. These service providers are often retained on an hourly, monthly, project, contingent or a blended fee basis. In contingency fee arrangements, a portion of the legal fee is based on predetermined milestones or the Company’s actual collection of funds. The Company accrues contingent fees when it is probable that the milestones will be achieved and the fees can be reasonably estimated. | |
The Company’s subsidiaries have filed patent infringement lawsuits against the subsidiaries of ZTE and its subsidiaries in the UK, France, Germany, Netherlands, Australia, India, Brazil, Malaysia, and Romania, and against ASUS and its subsidiaries in Germany, Spain and India. In such jurisdictions, an unsuccessful plaintiff may be required to pay a portion of the other party’s legal fees. In addition, the Company may be required to grant additional written commitments, as necessary, in connection with its commenced proceedings against ZTE and its subsidiaries in various countries. It should be noted, however, that if the Company were successful on any court applications or the entirety of any litigation, the defendants may be responsible for a substantial portion of the Company’s legal fees. | |
Pursuant to negotiation with ZTE’s UK subsidiary, the Company made two written commitments, in November 2012 and May 2013, representing payment should a liability by Vringo Infrastructure arise as a result of the two cases it has filed. Each of the cases filed include three patents which the Company has alleged are infringed by ZTE. The defendants estimated the total possible liability to be no more than approximately $2,900 for each case. | |
In March 2014, the Company withdrew one of the patents included in the first case against ZTE’s UK subsidiary. ZTE withdrew its invalidity counterclaims. | |
In November 2014, with respect to another patent included in the first case, the Court found that Vringo’s patent is valid as amended and infringed by ZTE. ZTE did not appeal the decision, and the decision is final. | |
On February 17, 2015, Vringo withdrew its infringement claims against ZTE on three of the four remaining European Patents in suit in the second litigation in the UK. ZTE subsequently withdrew its invalidity counterclaims in respect of these three patents. | |
On April 10, 2015, Vringo and ZTE reached an agreement in relation to the remaining European Patent in issue (EP (UK) 1 330 933) in the second patent case in the UK in which the parties will withdraw their respective claims and counterclaims. | |
The Company recorded its best estimate of its liability in respect of ZTE’s legal fees, which is presented in Other liabilities included in the consolidated balance sheets as of March 31, 2015 and December 31, 2014. | |
On September 13, 2013 and January 28, 2014, Vringo Germany filed two suits in the Regional Court of Düsseldorf, alleging infringement of two European patents by ZTE’s German subsidiary. Those cases were heard by the Court on November 27, 2014. On January 22, 2015, the Court issued its judgment, finding that ZTE does not infringe either patent. On February 17, 2015, Vringo filed notices of appeal for each patent. The appeal process is anticipated to take at least one year. | |
On May 5, 2014, the Company deposited a bond of €1,000 (approximately $1,085 as of March 31, 2015) to enforce an injunction against ZTE in Germany. Should the injunction be successfully overturned on appeal, the Company may be obligated to compensate ZTE for any damages allegedly suffered as a result of the enforcement of the injunction, which would be ascertained through separate damages proceedings. Should the judgment which granted the injunction be affirmed on appeal, however, the amount paid as security would be returnable to the Company in full. The Company has assessed the likelihood of the injunction being successfully overturned on appeal as remote. | |
In Brazil, as a condition of the relief requested, the Company deposited R$2,020 on April 17, 2014 (approximately $621 as of March 31, 2015), as a surety against the truth of allegations contained in the complaint. This deposit is returnable at the end of the litigation unless ZTE is the prevailing party and proves that actual material damages were suffered while the requested relief was in place. The Company has assessed the likelihood of ZTE doing so as remote. | |
In Romania, Vringo Infrastructure filed a patent infringement lawsuit against ZTE in the Bucharest Tribunal Civil Section on June 23, 2014 and the Court granted an ex-parte preliminary injunction, ordering ZTE to cease any importation, exportation, introduction on the market, offer for sale, storage, sale, trade, distribution, promotion, or any other business activity regarding the infringing product. The Company deposited a bond of €243 on February 11, 2015 (approximately $264 as of March 31, 2015) with the Court in order to continue to enforce the injunction. | |
The bond deposits in Germany and Romania and the surety deposit in Brazil are included in Deposits with courts in the consolidated balance sheets as of March 31, 2015 and December 31, 2014. | |
Leases | |
In July 2012, the Company signed a rental agreement for its corporate executive office in New York for an annual rental fee of approximately $137 (subject to certain adjustments) which was to expire in September 2015. In January 2014, the Company entered into an amended lease agreement with the landlord for a different office space within the same building. The initial annual rental fee for this new office is approximately $403 (subject to certain future escalations and adjustments) beginning on August 1, 2014, which was the date when the new office space was available. This lease will expire in October 2019. Rent expense for operating leases for the three month periods ended March 31, 2015 and 2014 were $91 and $112, respectively. | |
Risks_and_Uncertainties
Risks and Uncertainties | 3 Months Ended | ||
Mar. 31, 2015 | |||
Risks and Uncertainties [Abstract] | |||
Risks and Uncertainties | Note 11. Risks and Uncertainties | ||
(a) | New legislation, regulations or rulings that impact the patent enforcement process or the rights of patent holders could negatively affect the Company’s current business model. For example, limitations on the ability to bring patent enforcement claims, limitations on potential liability for patent infringement, lower evidentiary standards for invalidating patents, increases in the cost to resolve patent disputes and other similar developments could negatively affect the Company’s ability to assert its patent or other intellectual property rights. | ||
(b) | The patents owned by the Company are presumed to be valid and enforceable. As part of the Company’s ongoing legal proceedings, the validity and/or enforceability of its patents is often challenged in a court or an administrative proceeding. On August 15, 2014, the Federal Circuit reversed a judgment of the United States District Court for the Eastern District of Virginia by holding that the asserted claims of the patents-in-suit in I/P Engine's litigation against AOL Inc., Google Inc. et al. are invalid for obviousness. Additionally, during the second half of 2014, the Patent Re-Examination Board of the State Intellectual Property Office of the People’s Republic of China held that nine of the Company's Chinese patents, and partial claims on two of the Company’s other Chinese patents, are invalid. The Company is appealing these decisions. The Company’s other patents have not been declared to be invalid or unenforceable to date. | ||
(c) | Financial instruments which potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents with various major financial institutions. These major financial institutions are located in the United States and the Company’s policy is designed to limit exposure to any one institution. | ||
(d) | A portion of the Company’s expenses are denominated in foreign currencies. If the value of the U.S. dollar weakens against the value of these currencies, there will be a negative impact on the Company’s operating costs. In addition, the Company is subject to the risk of exchange rate fluctuations to the extent it holds monetary assets and liabilities in these currencies. | ||
(e) | The Company may choose to raise additional funds in connection with any potential acquisition of patent portfolios or other intellectual property assets or operating businesses. In addition, the Company may also need additional funds to respond to business opportunities and challenges, including its ongoing operating expenses, protection of its assets, development of new lines of business and enhancement of its operating infrastructure. While the Company may need to seek additional funding, it may not be able to obtain financing on acceptable terms, or at all. If the Company is unable to obtain additional funding on a timely basis, it may be required to curtail or terminate some of its business plans. | ||
Accounting_and_Reporting_Polic1
Accounting and Reporting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation and principles of consolidation | (a) Basis of presentation and principles of consolidation |
The accompanying interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the entire fiscal year or for any other interim period. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Use of estimates | (b) Use of estimates |
The preparation of accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from such estimates. Significant items subject to such estimates and assumptions include the Company’s intangibles assets, the useful lives of the Company’s intangible assets, the valuation of the Company’s derivative warrants, the valuation of stock-based compensation, deferred tax assets and liabilities, income tax uncertainties and other contingencies. | |
Translation into U.S. dollars | (c) Translation into U.S. dollars |
The Company conducts certain transactions in foreign currencies, which are recorded at the exchange rate as of the transaction date. All exchange gains and losses occurring from the remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected as non-operating income or expense in the consolidated statements of operations. | |
Cash and cash equivalents | (d) Cash and cash equivalents |
The Company invests its cash in money market funds with financial institutions. The Company has established guidelines relating to diversification and maturities of its investments in order to minimize credit risk and maintain high liquidity of funds. All highly liquid investments with original maturities of three months or less at acquisition date are considered cash equivalents. | |
Derivative instruments | (e) Derivative instruments |
The Company recognizes all derivative instruments as either assets or liabilities in the consolidated balance sheets at their respective fair values. Derivative instruments are revalued at each reporting date, with changes in the fair value of the instruments included in the consolidated statements of operations as non-operating income (expense). As of March 31, 2015, the Company does not have any outstanding derivative instruments. | |
Intangible assets | (f) Intangible assets |
Intangible assets include purchased patents which are recorded based on the cost to acquire them. These assets are amortized over their remaining estimated useful lives, which are periodically evaluated for reasonableness. The Company’s intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In assessing the recoverability of the Company's intangible assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its intangible assets. | |
Revenue recognition | (g) Revenue recognition |
Revenue from patent licensing and enforcement is recognized if collectability is reasonably assured, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and delivery of the service has been rendered. The Company uses management's best estimate of selling price for individual elements in multiple-element arrangements, where vendor specific evidence or third party evidence of selling price is not available. | |
Currently, the Company’s revenue arrangements provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to the Company’s patents. These rights typically include some combination of the following: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patents, (ii) the release of the licensee from certain claims, and (iii) the dismissal of any pending litigation. The intellectual property rights granted typically extend until the expiration of the related patents. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the related technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement, or upon receipt of the upfront payment. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, upon receipt of the upfront fee, and when all other revenue recognition criteria have been met. | |
Operating legal costs | (h) Operating legal costs |
Operating legal costs mainly include expenses incurred in connection with the Company’s patent licensing and enforcement activities, patent-related legal expenses paid to external patent counsel (including contingent legal fees), licensing and enforcement related research, consulting and other expenses paid to third parties, as well as related internal payroll expenses and stock-based compensation. In addition, amounts received by the Company for reimbursements of legal fees in connection with our litigation campaigns are recorded in Operating legal costs as contra-expense. | |
Stock-based compensation | (i) Stock-based compensation |
Stock-based compensation is recognized as an expense in the consolidated statements of operations and such cost is measured at the grant-date fair value of the equity-settled award. The fair value of stock options is estimated at the date of grant using the Black-Scholes-Merton option-pricing model. The expense is recognized on a straight-line basis, over the requisite service period. The Company uses the simplified method to estimate the expected term of options due to insufficient history and high turnover in the past. Since the Company lacks sufficient history, expected volatility is estimated based on a weighted average historical volatility of the Company and comparable entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve at the date of grant. | |
Recently Issued Accounting Pronouncements | (j) Recently Issued Accounting Pronouncements |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which impacts virtually all aspects of an entity's revenue recognition. The core principle of the new standard is that revenue should be recognized 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 is effective for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Topic 205): Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. | |
Reclassification | (k) Reclassification |
Certain balances have been reclassified to conform to presentation requirements. | |
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Components of Finite-Lived Intangible Assets | The following table provides information regarding the Company’s intangible assets, which consist of its patents: | ||||||||||
Weighted average | |||||||||||
March 31, 2015 | December 31, 2014 | amortization period (years) | |||||||||
Patents | 28,213 | 28,213 | 8.9 | ||||||||
Less: accumulated amortization and impairment | -11,392 | -10,588 | |||||||||
$ | 16,821 | $ | 17,625 | ||||||||
Net_Loss_per_Common_Share_Tabl
Net Loss per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||
Computation of Net Loss per Common Share | The table below presents the computation of basic and diluted net losses per common share: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Basic Numerator: | ||||||||
Loss from continuing operations attributable to shares of common stock | $ | -6,976 | $ | -10,900 | ||||
Loss from discontinued operations attributable to shares of common stock | $ | - | $ | -209 | ||||
Net loss attributable to shares of common stock | $ | -6,976 | $ | -11,109 | ||||
Basic Denominator: | ||||||||
Weighted average number of shares of common stock outstanding during the period | 93,404,895 | 85,428,830 | ||||||
Weighted average number of penny stock options | - | 28,840 | ||||||
Basic common stock shares outstanding | 93,404,895 | 85,457,670 | ||||||
Basic loss per common stock share from continuing operations | $ | -0.07 | $ | -0.13 | ||||
Basic loss per common stock share from discontinued operations | $ | 0 | $ | 0 | ||||
Basic net loss per common stock share | $ | -0.07 | $ | -0.13 | ||||
Diluted Numerator: | ||||||||
Net loss from continuing operations attributable to shares of common stock | $ | -6,976 | $ | -10,900 | ||||
Increase in net loss attributable to derivative warrants | $ | - | $ | - | ||||
Diluted net loss from continuing operations attributable to shares of common stock | $ | -6,976 | $ | -10,900 | ||||
Diluted net loss from discontinued operations attributable to shares of common stock | $ | - | $ | -209 | ||||
Diluted net loss attributable to shares of common stock | $ | -6,976 | $ | -11,109 | ||||
Diluted Denominator: | ||||||||
Basic common stock shares outstanding | 93,404,895 | 85,457,670 | ||||||
Shares assumed issued upon exercise of derivative warrants during the period | - | - | ||||||
Diluted common stock shares outstanding | 93,404,895 | 85,457,670 | ||||||
Diluted loss per common stock share from continuing operations | $ | -0.07 | $ | -0.13 | ||||
Diluted loss per common stock share from discontinued operations | $ | 0 | $ | 0 | ||||
Diluted net loss per common stock share | $ | -0.07 | $ | -0.13 | ||||
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||||||||
Both vested and unvested options at $0.96-$5.50 exercise price, to purchase an equal number of shares of common stock of the Company | 9,202,345 | 10,331,409 | ||||||
Unvested RSU to issue an equal number of shares of common stock of the Company | 676,564 | 1,890,738 | ||||||
Common stock shares granted, but not yet vested | - | 14,331 | ||||||
Warrants to purchase an equal number of shares of common stock of the Company | 17,402,654 | 17,708,713 | ||||||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 27,281,563 | 29,945,191 | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following table represents the components of operating results from discontinued operations for the three months ended March 31, 2014, as presented in the consolidated statements of operations: | ||||
Revenue | $ | 37 | |||
Operating expenses | -266 | ||||
Operating loss | -229 | ||||
Non-operating income | 20 | ||||
Loss before taxes on income | -209 | ||||
Income tax expense | - | ||||
Loss from discontinued operations | $ | -209 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the placement in the fair value hierarchy of liabilities measured at fair value on a recurring basis as of December 31, 2014: | |||||||||||||
Fair value measurement at reporting date using | ||||||||||||||
Quoted prices in | ||||||||||||||
active markets | Significant other | Significant | ||||||||||||
for identical | observable | unobservable | ||||||||||||
Derivative warrant liabilities | Balance | assets (Level 1) | inputs (Level 2) | inputs (Level 3) | ||||||||||
As of December 31, 2014 | $ | 175 | $ | - | $ | - | $ | 175 | ||||||
Fair Value Measurements Based Upon Sensitivity and Nature of Inputs | The fair value measurements are evaluated by management to ensure that changes are consistent with expectations of management based upon the sensitivity and nature of the inputs. | |||||||||||||
December 31, 2014: | ||||||||||||||
Description | Valuation technique | Unobservable inputs | Range | |||||||||||
Conversion Warrants, derivative Reload Warrants and derivative Series 1 Warrants | Black-Scholes-Merton and the Monte-Carlo models | Volatility | 56.55% - 77.06% | |||||||||||
Risk free interest rate | 0.13% - 0.87% | |||||||||||||
Expected term, in years | 0.48 - 2.55 | |||||||||||||
Dividend yield | 0% | |||||||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock Options and Restricted Stock Units Activity | The activity related to stock options and RSU during the three month period ended March 31, 2015 consisted of the following: | ||||||||||||||||||||
RSU | Options | ||||||||||||||||||||
Weighted average | Weighted average | ||||||||||||||||||||
No. of | grant date fair | No. of | Weighted average | Exercise price | grant date fair | ||||||||||||||||
RSU | value | options | exercise price | range | value | ||||||||||||||||
Outstanding at January 1, 2015 | 1,196,357 | $ | 3.64 | 8,052,345 | $ | 3.36 | $ | 0.96 - $5.50 | $ | 2.24 | |||||||||||
Granted | - | - | 1,150,000 | $ | 0.54 | $ | 0.51 - $0.59 | $ | 0.35 | ||||||||||||
Vested/Exercised | -166,147 | $ | 3.62 | - | - | - | - | ||||||||||||||
Forfeited | -353,646 | $ | 3.63 | - | - | - | - | ||||||||||||||
Expired | - | - | - | - | - | - | |||||||||||||||
Outstanding at March 31, 2015 | 676,564 | $ | 3.64 | 9,202,345 | $ | 3.01 | $ | 0.51 - $5.50 | $ | 2 | |||||||||||
Exercisable at March 31, 2015 | - | - | 6,876,927 | $ | 3.29 | $ | 0.51 - $5.50 | ||||||||||||||
Stock Option [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Schedule of Options Granted | The following table illustrates the stock options granted during the three month period ended March 31, 2015: | ||||||||||||||||||||
Fair market | Assumptions used in | ||||||||||||||||||||
No. of | Exercise | value at | Black-Scholes option | ||||||||||||||||||
Title | Grant date | options | price | grant date | Vesting terms | pricing model | |||||||||||||||
Directors and Employees | Jan-15 | 1,150,000 | $0.51 - $0.59 | $0.33 - $0.38 | Over 1 year for Directors; Over 3 years for Employees | Volatility: 74.9 % - 77.1% | |||||||||||||||
Risk free interest rate: 1.27% - 1.51% | |||||||||||||||||||||
Expected term, in years: 5.31-5.81 | |||||||||||||||||||||
Dividend yield: 0.00% | |||||||||||||||||||||
Warrants_Tables
Warrants (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Warrants and Rights Note Disclosure [Abstract] | ||||||||||||
Schedule Of Changes In Warrants Activity | The following table summarizes information about warrant activity during the three month period ended March 31, 2015: | |||||||||||
Weighted average | Exercise | |||||||||||
No. of warrants | exercise price | price range | ||||||||||
Outstanding at January 1, 2015 | 17,402,654 | $ | 4.26 | $ | 0.94 - $5.06 | |||||||
Granted | - | $ | - | $ | - | |||||||
Exercised | - | $ | - | $ | - | |||||||
Outstanding at March 31, 2015 | 17,402,654 | $ | 4.26 | $ | 0.94 - $5.06 | |||||||
Schedule Of Warrants Outstanding | The Company’s outstanding warrants as of March 31, 2015 consist of the following: | |||||||||||
Remaining | ||||||||||||
No. outstanding* | Exercise price | contractual life | Expiration Date | |||||||||
Series 1 Warrants | 1,490,250 | $ | 1.76 | 2.30 years | 19-Jul-17 | |||||||
Series 2 Warrants | 1,943,523 | $ | 1.76 | 2.30 years | 19-Jul-17 | |||||||
Conversion Warrants | 14,492 | $ | 0.94 | 0.22 years | 21-Jun-15 | |||||||
Reload Warrants | 758,023 | $ | 1.76 | 1.86 years | 6-Feb-17 | |||||||
IPO Warrants | 4,784,000 | $ | 5.06 | 0.22 years | 21-Jun-15 | |||||||
October 2012 Warrants | 3,000,000 | $ | 5.06 | 0.22 years | 21-Jun-15 | |||||||
June 2014 Warrants | 5,412,366 | $ | 5.06 | 0.22 years | 21-Jun-15 | |||||||
Outstanding as of March 31, 2015 | 17,402,654 | |||||||||||
* All outstanding warrants as of March 31, 2015 are classified as equity. | ||||||||||||
General_Additional_Information
General (Additional Information) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 06, 2012 | Jan. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | 5-May-15 | 4-May-15 | Dec. 31, 2014 | Feb. 18, 2014 | Dec. 31, 2013 |
Cost Method Investment Ownership Percentage | 8.25% | ||||||||
Royalty Rate | 3.50% | 20.90% | |||||||
Supplemental Damages And Prejudgment Interest | $17,320,000 | ||||||||
Running Royalty Amount | 30,500,000 | ||||||||
Ongoing Royalty Rate | 6.50% | ||||||||
Cash | 12,239,000 | ||||||||
Average Monthly Cash Spent In Operations | 1,167,000 | 2,831,000 | |||||||
Stockholders Equity | 26,251,000 | 109,928,000 | 31,180,000 | 114,282,000 | |||||
Payments for Deposits | 2,682,000 | ||||||||
Deposits Assets, Current | 2,070,000 | 2,067,000 | |||||||
Cash and cash equivalents | 12,239,000 | 27,818,000 | 22,900,000 | 16,023,000 | 33,586,000 | ||||
Subsequent Event [Member] | |||||||||
Proceeds From Issuance Of Notes Payable And Warrants | 12,425 | ||||||||
Subsequent Event [Member] | Warrant [Member] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | ||||||||
Class Of Warrant Or Right Term | 5 years | ||||||||
Warrants Issued During Period Shares | 5.4 | ||||||||
Senior Notes [Member] | Subsequent Event [Member] | |||||||||
Debt Discount Percentage | 15.00% | ||||||||
Debt Instrument, Face Amount | $12,500 | ||||||||
Debt Instrument, Convertible, Conversion Price | $1 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||
Debt Instrument, Term | 21 months |
Intangible_Assets_Schedule_of_
Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Patents | $28,213 | $28,213 |
Less: accumulated amortization and impairment | -11,392 | -10,588 |
Finite-Lived Intangible Assets, Net | $16,821 | $17,625 |
Weighted average amortization period (years) | 8 years 10 months 24 days |
Intangible_Assets_Additional_I
Intangible Assets (Additional Information) (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2012 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $804 | $957 | ||
Impairment of Intangible Assets, Finite-lived | 1,355 | |||
Gross Revenue By Portfolio Under Purchase Agreement | 22,000 | |||
Capitalize Cost Related To Acquisition Of Patents | 548 | |||
Royalty Payable On Excess Of Acquisition Cost | 35.00% | |||
Patents [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $804 | $957 |
Net_Loss_per_Common_Share_Comp
Net Loss per Common Share (Computation of basic and diluted net losses per common share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share Disclosure [Line Items] | ||
Loss from continuing operations attributable to shares of common stock | ($6,976) | ($10,900) |
Loss from discontinued operations attributable to shares of common stock | 0 | -209 |
Net loss attributable to shares of common stock | -6,976 | -11,109 |
Basic common stock shares outstanding | 93,404,895 | 85,457,670 |
Basic loss per common stock share from continuing operations | ($0.07) | ($0.13) |
Basic loss per common stock share from discontinued operations | $0 | $0 |
Basic net loss per common stock share | ($0.07) | ($0.13) |
Diluted common stock shares outstanding | 93,404,895 | 85,457,670 |
Diluted loss per common stock share from continuing operations | ($0.07) | ($0.13) |
Diluted loss per common stock share from discontinued operations | $0 | $0 |
Diluted net loss per common stock share | ($0.07) | ($0.13) |
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 27,281,563 | 29,945,191 |
Basic Numerator [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Loss from continuing operations attributable to shares of common stock | -6,976 | -10,900 |
Loss from discontinued operations attributable to shares of common stock | 0 | -209 |
Net loss attributable to shares of common stock | -6,976 | -11,109 |
Basic Denominator [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Weighted average number of shares of common stock outstanding during the period | 93,404,895 | 85,428,830 |
Weighted average number of penny stock options | 0 | 28,840 |
Basic common stock shares outstanding | 93,404,895 | 85,457,670 |
Basic loss per common stock share from continuing operations | ($0.07) | ($0.13) |
Basic loss per common stock share from discontinued operations | $0 | $0 |
Basic net loss per common stock share | ($0.07) | ($0.13) |
Diluted Numerator [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Loss from continuing operations attributable to shares of common stock | -6,976 | -10,900 |
Increase in net loss attributable to derivative warrants | 0 | 0 |
Diluted net loss from continuing operations attributable to shares of common stock | -6,976 | -10,900 |
Diluted net loss from discontinued operations attributable to shares of common stock | 0 | -209 |
Diluted net loss attributable to shares of common stock | ($6,976) | ($11,109) |
Diluted Denominator [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Basic common stock shares outstanding | 93,404,895 | 85,457,670 |
Shares assumed issued upon exercise of derivative warrants during the period | 0 | 0 |
Diluted common stock shares outstanding | 93,404,895 | 85,457,670 |
Diluted loss per common stock share from continuing operations | ($0.07) | ($0.13) |
Diluted loss per common stock share from discontinued operations | $0 | $0 |
Diluted net loss per common stock share | ($0.07) | ($0.13) |
Both vested and unvested options at $0.96-$5.50 exercise price, to purchase an equal number of shares of common stock of the Company [Member] | ||
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 9,202,345 | 10,331,409 |
Unvested Restricted Stock Units (“RSUâ€) [Member] | ||
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 676,564 | 1,890,738 |
Common stock shares granted, but not yet vested [Member] | ||
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 0 | 14,331 |
Warrants to purchase an equal number of shares of common stock of the Company [Member] | ||
Net loss per share data presented excludes from the calculation of diluted net loss the following potentially dilutive securities, as they had an anti-dilutive impact: | ||
Total number of potentially dilutive instruments, excluded from the calculation of net loss per share | 17,402,654 | 17,708,713 |
Net_Loss_per_Common_Share_Pare
Net Loss per Common Share (Parenthetical) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Earnings Per Share Disclosure [Line Items] | ||
Stock Option Exercise Price | $3.01 | $3.36 |
Maximum [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Stock Option Exercise Price | $5.50 | $5.50 |
Maximum [Member] | Stock Option [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Stock Option Exercise Price | $5.50 | |
Minimum [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Stock Option Exercise Price | $0.51 | $0.96 |
Minimum [Member] | Stock Option [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Stock Option Exercise Price | $0.96 |
Discontinued_Operations_Dispos
Discontinued Operations (Disposal Group Not Discontinued Operation Income Statement Disclosures) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | $37 | |
Operating expenses | -266 | |
Operating loss | -229 | |
Non-operating income | 20 | |
Loss before taxes on income | 0 | -209 |
Income tax expense | 0 | 0 |
Loss from discontinued operations | $0 | ($209) |
Discontinued_Operations_Additi
Discontinued Operations (Additional Information) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 18, 2014 |
In Thousands, unless otherwise specified | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost Method Investment Ownership Percentage | 8.25% | ||
Infomedia [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost Method Investment Ownership Percentage | 8.25% | ||
Cost Method Investments | $787 | $787 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Liabilities | |
Derivative warrant liabilities | $175 |
Fair Value, Inputs, Level 1 [Member] | |
Liabilities | |
Derivative warrant liabilities | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Liabilities | |
Derivative warrant liabilities | 0 |
Fair Value Inputs Level 3 [Member] | |
Liabilities | |
Derivative warrant liabilities | $175 |
Fair_Value_Measurements_Based_
Fair Value Measurements (Based Upon Sensitivity and Nature of Inputs) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Dividend yield | 0.00% |
Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Volatility | 56.55% |
Risk free interest rate | 0.13% |
Expected term, in years | 5 months 23 days |
Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Volatility | 77.06% |
Risk free interest rate | 0.87% |
Expected term, in years | 2 years 6 months 18 days |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Information) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | $175 |
Stockbased_Compensation_Schedu
Stock-based Compensation (Schedule Of Common Stock Options Granted) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Stockholders Equity [Line Items] | ||
No. of options | 1,150,000 | |
Exercise price | $3.01 | $3.36 |
Fair market value at grant date | $0.35 | |
Maximum [Member] | ||
Stockholders Equity [Line Items] | ||
Exercise price | $5.50 | $5.50 |
Minimum [Member] | ||
Stockholders Equity [Line Items] | ||
Exercise price | $0.51 | $0.96 |
Management Directors and Employees [Member] | ||
Stockholders Equity [Line Items] | ||
Grant Date | Jan-15 | |
No. of options | 1,150,000 | |
Vesting terms | Over 1 year for Directors; Over 3 years for Employees | |
Volatility Rate, Minimum | 74.90% | |
Volatility Rate, Maximum | 77.10% | |
Risk free interest rate, Minimum | 1.27% | |
Risk free interest rate, Maximum | 1.51% | |
Dividend yield | 0.00% | |
Management Directors and Employees [Member] | Maximum [Member] | ||
Stockholders Equity [Line Items] | ||
Exercise price | $0.59 | |
Fair market value at grant date | $0.38 | |
Expected term, in years | 5 years 9 months 22 days | |
Management Directors and Employees [Member] | Minimum [Member] | ||
Stockholders Equity [Line Items] | ||
Exercise price | $0.51 | |
Fair market value at grant date | $0.33 | |
Expected term, in years | 5 years 3 months 22 days |
Stockbased_Compensation_Stock_
Stock-based Compensation (Stock options and RSU activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders Equity [Line Items] | |
No. of options, Outstanding at January 1, 2015 | 8,052,345 |
No. of options, Granted | 1,150,000 |
No. of options, Vested/Exercised | 0 |
No. of options, Forfeited | 0 |
No. of options, Expired | 0 |
No. of options, Outstanding at March 31, 2015 | 9,202,345 |
No. of options, Exercisable at March 31, 2015 | 6,876,927 |
Exercise price range, Outstanding at January 1, 2015 | $3.36 |
Exercise price range, Granted | $0.54 |
Exercise price range, Vested/Exercised | $0 |
Exercise price range, Forfeited | $0 |
Exercise price range, Expired | $0 |
Exercise price range, Outstanding March 31, 2015 | $3.01 |
Exercise price range, Exercisable at March 31, 2015 | $3.29 |
Weighted average grant date fair value, Outstanding at January 1, 2015 | $2.24 |
Weighted average grant date fair value, Granted | $0.35 |
Weighted average grant date fair value, Vested/Exercised | $0 |
Weighted average grant date fair value, Forfeited | $0 |
Weighted average grant date fair value, Expired | $0 |
Weighted average grant date fair value, Outstanding at March 31, 2015 | $2 |
Restricted Stock [Member] | |
Stockholders Equity [Line Items] | |
Beginning Balance | 1,196,357 |
No. of RSUs, Granted | 0 |
No. of RSUs, Vested/Exercised | -166,147 |
No. of RSUs, Forfeited | -353,646 |
No. of RSUs, Expired | 0 |
Ending Balance | 676,564 |
No. of RSUs, Exercisable at March 31, 2015 | 0 |
Weighted average grant date fair value Outstanding at January 1, 2015 | $3.64 |
Weighted average grant date fair value, Granted | $0 |
Weighted average grant date fair value, Vested/Exercised | $3.62 |
Weighted average grant date fair value, Forfeited | $3.63 |
Weighted average grant date fair value, Expired | $0 |
Weighted average grant date fair value, Outstanding at March 31, 2015 | $3.64 |
Weighted average grant date fair value, Exercisable at March 31, 2015 | $0 |
Minimum [Member] | |
Stockholders Equity [Line Items] | |
Exercise price range, Outstanding at January 1, 2015 | $0.96 |
Exercise price range, Granted | $0.51 |
Exercise price range, Outstanding March 31, 2015 | $0.51 |
Exercise price range, Exercisable at March 31, 2015 | $0.51 |
Maximum [Member] | |
Stockholders Equity [Line Items] | |
Exercise price range, Outstanding at January 1, 2015 | $5.50 |
Exercise price range, Granted | $0.59 |
Exercise price range, Outstanding March 31, 2015 | $5.50 |
Exercise price range, Exercisable at March 31, 2015 | $5.50 |
Stockbased_Compensation_Additi
Stock-based Compensation (Additional Information) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders Equity [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,974,566 |
Maximum [Member] | |
Stockholders Equity [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Minimum [Member] | |
Stockholders Equity [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 75.00% |
Two Thousand Twelve Stock Option Plan [Member] | |
Stockholders Equity [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 15,600,000 |
Warrants_Schedule_Of_Changes_I
Warrants (Schedule Of Changes In Warrants Activity) (Details) (Warrant [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Beginning Balance | 17,402,654 | |
Granted | 0 | |
Exercised | 0 | |
Ending Balance | 17,402,654 | |
Outstanding at January 1, 2015, Weighted average exercise price | $4.26 | |
Granted, Weighted average exercise price | $0 | |
Exercised, Weighted average exercise price | $0 | |
Outstanding at March 31, 2015 , Weighted average exercise price | $4.26 | |
Granted, Exercise price range | $0 | |
Exercised, Exercise price range | $0 | |
Maximum [Member] | ||
Outstanding at January 1, 2015, Exercise price range | $5.06 | |
Outstanding at March 31, 2015, Exercise price range | $5.06 | |
Minimum [Member] | ||
Outstanding at January 1, 2015, Exercise price range | $0.94 | |
Outstanding at March 31, 2015, Exercise price range | $0.94 |
Warrants_Schedule_of_Warrants_
Warrants (Schedule of Warrants Outstanding) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
No. outstanding | 17,402,654 | [1] |
Series 1 Warrants [Member] | ||
No. outstanding | 1,490,250 | [1] |
Exercise price | $1.76 | |
Remaining contractual life | 2 years 3 months 18 days | |
Expiration Date | 19-Jul-17 | |
Series 2 Warrants [Member] | ||
No. outstanding | 1,943,523 | [1] |
Exercise price | $1.76 | |
Remaining contractual life | 2 years 3 months 18 days | |
Expiration Date | 19-Jul-17 | |
Conversion Warrants [Member] | ||
No. outstanding | 14,492 | [1] |
Exercise price | $0.94 | |
Remaining contractual life | 2 months 19 days | |
Expiration Date | 21-Jun-15 | |
Reload Warrants [Member] | ||
No. outstanding | 758,023 | [1] |
Exercise price | $1.76 | |
Remaining contractual life | 1 year 10 months 10 days | |
Expiration Date | 6-Feb-17 | |
IPO Warrants [Member] | ||
No. outstanding | 4,784,000 | [1] |
Exercise price | $5.06 | |
Remaining contractual life | 2 months 19 days | |
Expiration Date | 21-Jun-15 | |
October 2012 Warrants [Member] | ||
No. outstanding | 3,000,000 | [1] |
Exercise price | $5.06 | |
Remaining contractual life | 2 months 19 days | |
Expiration Date | 21-Jun-15 | |
June 2014 Warrants [Member] | ||
No. outstanding | 5,412,366 | [1] |
Exercise price | $5.06 | |
Remaining contractual life | 2 months 19 days | |
Expiration Date | 21-Jun-15 | |
[1] | All outstanding warrants as of March 31, 2015 are classified as equity. |
Commitments_and_Contingencies_
Commitments and Contingencies (Additional Information) (Details) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | 5-May-14 | Mar. 31, 2015 | Apr. 17, 2014 | Mar. 31, 2015 | Feb. 11, 2015 | Dec. 31, 2014 | Nov. 30, 2012 | 31-May-13 | Jul. 30, 2012 |
USD ($) | USD ($) | USD ($) | ZTE In Germany [Member] | ZTE In Germany [Member] | ZTE In Brazil [Member] | ZTE In Brazil [Member] | ZTE In Romania [Member] | ZTE In Romania [Member] | Until Renovation Of Building [Member] | Maximum [Member] | Maximum [Member] | New York [Member] | |
USD ($) | EUR (€) | USD ($) | BRL | USD ($) | EUR (€) | USD ($) | Written Commitment One [Member] | Written Commitment Two [Member] | USD ($) | ||||
USD ($) | USD ($) | ||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Rental expense for operating leases | $91 | $112 | |||||||||||
Guarantee placed for contingent loss in litigation | 2,900 | 2,900 | |||||||||||
Operating Lease Rent Expense Annual Fee | 403 | 137 | |||||||||||
Deposits Assets, Current | $2,070 | $2,067 | $1,085 | € 1,000 | $621 | 2,020 | $264 | € 243 |